Present-day Kenya Horticulture Sector Struggles
Growers in horticulture are faced with rising operational costs, particularly due to increasing electricity prices with many blackouts
Horticulture business has evolved dramatically. It’s no longer what it used to be in the early 2000s, as it has shifted significantly, especially in the floriculture sector. This has severely impacted businesses, with some farms counting losses and others struggling.
Over the years, the farms have reinvented themselves to maintain a steady supply in the face of fluctuating market prices. These changes are largely driven by shifting generational values, with younger consumers placing less importance on flowers as compared to their predecessors.
Growers in horticulture are faced with rising operational costs, particularly due to increasing electricity prices with many blackouts, high transport costs especially airfreight, increased salary hikes, high government levies and high farm inputs costs besides others. Additionally, pests and diseases have become more resistant thus causing significant losses to growers.
Of late False Codling Moth has become a major threat to Kenyan-grown roses, a phenomenon that has been exacerbated by climate change. As a quarantined pest in international markets, its presence in exported roses is resulting to bans on exports by regulators for up to two weeks or indefinite.
The acreage of flower farming in the country has over time expanded while the market is still the same and at times even shrinking. The issue is the exaggerated cost of land in Kenya which has become prohibitive, especially for new investors and those who want to expand.
In response to the shrinking market of roses and increase in market competition, flower farms have embraced diversification for example to summer flowers to supplement rose production. This has seen a rise in numbers of small-scale summer flowers’ growers.
Some of these farmers in horticulture are being sub-contracted by big established farms, while others are enjoying consolidation. Flower marketing is shifting from auction and direct selling to contract growing, which
involves cultivating flowers in greenhouse spaces specifically for a client.
Whereas in customer contracts the grower is contacted beforehand to grow specific flowers
purposely for the client. In other horticultural crops, Kenyan macadamia widely renowned on a global scale, is facing its lowest ever time in sales of the nuts.
Since last year, the ban on export of macadamia in-shell was lifted, which has led to significant losses to farmers and processors leading to job loss in the sector. The government is set to deliver its consideration of placing the ban back with interests of the Kenyan people at heart.
The sector has also witnessed increasing pest infestations, such as the spread of Tuta absoluta on tomatoes, a phenomenon exacerbated by climate change. These and more are the current trends of the Kenya horticulture, which despite the struggles and challenges deserves accolades.
