cut flowers and ornamental plants

BULLETIN MNS, February 2012

CUT FLOWERS AND ORNAMENTAL PLANTS MARKET NEWS SERVICE (MNS) MONTHLY EDITION

Market News Service Cut Flowers and Ornamental Plants

2

Disclaimer

This report has been prepared without formal editing, as a service to exporters and industries in developing countries by the Market News Service (MNS), Division of Market Development, International Trade Centre; The Joint Agency of the World Trade Organization and The United Nations.

No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without prior permission in writing from the International Trade Centre.

The mention of specific companies or of certain commercial products and brand names does not imply that they are endorsed or recommended by ITC in preference to others of a similar nature that are not mentioned.

The designations employed and the presentation of material on the map do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any Country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

27 Market News Service

Cut Flowers and Ornamental Plants

Market News Service: Floriculture Products Report prepared by Mr. Jan Plasmeijer and Mr. Chumi Yanai

Issue No. M02, of 3 February 2012

The Market News Service (MNS) Cut Flowers and Ornamental Plants Monthly Report presents informative notes and statistical analysis on Cut Flowers and Plants traded in major European and international markets. The MNS objective is to provide indications on market trends to support exporters, producers, sector associations and other private or public organizations in their export marketing decisions. MNS information providers for floriculture products include major importers, wholesalers, auctions and organizations in 11 European countries and 2 Asian countries. Market information is collected throughout the year and is available for transmission to subscribers on a monthly basis. We welcome new sources of information, news that subscribers and readers might have on their specific products or areas, inquiries or information requests on the products and markets covered by the report as well as suggestions, remarks and indications on the report content. For these purposes or for other information about the report and the Market News Service, please contact [email protected]. The authors can be contacted at [email protected] or [email protected] To subscribe to the report or to access MNS reports directly online, please contact [email protected] or visit our website at: http://www.intracen.org/exporters/market-news-service or http://www.intracen.org/trade-support/market-news-service The Market News Service is made available free of charge to all Trade Support Institutions and enterprises.

Copyright © MNS/ITC 2012. All rights reserved

mailto:[email protected]




http://www.intracen.org/exporters/market-news-service

http://www.intracen.org/trade-support/market-news-service

Market News Service


4

INDEX

MARKET TRENDS .............................................................................. 5

CUT FLOWERS MARKET IN EUROPE ...............................................................................5 PLANTS MARKET IN EUROPE .................................................................................... 10

SELECTED FLORICULTURE WORLD INFO..................................... 13

SWISS FLOWER INDUSTRY IS NO BED OF ROSES..................................................................13 CICCOLELLA TAKES OVER SPRING FLOWER GROUP..............................................................14 ORCHID - STILL THE NUMBER ONE PLANT IN EUROPE ...........................................................14 NUMBER OF DUTCH EXPORTERS CONTINUOUSLY DROPS.........................................................15 INNOVATIVE SALES PROMOTION: TULIPS AT THE DAM SQUARE..................................................15 KENYAN 2011 FLOWER EARNINGS - HIGHER ON FOREX GAINS .................................................15 HORTEC KENYA 2012 TO BE POSTPONED .......................................................................16 KENYA’S LOCAL MARKET IS EMERGING ..........................................................................16 KENYA: PRIVATE PLANT INSPECTORS MAY OFFER SERVICES ....................................................17 BAD WEATHER AFFECTS ETHIOPIA'S FLOWER EXPORT FOR VALENTINE .........................................18 SOUTH AFRICA TO DEVELOP INDIGENOUS SPECIES...............................................................18 FLOWER EXPORT REACH RECORD HIGH IN TAIWAN..............................................................19 SOPHISTICATED, WELL-ORGANIZED FLOWER PRODUCTION IN JAPAN ...........................................19 AUSTRALIA: DARK SUMMER HITS ROSE PRODUCTION............................................................20 VIETNAM: DA LAT FLOWERS MUST INCREASE EXPORT ..........................................................21 INDIA’S ROSE EXPORTS BLOOM THIS VALENTINE'S DAY .........................................................22 COLOMBIANS HAVE HAD POSITIVE VALENTINE...................................................................22 US ORNAMENTAL GROWERS EXPECT SALES INCREASE...........................................................23 PROFILING ‘THE GROWER OF THE FUTURE’ .....................................................................23 VIAGRA PROLONGS VASE LIFE OF FLOWERS ......................................................................24

EVENTS CALENDAR ........................................................................ 25

FLOWER DAYS CALENDAR........................................................................................25 EXHIBITIONS AND CONFERENCES .................................................................................26

STATISTICAL INFORMATION .......................................................... 27

2011 EXPORT OF FLORICULTURE PRODUCTS FROM THE NETHERLANDS ........................................27 SOURCES OF CUT FLOWERS SUPPLY TO EU......................................................................31

5

Market News Service Cut Flowers and Ornamental Plants

Market Trends Cut Flowers Market in Europe

The Netherlands Flower Auctions’ Notes The first month of the new year turned out to be a reasonably satisfactory month for cut-flowers sales and prices. In general, supplied quantities were slightly higher (4.4%) than last year, while prices were just slightly higher for nearly all products, except for tulips, narcissus and other bulb flowers. The major reason for this price fall for tulips was the overproduction- and supply (some 20% more than last year during the comparable month), while the general quality level was not so good. Therefore prices were much lower, by 30–40%, a really big difference. It was said that the price cost was not even covered. On the other hand, some products such as: chrysanthemums (sprays, single headed ones and santinis), gerberas (minis as well as the big headed ones), lilies and amaryllis were very expensive, in some cases some 40–60% higher than last year. Rose supplies and prices were more or less normal and equal to last year. The total turnover increase of roses during the first month of the year was 1.4%, realised by 1.7% lower supplies, resulting in a very slightly higher total average price for all flowers together. Throughout the last days of January and the first

week of February a severe winter attack took place, with very clear and very cold weather and temperatures as low as minus 12º. Luckily, there was no snow fall, so transport and logistics could be operated normally. Street vendors had to protect their booths against the extreme cold and consumers were buying lower quantities, because they did not get out of the houses much. The final Valentine’s turnover and prices were slightly disappointing. It was the extremely cold weather in the Netherlands, but even more importantly - in most of the other European countries, as well as in the south of Europe. Due to the cold, the streets sales were absolutely minimised. Another given reason was the continuous economic and financial crisis, especially in the southern European countries. Disappointing were the prices of the two biggest products - roses and tulips, which represent about 60% of all supplied flowers during that period. Better prices were paid for the so-called filler products, such as: mini gerberas, chrysanthemums, trachelium, gypsophila, asters, leucadendron, wax flowers and many others.

Importers’ and Traders’ Notes The January 2012 export figures for cut-flowers from the Netherlands are published by HBAG (Exporter’s Union) as follows. The January 2012 export has increased by 1% when compared to the same month of last year. An enormous increase of 62% was realised to Russia. Other very positive increases were noted to countries like: United Kingdom (19%), USA - very remarkable and back in the top-ten list on rank number 7 (13%), and other countries (9%). Much worse results were to countries like: Germany (-9%), France (-10%), Italy (-12%), Denmark (-15%) and Poland (-21%). The year 2011 ended very positively and with good results. The Christmas demand and sales turned out to be very good, much better when compared to many previous years. Also throughout the very last week of the year all remained positive. The same could be said for the

whole month of January. However, throughout the first half of the month all was slightly better than during the second half of the month. Still, for a winter month all could be called good and positive, partly also due to the very mild winter weather. In fact, the weather was very autumn-like, without any night frost or any snowfall. All products were not really oversupplied, except for tulips, which were only domestically cultivated. Prices of nearly all products, domestic and imported, achieved very good prices, except for tulips, of course. During the last week of January and the first week of February the prices of roses slowed down. Finally, the real winter weather arrived on the very last two days of January. Night temperatures dropped to minus 6–10ºC and even during daytime temperatures remained below zero. Luckily, there was not much snow on the roads, so that logistically all could be moved smoothly.

Market News Service


6

During the first two weeks of February the cold weather continued and temperatures dropped to as low as -22ºC during some nights. This had quite a negative impact on the Valentine’s demand, sales, prices and results; it all turned out not very special. In fact, the final Valentine’s results turned out slightly worse than last year. Roses did not fetch the same top prices, and import small and medium roses were relatively

cheap, except for the red coloured varieties. On the other hand, many so-called 'fillers' fetched very good prices, especially products like hypericum, eryngium, white asters, gypsophila, leucadendron safari sunset, red coloured leucospermum cordifolium, but also cape greens, albiflora and others. Lower prices were fetched for solidago.

Austria January was never a very good month for cut-flowers' demand and sales, and so it was this year; it was even worse when compared to the same month of previous years. Only during the first 10-12 days the market was very reasonable, particularly for all the products used to prepare mixed bouquets. From mid-January until the very end of the month the cut-flowers business was marginal, even though prices of many products were not particularly high. Tulips and other bulb flowers were even very cheap this year, but nobody was really interested in buying them. It has to be said that the few tulips that were traded were not of super or extra quality. It seems that new cultivation techniques on the flower farms have influenced the quality of the products

negatively. Many tulips are lighter of weight, with thinner stems and smaller buds this year. From the very beginning of February the winter really took off, with very low temperatures even during daytime. Flowers could hardly be moved without strong protection, and street sales slowed down to a very minimum. The cold weather lasted until two days before Valentine’s Day, just on time to avoid a disaster. Eventually, florists did sell lots of flowers and consumers did buy quite generously, and Valentine’s results turned out to be normal; not better, but also not worse than last year. During the post Valentine’s week the market was very slow and very quiet, which is considered normal after such a special cut-flowers event.

