The United States of America through its drug company – Pfizer – has donated a high performance liquid chromatography machine to Malawi Bureau (MBS) of Standards valued at $ 50,000.Pfizer, a major US pharmaceutical company donated the machine which is expected to assist MBS in conducting various analyses of food such as the determination of the nutrient values.The machine is also expected to help MBS to identify banned or substandard ingredients that may be found in food products.

The new equipment will also allow MBS laboratories to test more parameters and speed the delivery of analytical services to its customers in pursuit of high quality food products for Malawians.The donation is also said to have complemented the ongoing work that US is supporting in the southern African country in the areas of health and nutrition.

US ambassador to Malawi Peter Bodde highlighted the importance of the equipment saying it will help MBS regulate products. “It will enable the MBS to better identify – and regulate – products that are banned or that contain substandard ingredients a process that has obvious benefits for the health of Malawians,” said Bodde.The ambassador also said that the project was a true example of the private sector working hand in hand with the public sector to achieve spectacular results ion addressing the development needs of Malawi.

The Government of Somalia has condemned in the strongest possible terms the cowardly murder of Colonel Omar Hashi Aden, the Minister of National Security, in a suicide attack carried out by extremist forces.“The assassination of Colonel Hashi was clearly intended to try to disrupt the successful peace process aimed at restoring stability to Somalia after two decades of conflict. However these bloody murderers will not succeed,” the government said in a statement.

“The extremists have already failed in their attempt to overthrow the Government through force due to the ongoing successful military operations in which Colonel Hashi played a key role. Their fighters, who include several foreigners, have now resorted to the most cowardly form of violence.”

The said continued: “The Government is undeterred by such acts of desperation and will continue its work towards restoring peace and defeating the enemies of Somalia and the region. It calls on all peace loving Somalis to join the condemnation of the assassination of Colonel Hashi and the many other innocent civilians and community leaders who were killed and injured in the attack and to continue to support peace efforts.”

Colonel Hashi was a patriotic leader did not leave Somalia and remained true to his vision of a country free from conflict.The government has therefore sent its deepest condolences to the family of Colonel Hashi as well as to the relatives of all the other innocent people who were killed or injured in the suicide bombing which took place outside a hotel in Beletweyne.

The government however said it will launch full investigations into the murder. “The Government will carry out a thorough investigation into this attack and will look into the identity and nationality of the suicide bomber.”

Lagos — Potentially dangerous toxic wastes from the United Kingdom (UK) have been traced to Alaba International Market and Apapa, all in Lagos state.The wastes, according to Sky News investigation, comprise abandoned TV set, computer and electrical appliances, which are ordinarily meant to be recycled .The report said the wastes “are traced to Lagos port inside the container. We finally managed to track the television down to a shipping container.”

At Alaba Market, the report added that youngsters aged between 15 and 20 were seen scavenging for the valuable copper contained in the appliances.

It stated: “Because of the toxic nature of some of the components, the appliances should be recycled under strict conditions here in the United Kingdom.”

Commenting on the development, a UK-based non-governmental organisation, Greenpeace, confirmed that the young people working on such dumps often break apart the electronic items for parts, but in doing so are exposed to poisonous chemicals like mercury, lead and cadmium.

“We basically managed to track a TV going from the UK allegedly as second-hand equipment to Nigeria. When in fact we knew, because we gutted it, this TV, before it left the UK, we took all the insides out and put in a tracker device, which enabled us to track this old TV from the UK, through the recycler to Nigeria.

“Tonnes of toxic waste from municipal dumps in the West are being dumped illegally in countries like Nigeria and Ghana. Hundreds of thousands of broken items like TVs and computers are being sold to dealers on the pretext of re-use. Under EU law, such household appliances must be dismantled or recycled,” the charity group stated.

But Sky News reported that after being informed that e-waste collected by Hampshire County Council is being sent to West Africa, it teamed up with Greenpeace to investigate the claim.

According to Sky News : “Our team found an old television, noted its barcode and product number and, with the help of a qualified engineer, removed a vital working part, rendering it useless. We then inserted a satellite tracker into the television before taking it to the council’s recycling centre.

“The idea was to follow every step of the TV’s journey across the world via the internet before pinpointing the exact coordinates of its final destination. Filming undercover, we dropped our television off at a recycling site in Basingstoke which is managed for Hampshire County Council by a firm called Hopkins.

“They in turn sell appliances to a company called BJ Electronics. BJ bought our old television. We then followed the television to the BJ Electronics warehouse in Walthamstow, where BJ claim they test every appliance before selling them on to other companies for export.

