Frank Ammerlaan: ‘ Why did you decide to go to Ethiopia?
“After we’d completed our studies in Business Administration and Plant Sciences respectively, my brother Wim and myself joined our parents in their business, a 3.3-ha rose nursery in Rijsenhout. But rose cultivation was becoming less profitable in the Netherlands, due to the increasing costs and the imports from Africa and South-America. So we decided to start a rose nursery in Ziway, as part of the Sher Ethiopia project. Our greenhouse in Rijsenhout is filled with cut hydrangeas nowadays.”

Why Ethiopia?
“In my final year at university, I studied which African country offered the best business opportunities for a rose farm. In those days, the safety in Ethiopia was an important advantage which they had over other countries. Ethiopia has a good climate, there’s little to no corruption and the country offers favourable conditions to investors with regards to taxations and loans. The population is proud of their country and wants to collaborate. And the fact that it was relatively easy to start up with Sher Ethiopia through a lease-purchase construction, really helped.”

How would you describe the country’s safety these days, after the riots of 2016?
“It’s been calm here for quite a while. The riots were local. Even though there weren’t any incidents in our region, everyone’s alert now. The Dutch government, the Agricultural Counsellor and various Ethiopian authorities are really on top of it at the moment, but you can’t expect 100% safety anywhere of course.

The Ethiopian delegation who spoke at the seminar pointed this out too. By African standards, Ethiopia is still a very safe country. The feeling of freedom still prevails. That’s how I feel, too.”

How do you like the country as an entrepreneur?
“It’s still Africa of course; nothing is easy. You’ve got to adjust. Lots of things are changing and developing. But the educational system is still behind. The infrastructure isn’t as far along as in the Netherlands either, but with all the heavy investments made these days, it’s going in the right direction. All our staff are Ethiopians – 1,200 people, most of them with little education. That isn’t always easy. But what we do in our company can actually be considered an excellent form of development work. It’s really satisfying when people develop themselves within our farm. Some of them started out as a labourer and have very important functions with the company now. Collaborating and respecting each other, that’s essential.”

Any plans to expand into the new horticultural area Hawassa?
“There are always plans, but expansion isn’t our goal. We currently have 38 hectares in production and ship 100 million roses to Royal FloraHolland’s auction and to clients in Japan and Dubai each year. We manage our processing and sales activities in the Netherlands ourselves. We’re not a low-cost business. We want to distinguish ourselves through a high level of quality. Expansion doesn’t necessarily lead to higher profits. We’re currently making a good living.”

A code of practice is a set of written rules which explains how people working in a particular profession/ sector should behave. Kenya has developed the KS1758 Code of Practice for Horticulture Industry: Part 1 deals with Floriculture, and Part 2 deals with Fruits and Vegetables, in line with international standards.

Recently, the fresh produce exporters of Kenya (FPEAK) held a successful Industry which attracted many stakeholders, including growers, suppliers, stakeholders, government agencies, and development agencies, among others. Speaking uring the conference Mr. Andrew Edewa of Compliance Kenya Ltd. took participants through the soon to be mandatory for exporters and producers to comply with KS1758 as a basic standard.

But then, why do organizations, industries and professions come up with the codes of conduct and practice? Are they really necessary?

Well, the horticulture industry in Kenya in conjunction with the government too, have developed their own code of practice to guide the players in the industry.

Read more: Understanding Code of Practice for Fresh Fruits and Vegetables

Osmosis is the passing of a liquid through a membrane from a lesser concentration to a greater concentration. Eventually, both liquids would be of equal concentrations. Figure 1, page 48, demonstrates how this reaction takes place. A good example of osmosis is how plants uptake water.

Reverse osmosis (RO) puts pressure on the greater concentrated liquid and forces it through the membrane to the lesser-concentrated liquid, hence the term, reverse osmosis. The membrane traps particles and impurities down to 0.0009 micron, and the effluent or permeate water is very clean and free from impurities. Figure 1 demonstrates how this works. So at its most basic level, reverse osmosis filters impurities from a liquid, namely water.

By starting with water that is free from impurities and minerals, RO water can help make growing more calculable, since the water quality is constant. Nutrients can be better controlled without having to worry about what is in the water source at the beginning of the irrigation process. Contaminants in the water source, such as iron, manganese, calcium, magnesium and chlorine, can react with the nutrients and cause problems with fertilizer mix.

