Traditionally, most flowers heading for European markets enter the European Union via Amsterdam airport, located near the Dutch auctions. From mid-2009, however, many Dutch importers developed a preference for Belgian airports.

Importing fresh flowers through Belgium was, and still is, easier, due to the availability of night flights, handling benefits, lower costs, and smoother customs procedures and phytosanitary checks.

For as long as they last, the advantages are worth the effort (see figure).

Source: ProVerde

In April, about 30 Vietnames exporters participated in a joint CBI and ITPC workshop about Market Research. The course, which was carried out with collaboration by ProVerde, aims to provide exporters with knowledge, skills and tools to collect and analyse data about EU markets, EU buyers, and EU restrictions to export/trade and trade channels.

The market research workshops are designed to be practical and focus around individual and group exercises to complement the short blocks of theory.

Among the topics dealt with in the workshop are:

• What is market research, primary & secondary research, desk & field research
• Market research process
• Online and offline market information sources
• Free market information sources on the internet
• What are market access requirements, and where to find them
• Search engines, portals & directories
• Finding buyers through online sources such as online business directories, trade associations and E-marketplaces
• Market Research Strategies
• Interview techniques

Source: ProVerde

Already a top 5 EU flower supplier, Ethiopia steps up its market drive

Ten years ago, Ethiopian flower exports were virtually non-existent. Today, the country ranks among the European Union’s top 5 fresh-cut flower suppliers and floriculture has become one of the nation’s main foreign exchange earners. Economic woes in 2009 and the effects of the ash cloud in 2010 caused a minor shakeout, but about a hundred growers have emerged from these storms stronger and more eager than ever to consolidate and expand on their export position by stepping up their market drive, improving efficiency and diversifying product ranges.

As far as the flower industry is concerned, the worst of the economic recession seems to be over. Though prices may not climb back to pre-crisis levels, the 2009 slump seems to be a thing of the past, with EU imports steadily rising. Trade figures on the whole suggest the global flower market is rebounding and the mood in the market is one of cautious optimism.

Catching up on Kenya
In Ethiopia, the hard times floored some companies, but also produced a seasoned export sector whose impressive growth since 2000 can no longer be passed off as a fluke. Ethiopia now holds a firm position among the Top 5 EU suppliers – along with Kenya, Ecuador, Colombia and Israel – and an impressive second place among Dutch auction suppliers.

The share of Ethiopian flowers in EU imports doubled from 6% in 2005 to 12% in 2010. Statistics suggest Ethiopia is steadily catching up on Kenya. Kenyan flower exports, like those of Ethiopia, grew robustly over the last decade, however, Kenyan growers appear to have suffered more from the crisis. In 2009, Kenyan exports were down 7% compared to the preceding year, while Ethiopia exported 34% more to the EU. What’s more, preliminary figures suggest similar developments in 2010.

Lean, mean and market-driven
The Ethiopian growers who survived 2009 and 2010 are well aware that long-term success will not come easy. With support from various national and international institutes, these growers are bracing themselves for rigorous self-improvement programmes. Their key growth opportunities, they recognise, lie in becoming leaner and meaner and relentlessly market-driven. This means adopting continuous improvement programmes on the farms to streamline business processes, cut costs and raise the quality of every last detail. It also means developing product ranges according to market preferences, as well as getting online and connecting with the ongoing virtualisation of the flower trade.

Source: Excerpt from article in HortiMagazine (March 2011) “From Newcomer to Recognised Supplier” by Milco Rikken, ProVerde

ProVerde is pleased to announce a new publication for the Trade for Development Centre:
“The European Market for Fair and Sustainable Flowers and Plants”

Given the importance of market transparency for producers aiming at selling their products overseas, the report provides relevant information for producers – within the trade context. The report makes an attempt to capture all relevant information on the European market for fair and sustainable flowers and plants – ranging from economic structure of this market to production characteristics, and major trends in consumer preferences and behaviour.

Above all, the report provides insight into the role of various social and environmental standards in the main European flower and plant markets and sales channels.

About the Trade for Development Centre
The Trade for Development Centre gathers, analyses and produces market information to improve market access for producers in developing countries. The Belgian government entrusted the implementation of the Trade for Development Centre programme to BTC, the Belgium Technical Cooperation.

About ProVerde
ProVerde provides market research and trade development services to companies, organisations and Government institutes. ProVerde is specialised in cut flowers & plants, fruits & vegetables, and biodiversity products.

Link to Trade for Development
Direct download (for free)

December 2010

As the climate in the EU is not suitable for the production of tropical fruit, the EU relies on imports of tropical fruits such as bananas –the most popular fruit in Europe–, pineapples, kiwifruit, avocados and mangos.

Temperate and sub-tropical species such as citrus fruit, grapes and pears are imported as well, but mainly in out of the European growing season. Countries in the southern hemisphere are able to supply when the countries in the northern hemisphere can not. This is also known as counter-season supply. For fruit products that can be stored, such as apples, the counter season is less evident. With the continual improvements in storage life and storage conditions of fruit products, the off-season is shortened.

EU countries have a high degree of internal supply for vegetable products. Only occasionally, for instance in cases of poor harvests or during the off-season period, products are imported from outside the EU. Some vegetables can be grown in controlled conditions such as greenhouses (glass or plastic), reducing the risk of a bad harvest and extending the supply period.

The possibilities of exports to the EU are small for products that are highly perishable or delicate such as lettuce and other leafy vegetables. When the harvest in the EU countries is too small and vegetables need to be imported, countries that are located close to the EU have the advantage of short transportation time and lower transport costs.

