November Issue 3 2012

Enhancing the global competitiveness of the Eastern Africa Flower industry’ workshop a success

The Kenya Flower Council organized a one day conference on ‘enhancing the global competitiveness of the Eastern Africa Flower industry’ on November 13, 2012 at the Nairobi Serena Hotel.

The conference brought together stakeholders in the flower industry to discuss ways of enhancing the global competitiveness of the flower industry. In particular, the conference focused on Taxes & Levies, Agro-bacterium & other soil borne diseases, climate change & the role of Strategic Environment Assessment on the competitiveness of the flower industry.

Participants got a brief on findings of studies conducted on each of the areas of focus.

The CDE project has provided technical assistance in research, design and management of projects aimed at implementing interventions identified through the World Bank supported technical papers, as critical to improvement of productivity / competitiveness of the flower industry in the region.  Some of these include pilot projects in policy development; on farm demonstrations & trials, training; awareness creation; formulation of projects aimed at improving efficiency and cleaner development mechanism (CDM) initiatives.

Participants from Uganda, Mr. Charles Omulo and Tesfahun Fenta of Ethiopia gave a presentation on the status of their countries. Over 65 participants participated in the conference.

For all the presentations made during the workshop please click the link below. http://www.kenyaflowercouncil.org/kenya_flower_council_CDE_workshop.php

 

Your Businesses Are Secure Ahead Of The General Elections: Commissioner Iteere Assures Private Sector Businesses!!

Private sector business leaders under the umbrella of KEPSA together with the Diplomatic Community led by the Danish Embassy met with officials from the different Government arms of internal security spearheaded by Ag. PS Ministry of Internal Security and Provincial Administration at the Stanley hotel on 12th November 2012. The Kenya Flower Council is a member of KEPSA.  The aim of the meeting was to find ways in which these parties can engage to ensure that businesses and the country is free of violence ahead of the March 2013 General Elections. This comes after the 2007 political violence that paralyzed the country to a near standstill and recent cases of insecurity in parts of the country that has cost the country of business people, property, the public and police officers on duty.

The private sector led by KEPSAs security sector chair Sam Matano highlighted key areas and recommendations on security from the private sector businesses:

Sources of insecurity:

  • Political violence due to ethnically-based political parties;
  • Organized crime due to income disparity and high unemployment;
  • Terrorism spurred by Al-Shabaab;
  • Resource-based conflicts owing to a general decline in key resources (land, water and pasture), rising population, increased economic activities and natural factors.

Recommendations:

  • Need to complete the security “suite” of laws and pass the Police Reform Implementation Committee;
  • Issues of the Authority composition of the committee needs to be resolved as it is “government heavy”;
  • Issue of arming of private security needs to be resolved;
  •  Modalities of incorporating private security participation in security;
  • Registration and licensing of security companies.
  • Community Policing moving beyond concept stage and into a working, living reality.

Having heard the private sectors opinion, one constant message passed across was that businesses should support the Government in mobilizing resources to make sure that security is enhanced before, during and after the general elections set for March 4th 2013. Speaking at the forum, Commissioner Mathew Iteere from the Kenya Police service indicated that the Government is working hard to make sure that we have proper general elections.

The Government together with the private sector agreed of the following as the way forward:

  • Tackle the root causes of insecurity; poverty and unequal distribution of resources especially through the National Budgeting process
  • The EIBC preparedness on election and to seek help where they need from other stakeholders
  • NCIC be keen on hate speech and work closely with all stakeholder;
  •  The police force to share intelligence reports with the private sector and the diplomatic community on where they need help but also what private sector and diplomatic community can do to enhance security;
  • The private sector and Diplomatic community to feed and assist the police during the period of election at least for a month
  • The private sector to further initiate more forums starting with the upcoming Speakers Round Table on Nov 23rd and 24th in Mombasa and county forums on security through the business associations in those regions

Amb. Geert  A. Andersen from the Royal Danish embassy represented the diplomatic community. He indicated that police and security are often caught in different situations. He noted that the private sector and diplomatic community are working together to make sure that security issues are dealt beforehand. One of the initiatives that the donor community is directly involved is the KEPSA led Mkenya Daima initiative; a peace campaign supported by leaders from the private sector, the religious groups, the civil society among others.

 

Welcome on Board…………

The Kenya Flower Council takes this opportunity to Fides Kenya Ltd on board.

Location:

The farm is located at along the equator

–        Latitude. -0.5833333° (0°, 37’ South), Longitude. 37.6666667° (37°, 28’ East)

–        Elevation: 1120m

–        Distance: Embu town is approximately 120 kilometres northeast of Nairobi towards Mount Kenya.

Population: (as of 1999)

–        Embu town – 41,092

–        Mbeere South District – 189,000

–        Mbeti South  location– 16,087

History:

Fides Kenya Limited (formerly Yoder Brothers Limited and formerly Kirin Agribio Kenya Limited) started its business in Kenya in 1983 when Yoder Kenya Limited was incorporated by Yoder Brothers Inc of U.S.A. to supply chrysanthemum cuttings to European market. In 1995, the company diversified to production of geranium cuttings and in 2008 an additional crop pot asters was introduced.

In December 1996, Yoder Kenya Limited was acquired by Kirin Brewery Limited of Japan and the name was changed to Kirin Agribio Kenya Limited. In August 2006 the name was changed to Fides Kenya Limited. In March 2010, Kirin Agribio Holding was acquired by H2 of Holland. The current structure is that Fides Kenya is owned by Fides Bv and the latter is part of the big Agribio Group.

Impact of the farm locally:

–        Employment – current number is 777. With an average of 3 direct dependents per employee thus, the farm supports about 3,000 people.

