Page 8 - STAT November 2022 for Magzter

COVER STORY

2022, is projected to reach a revised size
of $40.7 billion by 2026, growing at a
CAGR of 4.8% over the analysis period.
Rose, one of the segments analysed
in the report, is projected to grow at
a 5.4% CAGR, while growth in the
Chrysanthemum and Gerbera segment is
readjusted to a revised 4.8% CAGR.”

WEAKENING EUROPE, THE
FLOWER INDUSTRY ON
‘WAIT & WATCH’ MODE
Despite such a fortuitous outlook for the Space availability
upcoming years and a ‘peak season’ up and freight costs
ahead, growers and flower exporters are in are big pain points
a ‘wait and watch’ mode when it comes to
demand and availability of cargo legroom for us. In terms of Shailesh Kumar Rai, MD of Heritage
for the produce. space availability, Flowers Limited, a leading Kenyan
One huge indicator of the same will producer of high-quality roses who
be determined at the 2022 edition of the it is still not back exports them to the Middle East, Russia,
world's largest flower trade fair that will to pre-pandemic Australia, Europe, the UK, and Japan
be held from November 9-11, 2022 at told the publication, “Space availability
levels in air cargo. and freight costs are big pain points for
us. In terms of space availability, it is still
SHAILESH KUMAR RAI not back to pre-pandemic levels in air
HERITAGE FLOWERS LIMITED
cargo. Though the fuel prices are coming
down, we do not see any relenting in air
the Expo Haarlemmermeer, Vijfhuizen, freight costs. So far this year there have
Netherlands. not been any big orders from our buyers
Data gleaned from the Kenya for the season as everyone is on a wait
National Bureau of Statistics indicates and watch mode. Europe is going through
that the country exported approximately a challenging economic crisis and rising
210,000 tonnes of flowers worth $952 inflation, so the first priority is to buy
million in 2021. In fact, Kenya’s earnings essential commodities and not flowers
from exports of cut flowers, fruits, and which are a luxury. So buyers are waiting
vegetables or horticulture reportedly rose to see how the situation will pan out.
5% from 2021 from the previous year as Most of the growers and suppliers will
per data from its statistics department. meet at the flower show in Amsterdam
Ethiopian flower exports also accounted next week and we hope to gain much
for 84 % of the total foreign currency the more clarity on what the buyers want.”
country generated from the horticulture The peak season for the flower
sector over the last 10 months. It industry starts from 15th December
reportedly earned $421 million from until Christmas and then there is a low
flower exports in this period as per local season until it picks up again from 15th
news outlets. January until May, with a big spike around
While the EU and UK accounted for Valentine’s Day in February.
70 % of all flower exports, demand also Rai adds, “Compared with 2021, 2020,
surged from new markets like Australia, generally the buyers book 30 to 40%
Japan, Malaysia, and closer home from of your orders by November. During
Ghana and Nigeria. Valentine’s Day season in February, we get
Flower exports to Russia however three times higher production as we plan
went on pause once the country our production for that window so that
was excluded from the Society for from February 1-10 we get three times
Worldwide Interbank Financial higher production for the red varieties.
Telecommunication (SWIFT) So far, enquiries are coming but no one is
payment platform, making payments giving confirmed orders yet.”
a risky affair for Kenyan exporters and During the pandemic, many Africa-
businesses. based flower businesses, flower producers,

6 LUA NOVEMBER - DECEMBER 2022