Macrines Nyapendi
14 February 2008
Kampala — FLOWER export earnings for 2007 surged by $5m (sh8.5b) to $32m (sh54.5b) from $27m (sh46.2b) the previous year.
Juliet Musoke, the executive director of the Uganda Flower Exporters Association (UFEA), said the hostile weather experienced last summer in Europe and South America had pushed up the prices.
"The bad weather in the major growing countries slowed down growth and affected the quality of their flowers. The prices went up because some countries could not meet the standards of the consumers."
She said low production costs would have boosted the volume of flowers shipped out of Entebbe and the sector would have been able to hit their projected target of $45m last year.
However, the export tonnage dropped by 309 metric tonnes last year from the 6,868 tonnes in 2006.
The 2006 production was affected by the hailstorm that ravaged two flower farms that accounted for over 15% of the sector's production and earnings. The growers attempt to relocate to Ethiopia also affected the volumes.
"The rising fuel prices, high freight charges and lack of an appropriate investment incentives package for the sector are some of the problems of the sector. The agriculture ministry's failure to grant some growers import permits is greatly affecting Uganda's performance on the international scene."
Last year, the ministry refused to grant import permits for rooted plant material to Wagagai, causing the destruction of plant material worth billions in Germany.
Uganda exported 5,167 tonnes of roses, earning $17.9m. This included 1,305 tonnes of flower cuttings, which fetched $14.3m, while the value for potted plants was $936,897 from 87 tonnes.
A total of $90m has been invested in the sector. It is the seventh largest foreign exchange earner with a $10m contribution to the economy annually.
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