–        big impact on the economic status of the region as most of the earnings are spent within the region

–        CSR projects

–        Contributes to the national economy; taxes and business.

 

 

OTECH is a French company manufacturing center pivot and linear for crop irrigation for more than 30 years. They have serve countries like Senegal, Ivory Coast (sugar cane farm), Ghana, Algeria, Morocco, Libya and Kenya (with 27 machines and 1500 ha irrigated for this Kenyan farm), East Europe and South America.

 

What is a center pivot irrigation machine?

It is consisting of one or more spans which rotate around a fixed center anchored to the ground. Then linear have the same irrigation principle but are not fixed and move as linear movement          on rectangular field.

 

The center pivot irrigation gives the right dose at the right time making irrigation sustainable by water and energy conservation with yield and crop quality increase.

 

The machine is environmentally friendly and cost efficient because:

–          Works with low pressure, that’s mean less energy consumption and saving on long term,

–          Gives a perfect irrigation uniformity to insure all field perfect quality and perfect germination.

–          No needs of thin filtration

–          Very simple to install and use

–          Good management of the water dose

–          Moreover the lifespan is around 20 years without big maintenance and labor.

–          Pivot can be used on any crop like cereals, vegetable, sorghum, rice, sugar cane, Banana, coffee, fodder…

 

OTECH emphasizes the principal that “by using the right pivot and the nozzle you can achieve an evenness of irrigation of 90-95% without needing more pressure and energy than drip irrigation”. The comparison is big:

–          For a pivot 100ha at 8mm/day at 3 bars you need 330m3/H so 38,5 Kw

–          For another system at 6 bars you need 77kW

Over an irrigation season of 2000h the saving is 38,5×2000 = 77 000 kW

 

Range of machines:

–          Full circle pivot, Zonal, Towable, self-moving, Hydraulic…

–          Linear with different type of guidance and pumping system (pipe, chanel)

–          Remote management on smartphone, computer…

 

Customers area able to demand for a specific machine.

For more information contact : Mr Julien LATOUR,  OTECH sales engineer East Africa on : Mob : 0728 717 305 Email : julien.latour@otech.fr or otech-sa@otech.fr. visit their website www.pivot-irrigation.com

 

 

Producer Price Index (PPI)

Definition of PPI

Output PPI. An Output PPI measures the change in the prices of products sold as they leave the producer.

Input PPI. An Input PPI measures the change in the prices of the inputs of goods and services purchased by the producer.

 

Overall, PPIs measure the change in the prices of goods and services bought and sold by producers. Movements in producer prices are clearly important for the measurement of inflation and the analysis of the process of inflation within the economy. PPI is one of the four principle price indices in the system of economic statistics i.e. the CPI, PPI, and the export and import price indices which are key macroeconomic indicators.

PPIs serve multiple purposes, but mainly are designed to measure the average change in the price of goods and services either as they leave the place of production or as they enter the production process. Therefore, users should be aware not only of the methods employed by the Bureau in collecting data and compiling the indices, but also of the potential such indices have for errors and biases, for proper interpretation of the results.

 

Purpose

The PPI provides a weighted average of the price changes in a group of products between one time period and another. The average price change over time cannot be directly observed and must be estimated by measuring the actual prices at different points in time. The PPI does not attempt to measure the actual level of prices but is limited to the measurement of the average change in prices from one period to another. The PPI does not measure the value of production or cost of production, but it can be used to measure either the change in output prices owing to changes in the basic prices received by producers or, alternatively, the change in prices paid by producers for inputs of goods and services used in the production of output.

 

Uses

Price instability introduces uncertainty into economic analysis and decision making, so the main uses of the PPI relate to efforts to minimize this uncertainty. PPI therefore has the following main uses:

  • Short-term indicator of inflationary trends. A quarterly PPI with detailed product and industry data allows monitoring of short-term price inflation for different types or through different stages of production. Key users are CBK, MOF, Investment banks and also government agencies requiring data for macroeconomic forecasting
  • National accounts deflators. Deflation of nominal values of output or intermediate consumption for the compilation of production volumes and for the deflation of nominal values of capital expenditure and inventory data for use in the preparation of national accounts; (Volumes underlying the nominal values are not directly measured).
  • Indexation in legal contracts in both the public and private sectors. The purpose is mainly to take the inflationary risk out of the contract;
  • Required by international organizations and Research Organizations such as IMF for economic monitoring and comparison;
  • Compilation of other inflation measures;
  • Analytical tool for businesses/ researchers- Detailed PPI looking at specific products

Source: Kenya National Bureau of statistics

 

Oudendijk import to merge with OZ Import

Oudendijk import will merge with OZ Import, part of Dutch Flower Group. From 1 January 2013, both companies will operate from a central location: the office and the processing areas of OZ Import to Magnolia 1 in De Kwakel. Oudendijk Imports, a company that has history that spans 65 years, is one of the largest importers of Dutch floriculture.

According to DFG in a press release, the reason for the merger / takeover is the increased internationalization and the need to import flowers in the chain even more efficiently. Both companies importing especially exotics like Protea / Cape Green, Hypericum and summer flowers from Africa, South America and Israel and care in addition to the procurement, supervision of breeders also services in the field of processing, customer-ready packaging and marketing for contracted growers and exporters.

Responsible Director of the newly created mega-importer is the current managing director of OZ Import, Jurjen van der Laarse. Management will consist of the commercial managers: Don van der Meer (exotics), Jaap Stelder (summer flowers) and Tino Rodewijk, finance. Niek Oudendijk will be responsible for the relationship to suppliers.
Source: Bloemenkrant/P

 

Watch here the flower catwalk at the HortiFair

Just like last year, the Horti Fair in the Netherlands organized in the past edition a flower catwalk. HortiBiz went to the RAI and made this short movie.

 

 

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