The crisis in Ukraine also increases the prices of flowers

Growing demand for flowers, even as Russia’s war in Ukraine cuts production, has led gardeners in Kenya, Africa’s top flower grower, to raise prices, according to a Bloomberg report.

Kenya’s exports in 2022 are likely to exceed $ 954 million last year, according to the Kenya Flower Council. The higher prices will boost the East African country’s revenue and “help” growers even after production cuts are expected, said Clement Tulezi, the industry lobby executive.

Russia’s invasion of Ukraine has halted fertilizer supplies, affecting flower production. In Europe, the energy crisis has hit greenhouse operations, according to Royal FloraHolland. While production faces many obstacles, the gradual opening up of the global economy and holidays such as Mother’s Day this weekend have boosted demand.

Kenya and Ethiopia are the main suppliers of flowers to Europe, while Colombia and Ecuador are the largest exporters to North America. The Netherlands is the largest hub of the flower trade in the world.

Although sales are unlikely to reach last year in Europe, they will continue to be significant, according to FloraHolland, which saw a record revenue of 5.6 billion euros in 2021.

“So far the demand is not declining,” said a FloraHolland spokesman. “Products that would normally go to Russia, Ukraine and Belarus are finding their way to other markets,” he said.

Mother’s Day, which will be celebrated in more than 90 countries on Sunday, is the period with the second highest sales for Kenya flowers. It accounts for about a quarter of annual income, while Valentine’s Day accounts for about 35%.

Demand is better this year and the strengthening of the dollar and the euro will bring steady gains, Tulezi said in a telephone interview. The lack of fertilizers will affect exports, but their cost has risen by up to 50%.

Flower growing in Kenya, one of the largest sources of foreign exchange, is recovering from the coronavirus pandemic, during which farmers threw tons of flowers as planes were stranded amid blockades around the world.

Authorities in Nairobi have allowed the Ethiopian Airlines Group and Saudi Arabian Airlines to develop additional cargo flights to meet the growing demand for Mother’s Day flowers, Tulezi said.

“We have good freight capacity this year, the deficit is smaller,” Tulezi said. Kenya’s weekly commodity demand this season averages 3,800 tonnes compared to the available capacity of about 3,400 tonnes, he said.

Airfare has more than doubled to $ 5.20 to $ 5.50 a kilo, compared to an average of $ 2.40 last year, Tulezi said. This, combined with expensive fertilizers, can further increase prices.