Egypt's cut flower exports bloom, benefitting the large businesses but failing to incorporate local growers. Rania Khallaf writes "Hundreds of feddans have been planted with flowers over the past 10 years. New lands have been earmarked in desert areas such as Saqqara, the northern coast and Ismailia to develop a booming business," says Alfred Michael, head of the National Centre for Indoor Plants (NCIP), affiliated to the government-run Agricultural Research Centre. "The new desert areas, where drip irrigation techniques are used, are perfect for planting cut flowers." According to www.green-seeds.com, which monitors the development of the flower trade, global cut flower markets are growing at an annual rate of six to nine per cent. Figures provided by the Web site indicate that the total volume of this trade in the international market reached $5.24 billion in 1996, and has now risen to $7 billion. Egypt is not among the top 10 exporters of cut flowers, yet for local growers it is a highly lucrative business. "Growing a rose costs around 30 to 40 piastres, and we export it for about half a dollar -- constituting a 10-fold increase. Fresh flower growers generate profits seven times greater than those growing other traditional crops like fruits or vegetables," highlighted Michael. Given the steady growth in demand for cut flowers -- not only among wealthier states but also developing ones -- countries like Egypt stand a good chance of gaining a bigger share in this booming business, especially, suggest the experts, if due care is given to developing production and marketing methods. "NCIP plays an important role in developing local cut flowers and in introducing new types of seeds," said Michael, adding: "We have introduced new flowers previously unknown locally, such as Gypsophila, Solidago, and Trachelium." "Historically speaking, Ancient Egyptians were the first to pay attention to flower cultivation," says Abul-Dahab Mohamed Abul- Dahab, professor of in-house plants in Cairo University. "Evidence of this is to be found in the depictions on the temple walls. Further, the Mohamed Ali dynasty (Egypt's reigning dynasty between 1805 and 1952) was also very interested in importing different species of flowers from abroad and setting up flower exhibitions," he said. Abul-Dahab added that Egypt stands a good chance of gaining prominence in the international cut flower market. "We enjoy a bright sun for most of the year. And as the demand for flowers in the West grows during Christmas and the New Year, our weather conditions ensure low production costs," he explained. Private growers exhibiting their produce at this year's flower exhibit, held last month, told Al-Ahram Weekly that over the past five years they have succeeded in closing financial and technical deals with businesses in Holland, France and the United States. "We are set to deliver tonnes of Gosmania to Turkey," said engineer Hani Taha, from the Hamza Agricultural Company. "We bring new types every year from Holland, the main cut flower market in Europe. And we export to many European countries, including Spain and Italy in addition to Turkey. Some Arab and Gulf countries were added recently to the list," he added. Michael believes that over the past five years the Ministry of Foreign Trade has given a strong push to the business. "Growers used to face problems relating to loading and shipping, but not any more," he said. "The result is that now we have some Egyptian flower exporters who have deals to plant the greenery and the flowers of tourist villages in Greece in preparation for the Olympic Games due to be held this year." According to statistics issued by the Ministry of Foreign Trade, the GATT Agreement with Europe -- implemented earlier this year -- allows Egypt to export 3,000 tonnes of flowers annually, with tax exemptions. The achievements are slow to take root, as Abul-Dahab noted: "Export figures show us that while a country like Kenya exports around 48 million tonnes annually, Egyptian export in 2003 is estimated at around 1,200 tonnes." Nevertheless, he added that the current figure constitutes a significant improvement to that of five years ago, when Egypt was only exporting about 150 tonnes. The market is also growing as a result of the new entrepreneurs coming into the business. According to Abul-Dahab, the number of private businessmen in this field in 1999 did not exceed five growers. "The number of flower growers this year exceeds 50, who own around 300 feddans of flowers," he said. "We have an opportunity to make use of the gradual decrease of Israel's production [which stands at 36,000 tonnes] because of the lack of skilled labour", Abul-Dahab added. Many farmers, however, are still hesitant to enter this field. "The business requires expertise, as well as big investments, because the cost of cultivating a feddan is around LE400,000. Facilities such as special vehicles and containers for cooling flowers to four degrees Celsius are essential for exporters," Abul-Dahab said. In 1997, a group of plant growers established the first Horticultural Export Improvement Association (HEIA) in the country. "The aim of the association is to help promote Egypt's cut flower and fruit exports," said Wael Rafea, the association's secretary. Although the association provides flower growers with services such as training, quality control advice, bringing experts from Holland and Germany, Rafea admitted that the business still needs huge investments "because flowers are an unstorable and sensitive product". For now, the larger and more experienced businesses have a much greater chance of competing successfully within this difficult and expensive market. Floramex is one of the biggest flower export companies, accounting for about 25 per cent of Egypt's total export volume of cut flowers. The company was aiming to cultivate over 80 feddans by the end of this year; 80 per cent of its produce is for export. "Initially we exported to Holland, and later expanded to Greece and Germany. And at first we grew traditional flowers such as roses, sunflowers and Gladioli. But some five years ago the European market started to demand new types of flowers," Yasser Mahmoud of Floramex said. "Only last year, a cooling area at Cairo Airport was inaugurated to help minimise waste and to encourage more businessmen to enter the field. You can imagine the size of waste and mess we had to bear before the inauguration of the cooling hall." Engineer Taha noted that loading prices are still relatively high. "The government," he said, "should find ways to decrease loading and transportation fees to encourage more deals from Europe." For Egypt to become a leading competitive country, a nationwide flora programme to gather seeds of wild plants from various Egyptian regions -- especially from the Sinai desert -- is required, Abul-Dahab suggested. "A local flower fair where deals to export flowers are concluded should be held to help small-scale flower farmers to reach international markets," he noted. Michael disagreed, saying that as long as the number of growers is relatively small there is no need for this measure. In a move to try and encourage the growth of the flower industry in Egypt, the first international flower exhibition is set to be held next autumn, coinciding with the start of the new season in September. The exhibition, some experts believe, will open up new markets in Europe for Egyptian exporters. For now, it is the small-scale flower growers who still feel unable to develop their businesses successfully. Gamal Sayed, a flower grower from the Upper Egypt governorate of Minya, owns about half a feddan of flowers and indoor plants. He started his business only 10 years ago. "Our produce is bought locally. Marketing is very difficult for us because we are far away from Cairo." The governor of Minya established an annual flowers exhibition under the name "Nefertiti" in an attempt to promote the business, but Sayed blames officials in Cairo for not attempting to contact flowers growers in Minya, and for failing to involve them in the export trade. "The government should encourage more agricultural banks to give loans to small-scale flower growers to encourage this business to flourish, as it brings a lot of hard currency, which Egypt is in dire need of now," he said.
