March Issue 3 2011

KFC Chairman awarded an Honorary Doctor degree (Hon. D.CC)

The Kenya Flower Council Chairman Hon. Erastus Mureithi was awarded an Honorary Doctoral Degree in Christian Counseling (Hon. D.CC) on the 17th of December, 2010 by International Faith Theological Seminary and University College, Washington USA.
KFC takes this opportunity to congratulate Hon. Dr. Mureithi for his achievement.

PKF tax compliance and pro-active planning seminar

PKF Taxation Services shall run a Tax compliance and pro-active tax planning seminar on 24th and 25th March 2011, at the Panafric Hotel, Nairobi. The seminar is aimed at equiping the participants with sufficient tax knowledge to enable them carry out their day to day tasks and to keep abreast of the changes in the tax legislation.
They will also be highlighting various measures that companies can put in place to plan around their tax liability so as to achieve tax efficiency and how they can manage their tax risks. Participants will be able to get useful insights on tax from tax specialists from PKF Taxation Services.
For reservations and more information kindly contact Sylvia Awori, sawori@ke.pkfea.com ,Cynthia Mayaka cmayaka@ke.pkfea.com or Margaret Mwihia, mmwihia@ke.pkfea.com
Telephone: +254 20 444 66 16-9

Over view of 2010 Horticulture Exports

Kenya overcome the ash cloud and winter weather setback with higher prices for fruits and vegetables which stimulated horticultural earnings by 15.2% in quantity and 6.4 in value. Overall horticultural exports brought in 77.7 billion shillings ($944.6m) in 2010 compared to 71 billion shillings ($888.2m) in 2009. Earnings were boosted by rising prices for foodstuffs; with the United Nations’ food agency (FAO) stating that world food prices hit a record high in December 2010. Further the sector had an opportunity to perform better than 2009 due to the enhanced rainfall in 2010 that significantly improved farm production, but was hit by several disruptions (Fresh Produce Journal January, 2011 and Business daily, January 2011)
Table 1: January-December Horticultural Exports
(Quantity in ‘000’ Tonnes and Value in Million US$)
Product 2009 2010 % Change
Qty Value Qty Value Qty Value
Flowers 117.7 459.0 120.2 432.2 2.1 -5.8
Vegetables 77.2 217.1 123.8 260.3 60.4 19.9

Nuts 23.4 14.7 11.8 24.3 -49.5 65.5

Fruits 32.2 29.5 32.5 33.9 0.9 15.0
Processed
Vegetables 26.0 103.0 35.6 111.7 36.9 8.4
Processed
Fruits 73.2 64.9 79.0 82.2 7.9 26.6

Total 349.7 888.2 403.0 944.6 15.2 6.4
Source: KRA Customs and Compiled by KHCP
Floriculture
Kenya’s flower exporters are cautiously optimistic that the prospects for their industry will improve during 2011 as a result of new markets in Japan and Russia. Currently the industry is keenly looking at the Japan market after the tragedy of the massive earthquake and tsunami that hit the country on 11th March 2011. Quantity increased by 2.1% but value declined by 5.8%.This was as a result of drop in prices in 2010 by 5.1%, effects of global economic crisis and rising inflation in the EU that reduced demand for luxury goods such as flowers since 2008. (Source: Business daily, January & February 2011). In the last quarter of 2010, quantity increased by 6.5% whereas value dropped by 5.8%.
Source: KHCP – February 2011 Market News update on horticulture
Acquisition of Preesman by Zena Roses
On March 15, the Kenyan rose grower Zena Roses took over the Dutch rose and gerbera breeder Preesman. According to Bob Goedemans of Preesman, there will be no changes for the clients of Preesman. Also, within the company, things will remain the same: all employees will keep their jobs. But the standstill of the company after the bankruptcy did cause some problems in the delivery of gerbera. Talking about the future, Goedemans says that Preesman will concentrate more on its breeding activities. The breeder has cut flower production in Ecuador, but will not extend this activity. Plans for cut flower production in Colombia have been ceased.
Source: flower focus
Flower production in Japan mostly undamaged
According to insiders, the flower production in the tsunami and earthquake affected regions was minimal. The major flower production areas in Japan are undamaged. But because of the disasters, all growers in Japan are facing logistical problems and lack of electricity. The flower import is affected because a lot of international flights to Japan were cancelled, but the international airports of Tokyo, Marita and Haneda, were opened again.
Source: flower focus

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