France During all of January the cut-flowers market was not bad, though it was also not very good. Luckily, total supplied quantities from domestic production as well as from imports were not overdone. It was just enough to meet the demand during that month. As of the end of January and the beginning of February the weather changed drastically from very mild into severe winter weather. In most of the regions the cold came with night frost and very low temperatures, and in other regions there was snowfall, in certain cases very heavily. That did not have any positive effect on the market; on the contrary, all was very slow and quiet, especially for the sensitive products, such as the exotic flowers and cut-foliage. Meanwhile, importers and wholesalers began to prepare for the approaching Valentine’s Day. Nice quantities of various cut-foliage types, such as: ruscus leaves, pittosporum, aspidistra and aralea were already being imported from Israel; also

temperate flowers such as: gypsophila, solidago, phlox, asters and others. Cut-foliage originating from Central America was reasonably plentiful and prices were more or less normal. Plentiful were also the quantities of roses from Kenya and Ethiopia, while quantities originating from Ecuador and Colombia were scarcer and more expensive. Eventually sufficient quantities, especially of roses, could be imported. Also the final demand and sales for Saint Valentine’s Day were rather good and satisfactory. The cold weather ended just on time to be able to sell nearly all the flowers. Of course, as always roses were most popular, particularly the red coloured ones. During the post Valentine’s week the market was gradually improving again towards Grandmother’s day, taking place on the 4th of March. For that even mostly smaller types of flowers were demanded and used; flowers like: narcissus, anemones, ranunculus and also small sized roses.

Germany The January cut-flowers demand and sales have been rather good and satisfactory. Turnovers have been more or less identical to last year, even though the weather was much better and milder. In fact, the weather conditions throughout the

month were ideal, and street sales could be operated all the time. It was different last year, certainly during the first two weeks of the year, when it was really heavy winter weather. All in all, importers and traders reported of satisfactory

Market News Service


7

results this year, even though smaller quantities were moved, except of tulips, which were oversupplied all the time, with, of course, a negative impact on the prices. Traders reported that they purposely agreed to work with slightly smaller quantities, so as no to be stuck with leftovers, and therefore to maintain a better price level. That seemed to have worked out positively, which was seen in slightly higher margins. In the past the policy was always that one should never say no, but now they worked with slightly smaller quantities, for the result of no leftovers. From the very end of January the weather really changed drastically from very mild winter to extreme cold and very lower temperatures, as low as -15ºC, depending on the region. In the eastern provinces it was much colder than in the western part of the

country. At the beginning of February the Valentine’s business was really taking off; first with greens and fillers, later on with roses, carnations and many other products. The extremely cold weather, with temperatures as low as -20ºC, lasted until the weekend just before Valentine’s Day. Street- and open market sales were impossible, because flowers could not stand the cold of the open air. Only during the very last two days, when the extreme winter weather was over, some extra demand and sales could be generated. Eventually, the Valentine’s sales and results ended up slightly disappointing. Much worse than what was expected. Throughout the post Valentine’s week the market was more open, as the weather was much milder, but still the cut-flowers market was reasonably slow and quiet.

Italy January was never a very special month for selling cut flowers, and so it was this year. It was reported that the major reason for this was the economic and financial situation in the country, which hasn't been very good. In addition, the weather during the last week of January and the first week of February was very winter-like, with very cold and low temperatures in the northern and central regions of the country - cold and snowy, with all the disturbances on the roads that come with it. It made transport and movement of fresh products very difficult or even impossible. Street-sales in the mentioned regions were reduced to almost zero, and people came out of their houses only for necessities, such as food; not for flowers and plants. Nevertheless, importers and wholesalers had to prepare for the approaching Valentine’s Day, by ordering

sufficient quantities and arranging enough air freight capacity. During the two weeks before Valentine’s Day the weather all over the country was very winter-like, with snow and very low temperatures, even during daytime. That had quite some impact on the local production, even in the south. Frost damage killed many outdoors-cultivated products and quantities. Just on time, on Sunday the 12th, the weather became much milder and the winter weather situation was over. Just on time for good cut-flowers sales for Saint Valentine’s market. Eventually all imported flowers were sold on time. Wholesalers and florists were also almost entirely sold out. Final Valentine’s results turned out like last year. Not better, but also not worse. Now all efforts and hopes are placed on the approaching International Woman’s Day, taking place on the 8th of March.

Norway As during most of the previous years, January was not a very special month for cut-flowers demand and sales. After the end-of-the-year celebrations people are not very interested in buying flowers. On the other hand importers and wholesalers were reporting that their total turnovers did not really shrink. In the past few years and even more so this year, continuously smaller quantities of domestically produced products are available, due to the fact that flower cultivation in the country is not so economic anymore and alternative (import) products are offered for lower prices. Meanwhile more flowers and bigger quantities have to be imported, just to maintain the cut-flowers branch lively and competitive. Therefore the heavy import duties for certain products were adjusted, sometimes even to half of what they were before. Import duties are

still not very low, but at least there is a strong difference with the past situation. Towards the end of January and at the beginning of February the market did improve quite considerably as a result of higher demand for the approaching celebration of Mother’s Day, on the 12th, and of Valentine’s Day, on the 14th of February. The fact that both events were taking place on different dates was very positive. In many previous years the events were on the same day, and in some cases consumers did not buy twice the quantities of flowers. Final Mother’s Day and Valentine Day’s sales and results were satisfactory and rather good. Cut-flowers have been sold equally well when compared to last year, but plants have been sold in bigger quantities, with as absolute number one - the phalaenopsis orchids.

Market News Service


8

Spain During the entire month of January the cut-flowers market was extremely quiet and slow. Traders said that January is always a calm month, but this year it was much quieter than normally, as well as in comparison to many previous years. The major given reason was the economic and financial crisis, especially in Spain, more than in many other European countries. Towards the end of the month and throughout the beginning of February all interest was focussed on the approaching Saint Valentine’s Day. However, with the very few or even no pre-sales, it was very difficult to plan and order the airfreight capacity needed to transport the products. Also consumers' interest and

purchases of cut flowers were very, very marginal. People were saving money for the necessary products and items needed for daily consumption. The Valentine’s cut-flowers demand and sales ended up not so satisfactory. People were very anxious and cautious in buying. Also from the supply side things did not move smoothly. Ecuadorian roses were not plentiful and the general quality level was not as it used to be. Instead, bigger quantities of roses were imported from Colombia, and these roses were of excellent quality. During the post Valentine’s week the market went back to the very normal, low level.

Sweden December's cut-flowers sales and results turned out to be excellent and much better when compared to many previous years. January was also a good and satisfactory month. Normally January is a slow and quiet month, though not this year. Traders sold and consumers bought rather good quantities of all types of flowers. Best business was made with tulips, which were more than plentifully available this year. At the same time, many tulips were also offered from the Netherlands, where these flowers were extremely cheap. However, as traditionally, plenty of domestically produced tulips were available. Only the special and the newest varieties from the Netherlands were used. As of the very last days of

January and throughout the first week of February a very serious winter attack took place, with extremely low temperatures. Luckily there was any snow, so that the cut-flowers business was not affected very negatively. Street vendors only had to protect the good against the wind and the cold. The Valentine’s cut flowers demand, sales and results were very good and satisfactory. Importers and wholesalers were totally sold out. Florists were also selling very well, and finally sold almost everything, leaving them with very minor leftovers. During the post Valentine’s week the market, slowed down quite considerably, of course, mainly due to lower demand, because of the first week of the spring holidays.

Switzerland The cut-flowers market of January was, in general, not very special. During the first half of the month demand and sales were slightly disappointing, while throughout the second half of the month all was slightly better when compared to the same period of last year. All in all, the final January results turned out very similar to the results of 2011.The market was suffering a bit from the huge oversupply of tulips and other bulb-flower products, mostly originating from the Netherlands. Prices of these mentioned products were far below the normal level, while the general quality level was not the very best this year, particularly that of the tulips. Rose supply and quantities originating from the African production countries were rather plentiful, while the Ecuadorian roses were just sufficiently available. Only the special and new varieties were not really plentiful; on the contrary, there was some shortage of those varieties. The general quality level of the African

and the Ecuadorian roses was very good. Throughout the last week of January importers were busy with ordering sufficient quantities for the approaching Valentine’s Day. Availability of quantities was more or less sufficient this year. Whether the very cold and freezing weather, which started at the beginning of February, will influence the market and the prices, still needs to be seen. On the first week of February the weather was very cold and a lot of snow fell. That influenced the flower business negatively. Also Valentine’s Day was slightly influenced by the cold weather, and therefore final sales and results were not very special and slightly worse than last year. During the post Valentine’s week the market was very slows and calm, while during the last week of the month it all improved again. The general quality level of the roses originating from Ecuador and the African countries was good and satisfactory this year.

