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Love Fuels Rose-Price Inflation

The main category of China’s flower import is seedball, whose amount of imports reached 91.34 million dollars, accounting for 42.6% of total imports with year-on-year growth of 10.3%. The rapidly increasing category in the recent years is potted plant, whose amount of imports increased from 10.76 million dollars in 2010 to 47.31 million dollars in 2015.

 

From China with love

From midnight until 4am trading is keen and fast at the Dounan Flower Market in a suburb of Kunming, capital of the south-western province of Yunnan. Trucks laden with radiant, perfumed blooms clog the surrounding roads. By mid-morning petals litter the ground and most of the 14m stems sold each day are on their way to destinations around China and beyond. Since the local government turned a budding local enterprise into China’s biggest wholesale flower market in 1999, Dounan has become the main supplier of blooms to courting couples and contrite husbands across the country: demand fuelled by a middle-class boom. China is not yet a global flower-power. Its exports amount to a little over 4% of the world’s total flower trade by value. Over two-thirds of the blooms it sends abroad are sold in Asia. (Myanmar is the biggest buyer.) Freight costs are a barrier to expansion into the more lucrative markets of Europe and America.

 

Import

In the recent years, China’s flower imports maintain substantial growth. According to China’s customs statistics, from January to December 2015, China’s flower imports reached 214 million dollars, with year-on-year growth of 15.6% and an increase by 111.7% compared with 2010. On one hand, domestic flower market increases its demand for high-quality and new categories of flowers. On the other hand, exchange rate changes so greatly that it reduces the cost of traders’ imports and promote China’s import of flowers.

1. The amount of imports of various categories have different levels of growth. Dried cut flowers, cut leaves and flower seedling increase over 40%. The main category of China’s flower import is seedball, whose amount of imports reached 91.34 million dollars, accounting for 42.6% of total imports with year-on-year growth of 10.3%. The rapidly increasing category in the recent years is potted plant, whose amount of imports increased from 10.76 million dollars in 2010 to 47.31 million dollars in 2015.

 

Other categories of the amount of imports are listed as follows:

Seedlings of 42.67 million dollars with an increase of 43.9%; fresh cut flowers of 26.22 million dollars with an increase of 10.7%; dried cut flowers 3.98 million dollars with an increase of 73.2%; fresh cut branches of 1.38 million dollars, with an increase of 36.2%; dried cut branches of 1.38 million dollars with an increase of 45%.

 

2.Holland is the main importer of flower in China. Ecuador has become a rising star and ranked the top five. In 2015 the amount of imports reached 110 million dollars, accounting for 51.5% of total imports. The main imports of categories are seedling and bulbs, which took up 93.8%.

Other important importers are listed as follows:

  • Japan( 40.06 million dollars with year-on-year growth of 10.1%),
  • Thailand ( 14.16 million dollars with year-on-year growth of 10.7%),
  • Chile (8.4 million dollars with year-on-year growth of 3%),
  • Ecuador (5.66 dollars with year-on-year growth of 50%),
  • America ( 4.96 million dollars with year-on-year drop of 4.6%),
  • New Zealand (4.22 million dollars with year-on-year drop of 10.7%),
  • South Africa ( 3.27 million dollars with year-on-year growth of 21.4%),
  • China’s Taiwan (2.99 million dollars with year-on-year drop of 26.1%),
  • Costa Rica ( 2.27 million dollars with year-on-year drop of 1.6%).

 

Among them Ecuador has become China’s important flower importer, whose amount of imports increased from 100 thousand dollars in 2010 to 5.66 million dollars in 2015, with an increase by 5670%. China’s import categories from Ecuador are fresh cut flowers and dried cut flowers.

 

Export

According to China’s customs statistics, from January to December 2015, China flower exports amounted to 256 million dollars, with year-on-year drop of 32.3%. Excluding from the abnormal increase of 130 million dollars of potted plants which were exported from Myanmar according to customs statistics in 2014, the amount of China’s flower exports in 2015 increased slightly than that of 2014 .

Export categories decreased in varying degrees, while dried cut branches maintain substantial growth. China’s main flower exports are potted plants and fresh cut flowers, which take up 65% of total amount. In 2015, the amount of fresh cut flower exports reached 83.1 million dollars,with year-on-year drop of 0.33%; the amount of plotted plant exports reached 82.77 million dollars, with year-on-year drop of 59.9%; the amount of seedling exports reached 34.21 million dollars, with year-on-year drop of 3.5%; the amount of fresh cut branch exports reached 30.99 million dollars, with year-on-year drop of 2.6%; the amount of dried cut flower exports reached 4.06 million dollars, with year-on-year drop of 6.7%.

