Uganda: Ugandan flower export earnings are expected to drop as the euro zone debt crisis takes its toll on European countries, forcing buyers to slash their expenditures.
Germany, France and Spain, the biggest consumers of Ugandan flowers, are tightening their spending on non-essentials, causing a significant negative impact on Uganda’s flower export levels.
When contacted, Ms Juliet Musoke, the executive director Uganda Flower Exporters Association (UFEA) remained tight lipped on the impact the crisis has had on flower exports.
She, however, said the industry’s performance has not improved much as it is yet to recover from the crises that affected the global market last year. “We had less production in 2010 and this is not being helped by the current national economic difficulties. The industry is affected by high cost of doing business as a result of high input, energy and transport costs” she told Daily Monitor yesterday.
The after-effects of the 2008/2009 global financial crisis hurt the sector leading to contract cancellation as many European buyers went bankrupt. This saw the volume and value flower exports fall from 6,460 tonnes valued at $32 million in 2009 to 5,360 tonnes valued at $28 million in 2010.