Wednesday, March 4, 2020

Emirates Nairobi flower cargo falls

An Emirates plane. An Emirates plane. Emirates SkyCargo lifted over 24,000 tonnes of flowers in 2019 from Kenya. AFP PHOTO 
ELIZABETH KIVUVA

Summary

    • The sector has in recent months been subjected to strict phytosanitary measures as some major buyers move to enforce higher standards.
    • The sector has also been affected by imposition of 16 percent VAT on pest controls and pending tax refunds estimated at Sh3.5 billion.
    • Emirates says it will focus on innovative product development and investment in ‘fit for purpose’ infrastructure, to guarantee freshness through the entire supply chain.
Emirates SkyCargo lifted over 24,000 tonnes of flowers in 2019 from Kenya, a 14.29 percent drop from 28,000 tonnes in 2018 indicating the continued competition in the freight business amid declining quantities of the export produce.
The cargo transported by the Dubai-based airline represent 15 percent of Kenyan export to markets in Netherlands, Switzerland and Dubai.
The airline also transported vegetables and meat products.
Some of the airlines transporting flowers include Cargolux, Kenya Airways, KLM, Martinair, Singapore Airlines, Etihad Airways, Lufthansa, Qatar and Saudi Arabian Airlines.
The decline continued in January, which is usually on boom due to the Valentine’s Day celebrations globally, with the airline transporting 2,000 tonnes of flowers down from 2,200 tonnes in January 2019.

The sector has in recent months been subjected to strict phytosanitary measures as some major buyers move to enforce higher standards. The sector has also been affected by imposition of 16 percent VAT on pest controls and pending tax refunds estimated at Sh3.5 billion.
Emirates Regional manager for East Africa Hendrik Du Preez says the company will focus on innovative product development and investment in ‘fit for purpose’ infrastructure, to guarantee freshness through the entire supply chain.
“We met our seasonal Valentine’s Day flowers demand with our freighter service between Kenya and the Netherlands as well as the Middle East. We still expect growth in this year with the new innovative products we come up with,” Du Preez said.
“We will be recalibrating where the demand is and where the supply is coming from, and best realign our competitiveness in aircraft to improve the service.”

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