Floriculture industry in Kenya hit hard by tariffs

Once hailed as the next great frontier for Kenyan floriculture, the United States market is now viewed by many industry players as a lost cause, as protectionist tariffs have shut the door on the opportunity.

At this year's International Floriculture Trade Expo, or IFTEX, which concluded on Thursday in Nairobi, Kenya, the air was filled with the usual burst of color and scent.

However, beneath the surface, a growing sense of frustration and resignation was emerging among local and international exhibitors who were eyeing the US flower market.

Ray Liu, a Chinese exhibitor from Weifang Sainpoly Greenhouse Equipment Company, attended the expo for the first time. His company, based in eastern China's Shandong province, supplies greenhouse equipment to flower growers across Africa, including Kenya, Tanzania, Ghana and Nigeria. Recent developments in US trade policy have cast a shadow over his expectations.

"Sales have significantly declined in countries that export flowers to the US," Liu said, citing the 10 percent tariffs imposed by Washington.

For exporters like Afrex, a major player in Kenya and South Africa, the US dream has grown prohibitively expensive.

Oscar Biutah, Afrex's head of sales, pointed out that it costs us up to $8.25 to transport one kilogram of flowers to the US compared to $1.67 to the Middle East.

"If the US tariff remains, that cost could rise to $14.30. It's simply unsustainable for companies like ours, which ship up to 5 metric tons a week," he said.

That harsh reality recently led to the cancellation of a highly anticipated flower exhibition in Miami, a move that dealt a psychological blow to Kenyan exhibitors.

The event was meant to showcase Kenyan floriculture to US buyers directly, cutting out European intermediaries and expanding Kenya's global footprint. IFTEX Organizer Dick van Raamsdonk noted that visa acquisition issues and the rising costs due to protectionist policies made it near impossible to hold the exhibition.

Kenya's Agriculture Cabinet Secretary Mutahi Kagwe has urged florists to diversify and tap into over 60 export destinations amid the challenges posed by US tariffs.

Kagwe noted that the sector that has created over 200,000 direct jobs and supports over a million livelihoods has made an impact in most rural communities where productive economic opportunities are limited.

Speaking at the opening of the IFTEX in Nairobi, Kagwe emphasized Kenya's global standing in the flower business, noting that the country is the third-largest exporter of cut flowers worldwide.

However, he pointed out that success cannot last forever as the world is changing rapidly.

"All this time while the end-consumers and regulators place more onerous compliance demands on us, we must, therefore, do more, go farther, with much less," he said.

The writer is a freelance journalist for China Daily.