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.

The paper provided insight into:
- The developments in the global flower industry over the last 10 to 15 years, targeting the EU market. Highlighting experiences and lessons learnt from leading exporting countries.
- A bird’s eye view of the policy and policy guidelines that are operational in the major flower growing countries was given.
- Driving forces for horticultural development were identified. Incentives which really promoted the development of industries in the leading exporting countries are brought to light.
- Existing SWOT analyses of the Kenyan flower industry were reviewed, taking into account results of the preceding videoconferences and lessons learnt in other leading countries.
- Finally, the paper provided recommendations to strengthen the position of the Kenya flower industry for further growth in the next 10 years.

Traditionally, most flowers heading for European markets enter the European Union via Amsterdam airport, located near the Dutch auctions. From mid-2009, however, many Dutch importers developed a preference for Belgian airports.

Importing fresh flowers through Belgium was, and still is, easier, due to the availability of night flights, handling benefits, lower costs, and smoother customs procedures and phytosanitary checks.

For as long as they last, the advantages are worth the effort (see figure).

Source: ProVerde

In April, about 30 Vietnames exporters participated in a joint CBI and ITPC workshop about Market Research. The course, which was carried out with collaboration by ProVerde, aims to provide exporters with knowledge, skills and tools to collect and analyse data about EU markets, EU buyers, and EU restrictions to export/trade and trade channels.

The market research workshops are designed to be practical and focus around individual and group exercises to complement the short blocks of theory.

Among the topics dealt with in the workshop are:

• What is market research, primary & secondary research, desk & field research
• Market research process
• Online and offline market information sources
• Free market information sources on the internet
• What are market access requirements, and where to find them
• Search engines, portals & directories
• Finding buyers through online sources such as online business directories, trade associations and E-marketplaces
• Market Research Strategies
• Interview techniques

Source: ProVerde

Already a top 5 EU flower supplier, Ethiopia steps up its market drive

Ten years ago, Ethiopian flower exports were virtually non-existent. Today, the country ranks among the European Union’s top 5 fresh-cut flower suppliers and floriculture has become one of the nation’s main foreign exchange earners. Economic woes in 2009 and the effects of the ash cloud in 2010 caused a minor shakeout, but about a hundred growers have emerged from these storms stronger and more eager than ever to consolidate and expand on their export position by stepping up their market drive, improving efficiency and diversifying product ranges.

As far as the flower industry is concerned, the worst of the economic recession seems to be over. Though prices may not climb back to pre-crisis levels, the 2009 slump seems to be a thing of the past, with EU imports steadily rising. Trade figures on the whole suggest the global flower market is rebounding and the mood in the market is one of cautious optimism.

Catching up on Kenya
In Ethiopia, the hard times floored some companies, but also produced a seasoned export sector whose impressive growth since 2000 can no longer be passed off as a fluke. Ethiopia now holds a firm position among the Top 5 EU suppliers – along with Kenya, Ecuador, Colombia and Israel – and an impressive second place among Dutch auction suppliers.

The share of Ethiopian flowers in EU imports doubled from 6% in 2005 to 12% in 2010. Statistics suggest Ethiopia is steadily catching up on Kenya. Kenyan flower exports, like those of Ethiopia, grew robustly over the last decade, however, Kenyan growers appear to have suffered more from the crisis. In 2009, Kenyan exports were down 7% compared to the preceding year, while Ethiopia exported 34% more to the EU. What’s more, preliminary figures suggest similar developments in 2010.

Lean, mean and market-driven
The Ethiopian growers who survived 2009 and 2010 are well aware that long-term success will not come easy. With support from various national and international institutes, these growers are bracing themselves for rigorous self-improvement programmes. Their key growth opportunities, they recognise, lie in becoming leaner and meaner and relentlessly market-driven. This means adopting continuous improvement programmes on the farms to streamline business processes, cut costs and raise the quality of every last detail. It also means developing product ranges according to market preferences, as well as getting online and connecting with the ongoing virtualisation of the flower trade.

Source: Excerpt from article in HortiMagazine (March 2011) “From Newcomer to Recognised Supplier” by Milco Rikken, ProVerde

This workshop, which was organised for a group of vegetable growers from the Shandong Province in China, focused on strengthening the entrepreneurs’ market orriented approach.

Through a mix of presentations and interactive exercises, developments in the European fruit & vegetable market were used to better understand the Chinese market situation. Participants analysed and understood their role in the supply chain. Action plans were developed to apply the lessons learnt from the training course to improve their position in the market.

The workshop was part of a one-week HollandDoor training course and carried out under the umbrella of Hortiwise, in collaboration with GreenQ and PTC+.

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With the assistance of Hortiwise, the Uganda Floricultural Association (UFA) is set to pilot the export of local flowers to European markets.

UFA is embarking on the task of getting potential buyers in the European market where in this very month of February, a commercial trial shipment will be conducted to obtain insights on the quality aspects as well as getting feedback from potential buyers in Europe.

