On April 11 , theUK governance announcedthat it has temporarily removed exportation tariffs for cut flowers . Now , outright quantities of cut - flush can be exported to the UK without tariffs . Exporting flowers to the UK via transportation countries is also duty - innocent . This move aims to facilitate trade with the UK while tone the UK- East Africa trade relationship . Indeed , the Kenyan Flower Council , which promotes the involvement of the Kenyan floriculture industry , was charmed with the intelligence : " This decision come as a pregnant relief and a positivist development for the floriculture diligence in Kenya . Kenya Flower Council ( KFC ) extends its solemn appreciation to the UK government for this of the essence decision , which will doubtless bolster up our export activity and support the increase of our diligence . By freeze these tariffs , the UK has manifest its committal to nurture trade relations and supporting business , specially during these ambitious times , " say Clement Tulezi , CEO of the Kenya Flower Council .
Clement Tulezi , CEO of the Kenya Flower Council at the IFTF 2023 in Vijfhuizen , the Netherlands
The Kenya Flower Council was established in 1966 by Kenyan grower and exporters of cutting - flowers . agree to the Council , the Kenyan floriculture sphere contributes to 1.8 % of the GDP bringing in KES 1b annually . " The respite of the tariff will avail us grow these numbers pool in the sector which has the potential to file a compound yearly growth pace of 5.1 % according to the Floriculture in Kenya Industry Size & Share Analysis - Growth Trends & Forecasts ( 2024 - 2029 ) * , " Tulezi states .
On April 16 , we interview Tulezi , and asked him to share his perspective on the tariff suspension and its implications for the Kenyan floriculture industry .
What is the main benefit of the UK ’s decision to suspend the 8 % tariff on cut - flowers?Tulezi : " The removal of duty is all important for Kenyan flower exporter as it raise their fight at the UK market . This decision has the potential to result in a surge in grocery store share and revenue for Kenyan flower producers . As tariffs are eliminated , Kenyan exporter can now put up their production at more competitive prices , which could contribute to an increase in demand from UK consumer . This will transform into increased tax revenue for Kenyan flower producers and potentially open up new business opportunity for them in the UK securities industry .
As we know , swop is an engine of job creation . KFC foresees increase investments in the sector , which will result in job creation and overall economical growth . The floriculture sphere in Kenya has been growing steadily since the late 1980s , currently employ 200,000 workers mainly from the rural setup , and an extra 1 million prole in the supply chain , thereby supporting over 4 million livelihoods . By corroborate this sphere , the regime can contribute to the development of the sector and related industries in the country , which will have a ripple core on the total economy . "
What does this in recitation mean value for Kenyan growers and consumers?Tulezi : " When exportation goods , and in our face , cut flush , case tariffs , businesses must absorb the wax costs either by thin out their outlay on labor , reducing future investments and elaboration , or passing the monetary value on to consumer through price gain , each of which slows down economic growth . Retailers similarly absorb the duty , increasing the toll of these goods to their customers . For the Kenyan growers , remove tariff will reduce their selling costs , thereby enhancing the affordability of their products for UK customers . This , in turn , will aid to increase demand for Kenyan flowers in the UK marketplace bringing in more paying back and turn on the growers to plough back into their business .
It is also good to take note that , the market for flowers is work by various factors such as consumer preferences , demand fluctuations , economical condition , and competition . Implementing economic value - lend strategy such as stigmatization , product differentiation , and certification for sustainably and ethically bring forth flower can enhance the marketability of Kenyan flowers . "
How does the tariff hiatus affect the UK - Kenyan deal relationship?Tulezi : " The UK and Kenya have over a century of trade relationships . The UK has remained a pregnant exportation terminus for Kenyan products , including write out prime . This recent growth will have far - reach out implication for the country ’s export sector include increase export volume and receipts for Kenyan producer . presently , most Kenyan flowers sell in the UK go through the auction sale market place in the Netherlands . still , the geographical proximity of Kenya to the UK , deliver a logistical reward for direct exports . Therefore , the decision permit Kenya to strengthen her posture in the UK market place .
The suspension of the 8 % tariff has strengthened our economical family relationship with the UK . It is a hopeful stride towards amplify the range of deal and deepening commercial ties , thus showcasing a unattackable commitment towards mutual growth and growth . Overall , this move symbolizes a positive motion towards trade liberalisation and collaborationism , which will lead in more trade agreements and partnerships between the UK and Kenya in the futurity . The conclusion is a welcome gradation towards beef up the economical linkup between the two country , facilitate cross - border trade , and promoting common development and successfulness .
We also desire that this flourishing partnership between the governments of Kenya and the UK can further strengthen other first step , including trade promotion programme , fiscal incentives , and insurance policy frameworks that support the floriculture sphere . This could include organizing trade missionary station , export promotion programs , and providing regulatory assistance to facilitate market growth . "
Do you remember many growers will tilt from European market to the UK market due to the stricter European requirements for the import of Kenyan flowers?Tulezi : " As KFC , we recognize that the respite of duty on snub flowers from Kenya to the UK provides an opportunity for agriculturalist to re - evaluate their market strategy . It is potential that some raiser will switch market from Europe to the UK , particularly in cognizance of EU regulations which let in sanitary and phytosanitary standards and environmental sustainability , which can gravel a challenge to Kenyan exporter when it comes to ensuring obligingness and certification .
