August 2010 Issue 2

Floriculture Industry Executive Forum

Kenya Flower Council (KFC) in conjunction with PKF Kenya, held a Floriculture Industry Executive Forum to inform the floriculture industry stakeholders on the emerging issues in Tax, Banking & Finance, Instruments of trade, Export Trade Insurance, Venture Capital and the impact of climate change on 12th August 2010 at the Southern Sun Mayfair Inn-Parklands. A panel of guest expert speakers gave presentations with Mr. Julius Muia Secretary National Social Economic Council (NESC) giving the key note address.

Mr. Muia commended the flower industry for giving sizable benefits to the Kenyan economy that include notable contribution to Gross Domestic Product (GDP), significant boost to export earnings and provision of highly needed employment both directly and indirectly. With the forum focusing on economic pillar where the country’s economic development programme is intended to achieve an average GDP growth rate of 10% per annum from 2012, agriculture is one of the six priority sectors together with tourism, wholesale and retail trade, manufacturing, business process outsourcing and financial services.

Mr. Muia pointed out the specter of globalization and the fierce competition that it bequeaths to many businesses and for the floriculture industry, this requires that the whole value chain be examined and optimized by the application of efficient and effective state-of-the art practices in the financing, planting, growing, harvesting, transporting, marketing and selling of the products.

To deal with this challenge the government has adopted a Cluster Strategy as a framework to drive competitiveness and following recommendations by NESC, the Ministry of Trade has commissioned KIPPRA to carry out a study on clusters in Kenya with a view to mapping these and developing a guiding policy framework. Noting that the Flower industry is one of these clusters, Mr. Muia asked KFC to move fast to adopt the cluster strategy by employing the triple helix concept which brings together government, private sector and researchers.

In this respect he asked the Floriculture industry to interact with Pan African Competitiveness forum PACF an international body.

Other guest speakers included:

  • Jane Ngige (Mrs) CEO, Kenya Flower Council – overview of the flower industry.
  • Alan Dodd, Executive Director of NIC bank – The floriculture industry: a lender’s perspective.
  • Oswald Magwenzi, Investiment Officer, international Finance Corporation – Financing options for flower producers.
  • Sam Omukoko, Group MD Metropol E.A. _ role of credit rating agencies &bureaus in supporting domestic and export trade.
  • Suresh Patel, CEO Kridha Ltd. – opportunities in carbon business and water resource Management.
  • Salim Alibhai, Audit Manager PKF – carbon accounting.
  • John Thindi Tax Director, PKf – tax compliance &planning in the floriculture industry.

The forum was attended by over 50 participants form different sectors.

CERTIFICATION CALENDAR FOR GLOBALGAP FLOWERS AND ORNMENTALS

Those KFC members interested to have GlobalGap Certificate for flowers and ornamentals should realize that this certificate falls within the Silver certification calendar. This means that the initial date and expiry date of the GlobalGap certificate is the same as that for Silver certificate.

Application for this GlobalGap certificate should be done in the KFC audit and product registration form provided to each member before the Certification and Re-certification audit.

If the KFC members applies for GlobalGap certificate in the middle of the Silver certificate the GlobalGap certificate will be backdated backwards to the initial date of the Silver certificate.

First Monetary Policy Forum on “Lubricating the economic engine with adequate and affordable credit”

The Central Bank of Kenya and Kenya Bankers Association (KBA) held the first Monetary Policy Forum on “Lubricating the economic engine with adequate and affordable credit” at the Kenya School of Monetary Studies on 10th August, 2010.

The forum brought together key stakeholders to discuss monetary policy issues, banking sector developments, financing of private sector activities and develop public awareness on financial services. It provided a good platform to obtain a feedback on the impact of monetary policy decisions by the Monetary Policy Committee (MPC) on commercial banks and the real sector.

According to Prof. Njuguna Ndung’u Governor CBK, the banking sector remains the key source for financing economic activities. The progress made so far in response to monetary policy decisions signals a positive move towards supporting the economic growth process. To ensure that this move gives rise to the expected and desired outcome, the private sector must seize the opportunity and expand their investment with the available and affordable credit that must be mobilized from the banking sector. Furthermore, the media must ensure an appropriate flow of information that is crucial for the market to process and formulate appropriate solutions.

Kenya flower council was represented by Jane Ngige, Chief Executive Officer.

Xpressions Flora Ltd presented with a silver certificate

Xpressions Flora Ltd., a KFC member who qualified for the KFC Silver Certificate for the first time in the month of March 2010 certification calendar was presented with a certificate on 9th August 2010 by the Kenya Flower Council Chairman Hon. Erastus Mureithi.

The farm was established in 2007 where they started with their first hectare of roses in 2008. They have 21 ha under production and are planning to add two more this year. 95% of their roses are exported to auction markets in Europe, Japan and Australia. The farm has a workforce of over 450 employees under Mr. Inderaj Nain the Managing Director.

Right from inception Xpression Flora Wanted to start growing responsibly and that’s when they approached KFC and became members in 2008. KFC has developed them through the Code of Practice making them meet the standards. They have implemented the Code of practice from the start, that is, workers welfare, environment issues, and effluent treatment etc.

The farm has made judicious upgrading in the technology they employ for example use of drip irrigation. They have enough water reservoirs and boreholes where they harvest water. They recruit and employ at least majority from of its workforce from surrounding area hence empowering the community.

According to Mr. Inder, they are planning to expand to 40ha in future.

The event was given coverage by different media houses.

Floral Rain with gerbera Bison
Source: VBW
Half an hour before the final world cup match between Spain and The Netherlands, the Flower Council of Holland in Amsterdam and Madrid created a dramatic floral rain that descended on supporters of both teams.
In Amsterdam, they scattered 95,000 orange gerberas (Schreurs variety, Bison) from three helicopters.  At the Museum of Madrid, 80,000 predominantly yellow and red flowers rained down from a balloon on the crowd of Spanish fans.
As they, at the moment evaluate the level of publicity elicited by these actions, the hype created promises to last for quite sometime.
With other publicity activities carried out like the canal-trip boat ride, the flower-actions at Schiphol Airport and many many more actions.

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