Ethiopia has established itself as a key player in the global flower trade, with its high-quality flowers gaining recognition in international markets. The country’s position in the global market continues to strengthen for the reason various flower importers across the globe are showing growing demand and attracted by the Ethiopian flower market.
As a result, the country’s cut flowers export market has shown positive trends, with increasing demand for Ethiopian flowers in international markets. Ethiopia, by exporting a wide variety of flowers to destinations worldwide, is playing a major role in the global flower market.
The flower market has emerged as a thriving industry that not only contributes significantly to the country’s economy by generating valuable foreign exchange earnings but also by providing employment opportunities for many Ethiopians and enabling the country to hold a prominent position in the global floral trade.
In fact, the Ethiopian flower industry emerged in the late 1990s. In spite of being a late-comer, the industry has shown remarkable growth over the past years and has become the second-largest flower exporter in Africa.
In 2021, Ethiopia exported cut flowers valued at 235 million USD, making it the 5th largest exporter of cut flowers in the world. The main destinations of exports from Ethiopia are Netherlands (157million USD), Saudi Arabia (21.5million USD), United Kingdom (9.53million USD), Norway (9.39illion USD), and Seychelles (5.46 million USD).
Incentives from the federal government for agricultural investors as well as the Ethiopian Cargo facility contributed immensely to the development of the industry as a whole.
About 80 percent of the flower exports from Ethiopia are roses, they are known for their high quality, long stems and vibrant colors. Roses have a universal symbol representation of love and are used on different occasions depending on their color. They have an approximate vase life of two weeks if well taken care of.
Last year, Ethiopia exported 2.7 million kilograms of flowers to the European market during Valentine’s Day alone and the bulk of them were fresh-cut roses. The busy season occurs from December until June especially for celebratory occasions such as Christmas, Valentines and Mother’s Day. There are a number of varieties including the African rose, fedora, Sanaa, Euphoria and the Kiwito.
The National Bank of Ethiopia (NBE) reported revenues from cut-flower export at 600 million USD for the 2022/23 fiscal year, making flowers the second-most valuable export commodity after coffee. The Ethiopian Airlines also disclosed that Ethiopian Cargo and Logistics Service has transported around 250 million stems (4500 tons) of flowers for this year’s Valentine’s Day.
Having conducted in excess of 60 flights within the preceding fortnight, Ethiopian Cargo and Logistics Service facilitated the transportation of approximately 4500 tons of flowers from Addis Ababa, Nairobi, and Bogota to destinations worldwide, the Airline indicated. Currently, the Ethiopian floriculture industry is booming, becoming one of Africa’s biggest flower exporters. It has created more than 85,000 jobs and women take up 80 percent of these jobs.
Recently, the United Kingdom has announced a temporary removal of 8 percent export tariffs on cut flowers that it imports from East African countries, including Ethiopia, with the aim of making trade with the UK easier and cheaper for growers in East Africa and beyond. The tariff suspension that remains in place for two years is expected to increase Ethiopia’s cut flower export, allow blooming cut flower trade and earn better.
Ethiopian Horticulture Producer Exporters Association Executive Director, Tewodros Zewdie told local media that the recent UK’s removal of the 8 percent tariff on cut flowers for two years will increase Ethiopia’s flower export.
The UK’s tariff on cut flowers will be suspended for two years from 11 April 2024 to 30 June 2026, allowing the entry of unlimited quantities of flowers at zero percent tariff, even if they transit via a third country.
Tewodros said that the move will boost Ethiopia’s flower export and will increase the competition of flower producers in Ethiopia in delivering their products to their customers in the UK, he stated. For him, the removal of the tariff is a great opportunity and stressed the need to strive for the maximum benefit.
The support to the sector, including land supply and administrative assistance, should be improved to increase investment in the horticulture sector, he urged.
Ethiopia is the second largest cut flower producer in Africa, making up 23 percent of Sub-Saharan African exports. In 2023, the value of trade in cut flowers between the UK from Ethiopia was valued at 12.6 million Euros.
The removal of the 8 percent duty for cut flowers is a big win for major flower growing countries including Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.
Accordingly, Ethiopia’s flower industry contributes significantly to global supply chains, meeting the demand for flowers in various countries. The country’s ability to produce a diverse range of flowers has made it a valuable player in fulfilling global demand for fresh blooms.
However, flower farmers in Ethiopia face challenges such as inconsistent weather patterns, high transportation costs, and stiff competition in the global market. Additionally, access to finance and skilled labor can be hurdles for smaller producers. Navigating these obstacles requires resilience and strategic planning. Despite the challenges, the Ethiopian flower market presents exciting opportunities for growth and diversification. By expanding into new markets, investing in technology for improved efficiency, and exploring sustainable practices, flower farmers and exporters can tap into the growing demand for Ethiopian blooms globally.
What is more, the future of Ethiopia’s flower industry lies in technological advancements that enhance productivity and quality. Innovations like automated irrigation systems, digital monitoring of plant health, among others are expected to shape the way flowers are grown and exported from the country.
In sum, from unique color combinations to eco-conscious packaging, the industry is poised to surprise and delight flower enthusiasts with innovative offerings in the years to come. With a strong foundation built on history and a promising outlook driven by emerging trends, Ethiopia’s flower market is poised to continue blossoming and making a lasting impact on both local communities and the worldwide floral landscape.
BY TEWODROS KASSA
The Ethiopian herald May 11/2024