Market News Service


9

United Kingdom The Christmas cut-flowers market in December of last year has been rather good, without being very special, and more or less normal when compared to previous years. During the first two weeks of January the market remained reasonably satisfactory, but throughout the other weeks of January the whole market slowed down dramatically to a lower level than normally. Throughout the first week of February the weather really changed drastically into real severe winter weather, with very low temperatures. Luckily, the weather was very cold but also very sunny, and with no snow. As traders said, one can dress up against the cold, but it is a different story when it comes to ice and snow on the roads. Sufficient flower quantities were available all the time, and an oversupply of tulips, narcissus and other bulb flowers was noted. Prices of those products were therefore very low. The fear of many traders is that the current big quantities of bulb flowers will

cause a shortage in a few weeks’ time, when spring will start and Mother's Day will take place on the 18th of March. As of the beginning of February importers and wholesalers began to prepare for Saint Valentine’s Day. Throughout the first week clients were very cautious in buying, just because of the cold weather. With the very cold weather until Sunday the 12th, the real Valentine’s flower business took off only as of Monday and Tuesday, the actual Valentine’s Day. The final Valentine’s Day results were not bad, though not as good as expected. Prices for most of the flowers, particularly for the purchased roses, were not too high. Most roses used were the African small and sweetheart roses. The general quality level has been positive, except for some quality problems due to cold/frost damage. Now everyone is focussing on the approaching Mother’s Day, taking place on the 18th of March.

Market News Service


10

Market Trends Plants Market in Europe The Netherlands FloraHolland Aalsmeer Auction’s Notes Normally in January the winter rules the market. So it was last year, but not this year. There was no real winter weather at all, until the very last two days of the month. However, it became very serious and severe during the first half of February. Temperatures went down to -22ºC in certain parts of the country. On the other hand there was only very slight snowfall, which meant that transport and logistics were not affected. Street sales became very difficult and only the street vendors who could protect themselves and their products had a chance to survive. Export to other countries was also very minimally affected, luckily, so that prices of most products could maintain a very reasonable level. Only primroses and bulb products on pot were facing very low prices, mainly due to a certain oversupply. The green-plants market was not very special, nor was it very bad. In January all could be called very reasonable. The January total house-plants turnover has decreased by 5.3% when compared

to the same month of last year, realised with a supply decrease of 0.2%, resulting in a 5% higher total average price for all plants together. Lower prices were for: primroses, bulbs on pot, dracaena and other orchids on pot. Prices were better for phalaenopsis orchid plants, hyacinths, anthurium, kalanchoe, ficus and pot roses. The garden- and bedding plants market was of minor importance, which was considered normal, given the period of the year. During the whole month of February the fully-grown plants market was not very special, as said - mainly due to the cold weather during the first half of the month. Prices for most of the products were low, especially for the mentioned primroses, bulb flower products on pot, and also for phalaenopsis orchids, which fetched much lower prices, sometimes one Euro less per plant when compared to the same month of last year. One of the reasons was the (again) strongly increased production/supply.

Importers and Traders’ Notes The January 2012 export figures of house- and garden-plants from the Netherlands are published by HBAG (Exporter’s Unions) as follows. The January 2012 export turnover has increased by 10% when compared to the same month of last year. Very good and positive results have been obtained of exports to countries like: Germany (18%), United Kingdom (26%), Sweden (47%), Russia (53%), and other countries (16%). Negative results were to countries like: Italy (-16%) and Belgium (-20%). The fully grown plants market did not improve very much, when compared to many previous years. The slogan 'finish with the Christmas tree and start with green-plants' was not really materialised positively this year. The major reason could be the very cold weather, which started at the end of Januarys and further continued, even worsened, during Februarys. During that period

the winter was really severe, with ice, snow and temperatures below zero, as low as minus 22ºC. The Valentine’s flowers and plants business was mainly focussed on the cut flowers and only on certain types of red coloured pot roses and kalanchoe. Phalaenopsis orchids, which are very sensitive to extreme cold, suffered from the circumstances. Prices became much lower than normally. However, it is expected that demand, sales and prices for the mentioned products will be better later on, in spring. In the tropical ornamental young-plants sector demand and sales normally increase during the first weeks of the new year; so it did this year, though at a slower rate, due to the cold. The extremely cold weather disappeared during the end of the second week of February, and now it is expected that all will gradually improve during the weeks and months to come.

Market News Service


11

Denmark The normal recovery of the green-plants market as of the beginning of January was this year as in the old days. In the past few years this recovery did not materialise most of the times. Surprisingly positive was the improvement of position of the big sized green-plants, so much used for indoor landscaping. It was not expected and therefore even more satisfactory. For the medium sized green-plants all was considerably slower, as during the last few months of last year. In the small green-plants sector all was moving reasonably well, without being very special. In the flowering plants sector the development was very different, depending on the type of plant. For Saint Paulias the market was relatively poor, while for kalanchoe it was much better. As of the very last days of January the winter returned, with very cold weather, with temperatures as low as -12ºC. Even during daytime temperatures remained below zero,

which made it feel even colder, due to the strong eastern winds, coming straight from Russia. That severe cold during the first two weeks of February had quite some impact on the total demand and sales of all plats, flowering as well as green. However, as of the third week of the month the weather became milder and normal again, and the market gradually slightly improved. In the tropical ornamental young-plants sector plenty of new young plant-material was available and offered all the time. However, most of the domestic growers were still holding their orders of new plantings. They are expected to order more as of the end of February or the beginning of March, depending on the weather. Importers were also careful not to order too much material, so as to avoid disappointment or cancelations and eventual quality problems. So far the quality of the imported goods was satisfactory.

Germany Throughout December, including the Christmas period, the fully grown plants market was rather good and satisfactory. Prices were very reasonable, much higher than last year during the comparable month, and final results were positive. Also in January growers and traders were rather satisfied, because with the mild weather plants could be moved and sold all the time, also outdoors in the streets. However, from the very last days of January and throughout the first two weeks of February severe winter weather turned up. Snow and ice with temperatures as low as -20ºC did not do much good to the whole perishable goods market. Immediately the street sales were minimised to almost zero, which had a great impact on the prices, of course. The impact was biggest on the whole range of green-plants, but also on the flowering plants. The market for certain flowering plants was already not the very best, especially not for primroses and the whole assortment of the bulb flowers on pot, particularly the tulips and the narcissus. Amaryllis on pot could not be sold anymore. Consumers were not interested in the typical Christmas products anymore. The cold weather was over at the end of the second week of February. As of the third week

the fully-grown plants market gradually improved. Prices for many plants - flowering- and green - increased, however not for all the types and varieties. Prices remained poor for primroses and bulb flowers on pot, but also for many types of dracaenas. For instance, dracaena tufts were about €2 per plant set lower than normally. The same could be said for phoenix roebelinii. Some extra demand and sales were noticed for some Valentine’s products such as pot roses and small mixed plants arrangements. In the tropical ornamental young-plants sector things moved along the results of the fully-grown plants. Meanwhile, plenty of new young plant-material was offered all the time by importers and wholesalers, even for bargaining prices for many products. A positive exception could be made for all the palm types and varieties. Some more prices for the respective products: dracaena compacta branched with 10-12 sprouts for €6.00 (normally €8.00); 6" rooted dr. marginata for €0.20; dr. warneckei and deremensis 4" rooted canes for €0.35; areca palms 1.20m high in a pot size 24 for €6.50; areca palms 1.60m high in a pot size 27 for €11.00.

Market News Service


12

Sweden The final December and Christmas fully-grown plants' demand and sales results turned out to be good and satisfactory. So was the month of January, making it a good start of the new year. Major sales were made with flowering plants, particularly with the bulb flowers on pot, especially of tulips, hyacinths and narcissus. As of the beginning of February there was also some extra demand for the primroses, a typical spring product. However, due to the - probably temporary - oversupply of the primroses, prices were very low. Hardly any profit/margin could be made with those plants. Traders hope for better times after Saint

Valentines’ Day. This event is, however, not really special for pot plants, it is just a cut-flowers event, was reported. As of the end of January and the beginning of February a very serious and severe winter attack took place, which eliminated the street sales totally. Only very small quantities of green-plants were used in February, and only the smaller sized plants. For the medium and binger sized plants demand is expected to increase when spring starts. As of mid-February the severe cold was over, and a slight improvement of the plants market could be noticed.

