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IPM ES S EN Firmly rooted in the yearly horticulture calendar IN T ER N AT I O N A L G ROW ER O F FloraCulture T H E Y E A R 2019 Meet the finalists International WWW.FLORACULTUREINTERNATIONAL.COM JANUARY - FEBRUARY 2019 GO FORTH AND MULTIPLY Plant Propagation in Focus
THE PÖPPELMANN EFFECT: Come and see, Closed visit them all. You are more material loop. than welcome Environmental and climate protection is becoming more and more important for the end consumer. The topic of resource conservation is equally crucial to us as well. This is why the plastics used for our plant pots come directly from recycling bins and end up there again, too. Participants Dutch Lily Days 2019 14 Participants For more information visit: poeppelmann.com/blue 1 P. Aker 2 Van den Bos Flowerbulbs 3 BOT Flowerbulbs 4 De Jong Lelies Holland 5 Lily Company 6 Mak Breeding 7 Onings Holland Flowerbulbs Visit us in hall 2, 8 C. Steenvoorden booth 2D31. 9 GAV’s Lilies 10 Gebr. Vletter & Den Haan 12 6 11 VWS Flowerbulbs 13 5 3 4 12 World Breeding 11 1 Alkmaar 13 Zabo Plant 14 Royal van Zanten We do it. 14 Amsterdam More resource-saving. 8 9 Utrecht 10 Den Haag Arnhem >> 7 2 Eindhoven >> Rotterdam
JANUARY/FEBRUARY 2019 VOLUME 29 NUMBER 1 F R O M T H E E D I TO R CONTENTS GAUGING THE MOOD OF THE INDUSTRY The annual Tropical Plant Industry Exhibition (TPIE) at the Greater Ft. Lauderdale/Broward COVER STORY County Convention Centre in the US and the IPM 28 ESSEN in Germany are the first two major trade 18 GO FORTH AND MULTIPLY exhibitions for gauging the mood of the industry Plant propagation in focus. each year. There is no reason 2019 should not be a good year for the North American and German markets, predict our contributing writer in the U.S., FEATURES Chris Beytes from sister publication GrowerTalks. He, and other industr y figures from China, 15 WHAT DOES 2019 HAVE IN STORE? Germany and Colombia, were asked to give their FCI asks industry figures from around the world to give their predictions of what we might see in global orna- predictions for 2019. mental horticulture in 2019. Page 15-17. 28 CÔTE D’IVOIRE With the new year comes new objectives and new Repatriating cutting production to West Africa. goals. The stories we hear from stakeholders within our industry are truly inspiring as they reveal a 30 CENTRAL AMERICA desire to improve on last year’s achievements and Key player in ornamental cutting trade. make the most of current and emerging opportuni- 33 PMA FRESH SUMMIT ties. However, there are also challenges around cash Attending the ‘Super Bowl of Supermarket Floral’. flow, recruitment shortages, rising airfreight costs and family business succession. New challenges 34 INTERNATIONAL GROWER OF THE YEAR AWARDS also appear due to changes in the political arena Meet the 2019 finalists. (Brexit), legislation (the European Court of Justice ruling that gene editing is GMO), demography (the rise of the less flower-minded millennials), tech- VOICES nology (robotics, artificial intelligence, machine 08 33 learning) and perspectives (the United Nations 04 FROM THE EDITOR stating that climate change is the defining issue of our time). It is encouraging to witness that all these 07 WHY WINNING AWARDS IS IMPORTANT issues are clearly on the radar of many a horticul- FOR YOUR BUSINESS tural entrepreneur, despite being preoccupied with 17 TRADE MARKS AND VARIETY DENOMINATIONS daily tasks. Entrepreneurial skill is what the finalists in the IN EVERY ISSUE prestigious International Grower of the Year Awards (IGOTY) represent and bind. The Awards 06 WORLD NEWS were launched by the International Association of Horticultural Producers (AIPH) in 2009 to recognise 08 VIS-À-VIS best practice in ornamentals production around 44 EXPOSURE the globe. FCI is one of the proud sponsors of this 51 SAVE THE DATE annual event and industry celebration. Meet the 2019 finalists on page 34-41. Propagation materials for ornamental bedding, garden and pot plants are increasingly sourced from all corners of the world. In Central American FloraCulture International is an independent trade magazine with the largest circulation countries, companies such as Ball, Syngenta and for a world publication of its kind. FloraCulture International is published for the Dümmen Orange have established large production ornamental horticulture industry by the International Association of Horticultural Producers units to cater primarily to the US market. Page 30. (AIPH). It's published six times per year worldwide. Editorial Team: William Armellini, Chris Beytes, Jan-Dieter Bruns, Audrey Gerber, Hidde Koenraad, Haiyan Kong, Jaap Kras, In East Africa, ‘Made in Kenya’ and ‘Made in Richard Melnick, Jürgen Mertz, Marta Pizano, Ron van der Ploeg, Fred van Tol, Penelope 15 34 Ethiopia’ are stamps now found on such a wide Tomkins. Contact: info@floracultureinternational.com. Address: FloraCulture International, range of cuttings that one almost forgets West Horticulture House, Chilton, Didcot, Oxfordshire OX11 0RN, United Kingdom. Worldwide Advertising Office: Angie Duffree, angie@floracultureinternational.com Africa was once a major plant propagator. Industry tel. 0031 (0)6 403 277 35 Printer: Drukkerij van Deventer Graphic design: Aryen 74 veteran Ed Malipaard sees potential in bringing Bouwmeester. Circulation Administration: FBW Abonneeservice, Postbus 612, young plants back to Côte d’Ivoire. He currently 3440 AP Woerden, The Netherlands. Subscribe: Sign up now for a free digital subscription www.floraculture.eu/subscribe Publisher: Published by AIPH ©2019 co-owns a 80 ha plant nursery near Abidjan. His FloraCulture International magazine. All rights reserved. Publisher is not liable for the adventure story starts on page 28. content of the advertisements. Photography by permission of copyright owners. 4 FLORACULTURE INTERNATIONAL January/February 2019 WWW.FLORACULTUREINTERNATIONAL.COM 5
VO I C ES WORLD NEWS B E LG I U M CHINA THE NETHERL ANDS GEVES trains Chinese in DUS testing Working with Community Plant Variety Office (CPVO) and Naktuinbouw, French-based seed testing station GEVES ran a course in China on protocols and procedures for testing the distinctiveness, uniformity and stability (DUS) of agricul- tural, vegetable and ornamental plants. The course was held from decided to extend the number September 11-15, 2018 and of species subject to registra- brought together DUS managers and operational tion (beyond wheat, cotton, maize, rice and soya) and no WHY WINNING AWARDS workers from two Chinese longer charge for official DUS IS IMPORTANT FOR Is Belgium horticulture organisations involved in the implementation of DUS testing, a sharp increase in the number of varieties applying YOUR BUSINESS a text book example? testing. The participants were employees of the Academy for protection/registration was observed in 2018 with around Cymbidium extravaganza Jan-Dieter Bruns is fourth generation CEO of one of Belgium is a partner country at the IPM ESSEN trade fair, from January 22-25. What makes the country’s ornamental horticul- of Agriculture dedicated to vegetable and agricultural 5,000 applications. With 26 official test stations, most of at Keukenhof Castle Germany’s leading plant nurseries Bruns Pflanzen. ture so special? species and workers from the them located in the eastern Across the road