The amount of dried cut branches and seedball exports maintain growth: dried cut branches became the biggest highlight of flower export in 2015, with its export amount of 18.19 million dollars and yearon- year increase of 26.9%; the amount of seedball exports reached 2.34 million dollars, with year-onyear increase of 7.9%.

China’s export markets mainly concentrate on Japan, Korean and Holland, which are the three largest market. In 2015 China’s flowers were exported to 129 countries and regions.

 

The 10 largest markets are listed as follows:

 

  • Japan ( 78.5 million dollars with year-on-year drop of 8.5%),
  • Korean ( 32.81 million dollars with year-on-year growth of 20.1%),
  • Singapore ( 9.45 million dollars with year-on-year increase of 12.7%),
  • Vietnam (9.12 million dollars with year-on-year drop of 23.9%),
  • Thailand ( 9.02 million dollars with year-on-year increase of 11.8%),
  • German ( 8.54 million dollars with year-on-year drop of 8.4%),
  • Hong kong (8.35 million dollars with year-on-year drop of 25.6%),
  • Macao ( 8.24 million dollars with year-on-year increase of 67.2%).

 

These export markets mentioned above accounted for 78.8% of the amount of China’s flower market. Japan, Korean and Holland maintain the three largest markets for a long period. Where is Kenya in all this, what are we doing to capture this large market?

 
GBGE 2017, A Condensed Flower City

By GBGE Committee

March is the beginning of spring, the most suitable season for admiring the beauty of flowers in Guangzhou. Every March in Guangzhou, flowers are blooming like crazy, including flaming kapok, soft red Chinese rebud, magenta bougainvillea, rose pink sakura, sweet fragrant frangipane, golden trumpet-tree and many other unnamed blossoms. No wonder Guangzhou is given the name of Flower City. Attracted by its reputation, annually countless visitors come to Guangzhou for a peek of its beauty. However, their desire usually cannot be fully satisfied because there are too many famous spots for them to visit within very limited time.

But you can squeeze no more time ? Why not come to GBGE2017! It is a condensed version of Flower City, the best place for you to feast your eyes with flowers, as well as a wonderful place for business.


Various Exhibits Delighting Your Eyes

Blessed by the subtropical monsoon climate, Guangdong is a cultivation base for a very wide range of plants. Exhibitors from Guangdong alone can present you with a impressive variety of exhibits, not to mention exhibitors from other parts of China and the world. GBGE’s exhibits usually include fresh cut flowers, orchids, potted flowers, grass flowers, shade-requiring plants, cactus, seeds, container vegetables, seedlings, seed balls, etc. No matter where you go, your eyes will be filled with all sorts of colors: red, yellow, green, blue, purple, orange, white, etc, and your nose with different fragrances: fresh, delicate, sweet, soft, rich, etc. If you are also in the mood to purchase some other supplies, GBGE also satisfies your need. Garden supplies, such as dried flowers, artificial flowers, flowerpots, vases, artificial plants, garden tools, garden machinery, irrigation facilities, wooden houses, rockeries, sculptures, fences, outdoor furniture, etc, are also showcased on site.

 

An Annual Grand Event Celebrated by Insiders Home and Abroad

Supported by Guangdong Association of Landscape Architecture, the most authoritative landscape architecture association in Guangdong, GBGE has grown into the most influential exhibition for the flower and bonsai industry in China, attracting the attendance of many famous enterprises home and abroad, such as Zhengxin, Brighten Floriculture, Huatong, Youngplants, Mingxing, Lvjinyuan, Hua1 Zicai, Floseason, etc. Since GBGE is an excellent platform for enterprises to promote their brands and establish their images, exhibitors rack their brains trying to decorate their booth uniquely with the products that they are proud of. Some give you an illusion of a western fairy land and the others make you feel like you have accidental walked into a Chinese ink painting. Their booths are teaming with visitors such as dealers, retailers, wholesalers, agents, florists, media, professional buyers, trade groups, experts, people from construction departments, floral associations, hotels, media and other organizations. Insiders from more than 60 countries and regions, including Germany, France, Russia, India, Australia, Vietnam, Sri Lanka, Dubai, Saudi Arabia, etc, gather together under one roof to celebrate this annual grand event in laughter.

