Flower farm calls for creation of local auction
A local flower firm is pushing for the creation of a local flower auction to boost earnings.
According to Athi River based Primarosa Flowers, an independent and international flower auction would make the industry more attractive by enabling players source direct clients while enabling value addition on cut flowers.
Primarosa chief executive officer Bobby Kamani argues with approximately 38 percent of cut flower imports into the European Union coming from Kenya, the local flower sector is at a unique position to reap maximum benefits.
“It is high time that the Kenyan floriculture industry along with the Kenya Flower Council launched its very own Kenya Flower Auction. Global flower buyers and consolidators should be invited to visit our beautiful country whilst also engaging in the flower auction,” Mr Kamani said.
The cut flower industry recorded a 20 percent rise in revenue in 2017 generating Sh82.2 billion from 159,961 metric tons of exported flowers.
Approximately 50 percent of all exported flowers are sold through the Dutch auctions, although direct sales have been growing.
Mr Kamani said this presented a unique opportunity for value addition and diversification of export markets.
“Over 25 percent of exported flowers are delivered directly to these multiples, providing an opportunity for value addition at source through sleeving, labeling and bouquet production,” he said.
Players in the flower industry are eagerly anticipating the launch of direct flights to the United States of America from October, with the market estimated at Sh10 billion.
Mr Kamani at the same timed called on Kenya Flower Council to push for bilateral discussions between government and private sector players.
“We would like to ask the Flower Council to look at ease of doing business primarily on energy, taxation and transport. We believe that the launch of our very own flower auction would most definitely assist us in overcoming these hurdles,” he said.
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