from Holland's famous spring gardens, Keukenhof Forest Department dedicated half of the country, the network Castle provided the perfect romantic backdrop for photography and Being awarded a prize as a company is always such In discussing how Belgium's ornamentals production differentiates to ornamental, fruit and forest will be expanded in the short filming of Cymbidium. a special honor. This applies to other sectors just itself, I’d be remiss not to mention the country’s outstanding repu- species. The training was term by 2 new stations. as much as to ornamental horticulture. An award tation for growing pot mums, azaleas and other global, ornamental organised under the aegis Training and exchanges The Cymbidium Road Trip made an As a result, a delegation of some 40 means appreciation and recognition for what has staple crops such as bromeliads. This is challenging for growers as of the Chinese authorities between EU Examination appearance in Saint Peter’s Square, florists embarked on a Horti Week been achieved, but it also inspires entrepreneurs to these are not the kinds of plants that consumers consider trendy. wishing to further develop the Offices and China could lead Vatican City in April of last year. It Tour in the Netherlands where they continue to improve and not rest on their laurels. Wallonia also comes to mind. In regards to geographic location, marketing of new varieties to increased cooperation then travelled to Lisse, Netherlands not only visited the International almost all ornamentals production is concentrated in Flanders. from different origins and between China and the EU in in November for a short ‘castle Floriculture Trade Fair (IFTF) and In Europe, different awards exist which recognise One exception, however, is the Ardennes which boasts a sizeable IP Key China (a European the coming months in order break’, before heading back to Italy FloraHolland Trade Fair but also best practices in horticultural production. In the number of large Christmas tree farms. Commission initiative for to strengthen Chinese DUS for Milan’s Myplant trade exhibi- witnessed the flower naming cere- United Kingdom, the prestigous Landscape Award is The most recent statistics indicate that production of ornamentals the implementation of teams, and to ultimately tion this February. mony of the new, pink Cymbidium presented in various categories, France has its own under glass in Flanders continues to decrease, compensated partially Intellectual Property). As consolidate Intellectual It is quite a journey that ‘Giorgina’ by Dutch growers René Victoires du Paysages, while in Germany the Land by an expansion in the nursery stock sector. Overall, there are fewer the Chinese authorities have Property in China. Dutch-grown Cymbidiums are van Eijk at Keukenhof Castle. schaftsa rchitekturp reis (Landscape Architecture growers cultivating larger plots of land. As such, Belgium’s ornamental undertaking, but the Italo-Dutch With over 238 ha of land, a stunning Award) and the TASPO-Awards rank amongst the horticulture industry follows worldwide trends in agriculture. trip is well worth the effort. Dutch landscape and fairytale interior, country’s most coveted accolades. However, for The consumption of flowers and plants are rather upsetting. Cymbidium is a proven favourite Keukenhof Castle was an excellent some prizes industry competitors cannot apply. Belgians aged over 65 spend around €60 per capita, the over 40s with Italian florists and end backdrop for a Cymbidium photo This is true for the Alma de l’Aigle Prize and the €20 and millennials only €12 per capita / per year. consumers. However, Italians are shoot and filming location. For the biennially-awarded Niedersächsischer Staatspreis Still, it’s not all bad news. Over the past ten years, nursery stock not always familiar with the varied event, Deckers decorated nearly (Lower Saxony State Prize). Recently I was deeply has been showing stability with a 2017 production area of 5,855 and bold colour palette of Dutch every possible surface of the 17th honoured to receive this award together with ha. Belgian nursery stock producers are highly skilled and Belgium Cymbidium. In Dutch greenhouses, century castle. Cymbidiums are Stefan Aust, the editor of the news magazine Der hosts excellent breeding and propagating companies and some Cymbidiums are grown in a perfect for all occasions so Decker Spiegel for many years and now publisher of the very successful potted and bedding plant growers. variety of sizes, colors and shapes provided examples of wedding, daily newspaper Die Welt. Statistically, Belgium is still Europe’s third largest exporter of flowers ranging from large butterfly-like get well, anniversary, party and and plants after the Netherlands and Denmark. flowers, mini Cymbidium sprays funeral arrangements. As a jury member of the International Grower of the In conclusion, my former Professor of Economics, A. Heertje, and cascading varieties. The goal Charles Lansdorp told FCI that Year (IGOTY) Awards I am convinced that this prize taught me that money consists of two main elements. The first is of the Cymbidium Road Trip was both the photography and videos represents special recognition for the awarded money in cash (notes and coins). The second is the money paid to promote the flower as one of will be used at the Myplant business and will further advance its development through the banks, which in today’s modern world is often via digital the ‘most exotic and fascinating trade show in Milan (February and motivation. Awards are very important for our payments. But we all know that cash-based Belgium is one of the flowers in the world’. 20-22, 2019) where a Cymbidium industry. They attract attention from the public by realities and differs from the world of statistics. Author: Jaap N. Kras. Cymbidium was the star of last pavilion will be the locale for a recognising outstanding achievements and create year’s flower decorations at Saint series of floral design shows. The confidence in the entire industry. And finally, for I TA LY Peter’s Square in the Vatican City Cymbidium photography will every employee who is passionate about their job, during Easter Mass. Following also be a source of inspiration for an award for the company is also a wonderful Milan’s FIDEC turns into green oasis the flower’s prominent presence in Rome, Dutch-born floral Italian wedding magazines ‘The Real Wedding’ and ‘Sposa White’ recognition of their work. I look forward to meeting all of you at the IGOTY award ceremony. The event Italy’s premier show for ornamental horticulture, Myplant & Garden, (Milan, February 20-22, 2019) was one of the sponsors of designer Paul Deckers, Charles which are among the trade show’s will take place at the IPM fairground on Tuesday, FIDEC, the Italian Construction Forum which brings together the major stakeholders in the Italian construction industry. Lansdorp (the brainchild behind media partners and have organ- January 22, 2019 in Essen, Germany. Italy’s Grandparents Day) and ised two wedding dress catwalk For the event, Myplant & November 21, 2018. associations, house builders, The key message was that our Royal FloraHolland’s Product shows for the event. Garden show organisers Myplant & Garden brought to engineers, suppliers and environment, well-being, Specific Promotion Group for cut In the Netherlands, currently transformed the Palazzo del the attention of contractors, construction professionals social cohesion and economies Cymbidium joined forces to bring around 65 producers grow cut Ghiaccio convention centre architects, developers, the essential role of plants in are all improved by intelli- the flower back to the attention of Cymbidiums on 110 ha of green- into a lush green oasis on local councils, housing creating vibrant urban areas. gently designed green space. Italian florists. house area. 6 FLORACULTURE INTERNATIONAL January/February 2019 WWW.FLORACULTUREINTERNATIONAL.COM 7
