August Issue 2011

Naivasha Water Allocation Plan officially launched

Water Resources Management Authority (WRMA) in conjunction with World Wide Fund for Nature (WWF) officially launched the Naivasha Water Allocation Plan (WAP) in Naivasha. The event was held on the 9th of August at Kenya Wildlife Training School in Naivasha.
A WAP is a legally binding document jointly formulated by the Water Resource Users Association (WRUAs), Catchment Area Advisory Committee (CAAC_ and the WARMA. The WAP details concepts, methodologies and water balance analysis to address the water scarcity, demand and inherent conflicts between various users. It provides guidelines on how to bring users’s abstractions to comply with amounts as allocated in their permits and abstractions conditions that all parties are required to adhere to.
The Lake Naivasha WAP is the first of its kind in Kenya and was initiated in 2005 by Lake Naivasha growers group (LNGG), a member of Kenya Flower Council. The formulation of WAP is a requirement under the Water Act (2002) which sets out principles for allocating water and provides for the public to participate in managing the water resources within each sub-catchment area of a region.
Abstractions are scaled according to availability of the resource which varies with changing rainfall patterns. WRUAs will be assigned roles to police water resources, deal with minor infringements and report to WARMA on major violations which WARMA must handle within a stipulated timeframe.
In a statement read on her behalf by Mr. J. Nyaoro, the Minister for Water and Irrigation Hon. Charity Ngilu, EGH, MP there is much goodwill among the water users to save L. Naivasha basin water resources from eminent extinct. This is illustrated by the fact that there are twelve WRUAS covering every part of the Naivasha Basin. She added that the WAP will go along way in improving the management of the water resources of the lake, its tributaries and the aquifer in a sustainable way.
Naivasha Member of Parliament Hon. John Mututho acknowledged the activities carried out by flower farms like Oserian Development Company recognizing the importance of the environment and available resources. He said every stakeholder has a responsibility and we should not only regulate flowers farms but also hoteliers and other users. He also suggested that KenGen and Geothermal Development Company to supply the water they use when generating power (after condensation) to the flower farms.
According to WARMA the WAP anticipates to realize the following objectives:
• Cumulative effects of water use are taken in to account
• Preservation of environment values
• Equitable allocation among users
• Promotion of efficient water use

Basic minimum consolidated wages (agricultural and floricultural industry) as proposed by Naivasha member of parliament Hon. John Mututho

Occupation Wages per month in KSh. Wages per day in KSh.
1. Unskilled employee 10,050 420
2. Stockman, herdsman, watchman 11,595 490
Skilled and Semi-skilled Employees: Wages per month in KSh. Wages per day in KSh.
3. Skilled general worker, house servant or cook flower cutter, irrigation sprayer, 18,000 435
4. Farm foreman 18,000 765
5. Farm clerk, flower grader, 18,000 765
6. Senior foreman 11,725 500
7. Farm artisan, 12,000 510
8. Tractor driver 12,727 540
9. Combined harvester driver 14,020 590
10. Lorry driver or car driver 14,710 620

Worker welfare and healthcare services training
The Kenya Flower Council (KFC) has organized a one day training on worker welfare and healthcare services and is scheduled to take place at Midland Hotel, Nakuru, on Friday 2nd September 2011 from 8.30 am to 4 pm. The training will be specially designed for Human Resources Managers and medical officers, who are in charge of the clinics at the flower farms or at the contracted clinics.
Members should confirm their participation by send an email to

