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Blooming Business
Uganda begins exporting flowers to China, creating opportunities and jobs
By Godfrey Olukya | VOL.11 December ·2019-12-18

For the past 10 years, Sarah Nagayi, 29, had been unemployed. She was among the multitudes of Ugandans seeking work in a country where over 35 percent of the approximate 42 million population is jobless. But a few weeks ago, she got a job in a flower company after export orders for shipments to China grew and a call for extra staff was put out.

"For a long time, I looked for a job without much success. But last month a friend told me that Rosebud flower company was recruiting workers because it wanted to expand its flower growing operation. I applied for a job on a flower farm and was accepted," said Nagayi.

She had no idea at the time that her good fortune was due to new markets in China for Ugandan flowers, promoting Rosebud to take on staff to meet increased production.

The increase in demand also means unemployed Ugandans have started growing flowers on a cooperative community basis, after being told by flower dealers that there is a big market for flowers in China and all their blooms will be bought. The cooperatives organize and train groups of youth in villages and give them funds and skills to use in cultivating land and grow flowers. The land is hired from the villagers by the flower companies, which then buy back the blooms in a win-win arrangement.

From village to China

"We intend to sell our flowers to the businessmen who have assured us that there is a lucrative market of flowers in China," said Ibrahim Kawuta, one of those in a group that has started growing flowers. Wakiso district flower dealer Stanley Kizito, who buys flowers from cooperatives for export, said that the new flower market in China is a blessing to local flower growers and those intending to join the floriculture industry. He said that over 2,000 youth have been employed by flower companies in the last two months in the central and western parts of Uganda, while many others have started growing flowers themselves.

"The market demand for flowers in Europe has dropped because their economies are not doing very well. Therefore getting a new market in China is timely," said Kizito.

Uganda's first batch of flowers to China was flown to Beijing on July 29 this year by Entebbe-based Rosebud Ltd., the country's largest exporter of roses, occupying about 35 percent of Uganda's rose exports.

"There was excitement as the first shipment of flowers were taken from the farm to the airport to be exported to China. All the workers celebrated as the trucks carrying flowers to the airport left the farm," said one of the workers John Waswa.

Persistence pays

Flower exports to China were initiated by the director of Ruparelia Group of Companies which owns Rosebud. Director Rajiv Ruparelia played a big role in making it possible.

Ruparelia told media in the capital Kampala that he had been planning to expand the company's flower exports for some time and China was one of his options.

"Ruparelia visited the China-Africa Economic and Trade Expo recently held in Changsha, Hunan Provinces of China, where he tirelessly marketed Ugandan flowers," said Rosebud Farm Manager Ravi Kumar.

Kumar added that it is not surprising, therefore, that his efforts yielded good results and his company became the first Ugandan flower company to export flowers to China. According to Ruparelia, when they presented their flowers to the Chinese market, the first question they were asked was about the vase life (the length of time which the flowers could stay fresh in a vase).

"I told them that in Uganda, the vase life is between 12 to 15 days - which impressed them," he said.

Matia Kasaija, Ugandan Finance Minister, told local media that feedback from China on Ugandan flowers has been positive, to the extent that their flowers were used to decorate the venue where the last China-Africa Economic and Trade Expo was held in June.

Kumar said Rosebud is expanding its production capacity to meet the expected huge demand from China. Rosebud greenhouses covered an area of 50 hectares, producing and exporting over 12 million stems per month in the past; now it has been expanded to 60 hectares, with a capacity of producing 14 million stems per month.

In addition, Kumar confirmed that the increase in production means the company has employed an additional 200 workers, hence providing much needed jobs especially for the youth.

Wider coverage

The management of the oldest flower company in the country Mairye Flowers said that at the beginning of 2020, they will also be exporting flowers to China. The company's Human Resource Manager Komom Pondu told ChinAfrica, "We are making arrangements to start exporting flowers to China. We were at the last China-Africa Economic and Trade Expo in China and made important contacts. We have increased our growing area by more than 20 acres (8.09 hectares) and recently employed 100 extra workers, bringing our total flower related workforce to 1,000."

He said the Chinese buyers are particularly interested in big head roses. The executive director of Uganda Flowers Exporters Association Esther Nakandi said they are excited about the big flower market in China.

"We have recently become aware of the big market for flowers in China and are encouraging our exporters to start exporting there. We are watching how it develops," she said.

According to the Uganda Investment Authority (UIA), a semi-autonomous investment promotion and facilitation organization owned by the government, Uganda currently has 30 flower growing companies which employ over 20,000 workers.

Over 40 varieties of flowers are grown in Uganda, with roses accounting for 70 percent, chrysanthemum cuttings 25 percent and potted plants 5 percent.

Top five in Africa

The volumes and value of the flower exports have grown from 3,000 tons, worth $14.61 million, in 2000 to over 7,000 tons in 2018, worth $62 million, according to UIA.

The rising growth trend in flower exports has positioned Uganda among the top five exporters of cut flowers in Africa. The floriculture sector is one of Uganda's top 10 foreign exchange-earners, contributing close to $30 million in export revenue, according to the United Nations Comtrade database on international trade.

Vincent Ssempijja, Minister for Agriculture, Animal Industry and Fisheries of Uganda, has advised Ugandan flower companies to maintain high quality blooms, so that the market in China is not jeopardized and thanked the companies for providing much needed jobs to locals.

The top three leading companies in the flower sector earn between $20 million and $30 million, while eight others earn between $10 million and $7 million.

As it is in the early stage, the percentage of flowers sold to China has not yet been computed. But before exports to China began, the major importers of Ugandan flowers were Germany (22 percent), the United States (15 percent), Netherlands (9 percent), Japan (6 percent), Switzerland (5 percent) and Italy (5 percent).

Apart from Rosebud and Mairye, other leading flower companies in Uganda that export flowers include Kajjansi Roses, Venu Farmers and Van Zanten Ltd. The most suitable areas for growing flowers are situated in central and western part of Uganda.

"The new market for flowers in China will definitely enrich more Ugandans in addition to creating more jobs," said flower exporter Warren Kadoma.

(Reporting from Uganda)

(Comments to zanjifang@chinafrica.cn)

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