V I S -À-V I S ‘Maximising profits has never been the key driver’ As floral giant Dutch Flower Group (DFG) turns twenty this year, FCI sat down with its CEO Marco van Zijverden to discuss the company’s past, present and future. Selling the world’s ultimate feel good products doesn’t mean that all prospects are automatically rosy. “It is much easier to become the world’s largest than to remain the world’s largest.” F AUTHOR: RON VAN DER PLOEG CI showed up at the office sphere, hands-on learning is what of 10 to 20%. “You’re right to of Marco van Zijveren, I like the most.” say there’s no organic business CEO of Dutch Flower Van Zijverden was personally growth for 2018. We’re expanding Group, for the scoop of involved in selecting Dave out of a but that’s through our acquisition the year. In a surprise pool of 50 candidates. It perfectly of Rosalink in January 2018 and move, Van Zijverden was about to illustrates how the 56-year old by adding My Peony Society, announce his successor to head the CEO of the world’s largest floral Parfum Flower Company and USA esteemed company. Only then did it wholesaler, once a student at the Bouquet Company to our portfolio. become apparent that newly-named Nyenrode Business University, Meanwhile, global consumer CEO Dave Kroeze would only be places importance on finding young spending on flowers and plants is holding the position for one day for talent if only to challenge a few not growing despite a seemingly HortiHeros’ CEO for a Day Scheme. myths. Ornamental horticulture is buoyant economy. Growth is The 23-year old Kroeze is currently increasingly a global business that stalling at the FloraHolland auction, working towards a bachelor’s also needs technical talents. “The Dutch plants and flower exports degree in Business Administration job of a grower is automatically are not showing any significant and Consumer Science and spent associated with physically taxing growth. The truth is: when your an entire day shadowing Marco work. In Roelofarendsveen, not far business continues to grow, it is van Zijverden at the leading floral from the Aalsmeer region, growers easier to meet rising operating wholesaler’s HQ in Aalsmeer on were nicknamed, ‘bukkers’, a costs. If not, you’re forced to make November 19. reference to people who are always your processes even more efficient. Is Van Zijverden also ready to be close to the ground, doing work that However, operational efficiency is Student for A Day? “Why not? requires a lot of bending, stooping easier to achieve in times of expan- Following my appointment at DFG and kneeling. But the reality is sion,” says Van Zijverden. I never re-enrolled in college but that the larger companies within there is always room to learn new our sector are extremely advanced SPECIALISM skills. But it depends on the type. and embracing automation and On January 1, 2019, DFG turned At Nyenrode, for example, I was robotics.” 20 years old, a floral powerhouse lucky enough to take classes from that will likely last for decades to Prof. Fred Lachotzki, a professor of GOOD OLD MILLENNIUM DAYS come. The company doesn’t plan Business Marketing who brought Speaking of business growth, to throw a big party but the DFG his professional and academic the question arises whether boss sees it as an opportunity to experience into the classroom. there is a longing for the good celebrate “the beautiful moments Being offered the practical tools old millennium days when DFG in life together.” And please, don’t you need to succeed in the business reported annual revenue growths be a party pooper by arguing that 8 FLORACULTURE INTERNATIONAL January/February 2019 WWW.FLORACULTUREINTERNATIONAL.COM 9
V I S -À-V I S behind a festive façade lies the sole purpose of business, that is, to make money. It’s a narrow image his company doesn’t deserve. “Back in 1999, the main motive behind the merger between Van Duyn Groep (1969) and OZ Group (1959) was strengthening our market position by exchanging knowledge. Once you have adequately addressed business continuity, profits will automatically follow. However, maximising profits has never been the key driver. Naturally, you need good returns but if maximising profits was our sole purpose we’d be better off to immediately stop size- able investments in areas such as digitisation, software, LED lighting and solar energy. Each investment is done with the intention of retaining Visit our our leading market position at various levels.” trade, while OZ Group had earned SUB-OPTIMISATION One thing Van Zijverden feels a name in servicing wholesale In its touchy-feely corporate brand new particularly proud of is DFG being companies in over 60 countries communications, Dutch Flower the biggest in the world when it and had seen their import business Group stresses how the company comes to trade specialism. “In 1999, rise dramatically. “I firmly believe is a warm and close-knit family of website at Van Duyn and OZ Group combined that diversity was and continues over thirty different international had revenues of nearly 250 million to be our strength. Nevertheless, trading businesses. Sounds too euros, 20 years later this figure is there was cultural compatibility good to be true when considering 1.5 billion euros. Nevertheless, we as we shared the same vision of that under its corporate divisions www.vitroplus.nl have faced some headwinds. In the our industry and its future. But we (which operate as separate legal early years of the merger, the board shared only one single customer...” entities with different business of directors may have granted one Initially, the fear was that the large names) there may lurk the potential particular member of DFG too much scale sales forces of the newly born danger of sub-optimisation - a freedom which resulted in overhead DFG would squeeze out growers situation in which a business is not costs being disproportionately high. by putting pressure on prices. as successful as it could be because We liquidated the assets ourselves, “This appeared to be unjustified”, one part or department works on settled with our creditors, and stresses Van Zijverden. “There its own or only for its own success. arranged a redundancy plan. Van Zijverden explains how it is The fact that we opted for proper important to allow top management liquidation instead of bankruptcy, to receive shares in the company. for settling the matter to everyone’s ‘IF YOU’VE EVER HAD “As such you can ensure a more satisfaction, has helped us main- TO LET STAFF GO, YOU KNOW than average commitment with tain a good reputation. But if you’ve the directors’ self-interests and ever had to let staff go, you know HOW DIFFICULT IT IS’ the best interest in the company how difficult it is. It’s definitely more fun to hire a new employee.” becoming