Florius Holding BV, based in The Netherlands, has been growing flowers in Kenya for last 20 years and has more than 14 years’ experience in production and marketing of floriculture in Ethiopia. Floris is a global market leader in the high-end market of Hypericum and Veronica flowers. The company has aproven track record of many years in production, marketing and exporting of flowers and plans to start a new flower farm near Bahirdar, Amhara region in Ethiopia, focusing on Fair Trade production.
Florius follows a ‘harvest and packed to order’ approach, with the option of special mixing and customized packaging of flowers. In 2017, a start of production of flowers will be made with 15 hectares, increasing up to a total of 45 hectares by 2022. The climate in Bahirdar offers some advantages such as mild temoerature and along dry season, which gives a lower insect pressure and makes it possible to grow a variety of seasonal flowers. Flowers are expected to be packed on the farm and exported from Ethiopia by airfreight to the USA and Asia.
The CFC resources will be used for the import of specialized equipment and establishment of irrigation infrastructure, such as an insulated grading and packing house, cold stores, cold trucks and specialized irrigation equipment. The project is expected to produce all flowers that will be exported, thus providing foreign exchange earnings; create 1200 jobs, resulting in overall value of salaries; contract 90% of all employees on a permanent contract basis of which at least 65% are expected to be female as women are more suitable for delicate handling of perishable flowers; and lead to local economic development through local purchases of goods and services from Small and Medium Enterprises engaged to the company.
Major funding of the project is coming from the Florious Holding BV and from a loan (in local currency) from the Development Bank of Ethiopia. Retained earnings will be used for stepwise expansion of the different aspects of the project. Discussions are ongoing for finalization of the CFC support to the project.
|Organization:||Florius Holding BV||Project:||CFC/2016/08/0083|
|Total Cost:||USD 7,891,796||CFC Financing:||USD 1,500,000 (including USD 1,000,000 financed by OPEC Fund for International Development (OFID)|