FloraHolland flower auction celebrates its 100th birthday
This FloraHolland flower auction will be celebrating its 100th birthday this year. With the motto of 100 Years’ Color, the jubilee will be marked this autumn at FloraHolland’s marketplaces in Aalsmeer, Bleiswijk, Eelde, Naaldwijk and Rijnsburg.
A century ago, growers agreed on the organization of the first local-scale flower auction, over a game of billiards in a pub. A hundred years on, FloraHolland is a still-growing, internationally-active auction company; each day, the cooperative sees 8,000 Dutch and foreign growers delivering their flowers and plants; 2,500 professional customers (including many exporters and wholesalers) doing their purchasing; and a staff of well over 4,000 come to work. The auction has a turnover of 4.1 billion euros and sells more than 12 billion flowers and plants a year, making it a significant contributor to the Dutch economy.
Despite their ever-growing reach and scale, the auctions remain cooperatives. In other sectors of the Dutch economy, too, the number of cooperatives is currently on the rise — which goes to show the strength of this form of organization, even in harder times.
Out of FloraHolland’s 8,000 suppliers of flowers and plants, 5,000 are members of the cooperative. Together, these individual entrepreneurs are the owners of the auction company, electing nine flower and plant growers as the Cooperative Board and— assembled as the General Members’ Meeting— having the final say in the running of the cooperative.
The aim of the cooperative, which is a nonprofit venture, is to obtain the best possible prices for its members’ flowers and plants, for the lowest possible operating costs.
Auction clock in constant development
The first generation of mechanical auction clocks bears little resemblance to today’s virtual clocks. Their purpose and operation remain unchanged, to bring together supply and demand for flowers and plants each day in a focused and transparent manner, in order to elicit the best market price currently available, at the moment that the downwards auction price is stopped with a sale. The technology of these clock systems has been in constant development over the past century. Even in 2011, the auction clock — now projected overhead or remotely accessed — remains a vital sales tool. The future of the auction clock will see ongoing investment not only in digital sales technologies but also in mediating (via FloraHolland Connect) direct transactions for flowers and plants.
Increasingly international
Roughly 85% of the total auction sales is exported by trading companies, to approximately 140 countries. The most important customers are in Western Europe, particularly in Britain, France and Germany. The strongest growth markets for Dutch flower exporters are the Central and Eastern European states and Russia.
Both in the Netherlands and in export markets, flowers and plants grown abroad are increasingly being sold alongside Dutch products, making FloraHolland flower auction — which imports from 60 countries — a commercial and logistics hub. As the largest auction organization in the world by a long way, the cooperative brings together international supply and demand.
A jubilee worth singing about
The occasion is being celebrated this autumn with open days and festive gatherings for members, customers, staff and business relations of the cooperative. The passion for their specialisms that so many people bring to their work at FloraHolland will be very much in evidence during the festivities, too. At the parties, musical talent from FloraHolland’s auctions and growers will showcase in choirs and solo spots how much beautiful music — and ambition — this auction company makes together.

‘Friendly Summer’ for the floriculture market
In contrast to earlier forecasts, the rainy and cloudy weather in Holland and big parts of Europe did not change, causing an optimal balance between supply and demand across the European flower markets; less local production and better sales than usual during summertime.

The average price for cut flowers in the Dutch auctions for week 30 was +9.5% higher compared to the same week last year and +34% higher than 2009, while the total supplied quantities were about the same. However, the supply of imported roses strongly increased (+40% compared to last year), while the Dutch supply was significantly lower. Hence, imported roses were relatively cheap, while many summer flowers fetched very good prices. Some examples: Ammi maius +83% compared to last year; aster +36%; Carthamus +72%; Gerbera +100%; Delphinium +116%; Helianthus/sunflower +100%; lilies +50-+85%.

The weather forecast for The Netherlands does not indicate a real change.
Source: FloraHolland

International dating at the Horti Fair
The Horti Fair has teamed up with Enterprise Europe Network under the name ‘International Matchmaking’. This collaboration makes it easier for international companies to contact each other during the Horti Fair. The service is free of charge.

Horti Fair director Frans-Peter Dechering: “Horticulture becomes more international every year. Yet companies from various countries sometimes find it hard to contact one another, also on fairs and other events. With ‘International Matchmaking’ visitors and exhibitors can actually meet each other. This is a role an international fair such as Horti Fair should take upon itself.”

Enterprise Europe Network (EEN) is part of the Dutch Ministry of Economic Affairs. EEN has a network in 48 different countries. Companies from these countries, visiting the Horti Fair can register with Enterprise Europe Network. After registration they are asked about their interests and the reason of their visit to the Horti Fair. Exhibitors at the Horti Fair can also register with Enterprise Europe Network, through the Horti Fair website.

When all registrations have been processed, visitors and exhibitors are brought together. The employees of Enterprise Europe Network will take the visitors of the Horti Fair to the exhibitor in question at an agreed time. The advantage of this service is that both parties can rest assured that they are dealing with genuinely interested conversation partners.
Source: Hortibiz

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