Develop potential in flower farming

While on a recent Kenya Airways flight to Blantyre, Malawi, I came across an item on Kenya’s flowers in the February edition of the in-flight magazine, Msafiri.

For the national carrier, this was the right time to talk about flowers. The month of Valentine (whatever that is) means good business as the airline transports flowers across the world to meet the high demand of the season.

How can we make Kenya’s produce more competitive?

Flowers are a valued commodity used in households, offices and public functions for beautification. They are used to communicate messages of love, compassion, appreciation and empathy.

ECONOMY

Given as presents during occasions or to special guests, they also help enhance the ambience of the dining room.

A top income earner for Kenya with an export value is over $1 billion per year, flowers are also a major employer. The more than 500,000 workers in the floriculture sector support about two million people.

Besides the sector being a big taxpayer, it also supports many local businesses.

Kenya ranks fifth globally in flower exports, commanding 37 percent of the market in Europe. But there is an opportunity for growth.

The developed world accounts for 73 percent of the flower consumption, meaning the rest of the world consumes only 27 percent and Kenya could tap into this market.

COMPETITION

The sector can play a big role in Vision 2030, through which Kenya seeks to become a globally competitive, prosperous and industrialised middle-income nation with a high quality of life.

The vision has recognised the importance of sector focus in the drive towards national competitiveness and growth.

The relative success of the sector is a result of the policy stance taken by Kenya over time.

But we must be conscious of what our customers want, what our competitors are doing and what we must do to surmount the challenges.

Countries in the region are working to provide stiff competition to Kenya.

Ethiopia has attracted some flower farmers from Kenya because of its internal policy strength. Zambia, Uganda and Tanzania are developing their floriculture too.

POLICY

Policy weaknesses reduce our competitiveness. The sector is private sector-driven. But the ceiling for private sector performance is public sector performance.

Support from the public sector — in terms of public goods and facilitative policies — will help the private sector to perform.

Among priority areas to make the sector competitive are land policy and water.

Land is expensive and privately owned. The State ought to guarantee an investor land by buying it from the owner as many are unwilling to spend on expensive land that escalates cost and increases risks.

Secondly, the water policy has not served investors well. That is why they congregate around Lake Naivasha to access water, leading to possible pollution.

AFFORDABILITY

Investors should be facilitated to settle where they have advantages such as access to the market and good soils by guaranteeing them water supply.

Another concern is the cost of doing business. Red tape in terms of a high number of permits and licences, and time taken to register a business and process imports and exports should be addressed. The same applies to the cost and connection time for utilities.

The government has done a lot on infrastructure but more needs to be done. For instance, being a perishable commodity, the time flowers take to reach the market is crucial for quality.

The Nakuru-Nairobi highway, which carries the most flowers for export, needs to be expanded. Roads to the flower farms also need upgrading and good maintenance.

The government has pursued a policy of leaving the management of the flower activities to the private sector.

REWARDS

This has created inequalities between the small-scale farmer and the big ones. Affirmative action is needed for them to afford the cost of new technology, standards, chemicals and fertiliser.

Increasing access to flower farm inputs such as fertiliser, chemicals, greenhouses and packaging, as well as promoting local industries to produce the inputs, will bring benefits such as jobs.

Production of flowers involves technology and is risky. It targets sophisticated consumers conscious of quality standards and practices. This requires investment in research capability for existing institutions or new ones.

The floriculture sector’s importance to Kenya cannot be over-emphasised. It is an economic pillar and has great potential. We know what we must do to sustain its growth; let us do it.

Dr Mitiambo is chief consultant and director, Management Training and Development at Esami, in Arusha, Tanzania. [email protected]