June 2010 Issue3

1. Newly appointed Ambassadors visit KFC
The newly appointed Kenyan ambassadors Ben Ogutu (Japan), Bramwel Kisuya (Spain), Josephine Gaita (Italy) Salma Ahmed (France) and Ken Osinde (Germany) paid a visit to Kenya flower Council on 15th June, 201.
The visit was meant to gather information on the flower industry. Jane Ngige, Chief Executive Officer provided them with updates and statistics of the flower industry, a sector that generates over 35 billion shillings annually to the Kenyan economy. It is estimated that about 50-60, 000 people depends directly and over 500,000 people indirectly on the flower industry.
This will assist the ambassadors in marketing the Kenyan flowers in the countries they have been assigned to.

2. Horticulture Stakeholders Meet
For the first time a joint consultative forum was held between the private and public institutions on 17th June 2010 at the Fairview conference room to deliberate on mechanisms to harmonize industry regulations. The joint policy consultative forum was organized by KEPHIS.
The forum highlighted the importance of cooperation between the private and public institutions and openness to help tackle the industry’s problems.
The following were noted as the current impeding issues for the agricultural sector;
1. Conflicting mandates / roles between the parastatals under the Ministry of Agriculture, hence no one takes responsibility or they duplicate their efforts.
2. Lack coordinated mechanism for the agricultural institutions in government was noted missing.
3. A comprehensive policy in bio-security lacks. This was noted to be affecting the whole horticulture fraternity.
4. Several laws uncoordinated in implementation. We have several Acts of parliament for the same industry.
5. The market needs are dynamic. New strategies are needed to sustain current market, expand and tap into emerging markets.
6. Laws have not changed to address new challenges emerging – legal reforms e.g. issues linked to GlobalGAP (MoA was proactive, needs to continue).
7. Laws in market destinations like EU are constantly being updated. The horticulture sector is challenged to match to these changes.
8. Policies – there is a disconnection between parliament and policy makers and other stakeholders in the horticulture who are not adequately consulted.
9. Delay in relay of notification to relevant government bodies as well as growers.

The following was agreed as the possible way forward;
1. Structured dialogue between regulators and stakeholders in resolving the emerging industries needs.
2. Identify gaps in policy through situational analysis.
3. Sectors should take advantage of opportunities awarded through subsidiary legislation to address impediments to trade.
4. Continuous engagement with ministry of agriculture and other line ministries including KRA. KRA would be useful in monitoring revenue gains or losses in sectors.
5. Ministry of Agriculture should lead this initiative.

3. Kenya National Accreditation Services (KENAS) establish a Certification Technical Committee (TC)

The Kenya National Accreditation Services (KENAS) has established a Certification Technical Committee (TC) under the KENAS Secretariat to monitor the activities of Certification Bodies, Consultants and Trainers. This is as a result of frequent complaints sent to Kenya Bureau of Standards related to the conduct of the individuals and organizations in the line of training, consultancy and certification activities.
Challenges have been reported to KEBS or KENAS resulting to the development of a code of practice for the Certifiers, consultants and trainers. They are related to;
i. Partiality
ii. Lack of professionalism
iii. Lack of competency for engaged personnel
iv. Lack of capacity
v. Conflict of interest
vi. Competition in their respective areas of action.
The secretariat has established a draft code of good practice, which is in the making process. The code is meant to curb these challenges through;
a) Sanctions
b) Dispute resolution
c) Arbitration
d) Registration of individuals and organization who will also adhere to the code of practice for CB, consultants and the trainers involved in training, consultancy or actual product/process or system certification.
The TC will be composed of professional bodies in certification, consultancy and training and will be represented by professionals, one from each member organization. Kenya Flower Council is participating at the TC.

4. Delegation from Republic of Brazil to visit Kenya

A high level government delegation (at the highest level) from the Republic of Brazil will be making an official visit to Kenya between 6th-7th July 2010. According to the Ministry of Foreign affairs with the presence of the leader of the Brazil delegation, the visit will cement economic and commercial relations between the two countries.

