Royal FloraHolland provides regular market updates and coronavirus news via its Corona crisis country updates, a few key items are featured here.
Four organisations representing the different segments of the ornamental horticulture sector in the European Union (Union Fleurs, ENA, AREFLH and COPA-COGECA) have surveyed their members on the economic impact of the pandemic. The central question: how much did you miss in the months of March and April 2020? Short answer: €4.12 billion, or just under 10% of the total annual turnover.
The unavailability of flights, reduced demand and negligible exports of fresh cut flowers forced growers to destroy millions of stems in the period March to May, resulting in enormous losses. Growers have had to take serious cost-saving measures in order to survive: salaries and manpower have been reduced, minimal use of pesticides and fertilisers, and some plants have been “halted”. Despite the fact that demand is now picking up again, the Kenyan flower sector still has major challenges. Some cost-saving measures have affected the production cycle and had a serious impact on quality: reduced labour resulted in less attention to flowers, and minimal use of pesticides and fertilisers has made plants vulnerable and prone to pests and diseases. The rainy and wet weather has made the situation even worse. There is also a shortage of employees (due to travel restrictions and the national curfew). Flowers are scarce compared to current demand; it will take some time before growers will be able to work at full capacity.
Growers in Naivasha recalled more than 90% of their employees when exports to various European markets increased last month. According to the growers, exports have risen from 15% to 60% because the demand for flowers continues to rise. However, production is still not at the same level given the enormous losses that have been incurred. CEO Joseph Kariuki of the Lake Naivasha Growers Group (LNGG) said there is hope for the sector after a difficult period as the EU market opens up. “Currently, our exports are 60 per cent despite challenges such as high flight costs, as many airlines are not operational, and we hope that this will change over time.”
The flower sector in Ethiopia, the second largest exporter to Europe, is facing increasing demand after the easing in some European market countries. Last month income from roses and summer flowers amounted to US$32.8 million.
Doing business in Kenya: updates regarding COVID-19
The outbreak of COVID-19 has consequences for entrepreneurs doing business in or with Kenya. Floral Daily (23 June) provides an overview of useful information intended for everyone involved with agribusiness in Kenya. The agriculture team of the Netherlands Embassy can answer further questions via email@example.com.
The Ministry of Industrialization, Trade and Enterprise Development has published Guidelines for Business operations during COVID-19. The guidelines are aimed at allowing businesses to reopen, whilst strictly observing the required measures they have to put in place to mitigate the spread of the virus. Businesses are expected to derive Standard Operating Procedures from the guidelines and implement these in addition to the various coronavirus containment measures pronounced by the Ministry of Health.
On 11 June the Cabinet Secretary for National Treasury presented his budget speech, which outlined Government plans for the 2020/2021 financial year, starting 1 July 2020. Both PwC and Taxwise have analysed the measures to give businesses insight into the implications of the proposed measures.
The Kenya Revenue Authority has issued a directive on the requirement of the tax compliance certificate for suppliers of goods and services to projects, institutions and diplomatic posts.
Trade Mark East Africa has compiled various reports on the Impacts of COVID-19 on Eastern & Southern African Trade.
Read more at www.agroberichtenbuitenland.nl