intertwined. But the art of governance is defined as an internal Vitro Plus B.V., P.O. Box 1 A RECIPE FOR A are examples where our company size was of detriment. Take the UK structure supporting and enhancing communication between the 4328 ZG Burgh-Haamstede, GOOD MARRIAGE The Netherlands market for Chrysanthemums. We different divisions. The exchange When looking back over the past needed such big product volumes of knowledge is and always will 20 years the conclusion is the that we were pushing up our own be vital to the company’s success. corporate marriage between Van prices. As such, we started to There are also disadvantages of Duyn Groep and OZ has withstood explore other areas in the world shares, but they don’t outweigh the test of time, despite the two dedicated to Chrysanthemum the benefits. Creative thinking companies being fundamentally different. Operating under the growing. We ended up in Colombia where we started transporting within our family of companies should always come first. I agree Tel. +31 111 468088 name Superflora, Van Duyn Groep was one of the first wholesale the flowers by sea. Today, 10 to 20 reefer containers leave Colombian that we had a learning curve ahead of us with way more competition Contact: ellen@vitroplus.nl companies, back in the 1970s, to ports weekly on their way to between the separate divisions in sell plants and flowers to the retail Europe.” DFG’s early days. Take Hamifleurs Meet us at TPIE 2019 booth 2119 and IPM 2019 booth 2A19 10 FLORACULTURE INTERNATIONAL January/February 2019
V I S -À-V I S V I S -À-V I S in the Westland area and OZ Export heavily? Van Zijverden: “We are and encourage them to invoice in Aalsmeer, serving more or less working on all aspects of the trade everything through the auction. based The USA Bouquet Company largest than to remain the world’s the same market segments. That’s to make sure we are well-prepared But as soon as you start to compete (USA Bouquet) joined forces with the largest with constant threats to the 99.9% gone now. Our motto is that with our UK-related companies. with your biggest client then we will Dutch Flower Group Retail Division market leader. With sales in over diversity keeps our floral family We remain confident that, for change our tone of voice. By stating (DFG Retail). USA Bouquet is the 60 countries, the company has a alive. I believe that for one big example, pre-clearance of our fresh this I continue to express myself largest US-based manufacturer of geographical scale that is hard to company with a sole corporate products in the supply chain will cordially if you know what I mean.” domestically made bouquets with duplicate. But I have no problem if culture it would be much more stay flawless. But we will only have Whereas DFG and FloraHolland were six locations strategically located others do so. Take the Floral Trade complicated to be an important certainty when new arrangements frequently on a collision course, the in major ports of entry maximising Group which has set up a profes- player in each individual segment of are formally in place.” relationship between the two has distribution.” sional organisation. What truly the market.” Working with DFG streamlines the normalised. “I get along pretty well Van Zijverden has a clear view on concerns me are the little players retailer’s buying process, stresses with the current CEO, Steven van what’s realistic. “A lot boils down with much smaller overheads. HOW TO BRING VALUE Van Zijverden. “If DFG has been Schilfgaarde. What makes things to exchange rates. A strong dollar Real disruptive ones? So far, I have TO THE BUYER? entrusted with organising the sometimes complicated is the fact will make our Dutch flowers more not come across them. However, Speaking of leadership positions, entire order, retailers only need a that the auction seems to have a new competitive on the US market. It what truly is set to become revolu- what does DFG do to retain the lead relatively small procurement team CEO every year. I’ve been at DFG for would be wrong to think that you tionary is the planned cooperation they have worked so hard to win? to source huge product volumes nearly 32 years now, but auction can simply duplicate the DFG mass between auction Royal FloraHolland Technology is driving e-commerce in a sustainable and transparent CEOs leave a bit sooner.” retail business model and transfer it and DFG for the further develop- and multi-channeling, supply way. We can also provide valuable to a successful clone in the US. Also, ment of Blue Roots. For the first chains are increasingly global and market information and help design CHINA: EAGLE EYE ON COSTS DFG’s role will always be a comple- time in more than 100 years, trade an increasing number of growers bouquets based on the latest trends Over the past few years, mentary one by sourcing around 10% and auction might sustainably join prefer to sell directly to retailers. and for specific consumer groups. Van Zijverden has followed of product from the Netherlands, forces. Such joint investment has Think tulips sold to Aldi or AH. In retail, adding value may be easier FloraHolland’s entree into China, Colombian flowers taking the largest never happened before.” Price negotiating and assortment than in traditional floral wholesale the country that has become portion of the trade.” are based on a direct business MAKING LIFE COLOURFUL model, skipping intermediaries. NEEDING A STRONG DFG’s mission is ‘Making Life With this in mind, how difficult is ONLINE BUSINESS Colourful. It’s a motto that perfectly it for a wholesaler to bring value to ‘I’VE BEEN AT DFG FOR NEARLY 32 YEARS NOW, While a physical presence is required fits Van Zijverden himself, he says. the buyer? Van Zijverden is quick BUT AUCTION CEOS LEAVE A BIT SOONER’ in China and Japan, important steps “All of this has indeed coloured my to add that “not all retailers prefer are equally being taken to strengthen personal life. I would never have to procure their plants and flowers DFG’s online presence. “The web dared to dream of this.” directly.” He continues, “ But yes, portal for our flower wholesale Where in the beginning mostly Art it does happen. For example DFG where we increasingly perform a one of the euro’s largest trading the Chinese market, we work closely companies is a work in progress and van Duyn was the company’s face lost ASDA in the UK when their logistics function. But one can also partners, accounting for almost with FloraHolland but with each step a sizeable investment, offering each to the outside world, Marco slowly own procurement organisation IPL excel in logistics while providing 7% of total extra-euro area we keep an eagle eye on costs because individual company the possibility took up the role of spokesman of added plants and flowers to their wholesale customers with a selec- exports (European Central Bank). eventually both growers and traders to create their own look and feel. DFG. “It’s a slow growing process. fresh portfolio.” tion of quality products without He sees untapped potential in the will have to pay for it. We have never Also in the development phase is You are not aware of it on a daily Basically IPL is reinventing the the added headache of dealing with country’s floral business. “One beaten around the bush: a lobbying the existing ERP platform within basis, but it really forces