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Flower export earnings register massive recovery

Flower exports have grown due to easing of global lockdowns. Photo | Shabibah Nakirigya

What you need to know:

  • According to Ms Nekambi, the flower industry continues to grapple with high a number of challenges among which include high electricity bills, which average between Shs25m and Shs30m per month for large producers. 

Flower exports registered a massive recovery, recording one of its highest earnings ever, according to data from Bank of Uganda. 
The commodity, which had been one of the most affected by Covid-19 for the period ended 2020, rebounded, posting $7.15m in June, the highest earning ever in a single month.  
Covid-19 has since December 2019 forced a drop in both volumes and value of flowers, but have since February recorded some progressive recovery. 

Data from Bank of Uganda indicates that during June flower exports fetched  $7.15m (Shs25.3b), which was almost double the $3.24m (Shs11.5b) earned in March 2020, the month in which Covid-19 peaked across the globe. 
Flower sales, according to Bank of Uganda, rose by 54 per cent or Shs13.8b, the highest since March last year.  
The recovery was first registered in June 2020, in which $6.04m (Shs22.3b) worth of flowers was exported.
However, it subsequently declined in July 2020 up to January 2021, earning a monthly average of $4.5m.
The decline had been largely blamed on Covid-19, which had during the period, forced a number of countries into lockdowns. 

Data from Uganda Flowers Export Association, indicates that the June performance was a result of a number of factors, among which included, easing of lockdowns in destination markets with much of Europe and North America almost returning to normal. 
In June, according to Bank of Uganda, more than 769 tonnes of flowers were shipped out of the country compared to 412 tonnes in March last year.

The 2020 and 2021 global lockdowns in different countries had eaten into flower exports with a number of auction markets, including in Netherlands, which is one of Uganda biggest flower export destinations, suspended. 
Ms Esther Nekambi, the Uganda Flowers Export Association executive director, told Daily Monitor that the recovery has been supported by improvement in flights, especially cargo.  At least 83 per cent of Uganda’s flowers are exported. 

Power issues   
According to Ms Nekambi, the flower industry continues to grapple with high a number of challenges among which include high electricity bills, which average between Shs25m and Shs30m per month for large producers.