Flo Introduction

8/10/2019 Flo Introduction

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Floral industryFrom Wikipedia, the free encyclopedia

The floral industryis one of the major industries in many developing and underdeveloped

countries.Floricultureas anindustrybegan in the late 19th century inEngland,whereflowerswere grown on a

large scale on the vastestates. The present day floral industry is a dynamic, global, fast-growing industry,

which has achieved significant growth rates during the past few decades. In the 1950s, the global

flowertradewas less than US$3 billion. By 1994, it had grown to US$100 billion. In recent years, the floral

industry has grown six percent annually, while the global trade volume in 2003 was US$101.84 billion.

The floral industry essentially consists of three major components: thegrowers, thewholesalersand

theretailerswhose businesses are quite intermingled. The recent trends are more towards eliminating the

intermediaries, the wholesalers between the growers and the retailers, so that the flowers are made available

at considerably low prices.

Transportation[edit]

Some flowers are sent packed flat in boxes. This enables large amounts of flowers to be packed in small

spaces likeaircraftholds. Other flowers cannot survive for long periods out of water such

asorchids,gerberas(gerber daisies) andwater lilies. These are either sent with their own sealed water

container (called picks) on each stem end - for more expensive ortropicalflowers - or are transported in

buckets of water (This method of transport in water is often referred to as ["Procona]"). The latter methodextends the life of flowers and reduces labor time as flowers are ready for sale, but obviously also reduces the

amount of flowers that can be transported as they are much heavier than dry-packed flowers and hence

airtransportationcharges are higher.

Flowers take a number of routes to theconsumer,depending on where they are grown and how they are to be

sold. Some growers cut and pack flowers at theirnurseries,sending them directly out to the consumer bymail

order.Some flowers are sent to packing companies, who grade the flowers and arrange them in bunches for

sale tosupermarketsor to deliver by mail order. Some flowers are graded and sleeved by the growers and sold

atwholesaleflower markets; the wholesalers then sell them on tofloristswho condition andarrangethe flowers

for the consumer.

The Netherlands and the history of the flower industry[edit]

Traditionally, the center of flower production has been near their largest consumers: the developed world,

whereJapan, Western Europe andNorth Americawere both major producers and consumers. The major

consumer markets beingGermany(22 percent), theUnited States(15 percent),France(10 percent),
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theUnited Kingdom(10 percent), theNetherlands(9 percent), Japan (6 percent),Italy(5 percent),

andSwitzerland(5 percent).

The Netherlands remains the center of production for the European floral market, as well as a major

international supplier to other continents. The flower auction atAalsmeeris the largestflower marketin the

world. Since the mid-1970s, the production anddistributionofcut flowersin Netherlands has burgeoned. In

1995, Dutch growers produced over 8 billion blooms and the flower auctions collectively traded more than 5.4

billionguilders(about $3.2 billion) in cut flowers and pottedplants,contributing over 4 billion guilders annually

to the Dutch balance of trade.

New flower growing centres

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, though it

plays an important role still in the development offloriculturalgenetics. The new centers of production are

typically developing countries likeColombia(second largest exporter in the world and with a market of more

than 40 years old),Ecuador,Ethiopia,Kenya,andIndia.Other players in this global industry areIsrael,South

Africa,Australia,ThailandandMalaysia.New Zealand, due to its position in theSouthern Hemisphere, is a

common source for seasonal flowers that are typically unavailable in Europe and North America.

In Africa, Kenya is the largest exporter, supplying a large percentage of Europe's flowers, the industry there is

represented by theKenya Flower Council.

In South America, Colombia is the leading flower producer and exporter accounting for 59% of all flowers

imported to The United States in 2006. The United States imports 82% of its flowers. Growers in the United

States state that 3 out of 4 flowers in the United States are grown outside the US with Colombia being the

biggest exporter. The United States signed a free trade agreement with Colombia and that has lowered the

cost Colombian flowers in the United States. Ecuador has become, in recent years, the leading South

American rose producer and is well known throughout the world for its high quality, large headed roses due to

the high altitude location of its rose farms.
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Floriculture becomes the Booming sector of India....... Scope &

Future Potential......!

Floriculture is increasingly regarded as a viable diversification from the traditional field crops due to

increased per unit returns and the increasing habit of saying it with flower during all the occasions.