“Our tracker showed our broken television was eventually loaded onto a shipping container at BJ’s warehouse then taken to Tilbury where it was exported,” the report said.

Greenpeace Campaigner, Mr. Erik Albertson, told Sky News Online: “What you see around us could be the remains of one of your old computers or a TV set. The problem with things like this is every now and then, a couple of times a week, they set them on fire and the contents of the chemicals will cause dioxins to escape.

“Dioxins are well known as one of the toxic substances on earth. They’re both carcinogenic and cause endocrine disruption.” Back in the UK, we told Hampshire County Council, Hopkins and BJ Electronics of our findings.

Hopkins refused to comment. BJ said they had done nothing wrong and were adamant they comply with all the necessary tests. Hampshire Council issued the following statement: “We are extremely disappointed to learn of the potential findings of the investigation.

Hampshire Council issued the following statement: “We are extremely disappointed to learn of the potential findings of the investigation.

“Our primary aim has always been to ensure that waste electrical items are reused wherever possible, and that only functional TVs and monitors are sent abroad. We do not condone the exportation of televisions that cannot be reused.

Abuja — The Federal Government yesterday denied involvement in Tuesday’s attack on the Presidential Palace in Malabo, capital of Equatorial Guinea.It also expressed solidarity with the people of the country and congratulated the Equitorial Guinea government for repellingwhat it called ‘cowardly action’, by criminal elements.Equatorial Guinea authorities had fingered Niger Delta militants in the attack launched on the country’s presidential palace Tuesday.

Speaking to State House Correspondents in Abuja yesterday, the Minister of Foreign Affairs, Chief Ojo Maduekwe, condemned in very strong terms the attack by the suspected militant on the presidential palace of Equatorial Guinea and dissociated Nigerian government from the attack.

According to him, “we are in solidarity with the people and the government of Equatorial Guinea as they confront this unfortunate threat and this unfortunate action and we hope they are able to apply the full force of law to deal with the elements that want to create problems. We send our message of solidarity and congratulate them as they were able to stem the attack”.

Asked to clarify if Nigerian militants were actually involved, the minister said: “So far, the investigation we have been able to carry out shows that authorities in Equatorial Guinea themselves are not certain about the identities of those people. But whoever they are, whether they are militants from the Niger Delta or they are mercenaries outside Africa, because we have also had speculations.

“This kind of act should be condemned and it is the latest wake-up call for countries all over Africa, but particularly countries around the Gulf of Guinea to work more closely to share information, to share facilities, to share our collective strength in order to confront those who wish to destabilise the region.

“We have the capacity to do so as countries of the Gulf of Guinea and already, there is a lot of progress in terms of the Gulf of Guinea Commission (GGC), a meeting had just been concluded in Luanda and what we need to do is to get more action out of those meetings to ensure that the actual operational details of what needs to be done to ensure that this is not just a zone of tremendous prospects and emerging prosperity of oil resources but should also be a zone of peace and security”.

Madueke also faulted the report that the government of Equatorial Guinea pointed accusing fingers at Nigeria as being responsible for the attack.”When you mean Nigeria , I am sure they did not say the government of Nigeria is behind the attack”.

Asked if the Nigerian government had begun investigations to ascertain the true identity of those involved, if indeed they were Nigerians, the minister said: “We are united with the government of Equatorial Guinea and indeed any other African country to confront any criminal elements on the continent that disturb the stability of the continent.

“If those criminal elements are from Nigeria, that is the more reason why we have the responsibilities to not only deal with criminal elements within our own laws but assist any other government that itself is also on the receiving end from that kind of criminality.

“You also know we are also facing challenges from Nigerians who have resorted to criminal actions as a way of not wanting to make a point. It is not like when somebody is a Nigerian; either is recruited or on his own he does the kind of thing that happened in Equatorial Guinea a while ago, that that Nigerian enjoys the support of the government.

“It is like saying that armed robbers in Nigeria, when they attack, whether Nigerians or foreigners, are doing so in the name of Nigeria. No, definitely not. The need for African government to work together to enhance the security architecture of the continent is strong, Nigeria will continue to do all that it needs to do in this direction as we send hands of solidarity, understanding and congratulations to Equatorial Guinea as they respond decisively; we appreciate that leadership on that matter of security. The security of Equatorial Guinea is also the security of Nigeria ” he said.

