Flower exporters upbeat about 2011

Flower exporters are confident of a rebound from last year’s dismal performance after earnings climbed 10 per cent to Sh7.7 billion in the first two months of this year, aided by firm prices and favourable exchange rates.

The Kenya Flower Council (KFC) said the volume of flower products exports in January-February also climbed 10 per cent to 22,000 tonnes compared to a similar period of 2010.

Robust performance

“We haven’t done badly compared to last year and we hope this year’s overall performance will be much better,” the CEO, Ms Jane Ngige, said. “We had major challenges of bad weather and disruption of flights early last year but things are looking up this year. We anticipate a robust performance in 2011”.

Kenya’s flower exports in the whole of 2010 fell 15 per cent from Sh36 billion realised the previous year after volcanic ash and heavy snow in Europe disrupted trade.

The eruption of a volcano in Iceland in April 2010 shut airspace above northern Europe, the destination of most Kenyan cut flowers, affecting sector earnings.

Earnings were also affected by a prolonged cold snap across the continent in December.

Flower exports traditionally contribute more than half Kenya’s overall horticulture earnings.

Horticulture forms part of the country’s top most foreign exchange earners alongside tea and tourism.

The Fresh Produce Exporters Association (FPEAK) on Tuesday said Kenya’s overall horticulture export earnings in the first two months of this year rose 21 per cent to Sh14.5 billion buoyed by higher volumes, favourable exchange rates and better prices.

The sector earned Sh12 billion in the first two months of 2010.

“Things are looking up for us because we have so far posted a better run in the first two months of the year,” Dr Stephen Mbithi, the CEO of FPEAK said.

Favourable weather

Horticulture brought in Sh78 billion in 2010, compared to Sh71.6 billion a year before.

The performance, however, saw horticulture dislodged as the country’s top most forex earner in 2010 after favourable weather and currencies boosted tea crop and export earnings to record levels.