U.S. and Kenyan officials have come to an agreement that could bring more African flowers into the states, but some industry officials say they don't expect an immediate effect on the market.

Last month, transport ministers from both counties signed an "Open Skies" deal. The deal allows for direct flights between the two countries within a year and could facilitate an increase in Kenyan imports, according to Reuters. 

Currently, Kenya is the biggest exporter of cut flowers to the European Union, with a market share of about 32 percent, according to the Fresh Produce Exporters Association of Kenya (FPEAK). The U.S. imports a much smaller amount from Kenya, bringing in about $1.1 million in flowers in 2006, a figure which only contributed 0.2 percent to the U.S.'s total market, according to the U.S. Department of Agriculture.

The trade balance, however, could change with the new Open Skies policy. FPEAK officials told Reuters they expect the U.S. market to account for 2 to 5 percent of Kenya's exports at the start of the direct flights. That number, they say, could rise gradually over time.

Red Kennicott, AAF, CEO at Kennicott Brothers Company in Chicago, says even though many wholesalers already purchase some African flowers through Dutch auctions, transitioning to more direct sourcing might take time.

"I don't anticipate any immediate dramatic impact with the Open Skies policy," Kennicott says.  "It will take a little while for relationships to be established between customers and vendors. It does open opportunities in the long run."

The effect of the new agreement ultimately will depend on perceived value within the U.S. industry, says Kurt Schroeder, AAF, AIFD, PFCI, of Delaware Valley Floral Group.

"It's a borderless world, and everything can be traded, but it all comes down to value," he says. "If they are going to grow flowers that can be purchased in this country at or below the price range already available here it would be a viable option."

In the end, whether U.S. industry members begin to sell more Kenyan roses depends on other factors as well, Schroeder says, including exchange rates with South American growers and flower preferences — Kenya typically produces roses with smaller heads.

--Kori Kamradt
kkamradt@safnow.org

  

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