Kenya's flower industry has reported weekly losses of up to $1.4 million since the Iran war began, with growers attributing the losses to a decline in demand and shipping disruptions. The Kenya Flower Council, a private sector group representing growers and exporters of cut flowers and ornamentals in Kenya, said on Tuesday that the ongoing conflict has resulted in over $4.2 million in losses over the last three weeks, reports the AP. "We are seeing a reduction in movement ... and longer routes, while pricing is extremely high," says KFC CEO Clement Tulezi.
Kenya's horticulture sector, one of its most important industries, is worth more than $800 million annually, per the Central Bank of Kenya. At Isinya Flower Farms, located around 35 miles south of Nairobi, the farm's marketing chief, Anantha Kumar, says exports have dropped by more than half. "Previously, we used to export 450,000 stems per day, and currently we are doing about 150,000 to 200,000 stems a day. So we are discarding almost 50%," Kumar says. Normally, direct flower exports to the Middle East account for about 30% of business at Isinya, and up to 15% nationally, with Europe being the largest market, accounting for up to 70%.
However, while the Middle East isn't Kenya's main export market for flowers, cargo freight to Europe has been disrupted by the conflict in the Mideast, resulting in reduced exports as well as higher costs. "With the current freight rates, customers are not able to buy," Kumar says. "And while the freight rates are high, it is also difficult to get the freight. Only a few freights are operating, as mainly the Middle Eastern carriers have stopped, and the European carriers are charging about $5 per kilo, which is two times the normal rate."
Growers like Isinya now warn that, should the conflict drag on, the sector will continue to deteriorate, with scenarios similar to the COVID-19 period looming. Experts warn this will likely result in job losses in a sector that employs up to half a million Kenyans directly. The Kenya Flower Council now says it's lobbying the Kenyan government to introduce direct cargo flights to Europe in a bid to maintain the European market and cushion growers.
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