Case Study African Cut Flower and Foilage
Autor: pratyaksha • November 5, 2016 • Case Study • 1,391 Words (6 Pages) • 1,503 Views
Case Study 1
International Marketing
MKT6230.E1
Pratyaksha Pokhrel
- One of the challenges for African flower and foliage producers is the need to ensure that the products reach the final consumers in good quality. Must they then produce and market their own products that are more tolerant to the stresses of long shipping or continue to produce traditional European flowers which are difficult and expensive to transport?
Africa especially Ethiopia, Kenya and Ghana is the largest flower exporter to the European Union. Cheap labors, Affordable Energy, good climate being the advantageous side on the floriculture industry in Africa.
European flowers Vs African Flowers
European Flowers | African Flowers | |
Advantages | -Demanded by the target market - Fit with floral trends | - More resilient -Less water reliant |
Disadvantages | -Fragile to stresses of transportation - Expensive to keep fresh while distributing | - Not demanded or recognized by target market - May have to invest in marketing new products |
Opportunities | -Invest in technology to improve distribution | - Research and develop cheaper, robust varieties as substitutes |
(Nicholas Aria, 2014)
According to Wang Liang Hon,” Jamaica business opportunity service,2007 has stated the following challenges to Africa cut flower and foliage industry:
- Poor road Infrastructure
- Lack of suitable credit arrangements for smallholders’ farmers
- Poor quality of electricity supply
- High prices of farm inputs- fertilizers
- High incidence of pests and diseases
- Low level of domestic floriculture research
When looking to the market analysis producing traditional European flowers by Centre for Promotion of Imports from developing countries, 2013 the following are the findings:
- Europe is a major market for cut flowers and foliage, Kenya being the largest supplier among developing nations.
- There is increase in demand for exports.
- The imported value of cut flowers and foliage from Developing country grew by 7.5% between 2008 and 2012.
There are numerous challenges that Africa cut flower and foliage industry is facing currently. Africa should keep producing traditional European flower. Changing the market entirely would not meet the demand due to cultural differences, buyer driven market, major national income. (Nesa Purana, 2015). However, floriculture is a major contributor to the national income in Africa. So, Africa can side by side work on market expansion until they are well with the resources required to meet the demand in multiple countries.
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