Market News Service


13

Selected Floriculture World Info

Swiss Flower Industry is No Bed of Roses The Swiss splash out around SFr125 ($136) each a year on cut flowers, more than any other European nation. Sales reach their peak on February 14 – Valentine’s Day. Yet seven out of ten flowers bought in Switzerland are grown abroad and Swiss growers struggle to compete in the tough market dictated by low prices. “Producing flowers in Switzerland is more and more complicated. To compete it’s essential to produce cheaply and this entails investing in air-conditioning, heating and greenhouses,” Beat Thomann, director of the Zurich Flower Exchange, told. The association, which brings together 200 flower growers, promotes homegrown flowers. Its philosophy is that only when local producers are unable to offer what the market demands will it turn to flower importers. According to the Zurich Flower Market, 30 per cent of cut flowers are grown in Switzerland; customers seek quality, freshness, flowers that last and appreciate certain “Swissness”, it says. Of the remainder, 40 per cent come from the Netherlands, 14% from South America, 11% from Italy and five per cent from Africa. Switzerland’s robust economy has allowed it to hold its head above water during Europe’s recent troubles. In 2010 the flower trade grew by five per cent and it is thought that 2011 also saw progress. Gabi Hophan, marketing director for Fleurop, which has 430 members with shops dotted around the country, was generally optimistic about business. “We are satisfied with the way things have been going and last year we saw a small but steady increase in sales, which was down to innovative promotional offers around Valentine’s Day, Easter and Mother’s Day,” she said. In the area of fair trade Switzerland has been a pioneer in raising awareness. In 1990 the group Flower Coordination Switzerland launched a “flowers of death” campaign, together with

Greenpeace and the WWF. The initiative is said to have borne fruit and consumers are now more familiar with fair trade flowers and premiums imposed on the Swiss retail price. “Around 20 per cent of our customers usually order roses carrying the Max Havelaar [fair trade] label. This is a sign that they are ready to pay a little bit more to promote fair trade,” said Hophan. However, Only 10% of imported flowers have fair trade labels, unlike bananas, where it rises to 25%. However, flower growers do not share this vision: “Of course customers prefer to buy flowers that promote fair trade, but they are not prepared to pay for it. Swiss buyers are not ready to pay more than before and this won’t change in the future.” said Thomann The big distributors play a key role in the ongoing price war. “Flower sellers often lose out to Coop, Landgard and other big firms, which sell arrangements at very low prices. Over the past year, for example, prices have fallen by 12-15 per cent due to fluctuations in the Swiss franc-euro exchange rate. And I think they will stay at this low level, or they could drop even further.” In the face of lower prices, the Swiss can only compete on quality, or Swissness, say specialists. “There is a group of very competitive Swiss producers, especially in the rose market. But national roses are only grown between May and October because the necessary heating systems are very expensive,” said Thomann. But people are constantly on the look out for new opportunities. Agricultural specialists from Agroscope Changins-Wädenswil Research Centre in Conthey spent ten years cultivating the seeds of a new flower called Helvetia, a variety of the legendary edelweiss, but bigger and more resistant. And a similar process has been carried out with Swiss daisies. Around 70% of all flowers bought in Switzerland are from three types: rose, chrysanthemum and lily.

Source: Swissinfo.ch 14/02/2012

Market News Service


14

Ciccolella Takes Over Spring Flower Group Ciccolella Holding International (CHI), a company entirely controlled by Ciccolella SpA, entered into an agreement to take over the Springflower export activities, which includes flowers and plants export. The perspective is a potential integration. This agreement is fully consistent with the Ciccolella vision to build market leadership through partnerships and external acquisitions. Ciccolella is one of the largest players in trading flowers and plants on the European market with a turnover of € 346 million in 2010; it is active in both the retail and wholesale segments of the market. Its parent company is listed at the stock exchange of Milan. Ciccolella is specialized in the production of protected crops of rose and anthurium. It currently has about 100 hectares of greenhouses at its production sites in Italy. In the coming years a significant increase in production capacity will be and the available space will exceed 200 hectares. Ciccolella has companies in the Netherlands highly specialized in the sale and distribution of garden products throughout the European continent. In 2006 it acquired the leading trading company Zurel. Since then it took over also Sierex, Diskoflora, and Disva.

Springflower Holding is a Dutch group of companies trading flowers and plants based in Aalsmeer with leading market positions in Scandinavia, Germany and France. Consolidated revenues amount to about € 50 million per year. Movrie is the subsidiary of Springflower, focused mainly on serving supermarkets and chain stores. Hiljo is the subsidiary focused on the total service to wholesalers and smaller chains, from Scandinavia to central and southern Europe. Summer Flower is the subsidiary providing large quantities at very competitive prices.

Sources: Vakblad vd Bloemisterij 13/01/2012 + Ciccolella Web site

Orchid - Still the Number One Plant in Europe Also in 2011 the orchid kept its number one position in the European indoor plant market. The

Dutch Horticulture Board PT finds this out trough research. Popular colours were white, purple and pink. In many European countries, one out of ten sold orchids is white. In the Netherlands this is even the case at one out of two sold orchids; while one out of three of the sold orchids is white in Germany. There are also big differences between the European countries in the distribution of orchids. Supermarkets are important in the orchid sales in the United Kingdom and florists in Russia. In the Netherlands there is a major role for garden centres, and in Germany for DIY shops.

Source: HortiBiz / PT 27/01/2012

Market News Service


15

Number of Dutch Exporters Continuously Drops The +2% increase of the flower and plants export value from the Netherlands to € 5.2 billion achieved last year by -5% fewer wholesalers. This was published by the Wholesale Horticultural Products HBAG Flowers and Plants in Aalsmeer. “The scale that is taking shape for years, set by'' concludes HBAG. In 2008 there were still 857 active exporters, over 801 in 2009, and 765 in 2010. The number shrank last year by -5% to 724. This is a decrease of -16% in 3 years, while the turnover value increased. “Scale is an obvious trend'' says Tom Bijleveld of HBAG Flowers and Plants. The average annual turnover per exporter was € 7.2 million, while it was just € 6.2 in 2008. Fourty companies, just 5.5% of the total number of exporters, are responsible for 50% of the export turnover in 2011. The number of export companies with a turnover above € 40 million increased from 24 to 28 in the last four years.

“The mix of large and small companies is a strong point of the Dutch wholesale'' said Tom Bijleveld, “So all market segments, from discounters to specialty in the highest segment, enjoy optimum service'', he explains. Of the 724 active exporters, still 541 were companies with annual business turnover of less than € 5 million.

Source: HBAG 06/02/2012

Innovative Sales Promotion: Tulips at the Dam Square The Dutch tulip growers initiated a unique and impressive promotion event. Last Saturday, 21

January, they have placed 200,000 tulip flowers, of 10 different colours, at the central square of Amsterdam, the Dam. The public were invited to pick a bunch of tulips, free of charge, for decorating their homes. This was the opening of the National Tulip Day, planned to take place every year at the third Saturday in January. The event was initiated by the growers’ organization Tulips4all, in collaboration with ‘Tulips Promotion Netherlands’ (TPN), and the Flower Council Holland (BBH). Amsterdam’s Mayor has officially opened the event.

Source: Bloembollen Visie 20/01/2012

Kenyan 2011 Flower Earnings - Higher on Forex Gains Kenya's flower earnings for 2011 are seen rising thanks to a favourable exchange rate for most of the year, despite earlier warnings they could fall below target due to the euro zone crisis. Flower exports account for nearly half of the country's horticulture export earnings, which were Kenya's second biggest source of foreign

exchange at 78 billion shillings ($932.7 million) in 2010, after tea. Kenya exported estimated 109,950 tons of flowers in 2011, down 9.3 percent on a year earlier. Flowers earned the country 30.6 billion shillings ($365.4 million) in 2010. "Although actual figures on the value have not been released, we expect to see a gain in income from

Market News Service


16

the weakened shilling against the euro," Jane Ngige, chief executive officer of the Kenya Flower Council told.

Kenya's shilling collapsed last year, losing 25 percent against the dollar before the central bank hiked rates and triggered a rally in the last quarter of the year. High input costs, soaring lending rates and labour unrest, however, are still expected to have squeezed profit margins for flower growers. "The high cost of inputs such as fuel and high bank interest rates have put pressure on the industry," said Ngige.

Last July Ngige said that Kenya was unlikely to do better last year than in 2010 due to high input costs and the prevailing euro zone crisis. The county's flower exports in 2010 fell 15 percent from 2009 as the sector suffered from the impact of global financial turmoil on key export markets. Ngige said flower growers have made progress in their push into new markets in Asia and eastern Europe to drive growth, diversifying away from their core buyers in western Europe. "We have managed to break into the Japanese market very well. We already are commanding about 20 percent of their (flower) import market share," Ngige said. "We have also broken into the Russian market and we are making good strides into other countries in the region." As well as exploring new frontiers, Kenya is encouraging growers, in particular small-scale producers, to create and export finished products, such as bouquets, rather than bundles of cut stems, to add value. Producers were also turning to new types of flowers, although roses, the mainstay of Kenya's flower sector, still account for 60% of production, Ngige said.

Source: AllAfrica.com / Nairobi Star 07/02/2012

Hortec Kenya 2012 to be postponed The Hortec 2012 fair, scheduled to take place from 14 to 16 March 2012 in Nairobi, Kenya, has been postponed till further notice. Hortec was started in 1994 as an opportunity for suppliers to exhibit to the many established growers in the region.

However, the new I.F.T.Ex., organized by HPP, will take place from 21 to 23 March 2012 at Oshwal Centre (Westlands), Nairobi.

Source: Hortfresh Journal 20/01/ 2012

Kenya’s Local Market is Emerging A vibrant wedding industry in Kenya is giving a major boost to the country's local flower sector. Kenya is a big flower exporter to Europe and other countries across the world, but for many years, its flowers hardly had market locally. Over the years, while Kenya earned millions of dollars from flower exports, the local flower industry remained lacklustre, with Kenyans scarcely consuming flowers. However, this is changing gradually, thanks to the fast-rising Kenyan wedding industry that is increasing demand for fresh flowers. "Things are changing for the better. Demand for flowers locally is rising because of the wedding industry.