This is a great opportunity to Kenyan business community , particularly those with existing commercial engagements, or potential to undertake joint ventures in addition to taking advantage of the existing demand for premium Kenyan goods and services in Brazil and the wider south America. A business symposium has been programmed for 6th July 2010 (morning segment).

5. Kenya National Day during World Exposition 2010 Shanghai China
The world Exposition 2010 will be held in Shanghai China from 1st May to 31st October 2010 where Kenya will showcase its trade, tourism, culture and investments opportunities. During the Expo, participating countries will be allocated one day to showcase and celebrate their country’s achievements. Kenya’s national day will be celebrated on 9th September 2010 and a “Trade investment and tourism workshop” on 10th Septemebr2010.
In this regard, the Kenya Flower Council has been invited to be part of the high powered Kenyan Delegation to participate in the celebrations and also take part in the workshop. Export Promotion Council (EPC) is the implementing Agency for the Expo under the Ministry of Trade which is coordinating Kenya’s participation at the EXPO. Those willing to participate should confirm by 30th June 2010. Each participant is expected to meet his/her travel, accommodation and subsistence costs.

6. Horti Fair 2010 well on track

The 2010 Horti Fair is well on track ! The theme of this year’s Horti Fair, which is being held in Amsterdam RAI from 12 to 15 October, is ‘earning sustainably’. The Horti Fair is a completely unique platform, for both participants and visitors, for introducing new products and services, for acquiring and reinforcing contacts and for striking effective business deals
With more than four months to go before the Amsterdam RAI opens its doors to the Horti Fair visitors on 12 October, the level of interest from participants is excellent. According to the organizers, Participants are still registering and the halls are already almost fully-booked
FloraHolland and the Horti Fair recently announced that as from 2011 they will be working together to organize the international Holland HortiWeek in the first week of November. The FloraHolland Trade Fair in Aalsmeer, the Horti Fair in Amsterdam and other activities, such as open days at nurseries and trading companies, will then be taking place under a single umbrella in the same week.
In 2010 the FloraHolland Trade Fair in Aalsmeer will be organized in November, while the Horti Fair will still be taking place in October.
The International Floriculture Trade Fair (IFTF) is organizing a trade fair for breeders and international growers in November 2010 in Vijfhuizen. Because this event coincides with the FloraHolland Trade Fair, FloraHolland and the IFTF have agreed to operate joint bus services in order to make life easier for the (international) visitor to both events.
International Floriculture Trade Fair (IFTF)
International Floriculture Trade Fair (IFTF) will launch a new trade fair for flowers in Netherlands. This event is completely dedicated to promote fresh flowers shops owners and florists in Netherlands for international floriculture standards. The show was been declared to take place on Wednesday 3rd to Friday 5th November 2010.
IFTF will be held in Haarlemmermeer, Vijfuizen, Netherlands and the venue selected for this fresh flowers fair in Netherlands is the same, which was originally designed for the 2002 Floriade Exhibition. Floriade Exhibition venue is a state-of-the-art greenhouse which is only 15 minutes/10 km away from Aalsmeer flowers Auction site.

7. Large lily promotion in Jumbo supermarkets
From 17 June to 14 July 2010 the 145 Jumbo supermarkets in the Netherlands will conduct a major promotional campaign for lilies. It is the first action on Dutch soil that has been achieved with support from the Promotion Committee Lilies. The retailer has developed this campaign with United Lily Growers. This is an alliance of lily growers, who respond to the latest developments in the chain. They focus on all aspects of the process, so from purchase and preparation of the bulbs to promotion and marketing. The lily growers produce 40 million stems a year.
The Jumbo action is one of the promotion or marketing plans that are executed with the help of the Promotion Committee Lilies. This commission includes growers and the Flower Council of Holland. Twice a year plans and ideas can be submitted in order to increase the sales of lilies. The best and most promising initiatives are rewarded.
Scratch card

The most prominent part of the campaign is the scratch card action. During four weeks a special card will be attached to all lily bouquets in every Jumbo supermarket. The back contains a number of tips for care; the front is a scratch card. For this contest more than 500 prizes will be available, from special lily vases to one year of free lily bouquets.
With posters on the shop floor and ads in the house-to-door leaflet ‘My Jumbo “- distributed to more than 2 million households – the retailer gives publicity to the action. Central theme is “Lilies, a surprise every day.” The bouquet cards will also be used to inform the customers about the tenability of lilies. This will be done with the notification “Minimum 10 days of vase fun”.

