April Issue 1 2012

EAC Single Customs Territory and EAC Common External Tariff Version 2012 Seminar

The Kenya Association of Manufacturers has organized a seminar on EAC Single Customs Territory And EAC Common External Tariff Version 2012 on 10th April 2012 at Intercontinental Hotel starting from 8.30 am to 1.10 pm. Participants will learn more about:

  1. Movement of goods in
  2. the EAC region: status, challenges and opportunities
  3. Moving EAC to a fully fledged Customs Union: Discussion on Single Customs Territory
  4. The new EAC Common External Tariffs version 2012: comparative analysis of version 2007 vis-a-vis 2012

Key Speakers

Experts from the Kenya Revenue Authority (KRA) – Customs Services

Consultant on the study of Single Customs Territory

A host of key Industry players

Fees: Kshs. 5500 for KAM Members; Kshs. 7500 for non-members

Payments are strictly to be made before or on the day of the seminar

To BOOK:

Call or Write to: Ms. Lilian Odhek

Tel: 020 3746022/3741634    Mobile: 0722 201 368/0734 646 005

Email: lilian.odhek@kam.co.ke

Invitation to Participate At Kenya House During The London 2012 Olympics 27th July- 12th August

The Brand Kenya Board has invited the Kenya Flower Council and her Members to participate in the Kenya House during the 2012 London Olympics. The London Olympics will take place from 27th July to 12th August 2012. To leverage the unique opportunity provided by the Olympics, Kenya has organized to have a Kenya House in London. Kenya House is a great marketing opportunity and Kenya intends to leverage the sporting success to communicate the investment opportunities available in the various sectors.

The Sponsorship packages range from 50 million to 10 million while booking for floor spaces ranges from 2.5 million to 5 million. With limited slots (20) available, allocations will be based on a first come first serve basis.

The Kenya House will presents a unique opportunity for both the Kenyan public and private sector Organizations to show case their products and services to the international market. It’s estimated that there will be 7 million visitors to the sporting event as well as 13 million visitors to London.

The House will further present an opportunity to engage with Kenyans in Diaspora and show case products that are tailored made for this target audience. There are currently over 500,000 Kenyans in the UK and over 1 million in Europe and USA.

Those interested can contact Jacquie Muhati to discuss their level of participation via jacquie.muhati@brandkenya.go.ke : alternatively call 271 5237/2711262.

Kenya to participate in Expo 2012 Yeosu In Korea

Kenya will participate in the Expo 2012 Yeosu, Korea. This was confirmed on 29th June 2010, and on January 11th 2011, a Commissioner General of section was appointed and applied for space allocation through normal diplomatic channel. The Export Promotion Council will be the implementing agency for Kenya’s participation at this global event, under the umbrella of the Ministry of Trade.

The theme of Kenya’s participation is “Our Ocean and Coast. Yesterday’s Gateway for Tomorrow” which has been derived from the EXPO theme “The living Ocean and Coast, Diversity of Resources and Sustainable Activities”. The country’s theme seeks to explore how Kenya is a country of rich history, and how that history has shaped Kenyan coast and the hinterland: the current social and economic activities and future aspirations as captured in the Vision 2030.

In accordance with the rules and regulations of world Expositions, each participating country is allocated one day to showcase and celebrate her country’s achievements in various areas including economic, technological development and culture and what they have to offer to’ the rest of the world. In this respect, Kenya’s National Day will be celebrated on Tuesday 5th June 2012. Thereafter on Thursday 7th June 2012, there will be a “Trade, Investment and Tourism Workshop” where Kenya’s opportunities in the areas of trade, investment and tourism will be highlighted.

Participation in the Kenya National Day and subsequent Workshop will provide excellent opportunity for business to business matching making and networking.

The Ministry of Trade has invited the Kenya Flower Council members to join the Kenyan Delegation to Korea to participate in Kenya’s National Day celebrations and also to take part in the proposed workshop. Those interested can confirm their participation by Friday 20th April 2012 to enable the Export Promotion Council finalize issues of logistics including hotel reservations, ticketing, visa and the seminar programme. Each member of the delegation is expected to meet his/her travel, accommodation and subsistence expenses.

Trade between Kenya and South Korea

South Korea is a strategic export market with an estimated population of 49 million (July 2010). It is a newly industrialized country registering tremendous economic growth and has become a high-tech industrialized economy. In 2004, South Korea joined the trillion dollar club of world economies, and is currently among the world’s 20 largest economies achieving a 5.1% economic growth rate in 2007, 2.3% in 2008, 0.2% in 2009 and 6.1% in 2009.

