Ishai Sharon, Head of the Roses Department, reports that a gloomy picture of the market prices was witnessed during the month of June 2019. According to him, this month was rather disappointing for the industry as the market price for all cut flowers fell to a low of 15% when compared with prices over the same period in June 2018.
He goes on to say that there were indeed two products that he found to be responsible for the negative results experienced in the market over the period. The Chrysanthemums sold at a low price of -42% and Roses which also sold at a low of -25%.
Ishai points out that the other reason which contributed to the negative market prices during the month of June was caused by a major Heatwave. “The heatwave caused temperatures to rise to a high of 35-40 degrees and this phenomenon continued for more than two weeks most parts of Central Europe,” he states.
During the last week, Ishai notes that the weather had changed considerably. “It became colder with temperatures being as low as 20 degrees and with the forecast predicted for the coming two weeks will likely remain unchanged,” he reports. Ishai adds that he can already see some improvements in the prices. Vacation in Europe will be in 2 weeks time, thus he hopes for more demand in the coming weeks.
Moreover, Ishai notes of how the coming period is usually very sensitive because of the wet and high humid conditions that tend to be experienced in the major growing regions in Kenya. Therefore, he advises all flower growers to ensure that the quality of the flowers they send should be perfect, every remark should also be very critical and zero tolerance is expected from them. He adds, “All growers must also place concerted efforts in ensuring that they only send flowers of the highest quality.”
Ishai is more than glad to report that the F. Optimal team has succeeded in making promotions of direct deals during this period. He also adds that the team is doing everything possible to keep this long term deal with minimal damage.
In addition, Ishai expects that between the dates 15th and 20th of August, the demand for flowers will have significantly improved. This he says will be because of people across Europe will start coming back from vacation. He ends by wishing all growers the very best during the period.
In conclusion, Ishai says he’s very hopeful for the rest of the summer that we will not be experiencing any extreme weather. “We’ve already suffered enough and it will be great for the markets if we can go through the rest of the summer period with our normal market prices,” he said.