you to wheel. “They built warehouses, multiple suppliers.” of our family members, Holex, auction opening doors in China is the Retail Division with software weigh your words as people will cooling rooms and bouquet facto- recently opened the doors of its new perfectly okay with us but they must co-used by supermarkets. The final always try to draw something out ries. Was it worth it? I don’t know FROM COLLISION COURSE Shanghai branch to better serve our refrain from bizarre things. That is, goal is to have a completely new of you. But the job comes with a lot the answer, but it is clearly in our TO COLLABORATION Chinese customers. In exploring an auction that purchases and resells software package within two to three of responsibility as the company best interests to offer retailers a Meanwhile, another floral giant, flowers in China.” years. Furthermore, we are one of employs 2,500 personnel. I always great ordering experience, based Royal FloraHolland offers its The DFG CEO underlines that the final the initiators of Blue Roots. To make try to do my best and this comes on preferred suppliers. Working customers pre-auction sales and the production of bouquets should be done a complicated story short: Consider with a certain amount of pressure. with a limited number of large scale option of purchasing small quan- QUICK FACTS DUTCH on location in China using local or a the auction sales platform Floriday But if I really didn’t love what I am production companies, DFG’s aim is tities, sometimes a few containers mix of locally (Kunming) produced and as the grower’s power plug giving doing I would quit.” to exclusively sell ornamental crops only. Is the auction DFG’s biggest FLOWER GROUP imported flowers (Kenya). However, access to different sales tools such as The 20th anniversary is also a via contract farming. We will not get competitor? Van Zijverden: “Some much depends on finding the right clock, pre auction sales, FloraXchange moment to look back on a more into flower production ourselves but would say yes others no. In the mass €1.5 billion turnover (2017) local partner and well-oiled logistics. but it can also be Blue Roots. No, they blackened past. On Easter Sunday will establish long-term agreements retail, supermarket business the 2,500 employees China is a vast country: logistics and arent’competitors but if a partnership 2002 Marco’s father, Klaas, died and, in some cases, co-finance the answer is clearly no, in traditional 1,400 temporary staff cold chain are equally important. with FloraHolland is going to be suddenly of heart failure, only 65 expansion of flower farms.” wholesale, though, it is important offices in 12 countries finalised there are overlapping pieces years old. Overall it has made him While on the UK subject: the Brexit that transaction costs are passed sourcing from 30 countries COMPLEMENTARY ROLE IN THE US between FloraXchange and Blue more thoughtful. “Yes, I do miss deal is a milestone but uncertainty on correctly. As soon as we have exports to 60 countries Another important exercise abroad is Roots. So this has to be removed.” him although the sharp pain slowly remains. What if all Dutch (Flower the impression that the auction is 10 million bouquets/week to DFG’s presence in the US. “DFG is active disappears. When my father died Group) trucks were to face customs opting to subsidise this category of consumers via mass retailers in the US but its presence is still modest NO REAL DISRUPTION in 2002 the company was growing checks in Dover or the Hook of clients we will be forced to take a 75 million stems of cut flower traded when compared to the top five largest High market share can also mean rapidly but still taking shape. If only Holland? What if eventually Dutch different approach towards Royal every week to floral wholesale US wholesale companies. I believe we headaches. “Sometimes it keeps he could see what has been achieved flowers become too expensive for FloraHolland. How different? Thus 5 million plants traded every week have every chance to succeed in the US me awake at night but not in an in the past 20 years. Yes, I think he the British retail trade, the segment far we tell our growers that auction aiming to reach 90% sustainable sourcing by 2020 as we are also teaming up with local alarming way. But one cannot deny it would be proud, not only of me but some of DFG’s divisions rely on so membership comes with obligations partners. In April last year, Miami- is much easier to become the world’s of all my colleagues.” 12 FLORACULTURE INTERNATIONAL January/February 2019 WWW.FLORACULTUREINTERNATIONAL.COM 13
E C O N O M I C O U T LO O K What does 2019 have in store? As another new year starts, FloraCulture International asks industry figures from around the world to give their predictions of what we might see in global ornamental horticulture in 2019. United States Houseplants—foliage and succulents—have seen a resurgence. Most give credit to social media, especially Pinterest and Instagram, where consumers seek out What are the big factors impacting floriculture decorating ideas. The mainstream media has picked up on the trend, spreading it further. “Jungalo” is the clever businesses in the United States? name given to a small home or apartment overflowing with pots of greenery on every surface. “Since AIPH published its 2012 data on ornamentals Customers a have myriad of products upon which to AUTHOR: CHRIS BEY TES production areas in the U.S., the country has been flat, spend their hard-earned money. Will it be new plants or even down, in number of operations, amount of for the landscape or a new flat screen television? production space and sales dollars. At least we hope it is Thankfully, the U.S. economy is strong enough that flat, because we really don’t know for sure. The United some consumers can say yes to both. States Department of Agriculture last collected data on With that strong economy comes the lowest unem- 26.27.28 SEPTEMBER 2019 our industry in 2015, but that was for only 15 states. They had discontinued the annual report; however, they are ployment numbers seen in 50 years. All employers have been forced to raise the wages for entry level jobs by PADUA EXHIBITION CENTRE — ITALY reinstating the survey and will have data in 2019 for the several dollars over the state- and federally-mandated 70 th 2018 production year. Still, it will only be for 17 of the minimums, which puts a strain on the bottom line of 50 states. Despite a lack of industry growth, or perhaps growers and retailers, who have not seen an increase INTERNATIONAL EXHIBITION even a decline, there is still strong demand for our in profits. Raising prices is a must … but owners are all OF HORTICULTURE, LANDSCAPE ARCHITECTURE product, especially in spring. Flats of annuals have given too often afraid to do so for fear of losing business. But way to hanging baskets and mixed combination pots, even higher pay isn’t always the answer. There simply AND GREEN INFRASTRUCTURES especially of vegetative annuals. Perennials remain aren’t enough people who want to work in a greenhouse popular because consumers view them as a one-time, or nursery. better-value purchase (the labels “native” and “polli- The answer is to increase efficiency and reduce depend- nator-attractor” also help). And the vegetables and herb ence upon labour. This makes labour-saving tools and trend shows no indication of slowing. automation more affordable and desirable.” flormart.it WWW.FLORACULTUREINTERNATIONAL.COM 15