Government also said it was not in a hurry to send troops to Somalia, as the circumstances under which Nigeria committed itself to sending troops there had changed hence the delay in deploying the troops.Maduekwe pointed out that the situation had deteriorated far beyond mere peacekeeping and would require a peace enforcement mandate.

New York — Secretary-General Ban Ki-moon is slated to leave early next week for Africa where he will make his first official visits to South Africa and Tanzania, as well as stops in the Democratic Republic of the Congo (DRC), Rwanda and Egypt, his spokesperson announced today.While in South Africa Mr. Ban will meet with President Kgalema Motlanthe, as well as the Ministers for Finance and Environment, Marie Okabe told reporters in New York. He is also expected to meet with former President Nelson Mandela.

In Tanzania, one of the pilot countries for the UN reform programme on “Delivering as One,” the Secretary-General will hold discussions with President Jakaya Kikwete, as well as address the diplomatic and academic community in Dar es Salaam.

In addition, Mr. Ban will inaugurate the One UN Office in Zanzibar which will house all UN agencies under a single roof. He is also due to fly over the receding ice cap of Mount Kilimanjaro on his way to Arusha to visit the International Criminal Tribunal for Rwanda.

Following that, he will head to the DRC where he will meet with President Joseph Kabila, as well as with parliamentarians and members of civil society. He will then go to Bukavu, the capital of South Kivu province, to visit Panzi Hospital, where victims of sexual violence are cared for.Then in the North Kivu provincial capital of Goma, he will meet with members of the UN peacekeeping mission (MONUC) and with local authorities. He will also visit the Mugunga camp for people displaced by conflict before flying to Rwanda to meet with President Paul Kagame.

Mr. Ban then plans to travel to the Egyptian seaside resort of Sharm el-Sheikh, where he will participate in the 2 March “International Conference in support of the Palestinian Economy, for the reconstruction of Gaza,” co-chaired by Egypt and Norway.

Lagos — The unabated crisis in the oil-rich Niger Delta has continued to take its toll on Shell Petroleum Development and Production Company (SPDC) and Nigeria’s oil revenue, as the company has been forced to shut in production of 180,000 barrels per day (“bpd) of oil following renewed attacks on its facilities.Suspected loyalists of Kitikata, a militant leader linked with the recent killing of soldiers in the Niger Delta region, yesterday invaded the SPDC’s Nembe Creek flowstation in Bayelsa State.

The Nembe invasion, which took place in the early hours of yesterday, occurred barely one month after heavily armed militants stormed the crude oil loading platform in Bonny, Rivers State and shot at several vessels, which were carrying out legitimate businesses in the area. SPDC spokesman, Precious Okolobo, has, however, denied any attack on the company’s Nembe facility, saying activities were ongoing.

But Shell’s Chief Executive, Jeroen van der Veer, confirmed at a London conference that the lost production was due to the heightened insecurity in the region.

Prior to the attacks on its facilities, owing to the escalation of violence in the region in 2006, Shell was producing about one million barrels of crude oil per day.

The attacks had reduced the company’s production to about 400,000 barrels per day.

The recent shut in means a further reduction in the company’s production, a development which translates to revenue losses for the country.

Nigeria, the eighth largest crude exporter earns over 90 per cent of its foreign income from crude exports. The country had benchmarked its oil at $45 a barrel in the 2009 Budget and the new price of the crude, which stood below $36 per barrel yesterday is less than $9 above the budget target.

The upsurge in violence in the Niger Delta region has already reduced the country’s production to about 2.2 million barrels from 2.5 million barrels per day.

THISDAY had last Friday reported that oil producing companies operating in the region had suspended further redeployment of expatriate staff in the area pending when normalcy would return.

An official of Shell was last week quoted as affirming that the company had commenced preparations to evacuate its staff from the Niger Delta after a militant group issued a warning to quit the region or risk more attacks.

The spokesman had, however, stated that the company had no plans to leave Nigeria but that at the same time was not prepared to gamble with the safety and well-being of its workers and contractors.

A militant group led by Ateke Tom had accused Shell and other oil operators including Agip, the local subsidiary of Italian oil company Eni, and the Nigeria Liquefied National Gas Company of helping the Nigerian military to carry out attacks on the group’s camps in Rivers State.

The dreaded Movement for the Emancipation of the Niger Delta (MEND), which threatened swooping attacks on oil companies in the region has issued a three-day ultimatum to Nigeria Agip Oil Company, (NAOC) and its sister company, Saipem, to vacate their operational bases in the region or face the wrath of the militia group.

The invasion of the multi-billion dollar Nembe Creek flowstation was said to have been repelled by soldiers on guard duties aboard the facility.

