Arusha horticulture hit by global downturn.

16 Feb, 2009

Flower farmers in northern Tanzania are suffering as a result of the global recession, Tanzania Horticultural Association (TAHA) has said. Prices of cut flowers in the main export markets (mostly Europe) have fallen by between 30 and 50 per cent since last October. The price of vegetables has fallen by around 25 per cent over the same period. The downturn is in contrast with an earlier positive trend, which saw the local horticultural industry register eight to ten per cent growth per annum over the last three years, according to TAHA.

The problem has been compounded by higher production and transportation costs in Tanzania. Many local horticulturalists may have to reschedule their bank loans as a result of the crisis.

The sector employs over 40,000 people in Tanzania and was expected to earn the country US$130 million in 2009.