E C O N O M I C O U T LO O K VO I C ES China Colombia The China Flower Association (CFA) predicts What is the outlook for 2019 for the world's second that total production area of ornamentals will largest flower exporter Colombia? TRADEMARKS AND keep growing at a slow but steady rate. VARIETY DENOMINATIONS “Nearly 7700 ha under production with cut flowers AUTHOR: MARTA PIZANO were reported by mid-2018, reflecting a 36% Mr. Hidde J. Koenraad is Partner in Intellectual “Over the past five years, China’s lily industry increase from acreages reported in 2004. AUTHOR: HAIYAN KONG Property at Boekx Advocaten (Amsterdam). has decreased as seen by a reduction of 2500 Colombia’s natural export market has traditionally ha of production area. For 2019, total lily been the USA and that is the situation to date, with production is expected to further decrease roughly 75% of cut flowers reaching American As most readers know, the denomination of a plant due to quarantine issues of imported lily bulbs. consumers. variety is a generic term and by definition cannot be By contrast, the production area and volume The product mix has changed in the last 10 years a trademark. The main function of a trademark is to of potted Anthurium increased significantly with new flowers joining the scene particularly cut distinguish the origin of the goods or services of a in 2017 compared to 2016, resulting in a price Hydrangeas. particular company. If a breeder uses a trademark drop. As for government incentives or foreign Flower transport is a heated topic of the moment. for his variety, he may use it to express that the Germany investment boosting ornamental production, Asocolflores Chairman Augusto Solano says that material of that variety originates from him and is it is worth recognising the country’s Fighting maintaining freight costs within competitive limits of a special quality. Thus, the trademark represents for Accurate Elimination of Poverty initiative. can be a challenge. As flower trade increases in Asia, a certain goodwill and is, of course, also used for It will be backed by funding and policies. and marketing giants such as Amazon are starting advertising purposes for the breeder’s products. Floriculture has played an important role in to hire their own planes, securing sufficient capacity Unlike trademarks, a plant variety denomination is poverty reduction so more projects and invest- Germany is still by far the largest consumer at reasonable cost can be difficult. primarily about being able to identify the variety itself ments are expected in this industry. The United Kingdom is an important destination for and, thus, independent of its origin from a certain Expo 2019 Beijing and the construction of the market in Europe. But there is some concern Colombian flowers. Brexit is considered a complex company. Xiong’-an New Area, around 100 kilometers issue. Working with the Colombian Government in the industry about the future buying power southwest of Beijing are expected to boost local Asocolflores has initiated discussions on a possible Conflicts between trademarks and variety denom- production. This special economic zone (SEZ) of Germany with an aging and decreasing commercial agreement, but many questions still inations do arise from time to time. Recently, on will serve as an extension of Beijing and is remain. Will tariffs be imposed? How to deal October 23, 2018, the Dutch Trade and Industry expected to boost ornamentals production in population. with the logistical ‘trauma’ arising from borders, Appeals Tribunal (College van Beroep voor het bedri- the surrounding regions customs, procedures, paperwork? jfsleven, “CBb”) rendered an interesting decision on Addressing disruptive innovation in China’s “Last year, the Federal Office for Statistics Meanwhile, new generations have very different the admissibility of a variety denomination. AUTHOR: JÜRGEN MERTZ, CHAIRMAN OF GERMANY’S FEDERAL ASSOCIATION OF HORTICULTURE (ZVG) ornamental horticulture industry, CFA believes conducted its ornamental horticulture purchasing tendencies. The goal of Asocolflores this will happen in the field of the internet of production report. It confirms that the winds is to bring them into the consumer pool. They are The plaintiff is the holder of the European Union things, integrating big data with all segments of change continue to blow. The number of constantly working on promotion campaigns based trademark (EUTM) SPRINGBREAK filed on June of the ornamental horticulture industry, such active companies decreased significantly on consumer research studies.” 24, 2008 for products in Class 31 with the following as production, marketing, logistics, service, etc. compared to 2012 (-18 percent). However, with description: “Live plants and parts of living plants; Increasing labour costs and the lack of fully only 2 percent decline, total production area seeds, cut flowers; fresh fruit and vegetables.” It qualified employees and increasing costs of remains almost stable. In 2017, there were objected to the variety denomination 'Spryng Break' energy and fertilisers are definitely putting almost 3,700 ornamental plant nurseries in for a Dutch national application for plant breeders' pressure on profit margins.” Germany covering a total area of around 6,600 rights to a tulip variety, filed on February 21, 2013. hectares dedicated to the production of flowers and ornamental plants. This includes 1,700 The defendant successfully argued that it had hectares of protected cropping in greenhouses already registered 'Spryng Break' as the name for and polytunnels. its tulip variety in the register of the Dutch Royal Germany continues to be a major producer General Bulb Growers' Association (KAVB) on of bedding and patio plants, while perennial November 29, 2007, thus before the filing date of production continues to increase as well as the SPRINGBREAK trademark. According to the potted herbs, gourmet vegetables for balconies CBb, the consequence of this earlier registration and patio pots and potted bulbs. in the KAVB register was that, as of the latter date, Within the framework of the Federal 'Spryng Break' had become the generic designation Energy Efficiency Plan for Horticulture and for the tulip variety in question. The CBb considered Agriculture, ornamental horticulture makes the KAVB function as an International Cultivar a substantial contribution to sustainability. Registration Authority. As a result, according to Important cost savings can be realised. The the CBb, the commercial register of the KAVB has ZVG has actively campaigned among politi- such status that the mention of a variety name will cians to continue the programme. In November usually result in that name being generic from that 2018, the Ministry of Agriculture guaranteed moment on for the indication of, in this case, a tulip funding until 2021.” variety. The appeal was dismissed. 16 FLORACULTURE INTERNATIONAL January/February 2019 WWW.FLORACULTUREINTERNATIONAL.COM 17
