Kenya’s cut-flower industry may be set to grow once again with direct flights opening in October to the United States. Kenya’s flower growers have been anticipating the direct flights for a few years now, according to Clement Tulezi., CEO Kenya Flower Council. Kenya’s cut-flower industry has blossomed since the 1980s, and now holds the biggest market share for exports to Europe. Kenya’s flower producers are hoping direct flights set to open between Nairobi and New York City could help them put down roots in a new market — the United States.
Kenya’s earnings from the United States horticulture market are set to rise to Sh10billion [98.6 million USD] on direct Nairobi to New York flights scheduled to start in October.
Kenya Flower Council chief executive Clement Tulezi said in an interview that the country is currently earning less than a billion from the US market.
Earnings from the horticulture sector hit Sh115 billion [1.1 billion USD] last year from Sh101 billion [996 million USD] announced in 2016. Companies licensed to export the flowers also increased to 386 from 356 in 2016.
The total export volumes increased by 26,303 tons to 159,961 tons in said period, while the value rose to 82.25 billion from 70.8 billion.
“We also expect that the direct flights would increase our Share of the US market from the current 0.4 per cent to 10 per cent,” Tulezi said.
“Kenya is looking at an opportunity to diversify our markets to the American market. And, we’re also looking — not to compete with the South Americans, who are the main producers or the main suppliers of flowers for North America — but look at complimenting the product. Because, our products are very different,” Tulezi said. Kenyan roses have a smaller head-size than the Columbian flowers that dominate the U.S. market, say growers in Naivasha, but Kenya’s varietals and low production costs could give it an edge.
While a small fraction of Kenya’s flowers currently end up in the U.S., the air freight stopover in Europe is a costly barrier to greater market access.
Mr. Tulezi agrees that direct flights are a good opportunity — if there is enough cargo space. “I think it will depend on how much freight is available, in terms of what can leave the country, and also of course how competitive Kenya can be against the South American exporters, which are very, very strong in terms of the U.S market”, Tulezi said.
Kenya-US direct flights
By attaining the highest International Aviation Safety Assessment status, Nairobi can now cement its position as the region’s aviation hub for both passengers and cargo. Direct flights to the US will significantly reduce the time taken to move cargo between the US and East Africa — from seven days to as little as a day.
However, direct flights are usually more expensive than connecting ones and so travellers should expect shorter but costlier flights. The direct flights will particularly enable East African businesses to exploit the currently under-utilised Agoa trade agreement with the US.
No Commitment So Far
Kenya Airways (KQ) is yet to commit that it will offer freight space for flower exporters as it begins maiden direct flights to the US in October.
According to Kenya Flower Council (KFC) CEO Clement Tulezi, KQ appears focused on growing passenger numbers as opposed to promoting trade through provision of space for cargo. “One thing we are looking at is how much of cargo space they (KQ) will have to airlift flowers from this country to the US. At the moment, we are not sure because in their business strategy, they are more focused on passenger numbers than cargo,” he said.
Speaking in Nairobi the International Flower Trade Expo, Mr Tulezi said flower exporters were in talks with KQ to help them leverage on direct flights to grow trade.
At the same event, Trade Principal Secretary Chris Kiptoo said he was also keen to see KQ commit some space for cargo - even though he was still in the dark on the issue, just like the exporters.
“We have optimism, even though when I spoke to the KQ chief executive (Sebastian Mikosz), he did not seem to give me good indication that we are actually going to carry flowers directly. We are really hoping that our flowers will be carried directly,” he said.
Quality Standards
Quality standards are stringent. Flowers must be flawless, conform to grading standards (which may be different to those for Europe), long vase life. Bunches or bouquets arranged according to pre -set parameters often in agreement with customer (stem length, flower size, petal count, and number of flowers or stems, bud opening stage). Colour mix and product mix are very important in connection to specific dates. No mechanical or pest/ disease damage, this goes beyond quality control as can lead to rejection of product at the border.
A stable, continuous cold chain from farm to sale point is essential to ensure a long vase life. This can bring significant logistical challenges, particularly when handling different flower types or arrangements.
Packaging and Product presentation
The main goal of packaging is protecting the flowers, however exporters cater to customer’s desires by packing solid colours, mixes, specific stem counts, sometimes weight. Boxes, sleeves, decorations and others are very important in the retail/ mass market scenario. Bar codes, certification and other information traceability are critical.
Bouquets: A specialized trade, largely consolidated into large companies often focusing exclusively on bouquet/ mass-market sales. Many flower and foliage types are needed and marketing departments within a company need to be structured so they can efficiently cater to the mass buyer.
Quality control, inventories and postharvest management can be challenging. The same is true of transportation and distribution logistics.
Certification
Eco-labels and certification are increasingly important. US consumers now recognize GLOBALGAP, Rainforest Alliance, FairTrade, Veriflora and MPS certificates, and some importers and traders (both wholesale and retail) now request them. Some mass marketers have their own certificate or recognize specific ones.
Environmental sustainability and Corporate Social Responsibility (CSR) are considered equally important. International suppliers to the US have standardized individual efforts in this respect, e.g. Flor Verde (Colombia), Flor Ecuador. Flower growers in the US have launched American Grown.
