Kenya conflict not an opportunity for SA tea and roses
Kenya’s tea and flower industries are in disarray following the political unrest after the 27 December 2007 Kenyan elections. However, opportunities for South Africa to meet the demand left by the ailing East African exporter are slim.
According to Ronald Topham, general manager of the Tshivase Tea Estate in Limpopo, Africans consume about 22 million kilograms of tea a year, but the country only produces around 6 million kilograms. “The negative impact on tea production in that country would increase world prices as Kenya is a big producer of tea. One of our South African estates recently sold tea in Dubai for $2/kg.” That indicates the high-quality of tea produced in Africa. Tea imported from Malawi sells for R7/kg locally. he tea industry in Kenya has seen between 26 000 and 70 000 plantation workers flee. Damage to houses, vehicles and warehouses on tea plantations is estimated at between $450 000 and $600 000. he Kenyan Tea Growers’ Association reported that work in the plantations is at only 40%, most of which is pruning in preparation for the first harvest in May. “Despite Kenya being able to harvest throughout the year, if they lose one harvest, they’ll never make it up,” said Topham. he South African cut flower industry, which accounts for a quarter of a percent of world production, would also not be able to exploit the gap left in the market. “Kenya accounts for 25% of world cut flower production,” said René Schoenmaker, head of exports and marketing at the South African Flower Growers’ Association. And with Valentine’s Day fast approaching, rose shortages would certainly push up retail prices. he Kenyan cut flower industry is beginning to lose the confidence of its overseas market because of fears that supply contracts may not be met. The industry that has projected exports worth 60 billion shillings (R6,3 billion) could lose its duty-free access to the EU if threats of sanctions by the and the US are implemented. S ince the conflict started, some 300 000 people have been displaced, about 1 000 people have lost their lives and the Kenyan economy has lost an estimated $1 billion. – David Steynberg
