ISHS Acta Horticulturae 482: International Symposium on Cut Flowers in the Tropics
MARKETING OF CUT FLOWERS IN THE FUTURE |
| Author: | J. Kras |
| Abstract:
Demand for fresh flowers and plants will increase world-wide over the coming years, both in the traditional consuming countries and in new economically growing countries. The market share of non traditional outlets will increase although not as fast as in the vegetable and fruit sector, where groceries lost their position nearly totally. Still these non-traditional outlets are the fastest growing segments in consumption. More and more fresh flowers and plants are used as intermediate product in bouquets and scales in combination with hardware. Production of flowers and plants grows faster than consumption, which leads to perpetual price competition. Growers continue to specialize. Worldwide, the number of producers increases but in Western Europe the number goes down. We see the size of the nurseries growing, the turnover going up and the productivity increasing but the number of growers going down: shake out of growers, less growers both in absolute and relative terms. Wholesale will be near production centers, so that the new production countries new wholesalers will settle. The improving infrastructure, the EU regulations, growing market shares of non traditional outlets, better communication methods and more professional wholesalers will make competition higher and lead to a shake out amongst wholesalers. Wholesalers will specialize in functions. Fewer wholesalers will have higher turnovers. Vertical integration will not lead to disappearing of the wholesale function and will, at least for the short future, lead to better exchange of demand and supply information, and strengthen the current shake out trend. Modern communication system helps trade but does not replace functions. Consumption and production will remain a regional affair, but there will always be some worldwide trade. This world wide trade will be restricted to certain periods of the year, to certain products, to specific production conditions and to accidents caused by nature. Intraregional trade will increase in movements, products and trade value. | |
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