South Korea and East Asia markets are prioritized by the Export Promotion Council (EPC) for immediate and medium term development with penetration strategies to include; market research; organized trade missions including buyer seller meetings and market development activities such as EXPOs, trade fairs and exhibitions. EXPO 2012 Yeosu offers an opportunity to test market and popularise Kenyan products including the Coffee Kenya Brand as speciality coffee, tea, livestock products, flowers & horticulture products among other products to the projected 8 million visitors set to visit EXPO 2012 event.

The total volume of trade between Kenya and South Korea grew from Kshs 3 billion (USD 37.7 million) in year 2000 to Kshs 11 billion (USD 137 million) indicating a 263% increase in 2010.

Over the same period Kenya exported a total Kshs 1.7 billion (USD 21 million) while total imports totalled to Kshs 55.4 billion (USD 693 million), translating to an average export worth of Kshs 170 million (USD 2.13 million) against imports worth Kshs 5.5 billion (USD 69.3 million) annually for the 10 year period.

Rosa in France

Most Rosa in France is supplied by Dutch export wholesalers. A large share of these supplies come from growers in developing countries, who use the Netherlands as a gateway to access the rest of the EU, including France.

Dutch (re-)exports dominate French Rosa market.

–          In 2008, France was among the largest markets for flowers in the EU, accounting for 15% of the total EU market. Between 2004 and 2008, French consumption of cut flowers decreased slightly by 1.4% annually. Between 2009 and 2010, the French market for flowers continued to decrease by 1.1%, amounting € 2.7 billion in 2010.

–          In 2006, total French production of cut flowers amounted to € 207 million. In 2007, total production of Rosa amounted to 190 million stems, indicating a decrease in French production of 4.2% annually in the period 2003-2007.

–           France is the fourth largest EU importer of Rosa, accounting for 9.8% of total EU Rosa imports in 2010. Between 2006 and 2010, imports remained stable in terms of value. The value of French Rosa imports amounted to €121 million.

–           Developing countries (DCs) accounted for 3.5% of total imports. Kenya is the only significant DC supplier, accounting for 2.8% of French Rosa imports.

–           Dutch supplies of Rosa dominate French imports, accounting for 94% of total imports in 2009. During the review period, supplies from the Netherlands remained stable. However, it should be noted that the Netherlands imports 27% of total EU Rosa imports, of which most is sourced in DCs.

–           The module ‘Prices and price developments’ provides price information for Rosa.

–           Buyer requirements for Rosa are provided in the module on compliance with EU buyer requirements.

Understanding the market

Most popular flower in France

Rosa is by far the most popular cut flower in France, mainly sold in mono-bunches and single stems. In 2010, Rosa sales accounted for a third of total sales at France’s leading wholesale market. Rosa is followed at a distance by Tulipa and Orchids. The market share of Rosa has grown steadily in recent years. The most popular Rosa colour is red, followed at distance by white, purple orange, yellow and pink. Many consumers prefer bi-coloured Rosa over mono-coloured Rosa. In France, Rosa is particularly bought for special occasions.

The large share in gift purchases is reflected in the market share of florists, which are the leading retail outlet in France, representing approximately 60-70% of total sales. Super-and hypermarkets are another significant sales channel, accounting for about 15% of total sales of Rosa in France. As super-and hypermarkets invest in marketing campaigns and can ‘bring’ the product closer to the final consumer, it is expected that flower sales for own use will increase in the coming years, which will stimulate sales in the super-and hypermarket channel. There is also plenty of room for improvement of the presentation at supermarkets, which is currently one of the major weaknesses of supermarkets.

Franchises increase scales in florist segment

Franchise retailers, such as Jardin des Fleurs, Rapid’Flore, Monceau Fleurs and Un été a la campagne are typical for the French retail sector. Franchises slowly push smaller independent florists out of the market, because they can benefit from branding and economies of scale. Consumers recognize their franchise formula and associate the name of the franchise with a certain level of quality and service.

Franchises also benefit from economies of scale through their combined wholesale operations. These wholesale operations are very similar to those of flower providers. Supplies comprise large quantities of a uniform quality.