However , many Kenyan cultivator have long - standing relationship with European emptor , and the EU remains a critical market for Kenyan flowers . Moreover , the EU market has significant potential for agio pricing and blade positioning , particularly when it comes to sustainably produced flowers that meet the taste of European consumer .
Ultimately , the determination to move market from Europe to the UK will be influenced by a variety of factors , include the considerations of individual growers , market place dynamics , logistic feasibility , and long - term strategic goals . We at KFC rest attached to supporting our fellow member as they explore market opportunity , navigate regulative requirement , and improve competitiveness in the UK and EU . We will remain to allow for guidance , and protagonism , and share information to aid agriculturalist make informed choices . "
Why should UK importers choose Kenyan flowers?Tulezi : " Kenya ’s strategic localization with elevation on the equator give the country a unequalled advantage in peak output . The consistent temperature and plenteous sun throughout the year create the perfect grow conditions for a diverse range of flowers . The favorable mood and optimal develop conditions in realm like Naivasha , central Kenya , and the N kick in to the superior quality of Kenyan blossom . As a result , Kenya has become a top producer and exporter of high - quality cutting flowers and ornamentals , including blush wine , Dianthus caryophyllus , and a basketful full of summertime flower , to various address across the world .
UK importer have several compelling reasons to choose Kenyan bloom . Kenyan blossom are renowned for their exceptional quality , vibrant colors , and long vase aliveness . We offer a diverse range of flower varieties , tolerate UK importers , retailers , florists , and other flower vendors to supply to diverse consumer preferences and seasonal demands , provide flexibility in product offerings . Many Kenyan flower farm cohere to sustainable social and environmentally friendly practices , including the health and safety of workers , structured remuneration payment , body of water management , desegregate pesterer management , renewable energy usage , and sustainable logistics among others . The KFC Flowers and Ornamentals Sustainability Standard ( KFC FOSS ) promotes all aspects of sustainability of Kenya ’s flowers , making our flowers accepted in the international food market . Our standard assure UK importers and consumer regarding the ethical and responsible production of Kenyan heyday .
to boot , Kenya has a well - established floriculture manufacture with decades of experience in heyday production and export . This reliability , pair with effective logistics and supply chain management , guarantee consistent accessibility and timely delivery of flowers to UK importers throughout the year . presently , Kenya holds a 17.1 % market place ploughshare of cut flowers sold in the UK , competing with other prime - export rural area such as Colombia , Ecuador , Ethiopia , and the Netherlands . This give us room for more ontogeny in the market ploughshare . Monitoring market place conditions and adapting scheme accordingly is necessary to observe our competitiveness in the UK securities industry . "
What do you gestate for the futurity of Kenyan flower exports to the UK?Tulezi : " The time to come for Kenyan flower exports to the UK is likely to be influence by various divisor , including market place dynamics , regulative changes , consumer preferences , and spheric economic conditions . Kenya ’s reputation for producing high - character flowers and its strategical geographical emplacement for export will support our growth flight .
As the duty suspension on Kenyan prime export to the UK is set to end in 2026 , negotiations between Kenya and the UK regarding future business deal arrangements will be all-important . Both parties will assay to negociate a unexampled trade agreement that maintains favourable terms for Kenyan efflorescence exports , ensuring continued market access and tariff preference . Collaboration between government activity agencies , industry association , and secret sector actors remains cardinal in pilot succeeding challenge and seizing opportunities for growth and sustainability in the global flower market .
Investments in technology , research and development , and sustainable husbandry practices will be of the essence for enhancing productiveness , reducing environmental impact , and meeting evolving consumer penchant . Building resilience in the flower supplying chain will be critical , peculiarly in light of disruptions have by events such as the COVID-19 pandemic and international war like the Red Sea attacks . Kenyan exporter are presently investing in diversifying transportation routes , strengthening logistics infrastructure , and implementing contingency architectural plan to mitigate risks and ensure continuous supply to export markets . "
What ’s your perspectives on trade tariffs in general?Tulezi : " Over time , the significance of tariffs in global trade has witnessed a decline thanks to the efforts by external organizations dedicated to enhancing free swap , such as the World Trade Organization ( WTO ) . We truly hope that the UK ’s conclusion to suspend tariff on cut flowers will remain in the retentive run , reduce business deal uncertainty , and function as a prescribed model for other country to consider adopting similar measure .
Free trade has been set up to have several convinced impacts on consumers . One of the most substantial benefits is the increase availability of a wide range of product and services . Additionally , free craft has the potential to lower price , at last make goods more accessible and affordable to consumers .
While there may be episodic challenges and evolving market kinetics , I am sure-footed that the Kenyan floriculture industriousness will go forward to thrive and get by embracing sustainability , expanding its market share , and foster partnerships . This will ensure that UK consumer can continue to love the beauty of Kenyan bloom while contributing to the economic successfulness of both state . "
- rootage : https://www.mordorintelligence.com / diligence - story / kenya - floriculture - market place
For more information : Kenya Flower Council[email protected]kenyaflowercouncil.org
