Floral industry

From Wikipedia, the free encyclopedia

The floral

industry is

one

of

the

major

industries

in

many

developing

and

underdeveloped

countries. Floriculture as an industry began in the late 19th century in England, where flowers were grown on a
large scale on the vast estates. 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
flower trade was 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: the growers, the wholesalers and
the retailers whose 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

like aircraft holds.

Other

flowers

cannot

survive

for

long

periods

out

of

water

such

as orchids, gerberas (gerber daisies) and water lilies. These are either sent with their own sealed water
container (called picks) on each stem end - for more expensive or tropical flowers - or are transported in
buckets of water (This method of transport in water is often referred to as ["Procona]"). The latter method
extends 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
air transportation charges are higher.
Flowers take a number of routes to the consumer, depending on where they are grown and how they are to be
sold. Some growers cut and pack flowers at their nurseries, sending them directly out to the consumer by mail
order. Some flowers are sent to packing companies, who grade the flowers and arrange them in bunches for
sale to supermarkets or to deliver by mail order. Some flowers are graded and sleeved by the growers and sold
at wholesale flower markets; the wholesalers then sell them on to florists who condition and arrange the 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,
where Japan, Western Europe and North America were both major producers and consumers. The major
consumer markets being Germany (22 percent), the United States (15 percent), France (10 percent),

the United

Kingdom (10

percent),

the Netherlands (9

percent),

Japan

(6

percent), Italy (5

percent),

and Switzerland (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 at Aalsmeer is the largest flower market in the
world. Since the mid-1970s, the production and distribution of cut flowers in Netherlands has burgeoned. In
1995, Dutch growers produced over 8 billion blooms and the flower auctions collectively traded more than 5.4
billion guilders (about $3.2 billion) in cut flowers and potted plants, 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 offloricultural genetics. The new centers of production are
typically developing countries like Colombia (second largest exporter in the world and with a market of more
than 40 years old), Ecuador,Ethiopia, Kenya, and India. Other players in this global industry are Israel, South
Africa, Australia, Thailand and Malaysia. New Zealand, due to its position in the Southern 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 the Kenya 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.

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 of
India. 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

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

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

SCOPE

trade.

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

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

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

Dry

with

sound

technological

back-up.

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

(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, agrotechniques

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

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

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

Import

and

of

means

of

employment

Floricultural

to

the

Produce

youth.

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.

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.