Ethiopia’s floriculture sector faces new challenges amid growing success

ETHIOPIA – Ethiopia’s floriculture industry, now Africa’s second-largest and the world’s fourth-largest flower exporter, faces growing scrutiny as the business landscape evolves.

Frank Ammerlaan, a second-generation rose grower from the Netherlands, reflects on the journey of his family-owned AQ Roses, which has expanded its operations significantly since its establishment in 2006.

With the recent addition of an 18-hectare nursery in Bishoftu/Debre Zeit, AQ Roses has adapted to the Ethiopian climate, which offers ideal conditions for cultivating high-quality roses.

“We found a very suitable environment to grow our roses, achieving a color palette and variety of sizes that we could never have produced in the Netherlands,” says Ammerlaan.

“In fact, I believe the blooms we produce in Ethiopia are of better quality than those from our home country.” The nursery now employs over 1,000 people and spans a total area of 50 hectares.

Ammerlaan acknowledges that the Ethiopian market has changed dramatically since the early days of his venture. “Ethiopia 20 years ago was completely different. The country was quiet and safe, keen to attract businesses like ours. Today, societal factors weigh more heavily on the business climate,” he explains.

While the government initially offered impressive investment incentives, the current landscape has grown more unpredictable, raising concerns for existing and prospective growers.

“When we began, we mainly focused on production,” Ammerlaan notes. “If I were to write a new business plan today, I would dedicate more space to risk assessment due to the shifting dynamics.” He emphasizes that while incentives remain, they are less impactful in an environment where floriculture is no longer the sole driver of economic growth.

Despite the challenges, AQ Roses thrives in the competitive market. Under the brand name RosaPlaza, the company sells approximately 100 million roses annually, with half of the sales routed through the Royal FloraHolland auction clock.

Ammerlaan, now part of the auction’s Supervisory Board, sees the cooperative’s future role as critical to the global floral trade.

“Royal FloraHolland will become increasingly important in facilitating trade,” he states. “The cooperative’s platform is more efficient than individual arrangements for growers and customers alike.”

As societal concerns about environmental impact grow, especially among younger generations, Ammerlaan addresses these issues head-on.

“Africa’s population is increasing, and people are right to seek better living standards,” he explains. “Our work contributes to a thriving economy. The knowledge we share with local farmers promotes better production practices, which ultimately reduces pressure on natural resources.”

Ammerlaan also notes the diversification of crops within the sector, highlighting AQ Roses’ recent addition of Alstroemeria to its offerings.

This decision was not solely a response to market oversupply but an effort to enhance their product range. “Alstroemerias complement our rose production, helping us maintain a balanced portfolio,” he adds.

In parallel to these developments, the Ethiopian Horticulture Producers and Exporters Association (EHPEA) is pushing for industry standards through its Sustainable Supply Chain Initiative (SSCI) benchmarking.

This initiative aims to elevate quality and sustainability in Ethiopia’s floriculture sector, ensuring compliance with global standards. As more growers participate, it is expected to enhance the industry’s reputation and facilitate smoother trade relationships.

As the Ethiopian floriculture sector navigates its evolving landscape, it remains a cornerstone of the economy, employing around 200,000 people.

With potential for further growth and improved practices, the country’s flower industry may yet unlock more opportunities for success in the global market.