Market News Service


17

Couples want to make the occasion memorable, flowers help them to do so," Gladys Ngunyo, a florist in Nairobi said. The florist noted that flowers are a major part of a wedding because they add beauty, fragrance and elegance to an event. Most of her clients are couples planning their weddings. However, there are also people organising birthdays, funerals and corporate functions. Of all the events, however, there is none that uses flowers elaborately than weddings. "Wedding flowers come as a package. In other events, people order for flowers in small quantities since they can do without them, as many prefer, but in weddings, it is a whole set," she explained. To satisfy her clients' needs, Ngunyo, like many other florists in the business, has several packages from which clients can select what they want. "Bronze-package is the cheapest since not many flowers are used. This goes for 252 dollars," she explained. The more expensive ‘Silver-package’ costs 298 dollars. "The diamond package is the most elaborate and expensive. It costs 747 dollars. December is the time most florists do booming business because it is peak time for Kenya's weddings. "Last December I had a hectic time trying to satisfy my clients' needs. The demand was higher than the previous years," she noted.

Ngunyo notes that the demand for flowers locally in Kenya is on the increase. "It is not only weddings that are pushing up the demand for flowers, Kenyans are changing their attitude towards them, especially women, and they are buying them," she said. The growing demand is also evident in the number of people venturing into flower business in Kenya. In Nairobi, several entrepreneurs have started flower businesses mainly in shopping malls and high-end residential areas. At least every mall in the capital has a flower shop, some having more than two. At a shop at Prestige Plaza, the cost of flowers ranges between 92 and 141 dollars. "We have various categories that include unwrapped, those arranged in containers, for gardens and funeral wreaths, which go for between 127 and 141 dollars," said an attendant. Demand for flowers has also made many people venture into the industry as flower farmers. "I buy my flowers from a farmer on the outskirts of Nairobi. I prefer buying from him than outside Nairobi because of the distance. Flowers are highly perishable, most of the time I take my orders a night before the event, particularly, for weddings so that they do not spoil," said Ngunyo.

Source: In2EastAfrica.net 20/01/2012

Kenya: Private Plant Inspectors May Offer Services Private plant specialists could win major concessions if Parliament endorses proposals by the Ministry of Agriculture to liberalise inspection services as part of efforts to boost productivity. Currently, the task of plant or seed inspection is solely handled by the State-run Kenya Plant Health Inspectorate Service (Kephis), which has often been faulted for lacking sufficient workers to handle the job. “The proposal to incorporate other experts other than those working at Kephis is noble because it will boost the capacity of the industry,” Dr Evans Sikinyi, executive officer of the Seed Trade Association of Kenya told. “Kephis is currently constrained in terms of staffing yet the demand for inspection services is growing.” In a bid to reverse this anomaly, Agriculture minister Sally Kosgei proposes to open up the service to qualified experts serving outside Kephis. According to the proposed measures Kephis shall appoint seed inspectors, seed analysts and plant examiners and may authorise competent private or public persons to perform specified functions.

The names of those appointed would be published in the national Gazette and their activities monitored from time- to- time by Kephis to ensure high standards are upheld. “We have many qualified seed and plant experts out here and allowing them to help with the job will boost the agriculture sector,” said Dr Sikinyi.

Market News Service


18

Kephis currently enjoys good ratings in the region, with its test laboratories in Nairobi being Africa’s main focus point outside South Africa. The institution scored big in March 2006 when the European Union accredited it to inspect all import consignment of fresh fruit and vegetables entering into its market. The accreditation has also made it easier for Kenyan exporters to facilitate trade in the EU because once certified by Kephis their produce is readily accepted in all markets within

the union unlike in the past when such consignments were subject to counter-inspection at their destination markets. The proposals envisaged to help Kephis re-invest earnings from service fees into key development and expansion projects. To ensure high standards in seed and plant health the ministry proposes hefty penalties for any persons found contravening laid out rules and standards.

Source: Business Daily 10/01/2012

Bad Weather Affects Ethiopia's Flower Export for Valentine A recent spell of inclement weather in some of the main horticultural areas proved devastating for Ethiopia's Valentine's Day flower exports. Officials at the Ethiopian Flowers and Vegetables Exporters Association say that cold weather saw the late harvesting of flowers, affecting exports to European market for Valentine's Day. The association said that the country failed to reach an expected 30 percent increase in exports, as the bad weather delayed flower cutting by up to 15 days. "This year, the flower price was up in Europe and we were expecting to get more income from the sector. But we are unable to achieve the goal," the association said in a statement. Prices of flowers in Europe have risen significantly. Ethiopia began exporting flowers in 2001-02. Exports soared to US$ 2.9 million the following year.

In the past six months, Ethiopia has earned US$156 million and is expecting to get more than US$ 300 million from annual exports.

Last year, the country made US$ 220 million from the horticulture industry, making it one of Ethiopia's biggest foreign currency earners.

Source: The Africa Report 15/02/2012

South Africa to Develop Indigenous Species

The South African Flower Export Council (SAFEC) says that the commercialisation of indigenous

flower and plant species is necessary for South Africa to increase its global market share. After about 50 years of commercial farming, South Africa still holds only about 0.5% of the world flower-market. According to SAFEC CEO Jac Duif, growth of the floriculture industry depended on the export of "niche" products. For this to happen, however, the government needed to fund research and development to get indigenous species to a level where they can be commercially farmed, Duif said. John Meijer, MD of one of South Africa's biggest flower farms, Finlays Horticulture, said Australia was working to commercialise a hybrid of South Africa's national flower, the king protea. "It is important for South Africa to start protecting its

Market News Service


19

natural wealth," he said. Among the best-selling flowers in the world is a South African species, the Gerbera (or Barberton daisy), which was taken to commercial production on a massive scale through research carried out in other countries. Duif admitted that the Agricultural Research Council did not at present have the budget and capacity required to farm indigenous species commercially and that, as a result, many indigenous species had been "stolen" and are now being mass-produced in other countries such as the Netherlands, New Zealand, the US and Japan. According to Meijer, inflationary pressures, tariffs, a volatile Rand and restrictive, slow-moving,

regulatory issues were putting additional stress on South Africa's high-volume, low-margin flower industry. Meijer said Finlays Horticulture wanted to expand its operations and assist small, independent farmers to set up their own operations, but had been struggling to get the necessary permits and water licences to proceed. "We plan to provide small farmers with the necessary expertise and access to markets to start up their own farming operations on a contracted-out structure. This is one of the easiest and least expensive ways to create new jobs," Meijer said.

Source: Business Live ZA 28/01/2012

Flower Export Reach Record High in Taiwan Taiwan’s flower exports rose 18 percent year on year to hit a record high of NT$5.18 billion (US$173.4 million) in 2011, thanks in large part to special floral production zones established in recent years, the Agriculture and Food Agency said. The agency noted that the special zones it helped set up in Taichung City and six other municipalities and counties for the production of dancing-doll (oncidium) orchids, eustoma, chrysanthemums, flamingo lilies (anthurium) and several other new flower varieties exported a total of 40.82 million flowers last year with a combined value of NT$650 million. “These figures demonstrate that the establishment of the special zones has had an industry cluster

effect, bringing about an increase in both quality and production,” the agency said. To promote Taiwan flower sales overseas, the agency began setting up export demonstration zones in major flower production areas in 2007, before expanding them to special flower production zones from 2009, assisting 10 to 20 of the zones each year in upgrading their production facilities. According to the agency, cooperation among government, industry and academia in the zones has helped to solve sales bottlenecks by establishing an export supply chain and stable quality control. Despite major shocks such as the global financial crisis of 2008 and last year’s earthquake and tsunami in Japan, Taiwan has continued to smoothly export flower products to 68 countries and regions around the world, with the value of these exports jumping roughly 1.9-fold in the last decade, the agency explained. The special production zones are also enhancing their collection of international flower industry information to consolidate Taiwan’s market share in major export destinations, including Japan, the Netherlands, South Korea and the U.S., while also working to expand sales in emerging markets such as mainland China and Russia, according to the agency.

Source: Taiwan Today 11/01/2012

Market News Service


20

Sophisticated, Well-Organized Flower Production in Japan In Northern Japan, a farmer's collective has found an innovative way to prosper; and their creativity has become a model for growers worldwide. By 1971 Mr. Kudo and other Ashiro farmers tried growing a different crop – blue gentians - starting with a variety that grew wild in the nearby hills. Gentian flowers are highly prized in Buddhist Japan, where families place Gentians on their ancestors’ graves. The Kudos are part of a farmers’ collective that has created an industry of cut flowers and potted plants worth more than 13 million US$, largely by developing dozens of new Gentian varieties in partnership with the city government’s Research & Development centre. Their decades-long efforts paid off. Ashiro now licenses the production of their ten most successful Gentian varieties to flower growers as far away as Chile and New Zealand. Ashiro gentians are sold not just in exclusive Tokyo shops but also in New York City and Brussels. Their unique varieties are registered, and their breeding rights are protected. It’s a promising trend that could ensure a future for Ashiro’s next generation. Peter Button is the Vice Secretary-General of UPOV, the International Union for the Protection of new plant varieties, affiliated with the UN’s World Intellectual Property Organization. WIPO.

