It is a well-developed and highly competitive market which approaches saturation in some countries. As a result, traders are continuously seeking new, special and different products to distinguish themselves. Consumers want to be surprised: see something new and unexpected in the shops. It is obvious that this huge market offers varying opportunities for companies in developing countries as potential suppliers of natural products with ornamental features.

In view of this opportunity, ProVerde is looking for ways to match demand and potential suppliers. ProVerde is an internationally oriented company providing trade facilitation and trade mediation services to primarily companies in developing countries. We are based in The Netherlands, the centre of international floricultural trade, and specialised in marketing cut flowers & plants, florist items, and biodiversity products.

A number of our contacts, who are active as wholesalers in the European floricultural and related sectors, have expressed interest in new suppliers from Asia, Latin America and Africa. Because of my background as a market specialist in these sectors, I am able to identify interesting products for them.

The products that we are particularly interested in are natural products that can be used for ornamental purposes (foliage, rattan, dried fruits, bamboo, ornamental seeds, etc.). These products will be used for flower arrangements, bouquets or as stand-alone items. Please observe that these do not include arts and handicrafts.

Do you also think you have interesting products with potential in the floricultural market? Or do you know organisations or companies that have? Then, I would like to invite you to send us an overview of the assortment, preferably with a catalogue, brochure or (digital) photos of the products.

I look forward to hearing from you soon.

Milco Rikken
ProVerde – Trade Strategies

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1) Promotion and motivation phase
2) Strategic planning phase
3) Pilot project phase
4) Strategic projects phase
5) Self management phase

Network: The term ‘network’ refers to a group of firms that co-operate on a joint development project – complementing each other and specializing in order to overcome common problems, achieve collective efficiency and conquer markets beyond their individual reach, and

Cluster: The term ‘cluster’ indicates a sectoral and geographical concentration of enterprises which produce and sell a range of related or complementary products and are, thus, faced with common challenges and opportunities.

1) Promotion and motivation phase
The promotion and motivation phase consists of a set of promotional initiatives that contribute to:
•    the identification of a critical mass of SMEs sharing similar growth constraints,
•    their sensitisation to the benefits of networking, and
•    the emergence of groups and of group leaders.
This is done by organising large and open meetings to introduce the principles of networking and to indicate their possible applications. As a result of this promotional initiative, entrepreneurs group around issues (problems and/or opportunities) that they have in common.

2) Strategic planning phase, which involves the following elements:
•    an analysis of common problems and opportunities,
•    the establishment of a common work plan, and
•    an organisational structure for the group.
An in-depth analysis of the growth constraints of the enterprises and of their causes is required at the beginning of this phase. Furthermore, the definition of group work plans depends upon a consensus being reached with all group members concerning the evaluation criteria to be applied in the short, medium, and long term. During this phase, the group selects its legal status and the rules that govern its internal organisation.

3) Pilot project phase
The strategic planning phase opens the door for the implementation of a pilot project phase through which co-operation starts bearing concrete results to the participating enterprises.

The aim is to generate visible results (although of a short-term nature) in order to engender optimism and trust and to consolidate the network’s willingness for further co-operation. In general, the projects undertaken over this phase are of a commercial and/or promotional kind, such as:
•    joint participation in fairs,
•    joint purchase of raw material,
•    design of a collective catalogue, etc.

4) Strategic projects phase
Pilot projects are expected to give way to strategic projects focused on specialisation and complementation at the production level. Strategic projects commonly involve one or more of the following components:
•    an increase in the degree of specialisation, by process and by product, of the network members,
•    the provision of common facilities also through the creation of new enterprises.

5) Self management phase
The final stage is the self-management phase, which coincides with the group of enterprises gaining greater autonomy and the capability to carry out further joint activities independently.

Source: UNIDO

In the course of the Master Class training series, participants wrote a concise export marketing plan. The structure of the export marketing plan was used as the framework for the special topics covered in the training programme: Corporate Social Responsibility (CSR), post-harvest and logistical requirements, market research in the flower business, getting the best price on the auction, and internal and external communication and client orientation.

The four Master Class sessions were organised in early May, mid June, mid September and early December of this year. CBI trainers included Milco Rikken (ProVerde) who was in charge of coordination and execution, as well as Dana van Hes (E4 Consulting), Jeroen van der Hulst (Flowerwatch), Maarten van Schie (OTV Wageningen) and Maarten van Woerden (Helicon).

The training series was carried out in close collaboration with EHPEA, the Ethiopian Horticulture Producers Exporters Association and the Royal Netherlands Embassy in Addis Ababa.

The product codes are initially used by the parties involved in trading through the auctions: growers, purchasing traders and the auctions themselves. Product codes can also be used to identify or communicate about a product throughout the chain, from processor to retailer. The current product code database for cut flowers, house plants and garden plants can be found on the FlorEcom site.

Would you like to receive assistance in acquiring a product code? ProVerde has experience in all aspects of introducing new floricultural products on the European market: registration, market introduction, promotion.