Domestic production at risk

A major characteristic of French horticultural companies is their diverse portfolio of activities. Besides producing cut flowers, French growers typically produce pot plants and are involved in trade and non-agricultural activities. However, a weakness of French horticultural producers is the lack of cooperation in the sector. Only 15% of the turnover of the members is realized through marketing cooperatives.

The increasing concentration of buyers, as described above, makes it difficult for a single grower to serve the distribution market; this results in an increase in imports from mostly Dutch exporters. French growers try to remain interesting for individual florists by offering a wide assortment of high quality lowers. However, it is expected that this strategy will not keep the growers competitive in the long term.

The fragmented structure of the sector and increasing production costs damage the competitive strength of the French floricultural sector compared to other countries. The SICA Marché aux Fleurs d’Hyères is France’s sole grower auction generating an annual turnover of merely € 35 million. Foreign competition, which mainly sources via the Netherlands, has become very strong, as the suppliers are better equipped to deliver large volumes at a lower price, consistent high quality levels and have adapted their logistical services to better meet the demand.

Market entry

The majority of the French Rosa market is supplied by Dutch export wholesalers, such as Fleura Metz, and so called ‘Flying Dutchmen’ like Arco Fleurs who sell flowers straight from the truck to florists. This dominant role of Dutch wholesalers in the French trade makes The Netherlands an ideal gateway for targeting the French market. Dutch importers mostly sell their products to a Dutch wholesale company, which re-exports these products to a French wholesaler or retailer. Export wholesalers in the Netherlands also account for the lion’s share of a substantial part of direct supplies to retailer.

Furthermore, large florist franchises with centralized purchasing, which are mostly located in northern France, often import Rosa directly from Dutch exporters. The wholesale markets cannot supply the large volumes these franchises need, even though more than 70 million stems of Rosa were traded at the Rungis wholesale market near Pairs in 2010.

Nevertheless, according to European wholesalers, direct exports from developing countries to the French market are increasing. According to Oniflhor (http://www.oniflhor.fr, 2007), there are about 870 wholesalers in France which obtain an estimated 80% of their flowers through imports, including imports from Dutch wholesalers. These French wholesalers include large importers and exporters, but also small locally operating wholesalers, such as Cash and Carry’s. Cash and Carry’s have a permanent stock and mostly supply traditional florists.

Some interesting players in the French market for Rosa:.

Thomas Fleur -http://www.thomasfleurs.fr -distributes at 6 wholesale markets. Has own production and purchases mainly at Netherlands auctions. Purchased the company Flora Provence in 2007.

v   Agora Floris -http://www.agora-floris.com -purchases from all countries through the purchasing group Mondial Flower International (MFI).

Vincent Flor -http://www.rosedor.fr –sales from trucks and at 5 cash & carry’s in the South of France. Has own production and purchases from growers in the Mediterranean and the Netherlands.

Fleura-Metz –http://www.fleurametz.com -Dutch exporter with a strong presence in France. Focuses on florists. Purchases mainly from Dutch growers, but also through MFI.

Arco Fleurs -http://www.arcofleurs.nl -Dutch export wholesaler (Flying Dutchmen selling directly to florists).

Ethiflora -http://www.ethiflora.fr –importer of Fair Trade certified Rosa from Ecuador

The most relevant trade fairs for exporters of Rosa to France:

–          Salon du Végétal -www.salon-du-vegetal.com –International exhibition for the horticulture sector.

Developing country exporters can approach potential customers in France through direct

(e)mail, personal visits (as follow-up), inviting potential customers to visit them in their country, building a network and visiting international trade fairs.

This survey was compiled for CBI by ProFound –Advisers In Development in collaboration with ProVerde.  (Publication Date: November 2011)

Birthday Flower

Most people have heard of Birthstones, well the following list is of Birth flowers.

JANUARY
Flower: Carnation, Snowdrop

FEBRUARY
Flower: Primrose, Violet

MARCH
Flower: Jonquil, Violet

APRIL
Flower: Daisy, Sweet Pea

MAY
Flower: Hawthorn, Lily of the Valley

JUNE
Flower: Honeysuckle, Rose

JULY
Flower: Larkspur, Water Lily

AUGUST
Flower: Gladiolus, Poppy

SEPTEMBER
Flower: Aster, Morning Glory

OCTOBER
Flower: Calendula, Cosmos

NOVEMBER
Flower: Chrysanthemum

DECEMBER
Flower: Holly, Narcissus, Poinsettia

Source: Easyflowers

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