When analysing EUROSTAT trade statistics, we find that major vegetable products with a high degree of self-sufficiency are lettuce, carrots, cucumbers, cabbages, tomatoes and sweet pepper. Developing countries play an important role in the supply of peas and beans during the off-season. Other important off-season products supplied by developing countries are snow peas (mange-tout), sweet peppers and courgettes.

Source: ProVerde

In The Netherlands, growing numbers of commercial companies are choosing remote buying to purchase their products on the auction. As with image auctioning, where the product is not physically present at the auction clocks, with remote buying (KOA), auction buyers need not be sitting in the stands.

Often, the wholesale companies have established a special dealing room on their company premises for this purpose. In the comfort of their own offices, anywhere in the world, they can buy online on all the FloraHolland auction clocks. Growers, who supply the products, can see in real-time on the Internet how the buying process is going.

How does KOA work?
On the screen, one clock is always shown as the main clock. This can be used for remote buying. The other clocks are running in the background, so you can switch rapidly from one to the next. Alongside the main clock, you may have a maximum of five supplemental clocks open on the video screen to follow these auctions by lot. These supplemental clocks display the grower’s name, the product, and the pricing structure.

99.9% of supply available at 5 a.m.
KOA buyers may download information on the day’s supply every auction day beginning at 4 a.m. In practice, this means that by 5 a.m. you will already have all the information you need for about 99.9% of the total cut flower, houseplant and garden plant supply for the day.

Source: FloraHolland

In Europe, bromeliads have been cultivated and traded already for a long time. The largest bromeliad nurseries in the world producing cuttings and finished pot plants are located in The Netherlands. Currently, about 30 Dutch companies produce bromeliads. Guzmania is by far the biggest bromeliad traded at the Dutch auctions. Other important bromeliads are Vriesea, Tillandsia and Aechmea.

At young plant level, the bromeliad market is extremely competitive and is dominated by small number of relatively big breeding companies (Corn. Bak, Deroose Plants, Exoticplant) who compete for market share with a steady stream of new patented varieties. These breeders (or so-called improvers or hybridisers) are working constantly to produce ever more spectacular and hardy varieties for the market. The search for finding new varieties is fuelled by one thing: new stock.

European breeders usually breed, select and propagate their own young plant material. These young plants are sold to domestic growers as well as growers abroad. The companies have switched more and more to in-vitro propagation over the last ten to twenty years.

The competition for finding and being the first to use new superior clones and new species of bromeliads, especially in the genera Guzmania, Vriesea, and Aechmea therefore is fierce. Many superior hybrids have been produced in Europe and are now grown under licensing agreements all over the world. A single patented variety could be worth millions to the patent holder.

In the case of bromeliad young plant material, The Netherlands and Belgium are the biggest producers and exporters. Exports of bromeliad cutting go mainly to Italy, Germany and Denmark, but also outside Europe to USA and the Far East (China, Japan, South Korea).

However, bromeliad cuttings can often be grown faster and cheaper in nurseries abroad than in Europe. Many such facilities exist in Guatemala, Costa Rica, Colombia and, to a lesser extent, in other Latin American countries.

Most commercial laboratories for in-vitro propagation of plants are located in The Netherlands, France, Italy, Germany and Belgium. More and more production facilities in developing countries are used besides those in Europe. Labour costs in developing countries are low and the techniques are available. Usually, a company in a developing country works under licence of the European company.

A trend that can be recognised is the demand for laboratories in developing countries which have experience with specific products and developed ‘protocols’ for these products.

Source: ProVerde

A recently published CBI market survey for summer flowers, which was compiled by ProVerde, shows that turnover in summer flowers has increased steadily over the past couple of years. An important contributing factors has been steadily increasing supermarket sales and the resulting increased demand for bouquet fillers. The recent global economic crisis, however, has also affected the European summer flower trade.

Almost all summer flowers are sold as fillers, mixed with other flowers and greenery in bouquets. Particularly during the European winter months, large quantities of summer flowers like Gypsophila, Hypericum, Ornithogalum, Ranunculus, Solidago and Veronica are imported to complement European supply and to allow for a year-round supply of bouquets. Consequently, the best export window for summer flower exporters in developing countries is during the period October-May.

The two main exporters of summer flowers to the European Union are Kenya and Israel. Besides Kenya, other developing countries playing an important role in supplying summer flowers to the EU market are amongst others Ecuador, Egypt, Ethiopia, and Zimbabwe.

Source: CBI, ProVerde

This week, CBI published its latest market survey for tropical flowers, which was compiled by ProVerde.  The survey shows that a number of developing countries holds a strong position in supplying tropical flowers to the European market. The European market is characterised by very strict quality requirements and a high level of interest in innovation and new species; experience has shown that new products can acquire a rapidly growing market share, following initial introduction to the trade.

The role of the Dutch and German auctions in the European tropical flower trade is considerable. Nevertheless, most tropical flowers enter the EU market directly via importers who are either specialised in tropical flowers or who import tropical flowers as a supplement to their assortment of mainly traditional flowers.

Exporters should keep in mind that the EU flower trade is becoming more and more professional. The main criteria for success for a tropical flower exporter is being able to meet the ever-increasing quality requirements.

This market survey covers the EU market and the markets in Germany, UK, France, Italy, Spain and The Netherlands. It provides information on consumption, production & trade (market sizes and trends), trade channels for market entry, prices, market access requirements and business practices & sales promotion.

Source: CBI, ProVerde

First, there was the Dutch auction method, then the auction clock made its appearance, and now it is time for the next phase: clock projection, image auctioning and distant buying (KOA).

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)