Flower exporters wilt under heat of strong rand

RAY SMUTS AS THE muscular rand continues to deliver its devastating body blows to exporters, the South African export flower industry is also on the canvas and the forward picture anything but rosy. “Verlep” (wilted) is how a Western Cape grower summed up the export scenario last week, an assessment shared by Casper Eloff, newly-elected president of the South African Flower Grower’s Association. Eloff says the industry is bedevilled by several major factors - the strong rand, high oil prices and high production, and low demand for flowers in Europe. What is more, South African fresh cut flowers have to compete against the likes of Kenya, Zambia and to a lesser extent Zimbabwe, all of which are exempt from duty on exports into EU countries. Now a further threat has emerged. Despite its close proximity to the equator, Ethiopia is growing for export (again EU duty free) excellent flowers, mainly roses, in the cooler highlands about 2 000 metres above sea level, utilising Dutch and Israeli expertise and enjoying financial assistance from government. On a recent visit to Germany and Holland, Eloff was struck at how “depressed” flower markets were; lower sales all round and consumers only on the look-out for specific varieties. “All factors taken into account, we cannot export the normal way but must find niche markets,” says Eloff, adding that for South African flower farms to become more cost effective they need to be at least twice their present size of around five hectares. (Kenyan flower farms are some 20ha on average).