Sachin Appachu in the greenhouse.
Low prices after Valentine's Day
According to Appachu, this Monday, the day after Valentine's Day, the auction prices dropped around 30 to 35 percent compared to the average price of their 40 and 50 cm roses. "The prices are so low that we decided to stop exporting these lengths as it is simply not viable," says Appachu. Fortunately, the prices of their other lengths (60, 70, and 80 cm stems) are still 'good'. "They also dropped in price , like 20 percent, but we can still make profit. Therefore, we only decreased the amount of boxes we export," he says. According to Appachu, the reason for these low prices might be the fact that Valentine's Day fell on a Sunday this year (February 14). "Probably not all flowers are sold for Valentine's Day. Therefore, trading companies hold the flowers in stock and finish them first before they buy new ones. Of course this is just guessing, but it is commonly known that weekend Valentine's Days are not the best," says Appachu.
Low prices before Valentine's Day
However, not only after Valentine's Day, but also just before Valentine's Bliss Flora had to deal with low prices. "Approximately eight days before Valentine's Day, the weather was rainy and cloudy, which decreased the production at many farms. At our farm, for example, the production dropped by 30 to 35 percent. Consequently, less flowers arrived at the the auction, which meant better prices for other growers. However, a week before Valentine's Day, the weather improved and the production increased sharply. So, the last two days before Valentine's Day, the auction was over supplied with Kenyan flowers which made the price fall around 20 to 25 percent. Interestingly, the colored flowers did better this year, all through Valentine's."
Coming weeks higher prices
Fortunately, Appachu expects better prices for the coming weeks. "We supply around 65 percent to the auction and 35 percent directly. When we look at our direct orders, we can see an increase in demand for flowers. Often this trend can be translated into what will happen at the auction. So, from Monday on, as the buyers are preparing for Russian Women's Day and Mother's Day in the UK, the prices will probably rise again."
Bliss Flora
Bliss Flora was established in 2011 and grows roses on a 35 ha sized farm in Nakuru, Kenya. They mainly supply the auction in the Netherlands, but also supply directly to the Netherlands, Norway, Australia and China. Russia used to be a large export market for Bliss Flora as well, however due to the decreased value of the ruble, the requests declined. "Hopefully this situation will recover soon. Our buyers in Russia think that the value of the ruble will get stronger sometime in June of this year. Let's hope," concludes Appachu.
For more information
Bliss Flora Ltd
Sachin Appachu
Email: appachu7@yahoo.com