Source: Business Daily (Nairobi) "Post-Poll Violence Looms Over Horticulture Sector"Expectations were high that players in the horticultural industry would raise their glasses to toast for remarkable earnings last year, but their expectations and hopes have turned into worry.
The sector had an impressive run in 2007 , with earnings climbing by 64 per cent to Sh49.5 billion, buoyed by strong demand in key international markets, surprising even analysts who had raised concern over diverse challenges such as the food miles concept, a strengthening shilling against the dollar and expiring trade arrangements with Europe.
But an outbreak of violence related to the disputed presidential election results, especially around the main growing areas around Naivasha and west of the Rift Valley seems to have spoiled the party for producers, as fear mounts over gangs blocking the shipment of produce from the farms and disrupting labour.
Violence and protests followed the Electoral Commission's declaration of Mr Mwai Kibaki as winner of the presidential election whose outcome the opposition ODM has challenged.
ODM and election observers have complained of differences in some of the final results announced by commissioners and those read out at the constituencies.
Because of the violence, the horticultural industry , instead of enjoying the pickings, is now preparing for a nervous brain- storming meeting in Nairobi today to map out its future.
"The developments are not good and all of us are meeting to try and find a way out of the situation," Ms Jane Ngige, the chief executive of the Kenya Flower Council told Business Daily.
The latest wave of unrest especially around Naivasha and Kericho has raised great concern in the sectors as thousands of people providing casual labour in the flower farms have been displaced from their homes.
Analysts warn that the displacements will hit the flower farms that require intensive labour in picking and packaging .
Besides the shortage of manpower, there is also a massive threat to shipment of consignments to Nairobi and Eldoret International airports from where they are transported to markets abroad. Gangs of youth have since the weekend been erecting illegal roadblocks along the main Kericho/ Nairobi highway, paralysing traffic.
Hasit Shah, the Fresh Produce and Exporters Association of Kenya (FPEAK) chairman said there have been major repercussions to the industry following the skirmishes in Naivasha at the weekend which have triggered a mass exodus of mainly migrant workers.
"Most of the farms are operating with limited capacity. The situation is tense and most workers are afraid to stay ," he said.
Vehicles drive around a burning roadblock in Naivasha, a key flower growing area.
"The entire western Rift region has been hit. In the past two days, produce from most of these areas is not coming through to Nairobi. We are how, A KEY ever, making arrangements to airlift the produce from all affected areas," he added.
Issa Wafula, the Kenya Agricultural and Plantations Workers Union (KPAWU) assistant secretary- general said from workers from the western region who remained in Naivasha have not been able to access their stations since fresh chaos broke out this week.
Mr Wafula has appealed to the government to move fast and save the industry from collapse."Seventy per cent of flower farm labour force is provided by workers from western Kenya. This is why we urgently appeal to the Government to restore peace before more damage is done to the farms", he told the Business Daily.
James Finlay Ltd's subsidiary-Flamingo Holdings- that owns flower and vegetable farms in Lake Naivasha and Timau areas says it was also affected by the weekend skirmishes.
"We have lost five days of work because there were many blockades on the road. Each day, we are not sure that the roads are open. "We can only ship flowers when the roads are passable," Nec Davies, the Finlays managing director said.
His company, which also runs tea plantations in Kericho, but which was less affected, said all of its processed tea was lying in its Kericho stores until the situation improves.
Reduced and cancelled airlines' operations, stoppages of road transport and production losses in the past one week will mainly feature at the meeting of producers, farmers and exporters in Nairobi today,
Other issues on the agenda-which are to be presented to Government, include decisions by customers and clients to cancel commercial and technical visits and divert into Egypt, Morroco and West African producers.
"Delays in ports meant that chemicals, fertilisers and agro inputs could not get to farms on time. Many farms in the Rift Valley were vandalised and workers have not returned to all the units," Mr Shah whose organisation represents some 100 small scale growers, said.
With impressive earnings from 2007, industry players fear political turmoil was scaring away potential investors and increased investment until they are guaranteed of security of their assets.
The good run by the horticulture industry last year was because of demand in the international market helped by poor weather conditions in Europe during the second quarter of 2007 that opened the window for local producers to increase their sales.
Traditionally, the onset of summer in the northern hemisphere reduces sales volumes for local exporters as their counterparts in Europe take advantage of improved weather to increase their output.
Last year, however, unpredictable weather attributed to climate change upset Europe's horticultural production in key source markets such as the UK.
That meant prolonged period of demand for imports from countries like Kenya.In its latest monthly economic review, the Central Bank of Kenya said horticultural exports increased both by volume and value, capturing the change in fortunes for the local growers
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