Though the art of growing flowers is not new to India, protected cultivation in polyhouses is relatively

new in India. Enormous genetic diversity, varied agro climatic conditions and versatile human resources

offer India a unique scope for diversification into new avenues which have not been explored to a greater

extent. With the opening up of world market in the WTO regime, there is a free movement of floricultural

products worldwide. In this context, each and every country has equal opportunity for trade in each

others territory. Globally, more than 140 countries are involved in cultivation of floricultural crops. The

USA continues to be the highest consumer with more than $ 15 billion per annum, followed by Japan

with more than $ 10 billion. India has better scope in the future as there is a shift in trend towards tropical

flowers and this can be gainfully exploited by India with enormous amount of diversity in indigenous

flora, says Dr H. P. Singh, DDG (Horti.), ICAR.

Flowers have been associated with mankind since time immemorial, as they have been used for religious

offerings and other social ceremonies. In past, these requirements were met from home-grown plants.

Growing loose flowers mostly for worshipping, garland-making and decoration from the backbone of the

Indian floriculture, which is mostly in the hands of small and marginal farmers. Twenty years ago, the

growth was mainly focused on foliage plants for household purposes. The impetuses in cut flowers are:

rose, chrysanthemum, carnation, gerbera, anthurium, orchids and lily. The floriculture sector is highly

disorganized and no systematic data is available at present. Globalization of the Indian economy and

subsequent liberalization of seed act paved the way for the advent of protected cultivation in India during

early

Indian Floriculture Industry is Growing :

With the declaration of floriculture as an extreme focus area by the Ministry of Commerce and

Industry, Government of India, floriculture sector has acquired a special status in the flower basket ofIndia. India produces a wide variety of floricultural products, which inter alia include flowers and foliage,

both fresh flowers and dried, like roses, carnations, chrysanthemums and orchids. The International Flora

and Landscape Expo-2006 reviewed the growth of floriculture industry and showcased Indias floriculture

wealth and exposed the stakeholders to new technologies and scientific advancements, a platform for

Indian exporters to interact with international buyers of cut flowers. With worlds fastest growing retail


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market, second largest consumer base and unlimited opportunities for growth, Indian Floriculture is today

a force to recon with and Flora Expo 2007 and Landscape 2007 are the only platform to interact with

flower growers globally to make recognize India as a Flower Power. This is a part of new National

Vision for Floriculture, the brainchild of former President APJ Abdul Kalam. Floriculture industry is

targeting an annual $ 2-billion in export of floricultural products by 2012.

Currently, flower trade has attracted the largest demand from an estimated 300 million middle-class

flower-loving people with consumption in the cities and major towns at 40% per annum. Flower retail

shops have mushroomed all over the place from major metros to market shops and flower boutiques.

Further, super-market/hypermarket retail chains have fueled the growth in the consumption. Cashing is on

this trend, the Minister of the State for Commerce also feels that floriculture is all about creating new

employment opportunities in far flung areas rather than talking about Dollars, the focus should be on

million jobs.

Six Agri Export Zones on floriculture have been set up in Sikkim, Tamil Nadu, Uttarakhand, Karnataka

and Maharashtra. Himachal is comming up fast with a huge potential in specialized Cut Flowers like

Carnations & Lillies and can become a main hub for these flowers due to most suitable clamatic

zone. The APEDA has also taken a number of measures to facilitate floriculture exports. Some key Indian

airports like New Delhi, Mumbai, Hyderabad, Bangalore, Chennai, Thriruvananthapuram and Cochin

now have cold storage and cargo handling facilities. More airports will have these facilities in the future.

Among other things, flower auction centres are also coming up in Bangalore, Mumbai, Noida, and

Kolkata. These are readymade market facilities for trading and price discovery for a variety of flowers,

both for export and domestic markets. India has to achieve the ambitious export target of Rs 1000 crore

per annum over the next 5 years, a paradigm shift is required. The key issues that need to be addressed in

the Indian context are: economic of scale, product range/ latest varieties, year round exports, quality

control and certification, cold chain management. The APEDA has been addressing these issues through

various forums on a concerted basis given its mandate to promote floricultural exports from India.

Correlation with DFC (Dubai Flower Centre), the trans-shipment facility for perishable goods in the

region is gearing up to tap the Indian flower export market, which is expected to exceed $ 1 billion by

2010. The DFC can act as a hub for Indian growers and traders so that they can reach out to regional,

European and American markets. A DFC delegation had recently visited India to create awareness about

the centre and its unique facilities. The delegation met officials in major cities and held discussion with

flower growers and exporters. Currently, India produces 2, 00000 tonnes of loose flower and 500 million

tones of cut flowers according to APEDA.

