00:01The ongoing war in Iran has disrupted key trade routes and flower growers say losses are piling up.
00:09The Middle East accounts for 10 to 15 percent of our flower exports from Kenya
00:14and with the disruption that has taken place we now have to seek alternative markets, China being one of them.
00:20We now have duty-free access of agricultural exports to China beginning 1st of May.
00:25So that is one of the conversations we are currently holding.
00:28At Isinya Flower Farms south of Nairobi, exports have dropped by more than 50 percent.
00:36Another impact that we felt was the rise in logistic prices, the freight prices and also reduced cargo capacity by
00:43almost 30 percent.
00:45So when we talk about the freight costs, they contribute 40 to 50 percent of the entire production cost.
00:50So that is a bit high for us and also with the rise and the hike in the fuel prices,
00:55it makes it quite unbearable both for the buyer and also the supplier.
01:00So for logistics, yes, we were affected.
01:02Middle East is not only a key market, but it's a key transit hub.
01:07Flights through the Middle East have either slowed or come to a grinding halt.
01:11Shipping via Europe, up to $5 per kilo, making the business unsustainable.
01:19Losses have already hit $4.2 million in just three weeks.
01:24Many freights are cancelled in advance because all the Middle East carriers, like Emirates, Saudi Airlines, EPR, they are all
01:34cancelled.
01:35That is really hurting the growers.
01:38Now the industry is scrambling.
01:41The Kenya Flowers Council is pushing for direct cargo flights to Europe.
01:46Exporters are also eyeing China, where duty-free access begins May the 1st, a potential lifeline in a race against
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01:54You
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