Iceland Eruption Creates Havoc For Kenyan Flower Sector
The earlier closedown of Europe’s airports due to the Iceland volcanic eruption caused panic in Kenya’s flower sector which created staggering losses.
The eruption created worldwide travel consequences and local travel chaos after travel agencies cancelled flights in Europe.
Kenya’s flower industry commonly peaks in May as western countries go into late spring & summer months.
In those important months multiple holidays help to create customers for local and international flowers. An increasing number of people order discount flowers which has created a new and different pressure for the marketplace.
New crises came at a terrible time according to the Kenyan Flower Council which says that the country lost over 3000 tons of flowers from the latest flight cancellations .
Multiple planes that were at the Kenyan airport at the time of the closures were constrained to fly around the incident adding hundreds of miles. A corporation with a plane in Kenya had to hold up expansion plans by weeks because its new aircraft was contrained to fly around the incident postponing their timetables .
There have been many complaints that the European Air Safety Council had overreacted . The economic impact is yet to be total, but preliminary estimates are in the hundreds of billions (US$) when all affected industries are included in the total.
British Airways CEO Willie Walsh summed up the feelings of many by saying that the European Air Safety Council made “a gross overreaction to a very minor risk.”
These last issues for the Kenyan flower sector is in the wake of a 33% downturn in the industry in 2009.
Many of these problems stem from a 30% slip in orders from Europe because of the Global Recession. Their lessening in orders is most straight off akin to layoffs and hiring freezes in Europe, their main buyers .
Meanwhile, countries such as Columbia have been more than amenable to send their flowers to Europe in the wake of the decay of demand for flowers in the US adding even more pressure to Kenya’s flower marketplace .
Also putting pressure on the whole flower sector is an increasing amount of buyers looking for discount flowers. Many of these buyers want top quality products for prices presently associated with cheap flowers.
Workers will mostly feel of these downturns with large layoffs planned for many of the huge flower growers, buyers, exporters, and related industries. Some of these companies are also looking at selling cheap discount flowers to diversify their sales.
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