PL A N T PR O PAG AT I O N PL A N T PR O PAG AT I O N EVENTFUL YEAR LIES EXCLUSIVITY OR NOT Schneider is Ambassador Begonia, Sunsation Helianthus, Lupo Petunias, Santa Cruz Begonias, Divine Dianthus and Petchoa Beauticals, but it’s not exclusively AHEAD FOR SCHNEIDER any one of these things. Their portfolio comprises products from all breeders. Schneider has never needed any exclusivity to stand the test of time with freedom in selecting the best genetics. However, breeders can claim specific series exclusively for themselves. “Take Syngenta’s Delta Series. The deci- sion to do this was made by Syngenta to help Floripro, 2019 promises to be a very important year for young mums here, a trolley of Brandkamp Fuchsias there, 20 the company’s distribution organisation. Considering trays of Florensis from another place. In an ideal world the marketing muscle behind Delta, it makes their deci- plant producer Schneider from the Netherlands. Not all plants would be brought together and combined. sion even easier to understand. Delta is really a prime only will ISO’s automated cutting sticker make its first Such an interconnected system based on groupage example of clever marketing with growers, and in some deliveries, reliable track and tracing and jointly agreed cases, even garden retailers made to believe they’re appearance at the company, but Schneider also plans to distribution fees would not only provide customers buying superior genetics. Personally, I think the lines in relocate to more suitable premises as part of a lengthy, across Europe with a one-stop shop for young plants, it ornamental breeding risk being blurred. One of the brain would also significantly reduce the number of transport childs behind Syngenta’s Viola breeding is now working compulsory purchase order process which is nearing movements.” at Benary’s, for example.” its final stage. In addition to these important steps, PRODUCTION AS SUSTAINABLE AS POSSIBLE Schneider will be setting up its own cutting production In Schneider’s greenhouses, the growing season is MPS-A certified, neonicotinoid-free Schneider Young practically year-round with the usual peak in Spring and Plants grows its young plants as sustainably as possible. in Africa by teaming up with a local partner. S maintenance integrated into the Winter schedule. The plant nursery reuses and recycles trays at every Marking the beginning of the season in December are opportunity. A mobile bench system allows more chneider has deep roots in the horticulture Begonia semperflorens for Turkey and Viola for the efficient plant irrigation, efficient handling of different AUTHOR: RON VAN DER PLOEG sector and runs a 3.5 ha young plant business Russian market. The greenhouses are never completely groups of plants with different growing conditions and in Ridderkerk, 10 km south of Rotterdam. The empty. “We start with the slower growing crops and, better control over crop quality. Sticky cards are up and company is currently co-owned by 46-year old, simply, what customers have ordered. Production sched- Jacob Schneider, cost and profit. “Considering our annual output it monitored on a weekly basis and are part of a wider third generation Jacob Schneider whose grand- ules are based on setting up one colour per week. Thus, co-owner and would seem more sensible to team up with an already integrated pest management programme. father grew vegetables for the local community. no customer- or country-driven production. In week managing existing cutting farm instead of setting up a whol- Schneider says there is no doubt that setting sustainable The family ties and personal touch are still important 4, we kick off with the big five in seed-raised bedding director ly-owned cutting farm. Our customers who are 500 development goals will strengthen the environment today. “Everyone tells boastful stories when it comes to plants, moving from warmer to cooler zones, trays are Schneider B.V.. km or even further away find it a hassle to source their for doing business and building markets across Europe. customer service. We prefer to keep things simple and labelled, it is decided whether vermiculite needs to be starting plants from two or three different countries. However, he would welcome a more balanced debate. make it personal. Customers such as Karol Pawlack from added and, depending on weather conditions, crops In these countries we would be able to differentiate “The sustainable intensification of young plants is Vitroflora Poland, Vilius Kamblevicius from Daigelis can be covered with white or transparent sheeting. To ourselves even more by providing the total package.” already achieved through a high-density growing Lithuania or Sergey Kanzankov from Rassada Russia accomplish this, we rely on a team of growers with over system encompassing hundreds of plants per m2. The know they can always walk through our doors and be 30 years of experience,” explains Schneider. VALUE PROPOSITION environmental benefits are bigger when I give the plants welcomed as friends.” The plant propagator from Ridderkerk produces Contrary to common assumption, being a plant distrib- the right treatment on the spot.” Jacob’s father, Lody, decided to specialise in ornamental 200 million seed-raised and 12 million cutting-raised utor in the age of the internet and overnight shipping plants in 1966. “Between 1970 until 1985 he produced young plants from almost 1000 different genera, can still be a strong value proposition. Schneider QUALITY almost all of Hamer’s young plants. In 1985, however, resulting in something of an imbalance that harkens explains, “From the breeder’s perspective, a young plant Keeping an eagle eye on quality has helped the Schneider Hamer and Schneider dissolved when Hamer launched back to the past when we only grew seed-raised plants. producer enables them to build the brand names of their company be successful. its own young plant production. We have a shared history One of the company’s future ambitions is to bolster its genetics. Moreover, by working with a company such Only the best genetics are good enough, stresses and strong ties, though for the previous generations the position in cutting production. as Schneider breeders are pretty much assured of large Schneider. “It is simply impossible to tell your customers relationship was tense and pragmatic at times.” scale introduction of their seed-raised products onto that plants have not germinated well and to come back ETHICAL COMPASS the market. If the same breeder decided to sell directly in two weeks. We prefer to work with the BMWs and INTERCONNECTIVITY In times of consolidation in global ornamental horti- to the end grower, there’s the risk we would stop buying Mercedes in young plants only.” Schneider believes, however, that one should never look culture, slowly but steadily dominated by a few major their genetics. It’s a sort of gentleman’s agreement According to Schneider, quality is providing plant at business relationships in terms of extremes. To some players, Schneider decided to ‘map’ his competitive not to do so. From the end grower’s perspective, our according to customer specifications and for the right extent the market is a pretty transparent one: everyone position and travelled to Africa to visit three cutting unique selling point is our independency and product price. “The art of growing is to provide consistent, high knows what’s out there, who the major players are, what farms. Working rights, working conditions and quality knowledge. We run test plantings of all new varieties, of quality regardless of climatic conditions. Again, roll has