‘Uganda is still a very good place for the production of flowers’
How’s your business doing?
“Things weren’t going very well in the beginning of the year. From around March, we got better prices for our roses and that lasted until November. In the beginning of November, there was a big drop in prices, but that’s normal. November is always a slow month. We’ll probably be selling more red and white roses again in the weeks leading up to Christmas. But looking at the long term, business hasn’t been good the past 3.5 years. Many growers were thinking of giving up. It wasn’t until this year that things started to improve a little. Prices normalised. Last October was an extremely good month compared with last year.”
Did Jambo Roses struggle too, the last couple of years?
“Yes, the past 3.5 years have been very difficult. Not just for growers in Uganda. It was the same in other countries, like Kenya and Ethiopia. The demand for flowers was simply too low. The European economy was bad, people didn’t have any money. That sort of thing didn’t use to have an impact on flower sales. Consumers might not have bought a new car or a TV, but they still went to restaurants and they still bought flowers. But it was different this time. The embargo on Russia caused some problems, too. The roses with the largest buds used to go to Russia, the rest went to Europe. But because of the problems with Russia, many of the roses that used to go there, ended up going to Europe now, adding to the competition on the market.”
Is Uganda still a good country to grow flowers?
“Yes, Uganda is still a very good place for the production of flowers. There are quite a few challenges though and that’s why we haven’t grown at the same rate as Ethiopia and Kenya. Uganda got into the flower industry before Ethiopia and Ethiopia’s rose production is much larger now. We never managed to exceed 500 ha. Many farms, from all over the world, supply flowers to Europe – it’s a very competitive market. Fertilisers and chemical agents are more expensive in our country, because there are fewer growers. Another problem in Uganda is the infrastructure; the roads are bad and power supply is unreliable. The government offers very little support for the floricultural industry. Growers have to do everything themselves. Unlike in Ethiopia, where the government is very involved in its floriculture. That’s not the case here.”
Are you still experiencing problems with air transportation?
“No, the growers have a joint cargo company now, called Fresh Handling. It transports the roses of all the growers. Freight rates are currently probably lower in Uganda than in Kenya and Ethiopia. This used to be a problem indeed, but luckily it’s been resolved. We negotiate the rates together now. That’s really improved the industry.”
Ugandan growers don’t really like the auction, do they?
“I used to sell my flowers at the auction in the Netherlands, but the auction costs were much too high. There’s only one Ugandan grower who still sells via the auction. He actually sells directly, but payment is arranged through the auction. Thanks to the Ugandan climate, we have a high production per m2. Higher than Kenya and Ethiopia. But when it comes to quality, they are stronger. If you’re getting a 5-cm rose bud in Kenya, you’re only getting a 4-cm bud over here. That’s why Ugandan growers end up selling their roses to supermarket chains, at lower prices. Our product isn’t suitable for the auction. If you want to sell at the auction, you need to deliver top quality; thick stems and large buds. Having said that, many Kenyan farms are looking for direct trade too.”
Who does Jambo Roses sell to?
“We sell our roses to retailers in Norway, Sweden, Germany, Italy, Hungary and France. Mainly through Rosalink. 90% of Uganda’s flowers is sold via Rosalink. That works really well for us. If we had to sell everything individually, the costs would be far too high. It’s better to consolidate. We’ve been selling to Norway for many years; one of our shareholders is Norwegian. We celebrated our 20th anniversary last year. There was a big party and the Norwegian ambassador attended.
How do you see Jambo Roses’ future?
“We’ll have to innovate. We’d like to grow new varieties with larger buds. Sweethearts have always done well in Uganda. But we discovered that some of the flowers that produce large buds in Kenya, can be productive over here too – even more productive than in Kenya. The heads don’t reach the same size, but they’re still bigger than the Sweethearts. The price difference between Sweethearts and large-flowered roses is 30 to 40%. The difference between our large-flowered roses and those from Kenya is smaller.”
Are you thinking of expanding at all?
Our farm currently has an acreage of 22 ha and we’d like to expand to 30 ha. That’s possible in this location. If we wanted to grow even more, we’d have to move to elsewhere in the country. But I believe that there’s a limit to the size of a company. Up to around 30 to 35 ha can be profitable. If you’re bigger than that, it becomes very hard to deliver a fresh product and make a profit. It becomes a struggle. Too many issues play a role in the cultivation of roses. Take for example Karaturi in Kenya. The fact that that farm closed down has actually helped us. They would dump large amounts of flowers on the market right before the important flower days. The market is better now. We’re also looking into the possibilities of moving more towards organic farming. This comes with a price tag though, as the production per m2 would be lower. If we did start growing organic roses, we’d have to get a higher price.”
Have you ever considered switching to the production of cuttings?
“We’re definitely interested in producing cuttings. But it requires a partner and we haven’t found one yet. We’d be delighted if we did find a partner, because our location is very suitable for the production of cuttings. We would do it if we got the chance. Prices for cutting are much more stable. If you know how much you will earn, you can ensure your costs are in accordance with that. When you’re growing roses, you never know what your turnover is going to be.”
About Daniel Kiryango
Company: Jambo Flowers, Uganda
Place: Buswa Village
Acreage: 22 ha
Product: small-flowered rose
Number of employees: 595