 

Concurrent Events Injecting Vitality Into GBGE2017

Get a little tired walking around the exhibition hall? Why not stop and watch the Flower Arrangement Contest? Tens of innovative and artistic flower arrangement works created by masters will make their debuts in front of hundreds of audience. It will not only be a rest for your feet, but also a rest for your soul. If you are looking for inspiration for your gardening career, you can also come to GBGE New Varieties and Technical Exchange Meeting, which will be filled with the insight and wisdom of experts and professionals. What’s more, since GBGE2017 is one of the thematic show of the 9th China Landscape, Garden, Greening & Better Living Fair and, the 7th Guangzhou International Green Seeding Fair will also be held in the same complex, covering planting machinery, irrigation equipment, gardening hand tools, greenhouses and plastic shelter equipment, horticulture and garden application products, landscape planting, seedlings, pesticide, herbicide, etc. If you are interested, please contact us so that we can send you more useful information and material for your further reference.

 
Amiran and Adama Introduce Grizly- an Advanced Systematic and Contact Insecticide

Amiran’s agro- innovations have involved new, science-based products and processes that offer growers reliable methods for increasing productivity. Grizly, Amiran’s new product from Adama is one such product that caters to the needs of the farmer by controlling the dreaded infestation of caterpillars, whiteflies and thrips on roses.

The novel product that brings forth field-proven solutions was launched in the Mt. Kenya and the Lake Regions in separate events that attracted Farm owners, Managers and Farm Technical teams for a detailed training on the product and important characteristics when choosing an effective insecticide. Most in attendance expressed their interest in the product citing that they are very eager to try out Grizly. Amiran and Adama Introduce Grizly- an Advanced Systematic and Contact Insecticide Grizly is an insecticide which combines two active ingredients; Imidachloprid (neonicotinoid) and Novaluron (benzoylphenyl urea). Its combination provides a solution against caterpillars and thrips on Roses and Vegetables.

During the launch, Robert Wachira, Adama’s Country Manager explained that, “Having efficient systemic and contact activity, Imidachloprid acts on the insects’ central nervous system by interfering with the transmission of stimuli, resulting in the insects’ paralysis and eventually death whereas Novaluron (IGR) inhibits chitin formation, stunting growth and development of immature insects during larval stages thus bringing mortality.”

Grizly’s Characteristics

 

  • Unique mode of action, suitable in IPM and IRM
  • Long residual effect
  • High selectivity to most beneficial insects and pest predators whilst providing strong pest control.
  • Broad spectrum
  • Compatibility – Compatible with most insecticides, fungicides and acaricides.
  • Great flexibility – Provides a sharp, consistent protection from insects between sprays and may either remain on the surface or penetrate into the leaf.

 

 

Benefits

• Cost effective Grizly

combines with a wide range of pests. It acts against the pests with a long residual effect which does away with the need to purchase and apply multiple insecticides

• Maximize crop potential by improving its health and vigor

• Higher yielding crops

• Better looking crops and improved crop quality

• High revenues (profits) to the growers

 

“With change being inevitable due to the continuous emergence of new challenges in agriculture, Amiran has remained focused on finding solutions to the setbacks faced in the field. We put our time and effort on researching new pests and diseases. Out team of experts find solutions that provide farmers’ fast action to counter agricultural hitches. Amiran is proud to introduce Grizly, a product that is more than just an insecticide for it ‘covers’ growers in more ways than one”, states Pole Mwadzombo, Amiran’s Export Farm Agronomist.

 
BREXIT: Unsettling Perspectives For Floriculture

In an ever increasingly competitive and global business environment, Brexit has hit particularly hard companies operating in the trade and distribution of cut flowers and plants on the European market. With a market share of around €1 billion and as the second largest import market for floricultural products, the UK is a major destination for suppliers and traders based in the EU (the Netherlands, Germany, Italy, Denmark and Belgium in particular), but also in Kenya, Colombia, South Africa, Turkey, Israel and Morocco.

The diverse range of businesses contributing to the overall supply of floriculture products to the UK market have long been operating at a fully international scale and are characterized by crossborders activities along the value-chain, heavily relying on the benefits offered by the EU single market in terms of market access conditions and harmonized rules and regulations.

“Brexit triggers many uncertainties for floriculture businesses in the EU and across the world. Longer-term perspectives are particularly unclear at this moment as various scenarios are being envisaged for the future trade relations between the UK and its current trade partners in the EU and in the rest of the world, says Herman de Boon, president of Union Fleurs, the International Flower Trade Association which gathers in its membership all the major countries supplying flowers and plants to the UK market.

