August Issue 3 2012

Report of The Power Sector Stakeholders Forum

Kenya Flower Council attended a working session with the Energy Departmental Committee organized by KEPSA in consultation with the Parliamentary Committee on Energy Communication & Energy on 3rd and 4th August 2012, at the Leisure Lodge Mombasa. KFC is concerned on the quality, cost of supply and indemnity for losses.

KEPSA has been engaging Parliament and the Executive with a view of addressing bottlenecks in the power sector in Kenya. The government is addressing these issues and has a long term plan to reduce cost of power by significantly increasing resource allocation for power sector. The Private sector also continues to invest in power production that will ultimately lower the cost of power.

The meeting brought together power producers, consumers and the Government to discuss Legislative and Policy framework for the Development of the Energy (power) Sector in Kenya. The retreat further discussed and shared what the Government and Private sector are doing to address the cost of power.

For a full report on the forum kindly open the link below. KFC will keep you updated. http://www.kenyaflowercouncil.com/pdf/Power_Sector_Stakeholders_Forum.pdf

Reducing farm Energy budget by More than 30%!

KAM through the Centre for Energy Efficiency and Conservation with Support from the Ministry Of Energy and Danish International Development Agency (DANIDA) is running a National Energy Audit Programme which is open to all companies in Kenya Interested in reducing their Energy Consumption. The Centre for energy Efficiency and Conservation engages in the development of a national focus on energy efficiency and conservation activities.

With the New Energy Regulations by ERC mandating every firm to undertake an Energy Audit, Kenya Flower Council (KFC) and Kenya Association of Manufacturers (KAM) have entered into an agreement to carry out the Audit Programme within the Kenya Flower Council membership.

The Energy Audit will help the farms to Identify Energy Wastage, determine Saving Potential and give recommendations on measures  to be implemented resulting in reduction of Energy Consumption.

Benefits of the audit

ü  Energy Audits will reduce the Energy Use by Up to 30% of the Energy Budget.

ü  Costs will go down thus increased profitability and competitiveness.

ü  Over the last 8 years, many organizations have undertaken energy Audits with KAM which has resulted in significant savings to the tune of over Kshs 2.6 billion.

ü  These savings have enhanced local production thus impacting positively towards the national GDP.

Feedback from audited enterprises

In the private Sector KAM has audited over 300 companies and in particular in the horticultural sector, 3 flower farms have been audited. In one of the audited farms, the energy Conservation measures identified would result in saving more than Kshs 4 million which is equivalent to 20% of its annual energy bill.

KFC is encouraging its membership to take this opportunity to carry out this audit for their farms to benefit out of the entire exercise. To carry out the energy audit for one site can cost up to Kshs 1.2 Million. However through this project, farms are going to pay Kshs 100,000 for the audit, recommendations and one follow-up to assess the level of implementation of the new recommended technologies.

Engagement with Commonwealth Of Independent Countries on Bilateral Cooperation Trade and Investment

Following a long standing desire to deepen the existing trade and investment opportunities with special attention being given on the critical growth inspiring enablers sectors under the Vision 2030 framework, the Ministry of Foreign affairs are proposing a high level engagement with the Commonwealth of Independent Countries on bilateral corporation trade and Investment in August 2012.

This follows an invitation extended to the ministry to attend and participate in the Moscow Diaspora Conference.  The Ministry of Foreign Affairs decided to expand the scope to include critical aspects of bilateral cooperation between Russian Federation, Commonwealth of Independent Countries (CIC) and Kenya.

Focus sector:

–          Agriculture and Agro-processing (bulk importation and distribution of fertilizers and agrochemicals and horticultural products).

–          Instrumentation, Calibration and airworthiness assessment of civil aviation equipment. There is an indication of undertaking initial assessment of the new Russian technology in civil aviation and exploring possibilities of granting approval to Russian cargo planes to operate in Kenya Airspace.

–          Flower Exports. For the last four years flower growers have managed to acquire a substantial market share of the Russian market.

In 2011, Kenyan’s export to Russia was valued at Kshs. 4, 515, 001,904 against imports from Russia valued at Kshs. 9,688,566,575. The balance of trade was Kshs. 5,173,564,671 in favor of Russia.

The proposed timelines of the execution of the tasks is August 2012 and it shouldn’t exceed four days. Participants will cater for their own travel and accommodation expenses.  Interested members who would want to be part of the delegation can contact Kenya Flower Council via kfc@wananchi.com.

