A Dutch government-funded study of the Kenyan-Dutch cut flower supply chain exposed a host of minor and major bottlenecks and inefficiencies – and kick-started sector-wide involvement in setting new industry standards for quality, cost efficiency and sustainability.
Businesses operating in the Kenyan-Dutch cut flower supply chain will continue meeting with government agencies and trade promotion specialists from the two countries in the next few months to tackle a host of minor and major inefficiencies and bottlenecks hindering further growth. These so-called Platform Discussions, initiated by the Dutch Ministry of Economic Affairs, Agriculture and Innovation, are the result of a recent in-depth study of this supply chain. The aim of both the study and the meetings is to lift the Kenyan-Dutch cut flower supply chain to a higher level, setting new standards for the entire horticultural sector. The result, if the plan succeeds, will be reduced supply chain costs, a longer vase life for flowers and therefore increased value-for-money for consumers, and increased sustainability in terms of a lighter carbon footprint and reduced product and packaging wastage.
The first shipping container holding roses from Mombasa, Kenya arrived in the Netherlands in good order. The first pilot scheme for the GreenCHAINge project demonstrated the feasibility of reducing CO2 emissions by 87%. Following an extended period of preparation including varietal selection, choice of packaging, and mapping out the supply chain, the first pilot scheme for the GreenCHAINge project has proven successful. Continue reading
Recently, on Thursday 23 May 2013, a second meeting of key stakeholders in the Kenyan-Dutch Horticultural Supply Chain was held in Schiphol, the Netherlands.
Last year, the Dutch Ministry of Economic Affairs commissioned a study to obtain detailed insight into the performance of the Kenyan-Dutch horticultural supply chain. As part of a larger project, the study specifically aimed at identifying opportunities for further improvement in the efficiency of the supply chain.
The results of this study have been presented in 2012 to key stakeholders in the supply chain at meetings in Kenya and the Netherlands to share interim results and to obtain feedback in order to develop ideas for pilot projects. Subsequently, there have been exploratory talks with relevant parties who may play a leading role in the implementation of the recommended follow-up projects. Continue reading
ProVerde’s 2012 report “Kenya Flower Industry Global Competiveness Report” was the result of a study to identify measures to improve government-industry relations, support innovative entrepreneurship and promote exports to strengthen the competitiveness of Kenya’s floricultural sector. By reviewing other leading and upcoming producer countries, this study offers opportunities to learn from their experiences.
With assistance from the Centre for the Development of Enterprises (CDE) and the World Bank Foundation, the Kenya Flower Council (KFC) developed a project to conduct a series of studies and activities to determine the global competitiveness of the Eastern African flower industry. Specifically the World Bank funded a series of regional video conferences between May and December 2011.
On behalf of the Dutch Ministry of Economic Affairs, Agriculture and Innovation (EL&I), a study is carried out to obtain detailed insight into the performance of the Kenyan-Dutch horticultural supply chain.
The Dutch government-funded study exposes a host of minor and major bottlenecks and inefficiencies – and kick-starts sector-wide involvement in setting new industry standards for quality, cost efficiency and sustainability.
The Kenya floriculture sub-sector recorded significant improvement in 2011 where 122 thousand metric tons valued at Kshs 44.5 billion were exported according to the USAID Kenya Horticulture competitiveness project (KHCP) statistics. This translated into a growth of 1% in volume and 25% in value compared to 2010.
The World Bank, in cooperation with the Kenya Flower Council (KFC), organised a series of video conference-based seminars on topics pertaining to competitiveness in the floriculture industry. The 5th seminar, held on the 29th of November 2011, covered the issue of global competitiveness of floriculture production in the East Africa Region. Representatives from Ethiopia, Kenya, Tanzania and Uganda participated in the videoconference.
ProVerde was asked to prepare an issue paper on the competitiveness of the Kenyan flower industry and by extension the East African producer’s compared to other global producers and exporters. The paper provided an important contextual and experiential learning point for the other countries involved in the videoconference. Results from the study were presented and discussed during the conference. Continue reading
Europe has issued a fresh warning of possible revenue losses for Kenya should the East African Community (EAC) fails to reach a trade deal soon.
“Kenya risks taxation on its exports to Europe by virtue of economic strength if the trade talks stall”, Mr Bernard Rey, head of the European Delegation told players in the horticulture sector. “EAC should realise the risks of the current situation of uncertainty. Burundi, Rwanda, Tanzania and Uganda, all are least-developed countries, will enjoy duty-free quota access to the EU markets even if the EPA (economic partnership agreement) is not signed,” Mr Rey
said. “But Kenya will risk seeing tariffs imposed on a good number of exports to Europe including horticulture products”.
The country’s foreign exchange from horticulture dropped 2.8 per cent from KSh 73.7 billion in 2008 to KSh 71.6 billion last year.
According to the Daily Nation, produce for export fell due to drought and a drop in market demand for some products due to recession in Europe, Kenya’s main market.
Relative to 2008, the combined effects of these two caused an overall fall of 14.8 per cent in the quantity of exports. Continue reading
CBI’s Export Development Programmes (EDP) for cut flowers are designed to help entrepreneurs in selected African countries to adapt to EU market requirements in order to create conditions for market entry or market consolidation. ProVerde has been involved in many parts of the programme.
Each country programme combined different elements: technical assistance, training in export marketing and management and market entry assistance. In Egypt for example, the programme mainly focused on logistic cooperation and certification. In Kenya, CBI was of the opinion that there is enough knowledge available in the country itself to help to companies to develop their product quality, so instead the programme focused on developing export marketing (including a market tour to the Netherlands), HRM skills of the middle managers, and cooperation between the farms. In Uganda, improvement of product quality and farm management were the main issues, next to marketing training. Continue reading