Read more: Reverse Osmosis Systems Enhance Water Quality of East-African Growers

Sylvie Mamias from Union Fleurs told the conference that her organization is involved in lobbying and advocacy on behalf of flower exporters, especially into the European Union. Her organization has worked with the Kenya Flower Council on the economic partnership agreement with the EU. She talked about the challenges and opportunities that exist for market diversification globally. She mentioned that whereas Kenyan flower producers have a competitive edge over their competitors in the region, there is still alot of room for diversification. She called for concerted efforts and constant dialogue between the industry players in order to understand the needs and requirements for getting into emerging markets, and the need to optimise the enabling environment for market diversification. She urged players to identify where potential growth markets are and to understand how they can best penetrate them.

Ms. Mercy Achola of Value Connect said Kenya can diversify its market for flowers in the Middle East, especially via Dubai, which is an economic hub and through which exporters can access two thirds of the world within 8 hours, and one third of the world population within four hours. “There are 200 nationalities living and working in Dubai and Dubai is well connected by sea, air and road. It has a population of 52 million people, and it is the gateway to the Middle East. Of the 52 million people, half of them are representatives of an expatriate community, who are high spending consumers and this is an opportunity that Kenyan flower exporters need to take advantage of,” she said.

Currently, the challenges exporters face are like a long documentation process, little cargo space and abrupt downgrading of aircrafts. She suggested that there needs to be a balance between how fast the documentation can be done and making sure that producers export flowers that meet international standards and quality. The flower industry also needs to approach the airlines as one, especially now that they have the Kenya Horticultural Council to speak for them.

Ms. Matthea Van der Mollen from Royal FloraHolland Kenya spoke about expanded market opportunities that are opening up in China because of its large population of young and working class. This is an opportunity for Kenyan flower exporters to diversify to the Far East. Her organization is helping to build a trade link from Kenya to three cities in China - Shanghai, Beijing and Guangzhou. Shanghai alone has a population of 24 million people, many of them already consuming flowers. Royal FloraHolland has discovered that more Chinese are buying flowers and other items online and this is something that exporters need to keep in mind as they seek to penetrate the Chinese market.

Exporters should focus on women ages 25 to 40, most of whom are the consumers of flowers. Challenges of handling, storage and logistics exist but Royal FloraHolland is working with other stakeholders to try and overcome these challenges. They estimate that by 2020, 200 million stems from Kenya and Ethiopia will be exported to China.

Mr. J.M Mandelbaum from Steward Ventures told the meeting that it is unfortunate that banks in Kenya ignore biologicals and don’t count them as collateral when they consider a farmer’s assets. He said that Steward Ventures is developing crop insurance in Kenya for flowers and they are also educating lenders about how they can use the crop insurance and the crop to bring comfortable lending for crop producers. He said they are working with lenders and lawyers in trying to de-risk lenders’ experience in cultivation and in trade. He said that de-risking of flower value chain will create sustainability in the industry since it will remove the risks and uncertainties inherent in the flower industry in Kenya.

Mrs. Jane Ngige from KFC said that Kenyan flower producers have done very well in terms of exporting roses, having 40% of the European market share, what is the next crop after the roses in this country? She added that KFC has cultivated a new working relationship with the government, and with stakeholders in the civil society to make sure that the industry works in a more harmonious and in a sustainable manner.

Mr. Charles Ongwae from the Kenya Bureau of Standards (KEBS) informed the conference that the role of Kenya Bureau of Standards is to develop standards in commerce and industry and in that regard; KEBS has worked with Kenya Flower Council (KFC), Fresh Producer Exporters Association of Kenya (FPEAK) and other key stakeholders to revise KS1758. He encouraged all producers to implement standards to help them in planning, to improve their operational efficiencies and for cutting down costs. He said KEBS works with flower producers to protect the consumer from exposure to certain chemicals which might be dangerous to their health. He encouraged the producers to embrace KS1758 in order to become more effective and efficient in their businesses.