Read more in the allAfrica.com article

ProVerde is pleased to announce a new publication for the Trade for Development Centre:
“The European Market for Fair and Sustainable Flowers and Plants”

Given the importance of market transparency for producers aiming at selling their products overseas, the report provides relevant information for producers – within the trade context. The report makes an attempt to capture all relevant information on the European market for fair and sustainable flowers and plants – ranging from economic structure of this market to production characteristics, and major trends in consumer preferences and behaviour.

Above all, the report provides insight into the role of various social and environmental standards in the main European flower and plant markets and sales channels.

About the Trade for Development Centre
The Trade for Development Centre gathers, analyses and produces market information to improve market access for producers in developing countries. The Belgian government entrusted the implementation of the Trade for Development Centre programme to BTC, the Belgium Technical Cooperation.

About ProVerde
ProVerde provides market research and trade development services to companies, organisations and Government institutes. ProVerde is specialised in cut flowers & plants, fruits & vegetables, and biodiversity products.

Link to Trade for Development
Direct download (for free)

December 2010

Believe it or not, but it is estimated that European consumers spend a staggering 15 billion euro on cut flowers and flower arrangements per year. This market does not only consist of cut flowers, but includes a wide range of product groups like foliage, dried branches and even dried fruits and vegetables. Colourful dried corn stalks (maize), for instance, have been a big hit as a component in bouquets and flower arrangements.

It is a well-developed and highly competitive market which approaches saturation in some countries. As a result, traders are continuously seeking new, special and different products to distinguish themselves. Consumers want to be surprised: see something new and unexpected in the shops. It is obvious that this huge market offers varying opportunities for companies in developing countries as potential suppliers of natural products with ornamental features.

In view of this opportunity, ProVerde is looking for ways to match demand and potential suppliers. ProVerde is an internationally oriented company providing trade facilitation and trade mediation services to primarily companies in developing countries. We are based in The Netherlands, the centre of international floricultural trade, and specialised in marketing cut flowers & plants, florist items, and biodiversity products.

A number of our contacts, who are active as wholesalers in the European floricultural and related sectors, have expressed interest in new suppliers from Asia, Latin America and Africa. Because of my background as a market specialist in these sectors, I am able to identify interesting products for them.

The products that we are particularly interested in are natural products that can be used for ornamental purposes (foliage, rattan, dried fruits, bamboo, ornamental seeds, etc.). These products will be used for flower arrangements, bouquets or as stand-alone items. Please observe that these do not include arts and handicrafts.

Do you also think you have interesting products with potential in the floricultural market? Or do you know organisations or companies that have? Then, I would like to invite you to send us an overview of the assortment, preferably with a catalogue, brochure or (digital) photos of the products.

I look forward to hearing from you soon.

Milco Rikken
ProVerde – Trade Strategies

As the climate in the EU is not suitable for the production of tropical fruit, the EU relies on imports of tropical fruits such as bananas –the most popular fruit in Europe–, pineapples, kiwifruit, avocados and mangos.

Temperate and sub-tropical species such as citrus fruit, grapes and pears are imported as well, but mainly in out of the European growing season. Countries in the southern hemisphere are able to supply when the countries in the northern hemisphere can not. This is also known as counter-season supply. For fruit products that can be stored, such as apples, the counter season is less evident. With the continual improvements in storage life and storage conditions of fruit products, the off-season is shortened.

EU countries have a high degree of internal supply for vegetable products. Only occasionally, for instance in cases of poor harvests or during the off-season period, products are imported from outside the EU. Some vegetables can be grown in controlled conditions such as greenhouses (glass or plastic), reducing the risk of a bad harvest and extending the supply period.

The possibilities of exports to the EU are small for products that are highly perishable or delicate such as lettuce and other leafy vegetables. When the harvest in the EU countries is too small and vegetables need to be imported, countries that are located close to the EU have the advantage of short transportation time and lower transport costs.

When analysing EUROSTAT trade statistics, we find that major vegetable products with a high degree of self-sufficiency are lettuce, carrots, cucumbers, cabbages, tomatoes and sweet pepper. Developing countries play an important role in the supply of peas and beans during the off-season. Other important off-season products supplied by developing countries are snow peas (mange-tout), sweet peppers and courgettes.

Source: ProVerde

Following the success of the previous training activities and upon request of the Ethiopian flower sector, CBI organised four Master Classes as a key activity of CBI’s 2009 floricultural training programme in Ethiopia. The programme was developed in close cooperation with EHPEA and focused on different aspects of flower export marketing.

In the course of the Master Class training series, participants wrote a concise export marketing plan. The structure of the export marketing plan was used as the framework for the special topics covered in the training programme: Corporate Social Responsibility (CSR), post-harvest and logistical requirements, market research in the flower business, getting the best price on the auction, and internal and external communication and client orientation.

The four Master Class sessions were organised in early May, mid June, mid September and early December of this year. CBI trainers included Milco Rikken (ProVerde) who was in charge of coordination and execution, as well as Dana van Hes (E4 Consulting), Jeroen van der Hulst (Flowerwatch), Maarten van Schie (OTV Wageningen) and Maarten van Woerden (Helicon).

The training series was carried out in close collaboration with EHPEA, the Ethiopian Horticulture Producers Exporters Association and the Royal Netherlands Embassy in Addis Ababa.