Data Analytics for the Flower Industry in Kenya

Many firms collect large amounts of detailed data about customers, employees, operations, productive processes, financials, and more. Praxis Group a specialized consulting firm, provides data-driven strategic advisory services and customized analytical tools to businesses. Using economic theory, mathematical models, and scientific experimentation, their analytical tools transform these data resources into useful information that improves decision-making and performance. According to Praxis Group these techniques have the potential to add value to the flower industry in Kenya.

Growing: productivity strategies for floriculture

According to Massimo Young of Praxis Group, when complemented with floricultural expertise, their  ability to draw actionable insights from data may add enormous value to growers.

If data on productive processes and outputs is available for a variety of farms over time, they may be able to help establish standards for best growing practices in Kenya. In partnership with experienced growers, analyzing data on productive processes, inputs and outputs will allow them to quantitatively measure how different inputs in the growing process affect key outputs, and how this may vary over time and across different growing regions. For example,

  • How exactly do inputs such as fertilizers, soil, water, labor and ventilation affect outputs such as crop yield, quality, and price at market?
  • What is the optimal mix of inputs for various flower types in each region across different seasons?
  • How might global warming projections and other developments impact the effects of the inputs?

By collecting and analyzing data, they can help answer these questions and allow the flower industry in Kenya to optimize production processes and achieve the best results in the most cost-effective manner possible. This analysis will also help guide strategy for dealing with changes in the costs of inputs as well as in addressing environmental concerns.

Exporting: understanding the economics of the flower trade

As suggested by a recent study 1, by analyzing data from auctions, prices for certain varietals may be predictable in the short term. The ability to predict prices in advance means flower growers can make informed decisions about space allocation, mix of species, the timing of harvest, and marketing channels.

  • What is the optimal mix of species and what is the optimal allocation of space to each species on the farm?
  • In terms of both pricing and planting conditions, when is the right time to plant and harvest?
  • How much product should be marketed at auction vs. directly marketing to retailers?
  • Which markets should be targeted, and when?

Praxis Group can help construct an economic model for optimizing these key decisions, using data on auction prices, retail prices, currencies, transaction costs, fuel prices, and other key inputs. This model will help growers and exporters improve their decision-making process and enhance the performance of the sector.

Designing and testing interventions

While the first stage of any Praxis Group project involves rigorous economic and statistical analysis of data, they often propose a second stage of well-designed and cost effective scientific experiments to validate hypotheses generated by data analysis.

Proper experimental design and implementation can help the flower industry to cost-effectively learn what works and what does not. Various interventions that may be suggested by the data; in marketing, growing, or for addressing environmental concerns – should be rigorously tested on a small scale before being implemented more widely. This testing allows for:

1) Verification that analytical results are profitable and

2) Adjustment of the methodologies for maximum benefit.

Data collection consultation and analytical training

Some farms may not systematically collect the information necessary to improve decision-making in the ways described above. In these cases, there are specialized services to advise on what data to track for future use. This assist in minimizing the costs of data collection while maximizing the potential benefit of the data collected.

In addition, in order to remain competitive in the long-term, some farms may need to hire and train the human capital necessary to extract value from data and run proper experiments. For such firms, Praxis Group offer recruitment, training, and re-training programs to enable clients to bring these skills in-house.

For more info write to: Massimo Young via   young@praxis-group.com

Source: Proxy Group


The 15th Hortiflorexpo IPM Shanghai

Organized by China Flower Association, Hortiflorexpo IPM Shanghai is managed by
Intex Shanghaiand China Great Wall International Exhibition Co Ltd.With Odd year in Shanghai and even year in Beijing, it is the largest official trade show in Chinese Horticultural, Floracultural and Garden field industry.

Features: The Earliest of its kind in China, The Largest official trade show in this industry in China

Time and Venue:  April 17-20, 2013

Shanghai World Exhibition Center

Features: Annual Event, Always in April

Website: www.hortiflorexpo.com

Contacts:Mrs. Catherine Cui  Mr. David Zheng

Intex Shanghai Co.,Ltd.

Email: intexcl@sh163.net; intexzyd@sh163.net

Tel:+8621 62958367 62957551 62956677

Fax:+8621 62780038

8F, New Town Mansion, 55 Loushanguan Rd., Shanghai 200336, China

Useful linkages:More Pictures

Glance of Fringe Programs of 2011

Exhibitor list

Video of Hortiflorexpo 2011

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