The total business of floricultural products in India in 2005 increased from Rs 8,174 lakh to Rs 10,117

lakh April 2006. There were more than 300 export-oriented units in India. More than 50% of floricultural


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units are based in South zone mainly in Karnataka, Andhra Pradesh and Tamil Nadu. West Bengal,

Maharashtra and Rajasthan also have large areas under floriculture. The domestic flower production goes

on increasing annually. Technical collaborations with foreign companies have been approved for India, in

order to increase total share in floricultural trade.

SCOPE :

The scope of floriculture in India has increased tremendously, which is evident from the increase in area

from 53,000 ha in 1993-94 to 1, 26,235 ha during 2005-06. There is 100% increase in area and more than

230% increase in loose flower production and 480% increase in cut flower production. There is high

competition as floricultural economy has shifted to consumer-driven enterprises, rather producer-driven

economy. In this scenario of consumer-driven market, producer of all sizes have to focus on marketing

with lookout for national brands to boost their sales. Growers have to look for niches and value-added

products. There is a trend for direct marketing besides marketing, through super markets and wholesale

markets. Business management is becoming important in this scenario of global competition.

In Asian countries, initially commercial floriculture industry grew because of increasing need for low-cost

flowers by European cut flower market place. European flower traders identified commercial floriculture

production in Southeast Asian countries; flowers were initially produced mainly for export, which has

simply changed to opportunities for supplying to local markets as well. The potential for commercial

floriculture expansion in Asia, including, production for domestic and export sales of cut flowers is

unlimited, provided strength is capitalized and weakness are converted into opportunities through

strategic planning, infrastructural development and regional cooperation. Marketing strategies linked with

production and business management having horizontal and vertical integration would lead to the

development of commercial floriculture in Asia. An attempt has been made to examine the scenario,

identify the constraints in development of floriculture in Asia and develop strategies for promotion of

marketing for flowers in an integrated manner.

The increasing demand projected for both cut flowers and potted plants in Western countries will result in

the production outside the traditional area, due to the pressure of escalating cost and environmental

regulation. Asian countries would gain from the situation and expand further by increasing the production

of existing products as well as expanding the product range. However, post-harvest management and

meeting the import standard would pose a challenge as consuming countries would make the regulations

more strict to safeguard the interests of local growers.

ImportValueofCutFlower:

The value of cut flower imports fell in the USA, while, Germany, the Netherlands, Japan, Italy and


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Switzerland had increased import between 2000 and 2003. Increase in import was substantial in the U.K,

France and smaller countries such as Austria, Denmark, Saudi Arabia, Lebanon, Spain and Ireland. The

increase in the value of world trade of live plants was 20% between 2000 and 2003. The top 5 import

markets gained strength. Change in imported value of cut flower was to the tune of 18% between 2000

and 2003.

The imports of fresh cut foliage and greens declined between 2000 and 2003. The Netherlands, Germany

and USA continue to be biggest importers. During last five year (1997-2001), live plant business is up

strongly in the USA and the Netherlands, but down in Germany. Cut foliage imports are up, both in the

USA and the Netherlands, because of their use in supermarket bouquets, but down in most other markets.

The role of Government has also become very important consideration. Interestingly, Asian countries

have advantage of varying climate, cheap labour, Government support and strong emerging domestic

market. But quality management system, logistics and marketing strategies need qualitative and

quantitative improvement are to be addressed. To be competitive, good balance between the productions

factors, economic variables, domestic demands and networks have to be achieved. Comparison of cut

flower sector in the Netherlands, point to the fact that it has derived competitiveness from rapid

innovation, stronger vertical integration to meet the demand of consumers and retailers, more effective

logistics, higher quality products and environmentally sound production facilities.

The strength of the Netherlands is based on ability to innovate rapidly, which is reflected in its

productivity, quality range of innovations, high professional skill and state of the art technology. Since

Asian countries have advantages in terms of favourable climate, cheap labour, human resource, emerging

domestic market, wide range of plants, it has potential to become competitive in world by adding

innovations, vertical and horizontal integration, quality management system, range of quality

management, technology and professional management.