It was, however, not clear whether there were casualties during the incident, but THISDAY gathered that the gun battle with the attackers lasted several hours before the men escaped in their boats.

The armed groups were said to have left a letter chronicling a number of demands from the Shell management, prompting security agents to believe that the attackers might be local boys from the Nembe area.

The militants, in the said letter, had accused Shell of “being insensitive to the plight of the people of the area by refusing to implement agreements reached with them in various Memorandum of Understanding signed with the people”.

Part of their demands were that their militia group should be recognised by the SPDC management as a major interest group and must be placed on a stipend of N3 million monthly.

The Media Assistant to the Bayelsa State Chairman of the Niger Delta Peace and Conflict Resolution Committee, Alphine Ogoh, however, said yesterday’s incident was not an attack but that the militia group had gone to the platform to drop letter for SPDC.

Following the incident, the Joint military Task Force (JTF) has deployed more men to the facility to prevent another attack even as MEND has distanced itself from the operation.

MEND had earlier indicated its intention to resume hostilities along the creeks of the Niger Delta by ordering two Italian oil companies to move out of the region in three days.In an ultimatum sent through an e-mail message, the group warned the two companies to take its fore warning seriously or be ready for the consequences of any attack.

MEND, which some months ago suspended attacks on oil installations in the region, had alleged that the Federal Gover-nment, in collaboration with the Italian Government was planning to wipe out the freedom fighters in the region.

Eldoret — When post-election violence struck western Kenya’s Rift Valley last year, hundreds of patients failed to collect their antiretroviral medication from their regular clinics, leading health workers to fear that their patients would develop resistance, or fall ill and even die.More than 90 percent of patients at the Academic Model for the Prevention and Treatment of HIV (AMPATH) did not report to the facility for their treatment; but today, Cleophas Chesoli, AMPATH’s social work manager, is a much happier man. Most patients have returned from the camps for internally displaced persons (IDPs) where they sought refuge, and so far there have been no signs of resistance.

Violence broke out across the country after a hotly contested presidential election at the end of 2007, displacing more than 600,000 Kenyans; according to the National AIDS Control Council, at least 15,000 IDPs were HIV-positive. The government has now closed all official IDP camps, and up to 250,000 people have returned to their homes.

“Our ART [antiretroviral therapy] programme has recovered for the most part,” he told IRIN/PlusNews. “The few who haven’t returned are likely to have enrolled in ARV programmes wherever the have settled.”

Chesoli said adherence counselling meant most patients were aware of the importance of maintaining their drug regimens, so many fled with their ARVs and made finding new supplies a priority. AMPATH set up satellite services in several of the larger IDP camps in the province, where nurses and volunteers – many of them also IDPs – provided ARVs and psychosocial support.

At the time of the violence, AMPATH was providing ARVs to an estimated 30,000 people across the northern Rift Valley; today, many have returned home and that number has grown to more than 40,000.

During the violence, several health organisations, including AMPATH and the international medical charity, Médecins Sans Frontières (MSF), used the national media to alert patients to the location of health centres. MSF also set up a call centre with a toll-free hotline to give information on HIV and tuberculosis to those who could not return to their usual clinic.

MSF, which provides ARVs to almost 2,000 people in Kibera, the largest slum in the Kenyan capital, Nairobi, noticed in January 2008, when the violence was at its peak, that patients delayed keeping their appointments, but were largely being kept in February.

Many ART programmes were disrupted by the violence and the resulting chaos. “There is a need to have a plan for such emergencies in the future – that way we avoid being caught unprepared,” Chesoli said. “We also need to ensure our staff are trained to handle things like sexual violence and reproductive health in emergencies.”

In Nigeria, new subscribers are signing up with mobile phone services at a rate of almost one every second. In Kenya, they can transfer money, get exam results and even find dates using their phones.African farmers can decide what crops to plant by checking prices at local markets using their cell phones. Physicians can help nurses in rural clinics diagnose patients by “telemedicine.”In this topical briefing, AllAfrica brings you news of the exciting developments in the fields of telecommunications, information technology and the Internet across the continent.

PRIME MINISTER Morgan Tsvangirai yesterday said the fate of Reserve Bank Governor Gideon Gono and Attorney General Johannes Tomana would be “first on the agenda” of the new government.In his first interview after being sworn-in as Prime Minister, Tsvangirai told The Standard the new government would have to “sit down” and objectively evaluate the work of the two officials.Gono, who has been considered by many as the de facto Prime Minister of Zimbabwe, has attracted widespread criticism for the way he has stoked inflation by printing high denomination bank notes. He has also controversially funded Zanu PF campaign programmes.