Mr. James Wahome from the Kenya Plant and Health Inspectorate Service (KEPHIS) told the conference that all standards applied in the country are found in Cap 319 of the Agricultural Export Act of the Kenyan Laws. He reminded participants that different countries have different laws that govern the import of goods into their countries. He urged the sector players to always consult with KEPHIS in order to keep abreast with the standards and the requirements that are necessary. He spoke of challenges that exporters are likely to encounter like interceptions in the international market, and inconsistencies in rules which keep changing, especially in the EU market. He said that market access is a dynamic function that also keeps changing with changes in technology.

Read more: Standards for Enhanced Sustainability Throughout the Value Chain

Ruth Vaughan of Crop Nutrition Laboratory Services (CNLS) made the case for identifying the root cause of production deficit, and prescribing corrective actions so as to increase production and to allow sustainable production, which would guarantee the farmer a profit for his activities. Mr. Jeroen van der Hulst of Flower Watch told the conference that there has been little innovation on supply chain performance over 50 years. However, the situation is now changing because cold chain is measurable. There is improved packaging and improved product and quality handling. For instance, Kenya flowers can now go for over 14 days without getting spoilt. Yet there is still room for improvement in shelf life, more efficiency in handling and new transport modes can be developed. He said with application of available tools the producer can increase his productivity and reduce his losses.

Making a presentation on the wellness and productivity of workers, James Steady, Associate at Business for Social Responsibility enumerated how BSR programmes promote health, financial inclusion, and gender equality in the workplace. He said their programmes have had a positive and long-lasting and meaningful impact for workers, workplaces, and brands involved with their HERproject. This had helped to create sustainable change, and fostered systemic change that continues to deliver dignified work for empowered women in global supply chains. Secondary outcomes from HERhealth programme activities relate to a sense of self, negotiating powers at home and at work, and contributions toward household decision-making. He said that by companies implementing their programmes, there would be enhanced communications in the work place, reduced maintenance costs, reduced compliance violations, increased utilization of employer-provided services, e.g. clinics, and increased worker responsibility.

Mr. Andrew Ondete from HIVOS, said there was a linkage between workers’ welfare and their productivity. Workers whose welfare is catered for have more outlay and output, they will not sabotage the organization and will defend the interests of the company. This will lead to less labor movement, little confrontation, and minimal costs in compensation. It guarantees a good name and reputation. The good reputation which in turns brings credit, goodwill from suppliers, the market and consumers. Healthy workers have more output, they absent themselves less and targets are met when they are in tip-top condition.

Ms. Grace Kyalo from the Horticultural Crop Directorate (HCD) said the directorate encourages compliance of KS 1758 Part I &II, and National Horticulture Traceability System. This will make it easy to regulate, develop and promote the agricultural sector in Kenya. She called growers, exporters and other players in the sector to comply with rules and standards. She said one of the requirements for players, especially exporters, is to ensure that they are registered for their operations, and part of the requirement for this registration is compliance with standards and regulations, either national or international. The plan is to eventually, after all players are sensitized, to make it mandatory for exporters and producers to comply with KS1758 as a basic standard.

The other requirement the directorate plans to implement is on the national traceability system to ensure that all producers or exporters use a traceability mechanism.

Mr. Okisegere Ojepat from the Fresh Producer Exporters Association of Kenya/Kenya Horticultural Council said fruits and vegetable industry in the country is dominated by small-holder farmers operating under FPEAK. He said the players had recently formed an umbrella organization, Kenya Horticultural Council, which brings together the Kenya Flower Council and Fresh Producer Exporters Association of Kenya, to fight for the interest of the players in the sector while dealing with the government and other development partners. He assured those present that the industry has put things together to engage formally with the regulator and other concerned parties.

Responding to concerns from participants, Ms. Grace Kyalo said the traceability mechanism has been positioned along the whole value chain and it would improve safety, and give confidence to the regulation over the system. Its scope has been expanded so that producers can deliver services more efficiently and to reduce the erosion of profits for the flower industry as a whole.

To deal with issues of sexual harassment, participants suggested the adoption of policies that encourage the development of a culture that bears zero tolerance for sexual harassment in the workplace, through effective training programmes that targets all workers, including managers. The KFC said issues of sexual harassment have reduced drastically over the years and there has been constructive engagement between the Council and the NGOs that defend the rights of workers.