The earlier closedown of Europe’s airports due to the Iceland volcanic explosion caused terror in Kenya’s flower businesses which created staggering losses.
The eruption created planetary travel consequences and local travel chaos after travel agencies cancelled flights in Europe.
Kenya’s flower industry usually peaks in May as western countries go into late spring & summer months.
In those important months many holidays help to create customers for local and international flowers. An increasing sum of people order discount flowers which has created a new and different pressure for the market.
New crises came at the worst time according to the Kenyan Flower Council which states that the nation lost over 3000 tons of products from the latest air closures .
Numerous planes that were at the Kenyan airport at the time of the chaos were forced to fly around the incident adding hundreds of miles. A company with a plane in Kenya had to hold up enlargement plans by weeks because its new aircraft was forced to fly around the incident postponing their plans .
There have been numerous complaints that the European Air Safety Council had acted without proper cause . The economic impact is yet to be total, but preliminary estimates are in the hundreds of billions (US$) when all affected sectors are included in the total.
British Airways CEO Willie Walsh stated that the that the European Air Safety Council made “a gross overreaction to a very minor risk.”
These newest issues for the Kenyan flower industry is in the wake of a 33% slip in the industry in 2009.
Many of these problems stem from a 30% downturn in orders from Europe in the wake of the Global Recession. Their drop in orders is most straightaway akin to layoffs and hiring freezes in Europe, their main customers .
meantime, countries such as Columbia have been more than amenable to drop their flowers to Europe in the wake of the tumble of the US flower market adding even more pressure to Kenya’s flower marketplace .
Also putting pressure on the worldwide flower sector is an increasing amount of buyers looking for discount flowers. Many of these buyers want top quality products for prices currently attached with cheap flowers.
Workers will largely feel of these downturns with large layoffs planned for many of the huge flower growers, buyers, exporters, and related industries. Some of these businesses are also looking at marketing cheap discount flowers to diversify their sales.