Terms and procedures for coding
Product codes are issued and administered by the VBN. Product codes are assigned on request if the terms set out by the VBN are fulfilled.

A product is eligible for a VBN product code when the following requirements are met:
1.  the product must be registered;
2.  the product must be natural. In principle, codes are issued only for living plants and flowers;
3.  the product must meet the VBN product specifications applicable to the relevant product;
4.  the expected supply of the product at the auction in the first year must be more than the stated minimum supply for the relevant product group;
5.  the product does not have a product code yet (a product can have only one product code);
6.  the applicant gives the VBN and its members permission to auction the product under the name in question and to carry it in its/their administration and product information. The applicant also holds the VBN and its members harmless for any claims by third parties regarding intellectual property rights.

If the stated requirements are not met, no specific product code will be assigned. The product can then be offered under the designation ‘other’, with the corresponding code.

If a product code already has an item code assigned by the Beurshal foundation (a 5-digit code between 30,000 and 60,000, or greater than 90,000), the product will have the same code in the VBN product code system.

Product registration
A VBN product code can be requested only if the product has been registered. Registration is done by the VKC (Permanent Judging Committee). Tree nursery products that already have a Beurshal foundation item code are considered already registered.

Registration with VKC
Products can be presented to the VKC for registration on Mondays, Tuesdays and Wednesdays between 8.30 a.m. and 4.00 p.m. A grower must present at least three plants or flowers in a representative quality to the VKC. Before this is done, the digital registration form must be completed. The form can be found on the VKC website. The VKC will create a standardized image and description of the product on registration. The VKC will also compare the information to the international nomenclature rules and record the information in Plantscope®, the VKC database. The information can be viewed at www.plantscope.nl, among other places. Furthermore, the images are available from the VKC for a fee.

Growers are advised to bear in mind when naming a product that the name, including the variety name, will be abbreviated to about 20 positions on the clock front.

Sources: VBN, VKC, Plantscope

“I’m delighted that we now have a fresh EU organic food logo,” said Mariann Fischer Boel, Commissioner for Agriculture and Rural Development, who first proposed the competition to select the logo. “This exercise has raised the profile of organic food and we now have a logo which everyone will be able to identify with. It’s a nice elegant design and I look forward to buying products carrying this logo from July this year.” The winning logo was the result of a pan-European contest open to art and design students. The nearly 3,500 logo designs submitted were examined by an internationally renowned jury. The best three logos were uploaded on the competition website and subject to an online vote which ended on January 31, 2010. The ”Euro-leaf” design shows the EU stars in the shape of a leaf against a green background. It is a very straightforward sign containing two clear messages: Nature and Europe.

Source: European Commission

When having the desire to export to the EU, it is essential for exporters to understand how the market operates. Who is buying flowers and what does that buyer expect from it? What happens with price and market position if this expectation is not fulfilled?

The market tours generally consisted of a combination of company visits and supporting workshop trainings.

The company visits focused on the most important players in the logistics and market chain of flowers in the Netherlands: from arrival of flowers to transport, agents/importers, auctions, buyers and outlets like supermarket and flower shops.

The programme was set up as a practical exercise. In this way, the programme linked directly with the day-to-day work experience and responsibilities of participants. To make sure that the market tour would be a lasting experience, participants received assignments for each visit and were asked to make an action plan and formulate learning points to present to their colleagues.

At FloraHolland Aalsmeer, the auction has worked in recent years towards the creation of a modern and flexible auction system. Five of the fourteen auction clocks use image auctioning and one clock uses virtual auctioning. Two more clocks will probably change to image auctioning in 2010.

Since 1 October, cut flower purchasers in auction room E/F can also buy at the clocks in auction room A/B. It is therefore now possible to buy at all ten cut flower clocks from one auction centre. Purchasers in auction room E/F and auctioneers are working with modern facilities with many more functionalities, including a new KOA release and a handy technique whereby growers can provide the auction with images.

Via the buyers, KOA (remote buying) sales tools are being deployed in the Netherlands and abroad. These are important developments with respect to purchasing power.

In Naaldwijk, more and more cut flower clocks will be projected on the wall in the coming months. After this expansion of projection auctioning, image auctioning will also be expanded. Naaldwijk will also gain an extra projection clock, needed to enable the synchronization of auction schedules between the export locations.

Between week 49 of 2009 and mid-2010, five of the eight cut flower clocks will switch to image auctioning. By the middle of next year this will bring the share of image auctioning for cut flowers to approximately 70 percent of the turnover. Product groups such as tulips, lilies and summer flowers have not yet been included in the plans for image auctioning.

In Rijnsburg, the auction room has been fitted with new, modern buyers´ benches and the number of clocks will be increased from six to seven (projected) clocks. Recently, the wall with the six ‘fixed’ clocks has been replaced with projection screens for seven clocks. After a transition period to become accustomed to this auction system the new auction schedule with seven clocks will start in week 49. Two of these clocks will work with image auctioning. The distinguishing feature of Rijnsburg is that buyers can purchase their entire assortment in one auction room. This is ideal for small and medium exporters. Large exporters can for example, choose to purchase their tulips at Rijnsburg.

