Industry News

In the newsWhat’s happening . . .

Summer 2013

Jim DalyVice President of Floralife Global Operations and Corporate Research

Look for Floralife!September(5-8) World Flower Council Summit, Sapporo, Japan

(18-21) Society of American Florists (SAF) Annual Convention, Pheonix, Arizona

October(2-4) Proflora®, Bogotá, Colombia

(3) French Florist Cup, Folie´ Flore, Mulhouse France

(9-11) International Flower Expo (IFEX), Tokyo, Japan

(13-14) Novafleur 2013, Tours, France

(18-20) Produce Marketing Association (PMA) Fresh Summit, New Orleans, Lousiana

(23-25) Wholesale Florist & Florist Supplier Association (WFFSA) Distribution Conference, Miami, Florida

The flower supply chain has changed dramatically over the last 75 years. It used to be that flowers were consumed where they were grown. As an example, flowers sold in Chicago where primarily grown in the outskirts of the city - maybe as far away as few hundred miles. Nowadays, with the advent of advanced technology in temperature control and transportation, improved postharvest care and handling, and improved varieties, the prospects for flower sources has gone global. The majority of the worlds’ supply of flowers is now grown in the most effective growing climates with less regard to proximity of the market.

As an example, the rose, which represents about 50% of the value of the cut flower business, has moved to regions close to the equator such as Ecuador, Colombia, Kenya and Ethiopia, where they grow best in higher altitudes with

more sun, moderate temperatures and where there is a large labor force. These countries now grow the largest share of the worlds’ roses and then airfreight the cut roses to the large consuming markets – the United States and Europe. It is only through the innovation in transportation, postharvest care and handling, as well as, hardier varieties that this happens without harm to the flowers.

The supply chain of flowers in Asia has not made a full-scale change to this model – yet. There are no easy places to grow flowers near the equator in this region. However, business models are changing. While Japan still grows about 75 - 80% of

Equator

= Largest consumption areas= largest growing areas

flowers consumed in their country, there is a shift. With the high cost of limited labor and the high cost of land, Japanese grown flowers have declined 15% - 20% in the last ten years. In the case of carnations, 40% of these flowers for the Japanese market are being imported. Japan is now getting many flowers from Australia, Ecuador, Colombia and Kenya by employing new technologies in transportation and postharvest care and handling.

Innovation and foreign investment in the supply chain of cut flowers is changing the industry in the region. Today, China has one of the largest landmasses of commercial flower growing land in the world. Nevertheless, inefficient growing techniques, lack of logistic infrastructure, and quality issues have kept this region from reaching its supply chain potential.

As investments and innovation start to kick in, we may see China grow as a significant partner in the floral industry.

New‘Prada’ ChrysanthemumDark-pink petalsGrower: Vollebregt FlowersBreeder: Fides

Cultivar Highlight

New‘Twisted’ Celosia cristataBright redBreeder: FLORITECBall Horticultural

New'Solar Flare' Sunflower Scarlet red to gold flameBurpee Company

North America Market OverviewWith cupid’s arrow comes vast optimism that the floral industry is starting a comeback. This quarter’s numbers suggest that flower stem imports continue to move slowly in North America with overall stem sales showing a slight increase above 2012 at this time last year. Although several varieties show a decrease in imports, the news is especially good for growers of Roses, Snapdragons, Hydrangea and Pompons, as stem imports are up. The top import varieties can be seen in figure 1 and 2. Even more so, imports of Rose bouquets and Mixed bouquets are also showing an increase above 2012. However with the Andean Trade Preference and Drug Eradication Act (ATPDEA) expiring for Ecuador, the North American market could experience a 22% loss in overall imported flower availability. While the Ecuadorian administration explores the options for receiving USA trade preferences, Ecuador's National Assembly approved to help recompense exporters so that as a country they can remain a competitive source among other South American countries.

Flores del Vallewww.floresdelvalle.com

Floralife’s first customer spotlight goes out with a special thanks to Edilberto Hernandez llanos of Flores del Valle. He beat our own representatives in responding to a LindedIn discussion about Quick Dip.

Flores del Valle primarily grows a variety of fillers with a specialty in Gypsophilia Million Stars. Their farms can be found in Valley of Paute and Yunguilla in Ecuador with offices in Cuenca. They have a customer service center in Miami, FL. Their family-owned company is dedicated to following care and handling principles to deliver the best product possible to the consumer. Thanks again for supporting our products in an open forum!

Upcoming Floral CelebrationsSeptember 1 – Ovarian Cancer Awareness Month 8 – Grandparents’ Day11 – Good Neighbor Day13 – Yom Kippur begins16 – Independence Day (Mexico)16 – Onam Festtival (India)21 – International Day of Peace22 – First Day of Autumn

October 1 – Breast Cancer Awareness Month 14 – Dussehra (India)16 – National Boss’s Day24 – United Nations Day31 – Halloween

November 1 – All Saints Day 3 – Daylight Savings 3 – Diwali (India)11 – Veteran’s Day28 – Thanksgiving28 – 1st Day of Hanukkah

Find more information about Floralife® products at www.floralife.com

Promueve el uso prolongado de la solución

New Products

Figure 1. Top Import Flower Varieties

Figure 2. Top Import Fillers

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