East African flower industry dries up as European market shuts down

The economic impact of Covid-19 on the flower industry has been profound, where tens of thousands of jobs are currently at risk, not least in the Netherlands, the centre of the international horticultural sector.

Amsterdam is home to the world’s largest flower market, Aalsmeer, where tens of thousands of flowers are sold and shipped around the world.

But according to Michel van Schie of the Royal Flora Holland Company, the coronavirus has forced sales to drop by 50%.

“This is also the period with the most important days for the flower industry like Valentine’s Day, International Women’s Day, Mother’s Day”, according to van Schie.

“The crisis which we are now facing couldn’t have come at a worse moment than this. Not only there were a lot of unsold flowers, but the flowers that were sold were also sold for very low prices”.

All this spells bad news for Africa’s leading flower growers, Kenya and Ethiopia.

Flower exports add around $1bn to the Kenyan economy annually, but exceptionally low demand means the country’s exports are down two thirds, costing the industry millions.

Hosea Machuki, CEO of the Fresh Produce Exporters Association of Kenya, says he hopes “when it’s [Covid-19] all done, that the industries and the companies that are involved in the horticulture industry will be able to spring back to life”.

He explains there are over 350,000 Kenyans directly employed within the industry, but says about 200,000 of them are “likely to lose their jobs on account of loss of business”.

Ethiopia, the continent’s second largest flower-exporter, is similarly feeling the effects of the virus.

Horticulture is the country’s fourth largest export, but trade volumes are down 80% due to the pandemic.

“Majority of our sales stop suddenly. And that’s because of shops in Europe being closed, borders being closed and logistics to give priority for food items and other essential items”, says Frank Ammerlaan, a Dutch flower farmer based in Ethiopia.

He employs around 1,000 people, and normally sends two million stems a week to flower auctions in the Netherlands, but says business is down 30-40%.

To try and protect the industry from collapsing, the Ethiopian government has designated horticulture essential, meaning its companies and workers can keep operating throughout the lockdown.

Photo: AP