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Yogeesh Basavarajappa, Florenza on the unexpected decrease
"Kenya: "Prices cut roses down by 15 percent"
Yogeesh Basavarajappa at the IFTEX in Nairobi, Kenya.
Florenza sells directly to retailers in the Netherlands, Norway, Germany and lower quantities to the UK. He deals with weekly prices and the drop in price came as a surprise. "Usually, during this time of the year, the prices are higher, and actually, we have had some good weeks", he says.
Basavarajappa does not have an explanation for the drop in price. "We do not know why the prices dropped. It might have to do with the fact that the Kenyan farms are up and running again", he says. Many farms suffered from the heavy rains this summer. They therefore had to cut back their production. Now, the majority have recovered which results in more flowers on the market. Besides that, he thinks that the Brexit could also have affected the prices indirectly. "We sell in euros and as the pound devalued, our flowers are probably too expensive."
How the prices will develop in the coming weeks is still uncertain. "This drop in price was quite unexpected, so I do not know what we can expect for the coming weeks. As we deal with weekly prices, we will see how next week will be by this weekend."
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