On the other hand, Tomana’s suitability as an AG was brought into question after he publicly announced that he was a member of Zanu PF.The PM would however not be drawn into commenting whether he, or any of his ministers would push for the dismissal of the two officials.

Tsvangirai said it was up to cabinet to decide whether these officials were doing a good job or not.Commenting on calls made by MDC-T supporters for Gono to be fired, Tsvangirai said government followed laid down processes and would not act on impulse.

“Yes, there is general opinion that has been expressed but it’s not going to be a subjective declaration. You have to sit down as government and evaluate their work,” said Tsvangirai.

The position of the MDC-T on the two officials is however not a secret. In the case of Gono, the party which controls the Ministry of Finance, says no economic recovery can take place as long as he is in charge of the central bank which of late has been failing to pay its workers.

Party insiders say MDC-T is considering how Gono can be dismissed, a difficult task considering that only Mugabe can fire the Governor, according to constitutional law expert Lovemore Madhuku.MDC-T believes that with Tomana at the helm at the AG’s office, its supporters arrested on trumped up charges could rot in jail. More like Roy Bennett, who was arrested last week, could be in for serious legal troubles.

Turning to the arrest Bennett, who is set to be deputy Minister of Agriculture, Tsvangirai said he was disturbed by the turn of events and would soon engage President Robert Mugabe over the matter. He said even Sadc must have been dismayed by the move which he said was against the spirit of the power sharing agreement.

“It’s a political not a legal issue,” Tsvangirai said. “I believe the President and myself can solve this issue.”Tsvangirai said he was aware of the “residual resistance” in many structures of the state and blamed these for Bennett’s arrest.

He said he had no reason to doubt that Mugabe was committed to power sharing, adding he did not think he would want anything that would tarnish the new administration.

“I am assured by the President’s public and private comments on his commitment to the new government,” said Tsvangirai.”I see this (Bennett’ arrest) as an attempt by some arms of the state to derail the unity government.”

Asked to comment on the absence of the security chiefs at his inauguration, Tsvangirai said he did not know why they failed to turn up. He would not speculate whether this had anything to do with their pledge never to salute him.

“It’s not a matter of being saluted. I can work without being saluted; I am not concerned about power politics.”"What I am worried about is whether this government has the capacity to immediately solve pressing issues: schools being re-opened, food being made available to the hungry. We want to be able to immediately respond to these issues.”

On his promise that civil servants would be paid end of this month, Tsvangirai said he had not made the statement just out of the blue.”It was a well considered statement. Of course the ordinary person cannot see a box of money somewhere but we cannot ask civil servants to go to work without making commitments that they will be paid.

Tsvangirai said starting tomorrow he would start serious consultations with union leaders in order to address their immediate concerns.

“Of course we might differ on how much government is going to pay, but I can assure you we are going to source the resources.”Turning to the urgent need to secure the release of several party activists who are in jails, Tsvangirai who toured Harare prisons where they are being held said their release would be made possible, now that there was a minister responsible.

“Remember we didn’t have a government. From Monday (tomorrow) the ministers would have to be answerable why the people are being held.” Tsvangirai expressed optimism that the unity government would work despite the challenges facing it.

Arusha — After the badly hit local tourism, now the second major revenue earner for Arusha – the horticulture industry – has its leaves burnt in the raising heat of global economy recession.As global credit crunch continues to bite, life is no longer flowering to Northern-based horticultural growers in Tanzania. Their exports are getting more expensive to ship and even harder to sell while production costs continue hitting the greenhouse roofs.The petals of cash, mostly grown in the northern zone regions of Arusha and Kilimanjaro are no longer yielding the anticipated fortune even during this season of flower demanding observations like Valentine’s Day, Mothers’ Day and Easter holidays.

The Arusha-based Tanzania Horticulture Association has just released a comprehensive report on the impact of the global credit crunch on the horticultural industry in Tanzania.According to Jacqueline Mkindi, the Executive Secretary for TAHA, the industry is, “as badly hit as articulated on the document and we are trying to get necessary support from various stakeholders including the government of Tanzania, banks and development partners in rescuing the industry from this crisis,” she said.

“To tell you the truth, if something is not done immediately, some big companies here will collapse. Imagine now it is cheaper to throw away flowers than shipping them due to high freight costs, and low prices at the market. The funny thing is, we are even responsible in paying the dumping costs if flowers are not bought at the auctions,” maintained Ms Mkindi.