“If breeders didn’t have protection - it would be possible for other people to reproduce it without any form of compensation for the breeder.” Through this link one can watch the UN’s short video, showing the activity of this successful group of growers: http://www.unmultimedia.org/tv/webcast/2011/11/japan-booming-flower-industry.html Transcript (pdf): http://www.un.org/webcast/pdfs/unia1321.pdf

Source: UN Multimedia 18/11/2011

Australia: Dark Summer Hits Rose Production Australian flower crops, struggling to bloom through a dark and damp summer, are under threat this Valentine's Day from foreign imports. ''It's just about impact,'' said Tim Baber, of PoHo Flowers in Potts Point, who would stock more Colombian roses this year.

''Most guys almost always opt for the Colombians because the bud is about 3-4 centimetres across and the local is about 2.5. ''When you multiply across a dozen stems it makes a big difference''. ''The local growers are going to lose out,'' said Mr Baber. An overcast La Nina summer has made flowers bloom more slowly and produce smaller buds. Wet and humid weather also exposes maturing flowers to mould and rot. ''Half our crop didn’t manage to flower in time for Valentine's Day,'' said Gabriella Zaia, of T&G Growers in Horsley Park. ''We've had constant rain. We're spraying for fungicide and pesticide. It's been a really tough time.'' The poor weather has given Colombian exporters a greater foothold in the local flower market over the past year despite their higher price. Colombian roses grow fat in the high altitude of the Andean mountains. The greater exposure to

Market News Service


21

sunlight allows them to bloom over four months, compared with an Australian average of three. Cos Demasi, of Demasi Flowers in Cecil Parks, reckons he's lost about 20 per cent of this year's crop to the weather. ''Imports have had a big impact,'' Mr Demasi said. ''They're driving the

Australian product down and it's very hard to compete''. The forecast does not hold much cheer for farmers. According to the Weather Channel, Sydney has received three fewer hours of daily sunshine than usual this February.

Source: Sunday Morning Herald 13/02/2012.

Vietnam: Da Lat Flowers Must Increase Export Ten years ago, five percent of the total Da Lat flowers was exported to different countries in the world. In 2011, the proportion remained the same. According to Nguyen Van An, Director of the Lam Dong provincial Department for Agriculture and Rural Development, the flower growing area in Lam Dong province increased rapidly from 1731 hectares in 2003 to 3500 hectares in 2010. The output and the turnover have been increasing accordingly. In 2010, Lam Dong put out 1.5 billion stems of flowers and exported 16 million US$ worth of products. Da Lat alone accounts for 50 percent of the total growing area and 70 percent of the output. There are over 400 floral varieties grown in Da Lat, which are traditional local flowers, and the ones sourced from Europe. Though the growing area and the revenue have been increasing, local gardeners still feel worried about the Da Lat flower industry. The problem is that the consumption of the products much depends on the domestic market, especially HCM City and the provinces in the central region. Tran Huy Duong, Chair of the Da Lat Flower Association, said that the market has become narrower for Da Lat flowers because of the sharp increases in the supply. The flower growing area in Da Lat increases by 30 percent every year. Meanwhile, other localities have also been striving to grow flowers and targeting the domestic market. While Da Lat has bigger advantages than other land areas in the region, its export volume is much lower. There are only 600 hectares of daisy growing area on Cameron highland of Malaysia, while the total export volume to Japan accounts for up to 60 percent of the total output. Meanwhile, Da Lat flowers have been mostly consumed in the domestic market, and only a small proportion has been exported to Japan, Australia, the US and Europe. The problem is that Da Lat flowers still cannot satisfy the high requirements of the world market.

The growers do not have high skills, while commercial flowers do not have high quality because of the degeneration. The new high quality flower varieties cultivated in Da Lat have overly high production costs; therefore, they prove to be uncompetitive in the world market.

As a result, Da Lat flowers have been relying on the domestic market. It happens that when harvesting bountiful crops, the flower prices drop dramatically, and when the prices go up, growers do not have products to sell. Local residents said that some years ago, the flower price once plummeted so dramatically that growers had to pull up the plants and burn them. “Export or die” is the motto set up by the local authorities. Da Lat growers well understand that they need to strive to export flowers instead of relying on the domestic market. Pham Ngoc Trung, Deputy Director of the Agricultural Expansion Encouragement Centre of the Lam Dong province said that Da Lat flowers should reach out to the new and choosy markets such as the US, Japan and European countries. And in order to do so, it is necessary to improve the quality of Da Lat flowers by re-programming the flower growing area, applying new technologies in cultivation. Especially, Duong said that it is necessary to develop the Da Lat flower brand and register the brand immediately.

Source: VietNamNet Bridge 12/01/2012

Market News Service


22

India’s Rose Exports Bloom This Valentine's Day For this year's Valentine's Day, rose shipments from India have grown by up to 15%, owing to the rise in demand and increase in production from new areas around Pune and South Gujarat. Going by the shipment trends, total exports for the season could be around 13 million stems, says Mr Praveen Sharma, President of the Pune-based Indian Society of Floriculture Professionals.

Exporters have seen improved orders as Valentine's Day this year falls on a working day, triggering higher sales. For a seasonal industry like floriculture, demand mainly spurts during Christmas, Valentine's Day and Mothers Day. The demand has come from traditional markets such as Europe, Australia, West Asia and Japan. Besides, some exporters, like Mr V.H. Prasad of the Bangalore-based Blooms and Greens Pvt Ltd, have tried to tap the US market for the first time. Regions around Bangalore and Pune are the

major production areas for cut flowers like roses and carnations. “Exports from Bangalore this Valentine's Day were around 4 million stems, about 10-15 per cent more than last year,” said Dr Jayaprakash Rao, General Secretary, of South India Floriculture Association (SIFA). “The weather was good for production and so also the demand,” he added. However, Mr Prasad feels that the intense cold wave in Europe could possibly affect distribution of flowers headed to the auction centre in the Netherlands. Majority of the exporters have established their links with buyers in all the major markets and ship the flowers directly. SIFA's Mr Rao said the realisations are good this year, as orders have been booked at prices higher by 10-15 per cent. Besides, a weaker rupee will also boost the realisations this year, he said. He estimates that growers' realisations could range from Rs 12 to Rs 25 (US$ 0.24 – 0.50) per stem, depending on the quality and length. The quality of Indian roses is better this year, aided by favourable weather conditions around Pune, Mr Sharma said. This, in turn, has helped fetch better prices. He said that around 100 acres of new area has come up under floriculture around Nashik and Kolhapur in Maharashtra and in South Gujarat. However, things are all not that rosy for the cut flower growers, especially around Bangalore, who continue to reel under the impact of high input costs such as power and freight charges. Besides, the rising labour costs are compounding the woes for the growers.

Source: Business Line 10/02/2012

Colombians Have Had Positive Valentine The pre-Valentine’s Day ritual, which sends 12 percent of Colombia’s annual flower output abroad in less than two weeks, mostly to the U.S., is running more smoothly than in past years. Valentine’s 2012 left a generally positive feeling for Colombian flower exporters. “Although the US dollar weakened significantly (again) when least needed reducing the season’s income, the climate was in the end benign and the feared frosts did not occur” reports Jairo Cadavid communications manager at Asocolflores (the Colombian Association of Flower Exporters). An estimated, 500 million stems have been exported, mainly to the USA, the United Kingdom and several countries in Europe. “Colombian exporters now prepare for International Women’s Day (March 8), an increasingly important Russian celebration for long-stemmed large-headed roses”, he adds.

Some exporters reported that there was an abundance of flowers, particularly roses, (and interestingly not carnations), and that this led to low prices, and reduced last minute orders (which

Market News Service


23

often fetch better revenue) to a minimum. Warm and exceptionally bright days posed a risk of flowers opening ahead of time and had growers scrambling to ensure good ventilation in greenhouses to prevent this from happening. Consolidation of large groups has continued in the industry and it is evident that as companies merge together they become self-supporting. That is the group itself is capable of filling all orders – often including of bouquets – and there is no need to

source flowers from external suppliers. “Life is getting even more difficult for small, independent growers”, one such producer said, who in the past would round up sales through larger companies needing extra flowers at short notice. Overall, however, a positive atmosphere is in the air. Sales were satisfactory, the weather behaved (no floods, no frozen flowers), and its time to look ahead with optimism.

Sources: HortiBiz 09/02/2012 +Bloomberg 12/02/2012

US Ornamental Growers Expect Sales Increase Setting a lofty goal to boost sales by more than 10 percent this year? You’d be in the minority judging from results of a recent Greenhouse Grower survey, in which 29 percent of growers indicate they expect sales to be up 10 percent or more. The largest percentage of growers surveyed (34 percent) expects sales increases to range between 5 and 10 percent next year; about 16 percent expect sales to be up less than 5 percent while 12 percent expect flat sales. Only a handful of growers are forecasting sales declines in 2012. Greenhouse Grower also recently asked growers about the factor that’s most critical to their 2012 success. In recent years this question has been a

point of contention for growers. Some argue the weather is the most critical factor – and always is – while others say the economy has had a huge impact on the greenhouse floriculture industry these last three years. These days, growers are again divided between the weather and the economy as the factor that’s most critical to their success. About 42 percent of growers say the weather is the key factor for their success in 2012, while 38 percent say it’s critical the economy continue to turn the corner. Labor costs, energy costs, competition and transportation costs were other answers growers could choose from, but weather and the economy – as always – won out.