ExportPotentialOfCutFlower:

India is endowed with proximity to market in Japan, Russia, South-East countries. The Government

allows subsidy on air freight for export to Europe and West Asia, South East Asia. Import duties have

been reduced on cut flowers, flower seeds and tissue-cultured plants. Floricultural exports from India

comprise fresh cut flowers (to Europe, Japan, Australia, Middle East and USA), loose flowers (for

expatriate Indians in the Gulf), cut foliage (to Europe), dry flower (to USA, Europe, Japan, Australia, Far

East and Russia) and potted plants (limited to very few countries). Out of these components, dry

floricultural exports registered a phenomenal growth during the last decade. The floriculture exports,

which stood at Rs 63 crore during 1996-97, almost tripled to Rs 211 crore during 2004-05.

The overall exports of floricultural produce from India soared to Rs 304.69 crore by the end of 2005-06


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from Rs 180.77 crore at the beginning of 2002-03. Indian exports mostly target the major floriculturally

important events like Christmas day, New Year Eve, Valentine day, and Mothers day. The major factors

are the unfavourable weather conditions during winter in major production centres in the Northern

Hemisphere that limit the production. Therefore, markets are open to produce that comes from more

favourable climates from the Southern Hemisphere. India, therefore, finds itself competing with other

equally favourable countries like Kenya, Ecuador, and Morocco etc. during such events.

Prospects Hi-Tech Protected Cultivation :

The cut flowers, which are being exported from India, are from these hi-tech floricultural units. Protected

cultivation, although is in limited area (5% of total flower crop area), its contribution to total floricultural

exports is significant. At present, there are about 110 export-oriented floricultural units (EOUs) in

operation, covering an area of 500 ha. These units are growing mostly roses, but can be diversified into

orchids, anthurium, gladiolus and tuberose as the demand for tropical flowers is increasing

worldwide.India has several advantages and great potential to increase the acreage under intensive

production and ultimately to increase the floricultural exports provided the units should be opened in ideal

locations with sound technological back-up.

Dry Flowers.......

The export basket comprises dry flowers (71%), fresh cut flowers (18%), live plants (9%), fresh bulb(1%)

and foliage (1%). Indian exports of cut flowers into Europe stand at 2.6 million (0.1% of the 3 billion

imports into the EU), out of which 94% comprise rose imports. In terms of value, the rose export from

India is in the range of 2.4 million (0.3% of total EU rose imports from outside the EU). Ornamental

foliage exports from India are worth 10.5 million (2% of total EU exports), while the exports value of

ornamental plants from India stands at 2.2 million (0.1% of EU plant imports). India also exports small

quantities of cuttings and young plants valued at 1.6 million (less than 1% of total EU imports) to

markets in Europe. In terms of volumes, India exported 17 million stems of cut flowers and 5 million

cutting and slips during 2005. The floriculture exports during 2002-07 grew from Rs 266 crore during

2002-03 to Rs 302 crore during 2003-04 and Rs 273 crore during 2004-05 to achieve a growth rate of

2.66%.

Dry flowers constitute more than two-thirds of total floricultural exports. For making dry flowers and

plant parts can be collected from wild sources or some flower crops like Dahlias, marigold, jute flowers,

wood roses, wild lilies, helichrysum, lotus pods, etc. some flowers that are air-dried and used include

Dahlias (Dahlia hortensis), poppy seed heads (Papaver somniferum), roses (Rosa), Delphinium, larkspur

(Consolida ambigua), lavender (Lavendula augustifolia), African marigold (Tagetes erecta), strawflower


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(Helichrysum bracteatum), globe amaranth (Gomphrena globosa), lotus pod etc. dry flowers constitute

nearly 15% of the global floriculture business and form the major share in Indian floricultural exports as

well. At present, the industry is not well organized and depends on plant material available in forests and

no systematic growing of specialized flowers exists anywhere in the country. The demand for dry flowers

is increasing at an impressive rate of 8-10% and therefore there is a great scope for the Indian

entrepreneurs.

FlowerSeedProduction........

Seed production of seasonal flower crops is a lucrative business and practiced in considerable area in

Punjab and Haryana. This offers higher returns from unit area. Of late, demand is increasing in domestic

market also. Research work is required to develop high-yielding varieties including F1 hybrids, agro-

techniques for producing uniform seed with higher certification standards.

NurseryIndustry.....

Lack of quality planting material is the major hindrance for not realizing the full potential of floriculture

in India. Plant material of various kinds (seedlings, budded plants, rooted cuttings, bulbs, tubers, corms,

annual seed, etc.) is required for commercial flower production, pot plant production for adding to home

garden and for landscaping (corporate landscaping, bioaesthetic planting etc.).

PotPourri......

Pot pourri is mixture of dried, sweet-scented plant parts including flowers, leaves, seeds, stems and roots.