“The market fragmentation and the possible reinstatement of tariff and nontariff barriers, particularly in the area of phytosanitary rules and other norms and standards, that could result from a standalone UK will directly impact the operations of many floriculture businesses in the EU and worldwide. For more than 50 years, Union Fleurs has stood for the free flow of floricultural products from supplying countries to consumption markets and advocated for a level-playing field along the supply-chain in the EU and the rest of the world. We will continue actively promoting seamless markets and trade in Brussels and will closely monitor the next steps in the re-designing of the UK’s trade relations with the EU and the world as they will unfold. Many questions need answering as early as possible for businesses to adjust and absorb the aftermath of the outcome of the British referendum, which we all deeply regret. “

“With the exit of the UK from the EU, we will definitely lose a business & trademinded partner country, which has always constructively contributed to the various EU policy and regulations that are being discussed and designed in Brussels”, notes Frank Zeiler, Chair of the Union Fleurs EU Section, which looks after the common interests of all Union Fleurs EU-based members. “In this particular period marked by uncertainties and risks of all kinds, the common values of diversity, internationality and innovation long-promoted within the floriculture sector should continue prevailing.

Our EU-based members - wholesalers and traders of floriculture products - have built successful businesses and supply-chains relying on the prospects offered by the EU single market and operating on the basis of demand & supply without any direct intervention or market support by the EU authorities. We will continue promoting these values in Brussels and advocating for market openness and cross-borders cooperation to actively support our members in delivering quality flowers and plants to European and British consumers.”

 
The Role of Tax incentives in Cushioning the EPA Impact

Ask any coach and He will tell you that when his fate depends on competitors’ match, the situation is out of control. So, it is with Kenya as our fate will be determined by Tanzania and other EAC Countries. The truth is, we are in a catch 22 situation. This is the time for Kenya to think outside the Box and redeem its flower and export sector.

Faced with the pressures of loss of foreign direct investment, loss of employment , capital movement and the threat that companies will relocate unless provided with concessions to cushion the EU tax regime such as more lax regulations and lower taxes, government must respond by promoting tax incentives to attract and retain investment capital.

Having limited economic options Kenya should move to tax competition as a central part of their sector development strategy to attract and retain the companies in the country.

 

Why?

A number of growers say the business is no longer a profitable undertaking under the current business cost regime. In case the EPA is not signed, this will require urgent measures to cushion producers against unhealthy competition from countries with less costly systems.

Read more...
 
Silpack Industries Ltd

Introduces Next Generation Packaging Solution

Packaging might be the unsung hero of the fresh produce industry. It might not be the sexiest part of the supply chain. It is a sector that might be perceived – wrongly – as a less glamorous component of the supply chain. But without adequate solutions that work up and down the chain, produce will never arrive for presentation at the right quality. However, behind the scene as Mr. Masila Kanyingi found out in a thirty minutes tour of Silpack Industries Ltd, there exists a wealth of innovation and dynamism within freshproduce packaging. Silpack the introducers of SoliQ brand in Kenya has been exploring innovative methods to boost sustainability, increase efficiency, reduce costs and improve packaging as a marketing medium. The newest kid in block from their R&D department is “i pack”, the next generation packaging solution as Mr. Parit Shah, a Director with Silpack Industries Ltd, proudly refers it.

Masila: The flower industry has been yearning for quality packaging solutions; briefly discuss your efforts to quench their thirsty.

Parit: Over the past few years, we have recognised that growers have invested heavily in selection of the right variety and the best production practices for quality production. However, today the bottom line has become more dependent on ensuring quality produce reaches the market in the same quality. To ensure that our customers maintain the same quality throughout the cold chain, Silpack Industries Ltd introduced the SoliQ branded cartons, printed SFKs and other branded packaging products. However, despite this advancement in technology, some customers continued to prefer the traditionally constructed box using relatively weaker paper. This compelled Silpack Industries Ltd R&D department to engage into further innovation to ensure these growers still enjoy a strong box all through the cold chain. The fruits of these efforts are “i pack”, the next generation packaging solution.

Masila: Briefly discuss i pack, the products it covers and how it works.

Read more...
 
EU Trade Pact

Tanzania Refuses to Sign EU Trade Pact

Tanzania’s refusal to sign a new trade deal between the East African Community (EAC) and the European Union (EU) has generated anxious reactions. If news reports are to be believed, plans had been made for a signing ceremony to take place during the just-concluded United Nations international conference on trade in Nairobi. In the event, the Kenyan foreign minister said more time would be required to rally all the countries around the trade deal.

 

While opting out of the joint EU-EAC

Economic Partnership Agreement, Tanzania cited the economic and constitutional uncertainties arising from British voters’ decision to leave the EU. Tanzania argued that, with the exit of its core market from the EU, it had little to gain from the partnership agreement negotiations, and that signing up would harm its “national interest”.

As much as Kenya may feel short-changed by Tanzania’s last-minute decision, it is probably an opportunity to get things right. It is important that the EAC member states take time to reflect afresh on the Economic Partnership Agreement negotiations so as to come out with a better deal.

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