EU Floriculture Products Markets In 2023 & How Plateau State Can Key Into it

A.1. EU 28 FLORICULTURE PRODUCTS IMPORT TRADE IN 2023

HS CODE	DESCRIPTION	QUANTITY (MT)	VALUE (US$)
0601	Bulbs, tuber roots, corns, crowns & rhizomes, dormat, in growth or in flower	N/A	987,242,000
0602	Live plants including their roots, cuttings & slips; mush room spawn	N/A	7,045,727,000
0603	Cut flowers &flower buds of a kind suitable for bouquets or for ornamental purposes	N/A	5,283,107,000
0604	Ornamental foliage, branches and other parts of plants, without flowers or flower buds.	N/A	884,711,000
	TOTAL		14,200,787,000

Source: Trade Map Facility, ITC, Geneva A.2. TOP IMPORTERS IN THE EU FOR FLORICULTURE PRODUCTS & THEIR AFRICAN SUPPLIERS

COUNTRIES	IMPORTED VALUES	AFRICAN SUPPLIERS & VALUES (US$)
EU AGGREGATE	14,600,000,000	N/A
Germany	3,355,318,000	Kenya (58.7m, Ethiopia (7.5m); SA (5.1m)
Netherlands	2,472,107,000	Kenya (413.4m)
United Kingdom	1,812,274,000	Kenya (172.4 m); Ethiopia (25.5m)
France	1,389,096,000	Kenya (14.8m); Ethiopia (8.5m)
Italy	967,802,000	N/A
Poland	585,439,000	Kenya (9.7m)

Source: Trade Map Facility, ITC, Geneva   A.3. MARKET SHARE THAT PLATEAU STATE SEEKS FROM THE EU FLORICULTURE MARKET

• 5% of US$14,200,787,000 by 2026 (US$ 710,039,350 or N1.1 trillion)

A.4. STRATEGIES FOR PLATEAU STATE TO ACHIEVE 5% MARKET SHARE BY 2026

1. Map the state landscape to identify existing producers, profile them and support their production to expand
2. Identify moribund businesses within the floriculture sub-sector and support them to come back into operation

• Under take massive investment promotion to attract Domestic Direct Investment (DDIs) and Foreign Direct Investments (FDIs) into floriculture production for export in the state

1. Target Kenyan and other African producers and exporters and attract them with incentives to set up commercial in Plateau state
2. Provide a guarantee fund for lenders to lend to SMEs and cooperatives; and partner with CDI to launch a blended finance facility to support new floriculture projects and businesses in Plateau state
3. CDI to secure Expression of Intent (EOI) to buy floriculture products from global buyers; and then connect SMEs and cooperatives in Plateau to this market opportunity.

• Government to invest in public good infrastructure that supports production for export (e.g., securing international airport status for the Plateau state airport, providing guarantee fund for MSMEs, access to market roads, green house infrastructure, etc.
• Adopt a public-private producer partnership (PPPP) model to achieve the proposed revenue targets

A.5. KEY BENEFITS FOR PLATEAU STATE GOVERNMENT

117. Revenue generation through taxation of operators; IGR of up to N117.1 billion when fully operational
118. Job creation for youths in the state up to 200,000 (direct and indirect jobs)

• Expansion of the GDP of Plateau state and Nigeria with a vibrant floriculture industry

A.6. PARTNERSHIP

INSTITUTIONS	ROLE
Office of the Vice President (The Presidency)	Enabling policies and programs for export expansion and investment attraction
Government of Plateau state (MDAs)	Enabling state policies and programs to enable local production for export; attracting and facilitating domestic and foreign direct investments; human capacity building and security provision.
Commodities Development Initiative (CDI)	Export expansion programe design and management; offtaker agreements with local producers; connection to export markets; fund management and investments in SMEs
Nigerian Governors Forum (NGF)	Linkage between FGN and State Govt; attract development grants
Producers (SMEs, Coops, Associations)	Production and investment in expanded production in line with market demand

A.7. NEXT STEPS

1. The partners sign a Memorandum of Understanding to partner on developing Plateau’s floriculture industry for export
2. CDI to provide Off taker agreement and EOI to Buy from one or two major global buyers.

• Plateau state government funds initial assessment studies (and a work plan) and profiling of state producers

1. A Supervisory committee is set up to monitor operations and report progress to His Excellency, the Executive Governor of Plateau state.

For further enquiries on this concept note, please contact: Mr. Roland Oroh, Managing Director -Commodities Development Initiative Email: roland@cdi.org.ng; 0816 835 9860 * Roland is also Project Director of the EU-Nigeria Agribusiness Platform. The Platform is supported by the European Commission and seeks to expand trade and investment between Nigeria and the 28 EU member countries. [ratings]