Kenya building Dutch bypass?

Kenya is seeking to increase the quantity of flowers it sells directly to market, bypassing the Dutch auctions.

The country is stepping up the branding of its products. The proportion of the country’s flower exports being sold direct has risen to between 40% and 50% and Kenyan Flower Council CEO Jane Ngige said that most of Kenya’s flowers were now reaching customers in clearly marked bouquets, branded as produce of Kenya rather than Holland.

The country has been forced to search for cheaper ways of getting its product to market in the face of shrinking demand. By increasing the branding of its products Kenya hopes to differentiate its flowers from those of other producers.

However, only a small fraction of the 200 flower growers in Kenya have the necessary resources to do without the infrastructure and expertise that go with the Dutch auctions.

A report by the Eastern and Southern Africa Management Institute showed that farms spend 8% of their costs in auction fees – but that selling directly would mean they would spend 34% of their costs on airfreighting and another 2.8% on packaging.

Kenyan growers who have a Kenya Flower Council silver certification or higher were recently granted access to the Fair Flowers Fair Plants scheme, opening their produce up to the growing demand for sustainable flowers within the EU.