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<\/a><\/p>\nA high-growth industry, but is it all coming up roses?<\/u><\/p>\n
The KFC is a voluntary association that includes the majority of Kenya\u2019s independent growers and exporters of cut flowers [2]. Significant investment in technology, precision farming, marketing, and human capital has allowed KFC firms to achieve impressive growth, as Kenya\u2019s flower exports increased by 1,200% between 1988-2014 [3]. In 2015, export volumes reached 122,000 tons at an estimated value of 62.9 billion Kenyan shillings ($620M USD), which accounted for 1.01% of Kenya\u2019s GDP [4,5]. The industry directly employs 500,000 people, a significant part of the population [6].<\/p>\n
Despite this growth, the KFC faces significant obstacles related to climate change that threaten the efficiency of flower production and the industry\u2019s supply chain. Effects of decades of below-average rainfall in East Africa are exacerbated by Kenya\u2019s limited freshwater supply [7,8]. Flower production is water-intensive, so dwindling resources put pressure on farms\u2019 operating models. Furthermore, drought and population growth in primary growing regions have resulted in increased conflict between KFC member farms and local communities that have ancestral claims to land and water resources. [9]<\/p>\n Distribution occurs via daily air cargo transportation from Nairobi to Amsterdam, which presents sustainability concerns. According to a 2007 study, the carbon footprint of flying flowers from Kenya is six times smaller than producing flowers in the Netherlands, but transporting flowers from Kenya to Europe still requires significant fuel consumption [10,11]. This distribution model often results in reduced flower quality \u2013 primarily due to temperature fluctuations among the farms, flights, and arrival conditions \u2013 but the speed of air cargo has historically made this model essential given the short shelf-life of flowers.<\/p>\n Not resting on its laurels<\/u><\/p>\n In response to water scarcity issues, the KFC has taken two critical steps. First, the association partnered with the World Wild Fund to establish enabling conditions, including strengthened regulation, for more sustainable management of the Lake Naivasha Basin, the region responsible for 95% of Kenya\u2019s cut flower exports [13]. Secondly, the KFC worked across sectors with Camco Advisory Services, a regional firm focused on clean energy solutions, and the Horticultural Crops Development Authority to develop a Carbon Reduction, Resources, and Opportunities Toolkit (CaRROT). This accounting and management solution allows the KFC to measure greenhouse gas emissions, energy efficiency, and water consumption to target opportunities to improve its production efficiency [14].<\/p>\n With respect to distribution, Kenyan firms and Royal FloraHolland have experimented with refrigerated ocean containers as a less expensive, more environmentally-friendly cold chain alternative to air cargo under an initiative called Flowers@Sea. According to officials at Royal FloraHolland \u2013 the Wall Street for Flowers \u2013 the transition from air to ocean freight could reduce costs by 38% and cut greenhouse gas emissions by 87% [15]. Furthermore, ocean transport allows for tightly controlled temperature management, which improves flower quality. One downside is increased lead time, as seaborne journeys between Africa and Europe take 28-30 days [16].<\/p>\n Next steps for the KFC<\/u><\/p>\n Flowers are price-elastic goods, so poor global economic conditions can dramatically affect demand, and certain production costs within Kenya may continue to rise due to inflation and other factors [17]. To further mitigate risks associated with climate change and maintain demand, the KFC could consider the following actions:<\/p>\n [781 words]<\/p>\n <\/p>\n Sources<\/span><\/p>\n [1] Milena Veselinovic, \u201cGot roses this Valentine\u2019s Day? They probably came from Kenya,\u201d CNN<\/em>, March 16, 2015, http:\/\/www.cnn.com\/2015\/03\/16\/africa\/kenya-flower-industry\/<\/a>, accessed November 3, 2016.<\/p>\n [2] \u201cKFC Profile,\u201d Kenya Flower Council, 2016, http:\/\/kenyaflowercouncil.org\/<\/a>, accessed November 2, 2016.<\/p>\n [3] Neil Ford, \u201cA Time of Change for Agribusiness,\u201d African Business<\/em> (September 2016): 13.<\/p>\n [4] Shadrack Kavilu, \u201cKenya\u2019s flourishing flower sector is not all roses for Masaai herdsmen,\u201d Reuters<\/em>, June 30, 2016, http:\/\/www.reuters.com\/article\/us-kenya-landrights-idUSKCN0ZG0Z0<\/a>, accessed November 2, 2016.<\/p>\n [5] \u201cFloriculture in Kenya,\u201d Kenya Flower Council, 2016, http:\/\/kenyaflowercouncil.org\/?page_id=92<\/a>, accessed November 2, 2016.<\/p>\n [6] Ibid.<\/p>\n [7] I. Niang, O. Ruppel, M.A. Abdrabo, A. Essel, C. Lennerd, J. Padgham, and P. Urquhart, \u201cAfrica,\u201d Climate Change 2014: Impacts, Adaptation, and Vulnerability, Part B: Regional Aspects, Contribution of Working Group II to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge, UK, 1207.<\/p>\n [8] Kenya Country Risk Report Q4 2016, BMI Research, October 2016, London, UK, 35.<\/p>\n [9] Kavilu, \u201cKenya\u2019s flourishing.\u201d<\/p>\n [10] David Bosomworth, \u201cShades of green,\u201d Supply Management<\/em> 15(10), 2010, 17.<\/p>\n [11] Ibid.<\/p>\n [12] Vanessa Thevasthasan, \u201cKenya\u2019s Peace Blooms: The Intersection of Water, Land, Power and People,\u201d Huffington Post<\/em>, February 18, 2015, http:\/\/www.huffingtonpost.com\/vanessa-thevathasan\/kenyas-peace-blooms-the-i_b_6691816.html<\/a>, accessed November 3, 2016.<\/p>\n [13] \u201cIWRAP,\u201d Kenya Flower Council, 2016, http:\/\/kenyaflowercouncil.org\/?page_id=750<\/a>, accessed November 2, 2016.<\/p>\n<\/a><\/p>\n<\/a><\/p>\n\n