The main trends of the world flower industry
Салейчук Е.Н. (БГСХА, г. Горки, РБ)
В статье на основе изучения мирового рынка цветов определены современные тенденции в развитии цветоводства. Основной акцент сделан на анализе роли Нидерландов в функционировании мирового рынка цветов, расширении списка стран-импортёров, экологической составляющей производства и роли супермаркетов в цветочном бизнесе.
The world flower industry is a highly dynamic industry. Product varieties, the origin of production, production techniques and retailing arrangements are all undergoing continuous change, challenging the adaptive capacity of the actors involved.
A number of trends are having, or could be having, a significant influence on the flower industry. Some of these – e.g. the increasing importance of quality products and the need to invest more capital to achieve this, the enhanced demand for mixed bouquets [1]. But the subject of this article are four other trends. All these trends are interrelated. They are:
1. The fundamental position of the Netherlands.
2. The paradigm shift in the floral industry.
3. Higher ecological standards.
4. The increased influence of supermarkets.
The world flower trade is characterized by a high degree of concentration by product and sources. Roses are the main traded product, Germany is the main market for imports, and the Netherlands is the world's leading exporter.
The Netherlands is a highly developed industrial country with intensive agriculture. The old traditional sector like floriculture is of a great importance.
Floriculture of Holland takes leading place in the world both on volume, and on assortment (figure 1).
Figure 1 – World export of flowers in 2007
Thus the Netherlands remains the world's leading exporter with 65 per cent share of world flower exports in 2007 [2]. According to the data of Flower Council of Holland, volume of Dutch export of cut flower products and potted plants in 2008 totaled 5097 million of euro, that on 9,33 % is more, than in 2004.
Table 1 - Export of flowers from Holland, in million €
|
Indicators |
Years |
2004/2008, % |
||||
|
2004 |
2005 |
2006 |
2007 |
2008 |
||
|
Export of flowers: |
4662 |
4858 |
5014 |
5233 |
5097 |
+9,33 |
|
сutflowers |
3052 |
3143 |
3237 |
3374 |
3243 |
+6,26 |
|
potted plants |
1610 |
1715 |
1777 |
1859 |
1854 |
+15,15 |
The basic part (more than 60%) of flowers is exported to the European countries: Germany, the Great Britain, France, Italy, etc. The largest importer of flowers from Holland outside the Europe are the USA: almost a quarter of all flower bulbs (from above 900 million pieces), exported by Holland, have been intended for the USA [2].
Therefore the Netherlands plays a pivotal role in the world flower trade because:
- it is home to some of the world's most efficient and most innovative producers;
- the Netherlands has an efficient distribution system supported by good road and air connections;
- it is home to a number of auctions, which virtually set world market prices (because they handle large share of world trade: 85 per cent of Dutch and 60 per cent of imported flowers).
In a slowly but steadily growing world market new developing country exporters are gaining market share at the expense of existing producers. These producers try to stay ahead by raising productivity and through diversification and innovation. The successful non-European suppliers are blessed with favourable natural climatic conditions, but they are thousands of miles away from the main European and North American markets. And these are highly perishable products. But despite the many logistical problems that these countries need to solve, they can compete with European suppliers who are much closer to their principal markets.
Because of these facts experts believe that the production focus has moved from traditional growers to countries where the climates are better and production and labor costs are lower. This has resulted in a paradigm shift in the floral industry. The Netherlands, for instance, has already shifted attention from flower production to flower trading. The new centers of production are typically Third World countries like Ecuador, Ethiopia, Kenya, Colombia and India. Other players in this global industry are Israel, South Africa, Australia, Thailand and Malaysia [3].
Environmental issues have become very important in recent years. Consumers are concerned about the impact of the use of chemicals. This enhanced environmental awareness has made them more critical of anything they consume.
The floricultural sector makes intensive use of crop protection agents and fertilizers. In Europe, under pressure from environmental groups, efforts are being made to reduce the use of these chemicals. Environmental regulations have been strengthened [1].
From 2009 the parliament of Holland with a view of care of health of farmers, plans to forbid use in the agriculture of the EU countries of many kinds of pesticides. That has caused discontent of flower growers. They explain their indignation by the fact that in this branch of agriculture it is extremely difficultly to manage without pesticides [2].
Thanks to international pressure, pollution per hectare is likely to be reduced, as the industry becomes more aware of the damage pesticides and other chemicals can do to the environment and to workers. The use of biological pesticides and, more generally, environmentally sound production practices could well become a competitive advantage in the eyes of critical consumers [1].
Thus, the flower industry itself has taken steps to clean up its image.
At the retail level, flowers are being sold through a variety of outlets including traditional florists, garden centers, supermarkets, and market and street vendors. The share of each differs by country. However, the share of supermarkets is on the increase. In some countries the increase is barely noticeable; in others supermarkets already dominate the trade.
Supermarkets want to buy large quantities of cut flowers through long-term contracts, directly from known producers. Shortening the chain of intermediaries between growers and retailers is a key objective for supermarkets. It gives them more control over who their suppliers are, and more information on the conditions of work at these suppliers. It lowers costs and reduces delay. And it is essential for the vase life guarantee: the producer's code is marked on the written guarantee so that any problem can be traced back to the grower.
Therefore supermarkets – a growing force in retailing – want «time-to-market» to be as short as possible so that they can guarantee a minimum number of days of vase life.
All in all, the trends, written in this article, are having a significant influence on growing and trading practices, and on the future of the world flower industry.
Information sources
1. Gijsbert van Liemt. The world cut flower industry: Trends and prospects [Electronic resource] / International labour organization. – 2000 – Mode of access: http://www.ilo.org/public/english/dialogue/sector/papers/ctflower/index.htm#Lot
2. Export of flowers from Holland in 2007 [Electronic resource] / International export support web-site. – 2008 – Mode of access: http://www.export.by/?act=s_docs&mode=view&id=3193&type=by_class&indclass=397&doc=64
3. Floral industry [Electronic resource]: The free encyclopedia «Wikipedia» / Wikimedia Foundation, Inc. – 2009 – Mode of access: http://en.wikipedia.org/wiki/Floral_industry