The basis of a pot pourri is the aromatic oils found within the plant. A significant component of dry

flower export comprises pot pourries. In the recent past, floriculture has been considered as a viable

option of diversification in agriculture. But now within floriculture itself, there are in a number of options

a flower or a floriculturist can take up.

EssentialOils.....

Essential oils and perfumery from natural sources are in great demand. In India, flower crops grown for

essential oil production are limited and include mainly rose, jasmine, tuberose etc. Rosa damascene is

exclusively cultivated for extraction of essential oils, rose water, attar, gulkhand, etc. in certain pockets of

Rajasthan and Uttar Pradesh. Research should be focused on development of varieties with higher oil

content and standardizing distillation methods for higher oil recovery. Further, identification of more

crops and standardization of production technology needs to be included in the research agenda.

Promotion of this sector encourages ancillary industries like steam distillation and use of indigenous


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technical knowledge (ITK) for making value-added products.

NaturalDyes.....

Marigold pigments are widely used in the poultry industry to enhance the colour of the meat and yolk of

the eggs and also used in food and textile industry. So far, isolation of xanthophylls from marigold has

been standardized. More crops can be identified and procedures can be standardized for full exploitation.

Technology development in all the areas mentioned above not only improves the situation of respective

sub-sector of floriculture, but these become important avenues for diversification of floriculture, sources

of income generation and means of employment to the youth.

Import of Floricultural Produce :

India imports a vide range of floricultural produce from different parts of the world. Indias major imports

are from Netherlands followed by China, Thailand and USA. The imports to India peaked during 2005-06

with an overall import of Rs 1,796.33 lakh, followed by Rs 1,137.80 lakh during 2004-05.

Strategies for marketing of floricultural products :

Rapid technological agri-business, international economic integration, saturated markets and free market

mechanism have provided opportunity, but also the challenges. Retailing on markets will be more

complex. Service, quality and reliability would be an essential factor for securing position in international

market. Producers have to organize the production so as to supply the necessary quantities according to

the required quality standards. Any parties in the chain, which do not contribute to higher added value,

will disappear. The advantages of large-scale market could be found for efficient purchasing process and

also in terms of logistics and use of information technologies. Accordingly, our efforts have to be directed

to harness the potential through strategic promotion of market. Strategies could be for policy support,

infrastructural development, professionalism in market management, networking of markets and quality

assurance.

All these developments provide opportunity for production and marketing. This would need strategic

marketing approach having backward and forward linkages coupled with horizontal and vertical

integration. By providing sufficient attention and support, attaining the goal of reliable production of

high-quality product consistent in quantities could be attained. Resultantly, Asian flower sector would

soon become a major player in the region as well as in European flower market. Moreover, given the

rapidly increasing rate of spending among Asian consumers for cut flower industry will soon surpass

consumption rates for cut flowers compared to other regions.


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Cooperation and commitment, in terms of education, research, funding and communication in Asia would

be a driving force to become a leader of commercial floriculture worldwide, in years to come. The

strategies have been chalked out to meet the challenges and to make floriculture a most viable activity in

Asia to ensure employment with enhanced farm income. The challenges are to capture emerging trend in

marketing through innovation and skilled professional management. Therefore, strategies to promote

effective marketing should include, quality assurance, transportation, hub development for effective

delivery, institutional support for information and training, specialty production, reducing cost and

widening products, developing domestic market, promoting indigenous plants and flowers, developing

professional skill and knowledge management, promoting uses of flowers and providing policy support

product and delivery. Therefore, there is a need for quality products and delivery, and to develop quality

certification system, as developed in Holland, which ensures the quality for the brand.

SUMMARY :

With increasing flower demand, production centres has expanded from traditional centres (USA, Japan,

the Netherlands and Columbia) to new ones (Latin America, Africa and Asia). In Asia, India, China,

Vietnam and Sri Lanka are moving in direction of intensive floriculture. New consumption centres are

also emerging in South-east Asia, Middle-East and Eastern Europe. The scenario provides opportunity to

capitalize on the strength and convert weaknesses into opportunity. However in the consumer-driven

market, quality of service and delivery system will play a significant role. Marketing is no more a meeting

of buyers and sellers, but it is complex, which is driven by a thumb rule ( Quality, Quantity, Consistency

) and reliability of delivery. New distribution structure with the aid of IT is likely to be in place, which

would be a virtual market, demanding, branding, cataloguing and quality assurance emphasizes.

Flo Introduction

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Transcript of Flo Introduction