Source: Greenhouse Grower 06/12/2011

Profiling ‘The Grower of the Future’ “To have a future you must select a market segment that suit your business and your personality” declares the consultant Arjan Bakker of Bureau Bolwerk in his presentation to flower and bulb growers in the Netherlands. “Accordingly, you need to select your business partners”. Based on this assumption, there are four competitiveness stategies to consider:

Costs driven – being an efficient supplier of cheap basic assortment. Service provider – adding value to products through extra logistic services. Innovativeness – specialising in the introduction of new products and product’s appearance. Co-producer – real partnership with clients, to develop concepts together.

The one who does not choose would find himself as a ‘price fighter’. Also retailers are choosing; utilising the knowledge which end-users, in order to select the suitable supplier (usually wholesaler).

“You better select your customers, rather waiting for them to select your products. Ask yourself critical questions during the selecting process; don’t go for the first answer you would think of. Try to understand who is your client, how does he choose his assortment. The right answers would direct your future. If you don’t choose – the market will choose for you.” Bakker suggests to study the specific value chain related to your specific product, and to think together with the traders about the customer preferences, and to set your assortment and services accordingly. You need to profile your end-users, to know for whom you are producing. Traders expect theirsuppliers to be more than just a producer of good product for low price, but to provide also support by providing solutions. “When you know for whom you are producing, you may adapt your assortment and services exactly to the real needs, and by this to become more efficient and competitive” is the conclusion.

Source: FloraHolland Magazine #1, 2012

Market News Service


24

Viagra Prolongs Vase Life Of Flowers Keeping cut flowers perky for longer is probably the last thing a man taking Viagra would think of. But the drug designed to help revive his love life can have the same effect on a wilting bouquet. Apparently just one milligram of Viagra can give cut flowers another week of life. The handy tip comes from TV gardener David Domoney. According to Domoney, you only need a tiny amount of Viagra to stiffen things up nicely. “Just 1mg – there are 50mg in a single tablet – dissolved into water with your plants will make them last a week longer.” He says nitric oxide, the chemical in the drug that relieves impotence by relaxing the muscles on blood vessels, causing them to dilate, also slows down the dying process in plants. Mr Domoney adds: “Now scientists are working on ways to market a gardeners’ version of Viagra for plants. Soluble aspirin also works in the same way, too. Put one tablet into some wilting flowers and the effervescence will prolong their life.” Scientists in Australia originally discovered Viagra’s plant preserving qualities and the research was published in the British Medical Journal, which said: ”Viagra can double the shelf life of cut flowers.”

Mr Domoney, now hosting Garden ER on Channel 5, also claims a range of other unlikely products – though none quite as unlikely as Viagra – can improve the health of plants. They include:

Vodka: A shot of the spirit in a vase stops the water going green with algae. Sugar: Use it to feed houseplants. Tea: A great food for azaleas and other plants and good for fertilising hanging baskets. Banana skins: Put them fleshy side down on flowerbeds to feed the roses. Cola: The fizzy drink is a good fertiliser for pot plants but be sure to use the regular variety rather than the sugar-free Beer: Works brilliantly as a slug trap – bury half a cup in the soil near plants that have been attacked by the pests. Deep Heat muscle relaxant: Spray it on a tea bag and place it around the garden to provide a harmless cat repellent. Soap: Grate it into the holes where you are planting bulbs and it will stop squirrels coming to eat the bulbs later on.

Source: MailOnline 26/01/2012

Market News Service


25

Events Calendar

Flower Days Calendar

Market News Service


26

Exhibitions and Conferences

Market News Service


27

STATISTICAL INFORMATION 2011 Export of Floriculture Products from the Netherlands

Graph Total Export (Flowers and Plants) Cumulative Jan – Dec.

Top 20 export countries– Flowers and Plants Total Flowers & Plants Export Value in € Change in % Country 2011 2010 2009 2011-10 2011-09 Germany 1,572,534,885 1,599,064,837 1,527,754,794 -1.7% 2.9% United Kingdom 744,058,208 703,446,925 655,951,295 5.8% 13% France 682,483,694 671,177,001 645,863,502 1.7% 5.7% Italy 321,985,637 330,881,516 323,257,090 -2.7% -0.4% Belgium 227,231,534 237,877,654 212,076,486 -4.5% 7.1% Russia 198,808,193 155,332,151 136,515,769 28% 46% Switzerland 153,513,473 147,741,546 135,419,207 3.9% 13% Austria 146,247,529 141,983,112 133,079,480 3.0% 10% Poland 137,135,351 138,422,849 127,606,919 -0.9% 7.5% Sweden 129,107,359 110,583,794 98,303,253 17% 31% Denmark 116,334,750 118,535,536 135,052,827 -1.9% -14% Spain 98,006,563 102,492,177 100,310,938 -4.4% -2.3% Czech Republic 89,635,834 83,562,843 70,150,506 7.3% 28% Norway 64,817,676 49,943,798 48,194,901 30% 34% United States 59,508,394 59,528,803 61,391,518 0.0% -3.1% Finland 50,809,994 45,858,975 39,026,491 11% 30% Ireland 46,761,568 50,491,344 53,748,896 -7.4% -13% Hungary 42,735,044 43,891,648 39,709,221 -2.6% 7.6% Romania 41,652,234 42,254,628 43,594,121 -1.4% -4.5% Slovakia 36,176,477 24,564,431 24,564,431 47% 47% Other Countries 283,281,731 286,502,741 268,197,411 -1.1% 5.6% Total All Products 5,242,826,128 5,144,138,309 4,879,769,056 1.9% 7.4%

Market News Service


28

Graph Cut Flowers Cumulative

Top 25 export countries - Cut Flowers

Cut Flowers Export Value in € Change in % Country 2011 2010 2009 2011-10 2011-09 Germany 910,620,116 926,289,990 871,256,857 -1.7% 4.5% United Kingdom 570,152,124 544,311,418 517,681,940 4.7% 10% France 434,542,563 427,449,268 415,868,559 1.7% 4.5% Italy 158,659,277 162,215,746 161,490,845 -2.2% -1.8% Russia 147,726,316 111,656,310 99,817,767 32% 48% Belgium 105,766,328 109,185,296 100,516,291 -3.1% 5.2% Switzerland 87,245,666 86,973,992 79,179,763 0.3% 10% Poland 82,097,325 84,987,181 74,159,419 -3.4% 11% Denmark 73,264,448 72,170,579 78,664,960 1.5% -6.9% Austria 70,009,782 71,089,568 70,831,744 -1.5% -1.2% Sweden 60,441,753 57,291,546 52,570,131 5.5% 15% United States 59,377,496 59,436,849 61,189,888 -0.1% -3.0% Czech Republic 54,510,036 51,348,894 43,126,360 6.2% 26% Spain 49,431,803 52,355,915 49,073,142 -5.6% 0.7% Norway 38,618,587 34,075,179 32,743,386 13% 18% Ireland 36,330,528 41,284,586 43,257,073 -12% -16% Finland 29,858,140 28,090,373 23,873,828 6.3% 25% Romania 24,448,978 26,271,147 27,525,714 -6.9% -11% Slovakia 21,988,608 15,053,490 10,700,931 46% 105% Hungary 19,600,715 19,821,678 18,345,130 -1.1% 6.8% Greece 18,474,494 20,809,975 22,683,168 -11% -19% Ukraine 14,520,831 12,990,596 11,859,584 12% 22% Portugal 14,473,520 20,212,133 18,636,702 -28% -22% Lithuania 11,417,711 8,802,543 8,803,243 30% 30% Slovenia 10,227,865 10,293,533 9,546,423 -0.6% 7.1% Other Countries 100,398,659 96,297,560 87,969,415 4.3% 14% Total Cut Flowers 3,204,203,669 3,150,765,345 2,991,372,263 1.7% 7.1%

Market News Service


29

Graph Potted Plants Cumulative Jan. – Dec.

