By Elias Biryabarema
NAIROBI (Reuters) - Kenya's flower industry said on Friday it wants a stimulus package to be included in the government's 2010/2011 budget to help it recover from last year's losses and regain a growth momentum.
Exports of horticultural products are the biggest foreign exchange earner for east Africa's largest economy with 71.6 billion shillings worth of flower, fruit and vegetable exports last year, down from 73.7 billion previously.
"We're realistic, we know we can't get a direct cash infusion but we're looking at all available and possible forms of a stimulus package that we can suggest to the government to help this industry," said Jane Ngige, chief executive of the Kenya Flower Council (KFC).
The sector, a major employer, produced up to 90,000 tonnes of lowersin 2009, a decline from 100,000 tonnes in the previous year. Export earnings in 2009 came in at 36 billion shillings, she said.
Ngige tied the drop to a severe winter and snow in much of Europe, the principal market for the country's flowers. KFC said the industry is aiming at maintaining 2009's output in 2010.
"We're going to discuss with the government to see how we can ease the pain of this industry. It employs tens of thousands of people and am sure the government would want these people to keep their jobs," she said.
The industry was also mulling putting in place a disaster fund that could help provide a cushion in time of crisis, she said.
Still reeling from the losses of 2009, the industry suffered a blow from the week-long disruption to flights from Iceland's volcanic ash cloud.
The Fresh Producers Exporters Association of Kenya, an umbrella body for growers of flowers, vegetables and fruits, said early this week growers were losing $3 million in wasted produce that was not shipped because of the closure of Europe's airspace.
Ngige said they expected flower exports to have fully normalised by Wednesday next week.
"We haven't fully quantified the losses because that process needs a lot of time to get information from all the players in the industry," she said. "Right now the priority is on getting exports up and running again".
Reuters Africa
