An oversupply of cut flowers in the global market is likely to slow down the sector’s revenue growth this year.
“There is currently an oversupply of flowers in the international market by the earnings of Kenya’s floriculture sector exports is still expected to expand by 20 per cent in 2019,” Kenya Flower Council chief executive Clement Tulezi said.
Speaking during the opening ceremony of the eight edition of the International Flower Trade Expo held on Wednesday, Tulezi said in 2018, export earnings from cut flowers were recorded at Sh113.2 billion, a 37.7 per cent increase from Sh82 billion in 2017.
The three-day forum has brought together more than 180 national and international growers, exporters, breeders, cargo agencies, airlines and various production related technical suppliers of Kenya’s floriculture industry.
Since the inception of IFTEX in 2012, Kenya’s floriculture sector has nearly tripled from exports valued at Sh42.8 billion in 2012 to Sh113.2 billion last year, indicating significant strides made in the sector.
Tulezi said Kenya is the world’s fourth largest exporter of cut flowers, accounting for about 40 per cent of all cut flower imports into the European Union.
He added that while the country currently exports to more than 60 destinations, there is need to diversify further with more opportunities in Japan, China, India, Australia, Canada, the United States and Eastern Europe.
Speaking at the ceremony, HPP International Exhibition Group CEO Dick van Raamsdonk Kenya’s flower sector was impressive and one of a kind.
“Taking into consideration the hurdles that had to be taken last year, together with the current flattening of the world economic growth, Kenya’s cut flower sector produced very satisfactory results,” he said.
