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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