Source: FloraHolland Newsletter (November 2009)

The Dutch auction organisation FloraHolland plays an important role in the development of virtual trade. The auction has set up several services to develop and foster e-commerce: Remote Buying (in Dutch ‘Kopen Op Afstand’ or KOA), FloraHolland E-trade, PlantConnect.nl (formerly known as National Supply Databank or LAB). Remote Buying, introduced several years ago, enables traders to purchase products online using their PC. Traders are no longer required to be physically present in the auction room. It is also recognised as being used by the Dutch exporters to allow their larger clients to become more involved in the buying process. The KOA service has taken a flight in the last couple of years and currently accounts for 55% of the Aalsmeer auction’s turnover.
More information on ongoing developments can be found on FloraHolland’s E-services website.

E-trading at Germany’s leading horticultural marketing organisation, Landgard, is similarly becoming more and more important: http://www.landgard.de

Virtualisation in the flower sector is not restricted to the auction trading environment. An increasing number of European wholesalers also offer their customers the possibility to order products via remote buying systems: webshops. There are even growers, which offer their products to wholesalers and florists via websites, such as Growers Online.

Quality standards
The EU market is not easy to please. You’d think an orange is an orange, but it’s not. In terms of quality standards, an orange may be an orange ‘extra’ class (superior quality), class I, or class II, depending on shape, external appearance, development and colouring. The main requirements established by the EU legislation with regard to quality standards for fresh fruit and vegetables, however, relate to the quality in terms of health and safety, as well as accurate labelling. These standards prescribe that the fruits and vegetables covered may not be rotting or deteriorating, that they must be clean (free of ‘foreign matters’, which could be anything from a piece of glass to insects), free from pests or damage caused by pests, free of abnormal external moisture and free of any foreign smell and/or taste. As of July 2009, the scope of the EU quality standards will be downsized to ten fruits and vegetables, as compared to the present 36 – good news if you find the standards hard to keep up with! Unless, of course, your product is among the ones that will still be subject to the quality standards: citrus, tomatoes, apples, table grapes, sweet peppers, peaches and nectarines, pear, lettuces, kiwis and strawberries.

Maximum Residue Levels
The presence of pesticide residues in consumer fruit and vegetables has been restricted by so-called Maximum Residue Levels, or MRLs. Meeting the limit values set in EU legislation may not always be enough, however, as some supermarkets have set their own, stricter MRLs. This development was triggered by Greenpeace Germany report published in 2007, in which the NGO reported on MRLs that were harmful to health and called on both retailers and legislators to do something about the present situation. German supermarkets were the first ones to take action, but in the meantime their colleagues in Austria, Sweden, the UK, The Netherlands and Denmark have followed suit.

Contaminants
Contaminants, such as heavy metals, nitrates and mycotoxins in fruit and vegetables, can be harmful to human health and have therefore been restricted. Unlike MRLs, contaminants are not a result of what’s added to the crops on purpose, but stem from heavy metals found in the soil where they’re grown, for instance. The heavy metals lead and cadmium are restricted in all fruit and vegetables marketed in the EU. Other contaminants are restricted for certain fruit and vegetables (e.g. nitrates in spinache and lettuce and aflatoxins in maize).

Novel food
Novel foods are foods not marketed in the EU before 15 May 1997 (when the Novel Food Regulation entered into force) and as such also include ‘exotic’ foods which though quite possibly part of traditional cuisine elsewhere in the world are not known in the EU. All novel foods put up for entry into the EU after the ’97 date are subject to the safety assessment procedures established in the Novel Food Regulation. In many cases, this poses a true trade barrier. The good news, however, is that food known in one of the EU Member States before 15 May 1997 is not counted as novel throughout the EU and thus gains market access to the whole EU.
Lucuma, the Andean fruit was suspected of being novel until France stepped in and declared it was familiar with lucuma before ’97. Lucuma was officially cleared by the EU and may therefore be imported throughout the EU.

Organic
The market for organically produced fruit and vegetables continues to grow, with many supermarkets offering organic alternatives next to conventional ones. Consumers associate organic with healthier products. Environmental concerns may also motivate them in purchasing organic food. Certification is a must for anyone marketing a product as organic in the EU, where minimum requirements have been established in EU legislation. Many certification schemes, like that of the Rainforest Alliance, cover social aspects as well as environmental ones, or even focus mainly on social issues, such as Fair Trade. Despite its growth, this market remains a niche.

GLOBALGAP
GLOBALGAP, previously EurepGAP, is a management system for Good Agricultural Practice (GAP) in which hygiene measures and procedures are key. Many European retailers work with this system as a means of guaranteeing food safety. It includes a set of requirements according to which producers must work, covering major musts, minor musts and recommendations. Major musts include hygiene risk analyses and documented hygiene procedures for harvesting. Minor musts cover things like the storage of packaging material.

Source: CBI News (July 4, 2009)

Feel free to contact ProVerde for assistance in case you are not able to find the supplier you are looking.