Since September 2008, according to the report, when the whole world was being confronted with a financial meltdown, the crisis’s multiplier effects have inevitably drastic implications for the global horticultural sector, with the Tanzanian industry faring at worst.

The horticultural Industry has been detrimentally affected by certain factors over the last four months which have put pressure on flowers and vegetables demand and sales prices in the market. From October 2008, prices on average have declined by between 30 to 50 percent as compared to the previous year and as for flowers certain varieties and lengths have had zero demand.

The decline in the world economy and purchasing power has played a major impact on the horticultural Industry by reducing consumer spending including the retail of flowers as a major example.

The impact of reduced credit, higher unemployment and erosion of personal savings and investments has reduced the demand for flowers, especially in emerging markets. We saw major growth in the world economy in 2007 of 5.2 percent with resultant growth in the flower industry, but this increased supply now exceeds demand with resultant downward pressure on prices.

Usually, there is a trend in the flower auctions of the buyers giving a higher priority to the flowers produced in Europe before looking for flowers from Africa.

If the financial crunch will continue causing a lower demand in the flower market, the flowers from Africa (Tanzania included) which are usually given a second or third priority might find themselves completely pushed out of the market.

This, according to local growers, is a very serious threat to the Tanzania flower producers because with the high operational costs (especially fuel and labour) most of them are now contemplating closing down their businesses should the fall in demand prevail.

Another group of exporters greatly affected by the financial crunch is the fresh fruits and vegetable exporters. Some of the major markets for Tanzanian vegetable products are supermarkets chains in Europe like TESCO, Sainsbury and ASDA. These supermarkets have now cut down their vegetable prices by more than 25 percent, a phenomenon that have left our vegetable producers counting huge losses

Two major importers of East African flowers have seen their currencies weaken dramatically which has curtailed imports of flowers. The UK Pound has weakened by 28 percent over the last year, resulting in a 20 percent reduction of imports and Russian Rouble by 35 percent which has had the equivalent downward impact on Russian prices.

The exchange rates have greatly shot down to the extent that a ratio which was 1: 2 (pound to dollar) is now 1: 1.47. Prior supply to the UK have now been diverted to the Dutch Auctions, thereby causing an unforeseen over supply on the Auctions, which have affected Tanzania Companies being mostly Auction suppliers.

Most European countries have had severe weather this winter, worst since 1997 with temperatures falling as low as -30, impacting on the delivery, handling and distribution of flowers. Outdoor and florist sales are most affected, as consumers reduce their purchases. Wholesalers and distributors have suffered machinery breakdowns and cancellation of deliveries due to impassable roads.

But there are other factors currently nipping the flower industry in the bud.

The weather patterns in the country and region have also gone to the extremes.

The very hot weather of late is having some impact on the operational costs of horticultural producers. When it is dusty, the farmers use more chemicals to control pests like aphids and Red Spider Mites. The farmers say they also fail to get the quality of products they expect as far as color intensity, the correct weight, height, sizes and even taste. The yield per Hectare has also gone down due to high temperatures.

Arusha and Kilimanjaro offer the most favourable climatic conditions for flower growing in Tanzania but even they are now getting hotter as time goes by.

Kenya and Ethiopia growers on the other hand have continued to expand in 2008, with the larger successful farms increasing their hectares. The industry is becoming increasingly more vertically integrated, with large retail groups purchasing direct from supplier farms. To meet the demands of large retailers, supplier companies have grown in size to meet customers “one stop supplier” requirement with commensurate savings from economies of scale.

The Rise in commodity prices in 2008 has also affected input costs, with oil peaking at US $146 barrel in July 2008, putting upward pressure on fertilizer and air freight. The weakening Euro (versus the US Dollar), has also resulted in higher input prices as majority of operating costs are dollar based. Therefore the resultant higher operating costs have lessened the farms ability to weather this period of lower sales prices.

Generally, this is the toughest moment the players in the horticultural industry have experienced over the past 20 -30 years. There is a great threat of some of the horticultural producers closing down their businesses if the situation is not salvaged.

Tanzania flower producing companies for example, are faced with stiff competition from Kenya and Ethiopian companies, which due to their size and superior infrastructure, including air freight, and better growing conditions, are in a stronger position to weather the impending world economic depression.

Tanzania’s horticultural industry has registered tremendous growth in the past three years and has recently been recognized and prioritized by key stakeholders including the government, as a significant contributor in the national economic growth and poverty alleviation strategy.