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Sector loses Sh8B in the last one month

According to Agricultural Employers Association (AEA) CEO Wesley Siele, the horticultural sector was one of the hardest hit by the Coronavirus

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Business06 April 2020 - 01:00
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In Summary


  • -          Government has banned flights from affected countries
  • -          Only cargo freights by some airways are operating
  • -          Freight charges have tripled in the last one month
  • -          Many EU countries affected by the pandemic
  • -          Naivasha has over 50 flower farms
The empty grading hall in Naivasha based Maridadi flower farm in Naivasha which has sent home 150 workers as it’s no longer exporting their roses to EU. The farm is dumping over 230,000 roses everyday due to the Corona crisis which has seen supermarkets in Europe close shop and the Dutch auction collapse.

The horticulture sector has lost Sh8B in the last one month due to the Covid-19 disease which has adversely affected various sectors.

There are fears that the number could rise further in the coming weeks due to the pandemic that has seen various sectors crumble.

This comes at a time when employers have embarked on the process of sending home their workers following the collapse of the flower market.

According to Agricultural Employers Association (AEA) CEO Wesley Siele, the horticultural sector was one of the hardest hit by the Coronavirus.

He said that with the collapse of the Dutch auction and the lockdown in Europe, shipping out flowers and fresh produce had become near impossible.

“The sector has already lost an estimated Sh8B due to the pandemic and things will get worse in the coming days if the situation does not change,” he said.

Siele added that farmers involved in fresh produce were still in business though their exports had dropped by over 60 percent.

“Despite the crisis people have to eat and farmers involved in fresh produce are exporting their products though getting cargo freight is another challenge,” he said.

On employees, Siele confirmed that the association was engaging COTU on the way forward as the farmers could not afford to pay this month’s salaries.

He noted that an estimated 50,000 to 60,000 would be declared redundant in the process that has already kicked off.

“Employers cannot be able to pay workers this month and they will be forced to send them home without salaries as they monitor the situation,” he said.

The CEO noted that several flower farms had already closed down and sent their entire workerfoce home due to the current pandemic.

“The farmers have been forced to leave behind a skeleton staff that will maintain the plants as they wait for the situation to normalize,” he said.

On his part, the secretary-general Kenya Export, Floriculture, Horticulture and Allied Workers Union (KEFHAU) David Omulama called for support to hundreds of the affected workers.

He noted that in Naivasha, all the over 50 flower farms had sent nearly all their staff home meaning an economic crisis for the lakeside town and families.

Omulama added that the crisis spelt doom for Naivasha town which heavily relied on the hundreds of flower farm workers.

“This is the darkest moment for the sector as more farms continue to send home their workers and we hope the government will come to their rescuehe said.

Ends.

 

 

 

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