Declining Zambian Flower Exports

The slowing global economy has hit the demand for roses from Zambia threatening the livelihoods of hundreds of workers.

Prices paid for Zambian roses in Europe has declined due to falling demand and oversupply. For some farmers in Zambia it is cheaper for them to destroy the roses rather than send them to Europe.

Farmers are reducing capacity and shutting off irrigation systems to some of their greenhouses. In fact some farmers are switching production away from roses to vegetable production.

The demand for roses usually peaks at Christmas and Valentines Day but over the last few months demand has collapsed due to the global economic crisis.

Zambian flower exporters face potentially more difficulty than flower exporters in rival economies such as Kenya, Tanzania and Uganda.

Flower exporters are dependent on a secure supply chain, with the fresh flowers kept refrigerated and disease-free as they are moved quickly from the farm to markets in Europe within 48 hours.

But in Zambia, transport costs are higher, because of the higher cost of petrol and jet fuel that has to be imported into this land-locked country.

And the lack of a substantial scheduled air freight service has meant that they have had to charter flights to take their flowers to market.

They have also faced problems with electricity supply, with Zambia’s government-owned electricity company Zesco introducing rolling power cuts throughout the country over the past year.

The sharp drop in the value of the Zambian currency has raised the cost of fertilisers, fuel and other farm inputs.

Zambia remains one of the poorest countries in Africa with more than 60% of the population living on less than $2 per day. Although the flower exporting industry has been hard hit the copper industry which make up 90% of the country’s exports has been dented by the decline in world copper prices. The decline in world copper prices could hit thousands of jobs in the Zambian economy.

The Zambian flower industry is is need of increased governemnent spending to improve the country’s infrastructure.

The Zambian Rose Industry

40m roses exported per year
4,200 tonnes worth $40m in 2008
Total employment: 12,000

Further Reading

Original BBC article

Zambia country profile

Zambia Export Growers Association.