8. Increasing Import of Cut Flowers adds Momentum to IFEX Show

The import of cut flowers to Japan has increased by 2.7% over the previous year according to reports by Japan Floral Trade Association (JFTA). With import of cut flowers to the Japanese market on the rise and with more domestic exhibitors confirming their participation, the 7th International Flower Expo Tokyo, or IFEX 2010, is set to expand by 30% and further establish itself as Asia’s largest flower industry trade show.

IFEX will be held from October 28 to 30, 2010 at Makuhari Messe, Japan.
This year, IFEX will expand 30% in scale, welcoming a record high of 1,100 exhibitors* from 30 countries (855 exhibitors at IFEX2009). There is no shortage of reasons for the continual growth of IFEX. For instance,
1) International pavilions are expanding in size to feature more growers/exporters.
2) New exhibit area “Japanese Prefectural Pavilion” is attracting more domestic growers.
3) IFEX 2010 expands its exhibits profile to include agricultural related products. Therefore, horticulture equipment/materials and vegetables and fruits breeders will exhibit. Also, the concurrently held shows, International Garden Expo Tokyo (GARDEX) and International Exterior Expo Tokyo (EXTEPO), are both expanding in size.

Kenya will expand their booth size by five times, and Ethiopia will be tripled. In addition, many international breeders will exhibit individually such as Dekker and Anthura from Holland, Jelitto from Germany, and Morel Diffusion from France to promote their varieties to Japanese and overseas growers.

Increase in Imports

Increasing number of cut flowers were imported especially from countries such as China, Malaysia, Vietnam, Taiwan, Korea, Colombia, Kenya, and Ethiopia.

According to JFTA, there will be further increase in imports especially from countries that produce flowers in an earth-friendly environment. Certain breeds reported especially high-growth, and the Ministry of Agriculture, Forestry and Fisheries data shows that import of carnations increased by 12%, mums by 9%, roses by 11%, and lilies by 17%.

National Pavilions at IFEX
With the import of cut flowers in Japan on the rise, flower suppliers from countries around the world are focusing on the Japanese market with especially those such as China, Colombia, Ethiopia, Kenya, Korea, Taiwan, and Thailand already set to exhibit as national pavilions at the next IFEX.

Many of them such as Korea, Kenya and Ethiopia have confirmed the importance of the show for their business and will expand their national pavilions’ booth size to accommodate more growers at IFEX. Other countries such as Australia and Ecuador are also considering establishing their pavilions to expand their market shares.

Two New Exhibit Zones for Agricultural Market

1) AGRITECH JAPAN -Agricultural Technology & Equipment Fair-
This year, IFEX will expand its exhibit profile to include agriculture. The 1st AGRITECH JAPAN -Agricultural Technology & Equipment Fair, will be concurrently held with IFEX to accommodate soil, fertilizers, harvesting systems, green houses, agricultural machinery, etc., to target growers of vegetables, fruits and flowers. 150 companies are expected to participate in this inaugural event.
The response from international companies has been very enthusiastic, and already Korea
Agricultural Machinery Industry Cooperative has signed up to bring a big group to the fair.

As for seeds, in addition to flowers, vegetables and fruits will join this year’s product line-up at IFEX. In the newly launched Vegetables & Fruits Seeds Zone, already many breeders specialized in vegetable seeds have signed up to exhibit. Exploring sales channels to reach out to grow-it-yourself lovers, these seed suppliers are eager to meet visitors from home centers and garden centers at the fair.

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