Top 20 export countries– Potted Plants

Potted Plants Export Value in € Change in % Country 2011 2010 2009 2011-10 2011-09 Germany 661,914,769 672,774,847 656,497,937 -1.6% 0.8% France 247,941,131 243,727,733 229,994,943 1.7% 7.8% United Kingdom 173,906,084 159,135,507 161,766,245 9.3% 7.5% Italy 163,326,360 168,665,770 138,269,355 -3.2% 18% Belgium 121,465,206 128,692,358 111,560,195 -5.6% 8.9% Austria 76,237,747 70,893,544 62,247,736 7.5% 22% Sweden 68,665,606 53,292,248 45,733,122 29% 50% Switzerland 66,267,807 60,767,554 56,239,444 9.1% 18% Poland 55,038,026 53,435,668 53,447,500 3.0% 3.0% Russia 51,081,877 43,675,841 36,698,002 17% 39% Spain 48,574,760 50,136,262 51,237,796 -3.1% -5% Denmark 43,070,302 46,364,957 56,387,867 -7.1% -24% Czech Republic 35,125,798 32,213,949 27,024,146 9.0% 30% Norway 26,199,089 15,868,619 15,451,515 65% 70% Hungary 23,134,329 24,069,970 21,364,091 -3.9% 8.3% Finland 20,951,854 17,768,602 15,152,663 18% 38% Romania 17,203,256 15,983,481 16,068,407 7.6% 7% Portugal 15,772,377 20,611,858 20,971,255 -23% -25% Slovakia 14,187,869 9,510,941 7,829,919 49% 81% Ukraine 13,784,449 14,332,595 13,187,503 -3.8% 4.5% Other Countries 94,800,834 91,488,189 91,267,835 3.6% 3.9% Total Pot Plants 2,038,649,530 1,993,410,493 1,888,397,476 2.3% 8.0%

Source: HBAG Bloemen en Planten

Market News Service


30

Notes

All products

The total 2011 exports of all floricultural products increased by +1.9% (= 98 million €) when compared to the previous year, while in 2010 it was a decrease of -5.4%, compared to 2009. Exports were most positive with the best results to: United Kingdom, Russia, Sweden, Czech Republic, Norway, Finland, and Slovakia. Most negative results to: Italy, Belgium, Spain, Ireland and Hungary. Remarkable was the poor result to Germany, the export country number one, with a loss of 27 million €. However, this loss was compensated by country number two, United Kingdom, with +5.8%, and France as number three with +1.7% increase, = 41 and 11 million € respectively. Russia became a very important player in the export market, with a huge increase of +60%, which became to 43 million €. Russia did climb in the rank order list to the 6th place and it is expected that this growth will further continue during the coming year. In general, exporters do reckon with a consolidation of the exports in 2012. They did see chances in cooperation/clustering with other exporters, in the development of market-oriented concepts in the retail sector and in the sector of professional florists with a wide and high value assortment. Also cooperation and direct deals with growers/producers are expected to increase in 2012. Cut flowers

The total 2011 cut flower exports increased by +5.3% (=159 million €) when compared to 2010. Last year the export value increased by +5.3% compared to 2009. Strongest increasing exports, out of the top 20 countries: UK (+4.7%), Russia (+32%), Sweden (+5.5% ), Czech Republic (+6.2%), Norway (+13%), Finland (+6.3%), Slovakia (+46%), Ukraine (+12%) and Lithuania (30%). Most regressive export results to: Italy (-2.2%), Spain (-5.6%), Ireland (-12%), Romania (-6.9%), Greece (-11%), and Portugal (-28%). Plants

The total export value of house- and garden plants increased during the year 2011 by +2.3% (= 45 million €), while in 2010 the exports increase was +5.6% compared to 2009. Positive export results were obtained to: United Kingdom (+9.3%), Austria (+7.5%), Sweden (+29%), Switzerland (9.1%), Russia (+17%), Czech Republic (+9%), Norway (+65%), Finland (+18%), Romania (+7.6%), and Slovakia (+49%). Negative export results were obtained to: Italy (-3.2%), Belgium (-5.6%, Spain (-3.1%), Denmark (-7.1%), Portugal (-23%) and Ukraine (-3.8%).

Market News Service


31

Sources of Cut Flowers Supply to EU All Cut Flowers Supply to EU Cut foliage not included Value in Euro x 1000 Source: AIPH A) From Non-EU Countries

Exporting country € 2006 Rank € 2009 Rank Change € 2010 Rank Change Kenya 312,841 1 328,858 1 5.1% 328,133 1 -0.2% Ecuador 100,138 3 120,649 2 20% 131,392 2 8.9% Colombia 114,109 2 109,012 3 -4.5% 114,473 3 5.0% Ethiopia 21,782 6 90,313 4 315% 110,411 4 22% Israel 78,541 4 63,535 5 -19% 65,047 5 2.4% Uganda 20,481 7 25,117 6 23% 22,715 6 -10% Thailand 20,058 8 20,148 7 0.4% 19,676 7 -2% Zambia 12,336 11 16,772 8 36% 17,617 8 5.0% South Africa 13,987 10 14,096 10 0.8% 15,796 9 12% Zimbabwe 23,383 5 14,971 9 -36% 15,688 10 4.8% Turkey 14,606 9 12,722 11 -13% 15,211 11 20% Tanzania 5,929 12 10,417 12 76% 8,847 12 -15% Morocco 3,018 15 3,145 13 4.2% 3,146 13 0.0% Ivory Coast 2,713 17 2,623 14 -3.3% 2,961 14 13% Egypt 1,745 19 2,303 16 32% 2,783 15 21% India 2,779 16 1,789 18 -36% 2,471 16 38% Costa Rica 3,488 13 2,344 15 -33% 2,117 17 -10% Peru 3,335 14 2,235 17 -33% 2,063 18 -7.7% Malaysia 1,036 25 1,449 19 40% 1,362 19 -6.0% Cameroon 1,338 23 935 21 -30% 865 20 -7.5% Chile 1,476 22 1,066 20 -28% 846 21 -21% Ghana 0 671 26 +++ 799 22 19% Australia 936 26 851 22 -9.1% 662 23 -22% New Zealand 1,706 20 712 24 -58% 651 24 -8.6% Mauritius 1,106 24 678 25 -39% 574 25 -15% Brazil 2,241 18 836 23 -63% 427 26 -49% China 759 27 351 29 -54% 371 27 5.7% Guatemala 239 29 304 30 27% 355 28 17% Gaza + Jericho 1,689 21 0 332 29 +++ Tunesia 0 0 249 30 +++ Sri Lanka 0 172 33 +++ 216 31 26% Serbia 0 0 177 32 +++ Japan 0 216 32 +++ 161 33 -25% USA 371 28 243 31 -35% 149 34 -39% Other countries 4,081 2,294 -44% 1,341 -42%

Total to the EU 772,246 851,827 10% 890,083 4.5% To Norway & Switzerland 33,618 46,901 40% 53,378 14%

Market News Service


32

B) From EU Countries

Exporting country € 2006 Rank € 2009 Rank Change € 2010 Rank Change Netherlands* 2,272,065 1 2,023,877 1 -11% 2,240,494 1 11% Belgium/Luxemburg 25,438 4 50,469 2 98% 50,901 2 0.9% Italy 40,893 3 39,313 3 -3.9% 43,691 3 11% Germany 24,342 5 30,639 4 26% 30,094 4 -1.8% Spain 47,239 2 18,825 5 -60% 19,167 5 1.8% United Kingdom 17,109 6 12,796 6 -25% 11,999 6 -6.2% EU-Others 6,865 9 7,456 7 8.6% 8,483 7 14% France 8,488 7 6,525 9 -23% 7,907 8 21% Poland 6,971 8 6,985 8 0.2% 6,187 9 -11% Austria 1,848 11 3,283 10 78% 3,274 10 -0.3% Denmark 3,712 10 1,429 12 -62% 2,052 11 44% Czech Republic 1,613 12 1,471 11 -8.8% 1,937 12 32% Hungary 33 15 951 14 +++ 1,626 13 71% Sweden 759 13 1 13 -100% 992 14 +++ Finland 59 14 185 15 214% 463 15 150% Other countries 0 0 0

Total to the EU 2,457,435 2,205,261 -10% 2,429,265 10% To Norway & Switzerland 128 122,311 +++ 129,846 6.2%

* Netherlands' export includes significant share of re-exported flowers, originated from other countries

Notes: The total cut flower imports 2010 into the EU are available only in value and not in volume anymore. The total imports 2010 into the EU increased by +8.6%, compared to 2009, while in 2009 it decreased with -5.6 % when compared 2008. Imports of from Non-European countries

2010 Imports from non-European countries increased by +4.4%, compared to 2009. It has to be explained that in absolute amounts the import share in the EU from non–EU countries is about one third of the total trade. There were not many changes in the ranking order of the top fifteen importers, compared to many past years. The increase in absolute value from a country like Ethiopia (the fastest growing country of the past 5 years) was some 20 million Euro which is +22% (last year +35 %, and the year before +66%). It is still a significant growth, but compared to some 4–5 years ago the growth-rate is digressive. Other countries that booked positive results and increased exports were: Ecuador, Zambia, South Africa, Turkey, Egypt and Ghana. Stable was the import from: Kenya, Colombia, Israel, Thailand, Morocco and Malaysia. Further strongly decreased imports into the EU from: Zimbabwe, Tanzania, Costa Rica, Peru, Cameroon, Chile, Australia, Brazil, New Zealand and Mauritius. Imports from EU-countries

2010 imports from the 27 EU-members increased by +10% compared to the year 2009. Hardly any change in the ranking order from the major countries. A strong increase was realised from the Netherlands; by far the biggest exporting country (in absolute terms), with an increase of 220 million Euro (= +10.7%). Another significant increase is noticed in Belgium/Luxemburg, all due to more landed imports for transit to other countries, especially to the Netherlands. Also significant is the strong decreased amounts of Spain during the past years. The absolute value is more than half compared to 5 years ago. The situation in most other countries can be called stagnant.

HANDBOOKVer. 5.3

The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations.

Street addressInternational Trade Centre54-56 Rue de Montbrillant1202 Geneva, Switzerland

P: +41 22 730 0111F: +41 22 733 4439E: [email protected]

Postal addressInternational Trade CentrePalais des Nations1211 Geneva 10, Switzerland

SHAPE THE FUTUR OF YOUR SECTOR’S SUCCESS

HOW TO DEVELOP A SECTOR STRATEGY

cut flowers and ornamental plants

Education

market information

cut flowers market

index market trends

division of market development

floriculture products

report content

mns information providers

international trade