Page 12 - LUA May June 2024 for Website

EVENT REPORT

Mary Githinji of Lamiflora, Ruth Muiruri of Wilmar Flowers and Lina Jamwa of Kenya Flower Council

Flower Council (KFC), Fresh Produce Beyond the cost of freight and
Consortium of Kenya (FPCK), African the Red Sea issues, one of the most
Airlines Association (AFRAA), Fresh important topics of discussion
Produce Exporters Association of Kenya throughout the conference was the
(FPEAK), Shippers Council of East Africa, logistics infrastructure that supports the
TradeMark Africa and Avacado Exporters flower and perishable trade from Kenya.
Association of Kenya. For instance, Praveen Singh, technical
Jamwa highlighted the Red Sea commercial manager, Black Tulip
crisis as a pressing logistical challenge, Group, pointed out that the floriculture
increasing transit times and freight costs. industry is growing at a steady pace but
The situation forced Kenyan exporters the logistics infrastructure is not built
to seek alternative routes like the Cape to handle the volumes. He particularly
of Good Hope, significantly impacting noted how much this infrastructure has to
logistical expenses and supply chain increase its handling capacity during the
dynamics. "Because of the Red Sea crisis, peaks of Valentine's Day or Mother's Day.
we are now using the Cape of Good “The Kenyan floriculture industry is
Hope, making our logistical expenses growing at a very good pace with a 7 to
high," noted Jamwa. 8 percent rate every year. It was above
As the representative of the shippers, 10 percent after the Covid-19 pandemic,
she also pointed out the cost of air in 2021 and 2022. On the other side, the
freight as one of the key things that infrastructure at the farm level and the imbalance between handling the logistics
the shippers like to take to the service airport does not match the pace,” he said. at the airport to the final destination. So
providers. “If there is a way that this “During Valentine's Day or Women's there is room for improvement in terms of
can be brought down, then this will Day, volumes go up three, four, five times. infrastructure,” he added.
actually make a very big difference in the This year, it was five to six times because, Many more stakeholders expressed
industry. We understand that there are in December, production was very down this concern about African and Kenyan
factors for this but good incentives from due to bad weather. So a lot of production logistics infrastructure to handle the
the government could actually bring came to Valentine’s Day and the volumes present and future volumes of perishables
down freight costs,” she added. were very huge. And there was an produced in the country.

MAY - JUNE 2024
10 MARCH - APRIL 2024
10 LUA LUA