Horticulture Science Lesson 54 Exploring the International Flower Market

1. Horticulture ScienceLesson 54Exploring the International Flower Market

2. Display a variety of flowers in front of the class. Include flowers from Europe, South America, and Hawaii. Ask the students to tell you where they think each of the flowers originated. As the discussion progresses, ask how the flowers got to this classroom and when they were harvested. Interest Approach

3. Describe the scope of the international flower market in the florist industry. • Explain the international flower distribution system. Student Learning Objectives

4. Terms • export • import • mass market • perishable • retail florist • wholesale florist

5. How big is the international market to the cut flower industry? • The USDA Economic Research Service reports that the world cut flower trade is concentrated in a relatively small number of countries. • The Netherlands is the world’s leading exporter of cut flowers. • An export is a good or commodity shipped from one country to another. • Germany is the top market for imports. • An import is a good or commodity brought into a country from another country. • Roses are the major traded cut flower.

6. How big is the international market to the cut flower industry? • The Netherlands is by far the largest exporter of cut flowers with around 60% of all exports. • The Netherlands is the main supplier of cut flowers in Europe, especially to Germany, Switzerland, France, and the United Kingdom. • Columbia, Italy, Israel, Spain, and Kenya are significant exporters of fresh cut flowers, and China’s exports have been growing rapidly. • 1. Germany consumes the greatest quantity of fresh cut flowers. • It is followed by the United States, the United Kingdom, France, Netherlands, Japan, and Switzerland.

7. How big is the international market to the cut flower industry?

8. How big is the international market to the cut flower industry? • 2. In the Americas, Colombia stands out as the primary supplier to the United States, followed closely by Ecuador. • 3. Japan is Asia’s primary market. • Its most important suppliers are Taiwan, New Zealand, and Europe. • 4. Regular air traffic linking the world today makes an international market possible. • Today’s airline industry helps get flowers from a grower to the retail consumer in a short period of time.

9. The Dutch flower auction at Aalsmeer How big is the international market to the cut flower industry? • 5. A variety of countries throughout the world sells flowers through the International Flower Auctions in the Netherlands. • There are seven flower auction houses in the Netherlands. • The one in Aalsmeer is the primary international outlet for cut flowers.

10. How big is the international market to the cut flower industry? • According to the USDA Floriculture and Nursery Crops Report, the United States’ projected value of fresh cut flower imports for 2006 is nearly $750 million. • That makes up 66.1% of all cut flowers sold in the United States. • To give an idea of the trend, in 1994 only 50% of the cut flowers were imported. • During the 1980s and 1990s, production of the major cut flowers shifted from U.S. growers to South and Central American growers.

11. How big is the international market to the cut flower industry? • 1. The cause of the shift to South and Central America is attributed to year-round production, lower labor costs, and little or no energy use for heating or lighting. • 2. Since the beginning of the shift, U.S. growers have focused on higher value specialty cut flowers, such as orchids, irises, lilies, and tulips. • In 2002, sales of specialty cut flowers topped $100 million, making specialty cut flowers a major segment of the total U.S. cut flower sales of over $400 million. • 3. Eighty to ninety percent of the fresh cut flowers entering the United States pass through Miami International Airport. • They make up the airport’s largest single commodity handled.

12. How big is the international market to the cut flower industry? • 4. In 2005, Columbia and Ecuador exported approximately 90% of all roses, 98% of all carnations, and 95% of all chrysanthemums sold in the United States. • The Netherlands account for almost 95% of all U.S. tulip imports. • Roses, lilies, gerbera daisies, freesias, snapdragons, and cymbidium orchids are other major Dutch exports to the United States. • 5. Canada is the recipient of about 80 percent of U.S. floral exports, mostly fresh-cut flowers and live plants.

13. How do flowers move from a grower to a retail florist in the United States? • Fresh cut flowers are obtained in one of two ways. • Wholesalers in the United States may place orders with a broker representing an exporting country. • The wholesale florist purchases cut flowers, cut foliage, and hard goods from a number of suppliers for resale to retailers. • The other option is to place direct orders with the producers for shipment to a well-located airport in the United States and delivery to the wholesaler’s warehouse.

14. How do flowers move from a grower to a retail florist in the United States? • The Holland auction house is a good example of purchasing cut flowers through a broker. • This pathway involves floral auction houses located in Holland. • Through this route, crops move from the producer to an exporter, wholesaler, retailer, and consumer.

15. How do flowers move from a grower to a retail florist in the United States? • 1. Gladioli grown in Israel, tulips grown in Holland, and carnations from Italy are harvested and flown or trucked to the auction houses. • Buyers representing wholesale florists in the United States inspect and buy the flowers in early morning auctions.

16. How do flowers move from a grower to a retail florist in the United States? • Once purchased, the flowers are quickly packed and shipped by air to the United States. • The flowers arrive early the same day in a convenient airport and are trucked to the wholesale house.

17. How do flowers move from a grower to a retail florist in the United States? • The wholesaler takes orders from retail florists, garden centers, grocers, and mass merchants. • Mass merchants are sometimes called discount stores (e.g., K-Mart, Target, and Wal-Mart). • The cut flowers are repackaged and delivered to the retailers. • Traditionally, a retail florist provides floral design services, cut flowers, foliage plants, and potted flowering plants.

18. How do flowers move from a grower to a retail florist in the United States? • 2. Cut flowers are perishable, meaning they degrade over time. • Therefore, it is critical that floral products are delivered to market as soon as possible.

19. How do flowers move from a grower to a retail florist in the United States? • A large number are purchased from the producer and shipped directly to the United States. • Most of the flowers bought from Columbia and Ecuador are shipped directly to the United States through Miami. • Purchasing directly from a grower eliminates one full day from the process, allowing the florist to obtain a fresher product. • The following example traces fresh cut roses from Columbia to a retail floral shop in the United States.

20. How do flowers move from a grower to a retail florist in the United States? • Tuesday, 7 a.m.—Roses are cut early in the morning while well-hydrated and moved quickly to coolers. • Tuesday, 1 p.m.—Roses are graded by color, stem length, and stem thickness. • They are bathed in a weak bleach solution to retard bacterial and fungal growth.

21. How do flowers move from a grower to a retail florist in the United States? • Wednesday, 6 a.m.—Roses are boxed, sometimes with ice, and trucked to the airport in Bogotá. • Wednesday, 9 a.m.—Roses arrive in Miami. • Floral wholesalers ship the roses to destinations around the country by air, truck, and railroads. • Thursday, 4 p.m.—Roses arrive at local wholesale florists. • They are unpacked, conditioned, placed in coolers, and sold. • Friday, noon—Roses reach the retail florist, are processed, and sold.

22. How big is the international market to the cut flower industry? • How do flowers move from a grower to a retail florist in the United States? Review/Summary