Kenya's Flower Exports Seen Growing in 2011 After 15% Decrease Last Year
Flower exports from Kenya, the world’s largest shipper of the product to Europe, are expected to increase this year amid expectations of better economic growth in its key market, the Kenya Flower Council said.
Shipments climbed 10 percent to 22,000 metric tons in the first two months of 2011, Winnie Muya, spokeswoman for the Nairobi-based council, said in a phone today. The industry is expecting a “very good” performance for the year as a whole, Chief Executive Officer Jane Ngige said in an e-mailed response to questions. She didn’t provide a more specific forecast.
“We expect a robust performance this year despite many challenges, mainly from rolling foreign-exchange rates and the cost of fuel and rising cost of living,” Ngige said.
Kenya accounts for 35 percent of all flower sales in Europe, according to the council. The East African nation’s main markets in the European Union are Holland, the U.K., Germany, France and Switzerland, it said.
The European Commission raised its economic-growth forecast for 2011 to 1.6 percent last month from 1.5 percent in November. The euro has strengthened 12 percent against the shilling so far this year, meaning exporters receive more shillings when they convert their proceeds back to the Kenyan currency.
“Most of the sales are secured in the euro, which means that returns have been favourable,” Ngige said.
Last year, flower exports fell 15 percent to an estimated 32 billion shillings after heavy snowfalls across Europe curbed demand and the eruption of Iceland’s Eyjafjallajökull volcano resulted in aircraft being grounded in April, delaying shipments, Muya said.
Agriculture accounts for 25 percent of Kenya’s gross domestic product, with tea, coffee and horticulture being its main source of foreign exchange.
To contact the reporter on this story: Consolatah Lucas in Mombasa via Nairobi at pmrichardson@bloomberg.net.
To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.
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