worked and what has not worked. In such a business standards differed between farms, ranging from all breeding companies, growing them side by side with benches are invaluable as they allow us to move batches environment it is important to strike the right balance well-organised companies running foundations to existing varieties and giving them the same treatment. over different temperature zones. Contrary to ebb and between competition and cooperation. Digital disruption ensure the well-being of their workers, to farms with If we point to a specific Petunia as being an excellent flood floors, we can move a few thousand trays from one in young plant production will continue to shake things workers doing physically taxing work close to the performer customers rely on us and make us in some zone to another rather quickly.” up and Jacob stresses that the industry as a whole will ground and poor product quality. Jacob, “Doing business way accountable for that. What’s more, growers are not The Schneiders are specialists. This means that plant benefit the most by working closely together. “We really in Africa offers the opportunity to reset your ethical really waiting for each and every sales rep of breeding propagation is all they do. “A few years ago we asked need to think about how to improve our interconnectivity. compass and invites you to answer tough questions in companies to enter their greenhouses to tell them how our partners what they thought about Schneider setting At present, customers purchase relatively small quanti- business practice. Who are we and what do we stand for?” good their new Petunia is. No single sales rep will admit up its own breeding programme. They clearly advised ties from different suppliers: one batch of Gediflora pot Besides the ethical issues, it’s also about understanding that the competitor offers a better choice.” us to stick to our roots and to concentrate on things we 18 FLORACULTURE INTERNATIONAL January/February 2019 WWW.FLORACULTUREINTERNATIONAL.COM 19
STA R S F O R E U R O PE PL A N T PR O PAG AT I O N Petchoa ‘BeautiCal’ products that help growers to differentiate themselves in the market and achieve a higher price. What’s more, illegal propagation and poor hygienic conditions usually go hand in hand. Eventually our plants might end up in greenhouses being exposed to higher risks of all kinds of pests and diseases. The only thing we can do is to encourage RAI to undertake more actions. The problem is that national governments support UPOV regulation but in ornamental plants they hardly consider it a priority. You know what happens: we do our utmost to deliver the most compact, uniform young plant to customers asking for more stretchy plants so they can propagate themselves.” AUTOMATION Speaking of history, the recently-acquired automated cutting stickers from ISO are already making history. “Initially I was reluctant to embrace robotics and still do best. Own breeding is often fuelled by fear of being ISO’s automated am as planting speed is still too low and individual excluded from novelties. Partly this fear can be justified. cutting planter recognition of less standardised cuttings might be On the other hand, when you start your own breeding machine. a challenge. A Chrysanthemum cutting might work programme you might represent a potential danger for easily but what about curved Surfinia cuttings sticking long existing breeding companies.” together? However, robotics is the only viable solution as the industry will continue to face huge labour shortages. PARTNERS Depending on the amount of labour we can save, we Schneider sells its plants through a network of long- expect to have the system pay for itself within three to time partners across Europe. Products are shipped five years.” to the partner’s premises who, in turn, continue to All this doesn’t mean that Schneider has taken the sub-distribute to own clients. “In some cases we can decision to automise the cutting stick process lightly. sell directly to a customer in a specific country on a “It’s partly filled with ambiguity as the Schneider team commission basis for the partner. It might seem easier really feels like a family. Yes, I think the entire cutting to do so but one should know the market inside out and stick process will be taken over by robots. However, the financial risks involved in selling directly to smaller the good thing is that 50% of cutting production will local customers. As such, we find great value in our return to Ridderkerk this year with the other half done at partner network.” Ammerlaan’s in Bleiswijk.” The market for young plants is still dynamic, mostly fuelled by a rise in local production, ensures Schneider. RELOCATION “Take Russia. There’s been a quick professionalisation Schneider is quick to add that this situation is only of growers. In the old days, they bought seeds and temporary as the company finds itself in the final stages achieved germination rates not higher than 30 to 40% of a lengthy, compulsory purchase order process. “What forcing them to buy additional plants on the auction is now a vast expanse of greenhouses will transform market in the Netherlands. At present, they buy their into a business park hosting a range of fresh fruit and Petunia young plants from us with a 100% success in vegetable suppliers. We’re allowed to continue produc- growth. There definitely is growth, but mostly thanks to tion until 2020. By 2021 we will leave Ridderkerk, for an expansion of more distant production areas.” as yet unknown destination.” Meeting growers of different nationalities has Schneider wished it was just a question of turning enrichened his life, says Schneider. It might have dreams into reality. “My wish would be to build a something to do with his family’s origin. “The Schneider completely new, state-of-the art company. But having family name makes clear that we have no Dutch weighed my options, I believe I should act on the best ancestry. Actually, when looking into our family’s one. That is to continue and expand cooperation with history we were able to go back fourteen generations and vegetable transplants producers such as Ammerlaan ended up in Poland. “Interestingly, wherever you travel from Bleiswijk from which we already rent 3.5 ha of around the world almost all growers are hardworking, greenhouses. Does one really need fancy, wholly owned trustworthy people. Generally speaking, if people are headquarters?” really out to swindle they prefer selling second hand Other factors are at stake. “I am one of the co-owners, so cars instead of growing plants.” one of the options is a buy out of the other shareholders. When pointed out that this sounds too good to be true The question is what to do best? Life presents you with when considering the amount of fraud with plant so many decisions. Psalm 119 tells us that God’s word is royalties, Schneider says, “You’re right in saying a lamp to my feet and a light to my path, not a spotlight that in emerging markets there is still a lot of illegal in the far background, but a lamp in front of your feet production. Yes, that’s partly also my responsibility providing enough light to take the next step. That’s a because I work with local dealers who sell premium very nice thought for the future.” WWW.FLORACULTUREINTERNATIONAL.COM 21
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