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

Technorati claim token: PHW9RWYUF2B6

In general one can say that companies outside the EU (1) manufacturing substances or preparations or (2) using substances or preparations that still can be found in the finished product, are not directly accountable, however:

• EU importers might request additional information from their suppliers in order to do their own registration for REACH.
• Be aware that in some cases you will have to refer to your own suppliers to get all data together.
• When costs are involved for EU parties, for example to create a dossier, part of the costs might be passed through to the supplier.
• In a few cases EU importers might request from their suppliers to do the registration themselves, then they are directly involved.

What is REACH?
REACH is the Regulation in the EU on chemicals and their safe use. It deals with the Registration, Evaluation, Authorisation and Restriction of Chemical substances. The new
Regulation entered into force on 1st June 2007 and will be implemented in phases within the next 10 years. Presently, REACH requirements for registration entered into effect.

The REACH legislation is an EU Regulation which means that it is implemented in all 27 Member States in the same way. REACH is therefore fully harmonised. In addition, Iceland, Lichtenstein and Norway, which are part of the European Economic Area, are planning to transpose REACH to their national legislation. When this has taken place the same requirements apply to exports to these countries.

Which products are included?
The following products are included in REACH:

• substances, such as base chemicals, speciality chemicals, metals, additives, solvents, monomers and natural substances if they are chemically modified
• mixtures or preparations of chemical substances, for instance cleaning products, formulated process chemicals, paints and motor oils
• articles which contain substances which are intentionally released during their use, for example the fragrance in a scented candle
• articles which contain dangerous substances which are not intentionally released during their use, such as phthalates in garments
• substances in products/containers, such as ink in cartridges
• substances which are on a candidate list of “substances of very high concern”
• new substances

What happens if the chemical is not pre-registered?
The pre-registration is very important, because from 1st December 2008 onwards the manufacture in the EU and import of chemicals will only be allowed if the chemical is proper pre-registered. Substances that are not pre-registered need to be registered as a new substance which is a more complicated process.

For more information on the Candidate List of Substances of Very High Concern and other details about the legislation, refer to the REACH website.

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

Social responsibility
Consumers in the European Union are becoming increasingly aware of the consequences of their shopping behaviour on suppliers at the other end of the chain. In the flower market, consumers realise that they have the power and responsibility to influence production methods on the flower farms.

Consumer concerns about flower growing methods have been fed by media coverage in recent years. Several reports were published on low salaries, dangerous working conditions and discrimination on flower farms in developing countries. The reports upset consumers and damaged the image of the flower sector as a whole.

It is now clear to the flower sector that consumers demand fair labour conditions and measures have been taken to prevent further damage to their image. Importers demand fair labour conditions on their suppliers’ farms and require a guarantee. They visit and audit the flower farms themselves, but increasingly rely on 3rd parties to verify if labour conditions are indeed fair.

Certification
Auditing by third parties is already a common procedure in the flower sector. Certification of several management systems, such as Milieu Project Sierteelt (MPS), are invaluable to most flower farms. Auditing on labour conditions was thus a logical step for the sector.

The following certificates for fair labour conditions are available: Max Havelaar, FLO (Fair Trade), Flower Label Programme (FLP), Fair Flowers and Plants (FFP), MPS Socially Qualified (MPS-SQ), Ethical Trading Initiative (ETI) and SA 8000.

These certification schemes differ in product coverage, countries where the certified products are sold, labelling options and, of course, standards. The table below shows the number of companies that have obtained each certificate regarding fair labour conditions.

For more information, see Kasper Kervers’ complete article on Horticom

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.

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

The plan is to create two interactive web-based maps, one for ongoing projects and one for completed projects.

The map of current projects will enable donors, researchers and development workers to find out who is active, build collaborations and create complementary projects. The map of completed projects will provide a better understanding of what work has been done in a given country or region. The intent is not only to provide an overview, but also to enable visitors to access detailed information on individual projects, seek out past project implementers and learn about what worked and what did not.

Until now, about 200 horticultural projects have been mapped: HortCRSP-map

According to the Daily Nation, produce for export fell due to drought and a drop in market demand for some products due to recession in Europe, Kenya’s main market.
Relative to 2008, the combined effects of these two caused an overall fall of 14.8 per cent in the quantity of exports.

Difficult year
“In 2009, it was a difficult year but which the horticulture sector performed better than expected helped by the October-to-date rains, and depreciation of the Kenya shilling to the US dollar and other major currencies by at least 13 per cent,” said Fresh Produce Exporters Association of Kenya (FPEAK) chief executive Stephen Mbithi on Thursday.

“This depreciation of the shilling helped the sector greatly, since exports are paid in foreign currencies and domestic costs such as labour and inputs are paid in shillings.”

Despite the drop in earnings, horticulture remains the highest foreign exchange earner ahead of tea and tourism.

Last year tourism brought in KSh 62.4 billion while tea earned the country KSh 69 billion.

Flowers accounted for 51.8 per cent of the 2009 export value with fruits and vegetables comprising 48.2 per cent thus maintaining 2008 export levels in terms of quantity and value.

Cut flowers made up 95 per cent of all flower exports.

Reduced market
“Fresh vegetables accounted for 24 per cent of 2009 exports but suffered from both drought and reduced market demand, resulting in a fall of 5.5 per cent in exported quantities and value, equivalent to a 14 per cent fall in dollar returns,” said Dr Mbithi.

Processed fruit and vegetable products accounted for under 10 per cent of exports respectively but suffered most from reduced market demand, with exported quantities of canned beans and pineapple products falling by 55 per cent and 24 per cent respectively, compared to the previous year.

Exports of fresh fruit, particularly avocado, mango and passion fruit, increased by 46 per cent.

Although fresh fruit accounted for only 3.3 per cent of total exports it was the fastest growing category in 2009 with a wide range of regional, Middle East and European Union export destinations.

Source: Daily Nation

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