Thriving Flower Business in Ethiopia? What is the Cost?

Tilahun Kinfe, 38, was astonished on February 15, 2008, when comparing the way he saw Valentines Day celebrated the day before and experiences some 10 years ago just after he returned from Nairobi after a five-year stay. A supervisor in Cloud 9 Café and Restaurant, he cannot help but imagine the way things have changed through the years.

“I remember when I tried hard to get a red flower for my girlfriend back then to no avail. In every shop I visited, there was no such gift,” Tilahun told Fortune.

A returnee from a country more adapted to the western holidays, he was hoping to get some gifts for his loved one when he realised that it was a different story here in Ethiopia. But those days have passed, according to the man who has spent over 16 years in the hospitality business.

“But now I am really perplexed. What I saw last night was amazing. There were about 27 couples that came to our restaurant and we were even unable to accommodate those arriving at the last hour without booking,” he explained.

The Valentine’s season was a time of business for many. But the exponentially expanding flower exporter, that earned 63.5 million dollars in exports last fiscal year and are high on the government priority list, along with freight service providers, made the most out of it.

Tsegaye Abebe, chairman of the Ethiopian Horticulture Producers and Exporters Association and owner and director of ET-Highland Flora, told Fortune that the Valentine’s season is one of the peak seasons for flower exports.

“Red flowers are in high demand throughout the world for this season so that every flower exporting company enjoys huge revenues,” Tsegaye, who opened his flower farm three years ago and now owns 23 greenhouses that employ more than 400 people, told Fortune.

According to him, Ethiopia has exported from 1.5 to two million flower stems daily to The Netherlands, Germany, Japan, England, and Brussels amongst others in the week leading up to Valentines Day.

Ethiopian Airlines was also busy transporting the exporters’ products to their varied destinations. Presently serving 68 flower exporters, the national carrier has recently increased its fleet by leasing B747F aircraft that increased its cargo capacity from 63 to 88tns per flight during the month of January 2008.

“The flower export volume increases during winter months, peaking around Valentines Day,” Leul T. Medhin, manager of Public Relations and Publications at the Airline, told Fortune.

All flower exporters contacted by Fortune contend that they are experiencing high demand for their products as the quality and cheap price is appealing to the many distributors, especially those in Amsterdam who supply flowers to the rest of the European continent.

“In addition to the six flights that exporters have every day, there was a two-flight increase everyday for the Valentines season that roughly amounts to 120tns of cargo,” Tsegaye disclosed.
Solomon Sebhatu, owner and manager of Menagesha Flower, told the same rosy story to Fortune, citing rising prices as a boon to the industry.

“There is a 30 to 40pc increase in price at this time beginning around February 10. Accordingly, a single stem that is normally sold for 10 euro cents (1.35 Br) brings from 0.60 to 0.80 cents (from eight to 11 Br) around Valentines Day,” said Solomon.

In the service sector local hotels, bars and restaurants were busy last week preparing events to accommodate couples for the lovers’ day. Realising the population’s demand for special events, they have offered candle-lit dinners, live music and shows.

“The price tag for couples for the night was 250 Br while singles paid 150 Br for food, wine, a flower gift, different awards for couples winners and music that has fascinated many of our predominately young customers,” Tilahun told Fortune. “No one has complained of the price because of the extensive programme.”

His assertion seems to go in line with what Biruk G. Hiwot, an employee of Awash Insurance SC, told Fortune. He said that though the price seems to have elevated through roof, it is not worrisome for a once a year event in which someone expresses his deepest love.

“It is fine by me but others who could not afford it may miss the chance to celebrate the day,” he sympathised.

Flower retailers were also overjoyed to be selling flower at this time of year.

“We have sold around 2,000 flowers on Valentines Day and from 1,000 to 1,500 stems on the days preceding the holiday,” Fasika Ketsela, owner of California Flower, a shop that has been in business for more than 12 years, told Fortune. “This is a far cry from the mere 800 or so stems that we sold last year at the same time.”

According to her, a single stem that used to be sold from 2.5 to three Birr has been sold for up to 10 Br on Valentines Day, mirroring the equivalent increase on the international market.

Valentines Day is named after two among the numerous early Christian martyrs. The day is most closely associated with the mutual exchange of love notes in the form of “valentines”. Modern valentine symbols include the heart-shaped outline and the figure of the winged cupid.

“Though not an Ethiopian tradition originally, Valentines Day is gaining popularity in the country. I see this as one just instance where our culture is undergoing continuous revolution, but for good this time,” Zemach Mandefro, a restaurant owner around the National Stadium, told Fortune. “It allows lovers to express their feelings on a special occasion and boosts businesses.”

Spending on Valentines Day is not peculiar to Ethiopia, though. The United States (US) Greeting Card Association estimates that approximately one billion Valentine cards are sent each year worldwide, making the day the second largest card-sending holiday of the year behind Christmas. Furthermore, the Association estimates that women purchase approximately 85pc of all Valentine cards.

The holiday has not stopped on February 14, though. According to DJ Same, who is the main event organiser at Blue Star Club in Olympia, it will be celebrated the whole week, as customers want to feel the love in the air for a while.

“As a result, we held a ‘love concert’ on Saturday, more convenient and still appealing to those who wanted to continue or begin celebrations a afresh,” he told Fortune.

It is certainly peak season for flower exporters who envision fetching 166 million dollars in revenue for the next year. Currently, Ethiopia exports more than 80 million stems a month to 40 countries. While 70pc go to the Alsammeer Flower Auction in The Netherlands, the rest goes to Germany, Britain, Russia and, in smaller amounts, to the US and the Middle East.
“I was envying the couples who come to celebrate as I was working. I hope I will be able to partake next year and enjoy it with my beloved wife,” Tilahun concluded.