Tornado Alley (PROG)

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Fruit and flower exporters/importers count the cost of Iceland volcano disruption
by Mnet on Mon 19 Apr 2010

In 1783 people starved to death, and people stopped dancing in Iceland. In 2010 economic loss millions, perhaps trillion+, cuts flowers, vegetables, et al. Thankfully no starvation deaths. I hope.

Flower exporters from Kenya count their losses as the main market in Europe remains closed due to volcanic activity in Iceland forcing airspace closure. The Dutch flower auction says it's lost 15 percent of its business while exotic fruits are running out in Paris.

NAIVASHA, KENYA (APRIL 19, 2010) REUTERS - Kenya's flower exporters are losing up to three million dollars a day in earnings as a vast cloud of volcanic ash paralyses air transport in northern Europe, their association and farmers said on Monday (April 19).

Kenya accounts for 35 percent of the flower imports into the European Union.

Flowers accounted for slightly more than half of the 71.6 billion Kenya shillings (922.7 million U.S. dollars) earned by horticulture exports in 2009. Together with fruits and vegetables, the industry was the largest hard currency earner last year in east Africa's biggest economy.

Kenya's flower exporters target matching last year's output and earnings in 2010 as delays in tax refunds and a harsh winter in Europe reduce the impact of a general recovery in demand.

Farmer Jack Kneppers waits at his flower farm by picturesque Lake Naivasha in Kenya's south-west, a recent shipment is being returned unused from the airport. Today he will destroy 6.5 tonnes of his own roses.

"We have five days of flowers in stock that amount to about 35 thousand dollars a day currently and that value will start going up pretty soon because of the European Mothers' day coming on and we are just hoping for the best; that is all I can say now," Kneppers said.

Cut flowers are mainly exported to Europe, and vegetables such as baby corn, baby carrots and green beans are air freighted but grounding of aircrafts has hit the farmers a big blow.

Kneppers said that most of the flowers brought back today from the airport will have to be destroyed due to lack of space in his farm. A fate that other farmers are experiencing.

"The oldest one from last Thursday (April 15) is going to be destroyed today because we don't have enough space anymore and also the flowers are getting older, so, we can't give our flowers out as rubbish when we start shipping again," Kneppers added.

Fresh Producers Exporters Association of Kenya head Stephen Mbithi said the losses were immense and had cost the industry millions of dollars.

"Vegetables and flowers we do about 1000 metric tonnes, a 1000 metric tonnes is about three million U.S. dollars on a normal day for Kenyan exports; the total value of Kenyan exports per year is about one billion U.S. dollars and therefore three million on a day is an average. We have lost four days of shipment or 4000 metric tonnes which is 12 million U.S. dollars up to now," Mbithi said.

FPEAK is an umbrella body that brings together 150 firms including growers of vegetables, flowers and fruit. Some 82 percent of total output is exported to the European Union.

If the situation does not change, workers would be asked to stay away from farms after 5,000 employees, mainly harvesters, stopped working over the weekend when refrigerated stores reached capacity.

The world's biggest flower auction in the Dutch town of Aalsmeer saw a drop of 15 percent in flowers sold on Monday as a result of the flight disruptions from the volcanic ash cloud.

The managing director, Marcel Claessen, said the situation will be worse on Tuesday (April 20).

Most of the world's imported flowers, many from Kenya, are delivered in Aalsmeer and then distributed across the rest of Europe.

"The impact right now is pretty big, we have 15 percent less flowers in front of the auction clock, compared to a normal Monday," says Claessen.

The export of locally grown tulips however has not been severely affected.

But on Tuesday a quarter of this flower auction will be empty.

"The total amount of flowers is 25 percent less, expected tomorrow morning. The impact on the export is limited in terms of air freight, because less than five percent of flowers are going by plane to customers," says Claessen.

There will be less of the summer flowers we normally see in our European stores this week and small businesses could be hard hit.

In neighbouring France, importers are feeling the pinch as exotic fruit supplies begin to run low in Paris. But Parisians shopping at Rungis market will still be spoilt for choice, according to press spokesman Philippe Stisi.

"Today we're mainly lacking four important products in terms of fruit and vegetables, and a few flowers coming from Kenya and Ecuador, but for the flower business, May is the more important time. For the fruit and vegetables business it's pineapple, melon from the West Indies, and the mango coming by plane and French beans from Kenya that could run short. Our Moroccan neighbours also do French beans and they are going to export them by road. We are not going to suffer from a lack of products," he said.

The EU's transport Commissioner said on Monday that the volcanic ash cloud that has grounded many flights could deal a bigger economic blow to the airline industry than the attacks on the United States on Sept. 11, 2001.

There will also be a major impact on air freighted goods and produce.

The EU has said it may compensate the airline industries for the loss of business.
http://mpelembe.blogware.com/blog/_archives/2010/4/19/4509025.html

Germany breaks flight deadlock, lets Lufthansa fly 15,000 home under the volcanic ash cloud .. [...] ..

European airlines are seeking financial compensation for a crisis that is costing the industry at least $200 million a day — and by some industry estimates up to $300 million a day. The British Airways chief said test flights had proven that flying was safe.
http://calamities.gaeatimes.com/2010/04/19/germany-breaks-flight-deadlock-lets-lufthansa-fly-15000-home-under-the-volcanic-ash-cloud-17648/

Three KLM passenger flights are taking off from Amsterdam’s Schiphol airport this evening. These are the first flights from Schiphol in nearly five days after a flight ban was instated due to clouds of volcanic ash blowing over Europe from Iceland.
http://www.rnw.nl/english/article/dutch-planes-allowed-fly