Flower export revenue down 22%

Feb 20, 2007

Flower export earnings in 2006 dropped by 22% to $27m (sh47.5b) from $35m (sh61.6b) in 2005 due to unfavourable weather that ravaged farms, lowering export volumes, industry officials have said.

By Macrines Nyapendi

Flower export earnings in 2006 dropped by 22% to $27m (sh47.5b) from $35m (sh61.6b) in 2005 due to unfavourable weather that ravaged farms, lowering export volumes, industry officials have said.

The export volumes slumped to 6,868 tonnes from 7,500.

Production was affected by a hailstorm that ravaged two flower farms; Rosebud II owned by Sudhir Ruparelia and Gordon Wavamunno’s Victoria Flowers.

Juliet Musoke, the new executive director of the Uganda Flower Exporters Association (UFEA), cited lack of new investments and high power and production costs as hindrances to Uganda’s competitiveness in the European markets.

“The power problem did not only lower the quality of flowers, but also increased the cost of doing business as the growers switched to using generators,” Musoke explained.

“We lost over 40 hectares. Half of them belonged to Rosebud and Victoria Flowers. The two farms were ravaged by a storm in March. The other half belonged to Magic Roses and Belflowers that closed due to financial constraints,” she added.

The power shortage affected growth of rose flowers and lengthened the maturity time of Chrysanthemum cuttings, which account for over 80% of foreign exchange earnings in the sector.

The over $60m (sh105.6b) industry boasted of 200 hectares and employed over 6,000 workers. However, over 1,600 jobs have been lost due to the increased costs that have forced some growers out of business.

Despite the fall in export earnings and lack of new investors, stakeholders are optimistic about the industry’s future.

According to UFEA’s five- year strategic plan, the sector’s export earnings for last year were projected to hit 9,200 tonnes, fetching $44m (sh77.4b).

“Our plan was to expand the production area to 350 hectares, which would fetch us at least $44m and create employment for 10,000 people. The success of this plan depended on the private-public partnership with the Government but red tape in public offices killed the plan,” Musoke said.

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