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The ongoing conflict in the Middle East threatens to cripple Kenya’s floriculture sector as growers now report up to $1.4million in weekly losses. Following the attack on Iran by the U.S. and Israel, and the consequent spread of hostilities across the Middle Eastern region, global trade has taken a hit, and the effects are beginning to be felt in the Kenyan horticulture sector.
Growers in the sector worth over $800 million, according to the Central Bank of Kenya, said that flower exports have been largely affected by both a reduction in demand and shipping disruption, both to the Middle East and Europe.
At Isinya Flower Farms, located 56 kilometers (35 miles) south of Nairobi, Marketing Manager Anantha Kumar said exports have dropped by more than 50 percent.
“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 percent,” Kumar told the Associated Press. Ideally, direct flower exports to the Middle East account for about 30 percent at Isinya Flower Farms and up to 15 percent nationally; the largest market being Europe, accounting for up to 70 percent.
However, while the Middle East isn’t Kenya’s main flower market, the disruption of cargo freight to Europe has resulted in reduced exports as well as higher costs.
Kumar said the freight costs have almost doubled as the unavailability of freight made it unviable for business.
According to the Kenya Flower Council, a private sector organization representing growers and exporters of cut flowers and ornamentals in Kenya, the ongoing conflict has resulted in over $4.2million in losses over the last three weeks.
This has been attributed mainly to the interruption of the markets and disruption in shipping, as well as an increase in freight fees.
“The Middle East remains a very important market and the disruption has an immediate impact on us. We see a reduction in movement, delays in movement of produce, and longer routes, and pricing is really high,” said Kenya Flowers Council Chief Executive Officer Clement Tulezi.
This article was provided by The Associated Press.