Floraculture June - July - Aug 2016 by Kisan Forum Pvt. Ltd.

J u n - J u l- A u g 2 0 16

The business magazine for worldwide floriculture

BREXIT OR BREMAIN?

Protecting Dutch floral heritage

Sampling sentiments among Dutch exporters

AUCTIONS FROM AROUND THE WORLD

Fighting or embracing the auction clock?

Science set to prove the origin of Dutch roses Brought to you by

w w w.k isan.com

Floraculture International encourages the pursuit of joint activities in areas of mutual interest with national and international societies, companiesandorganisations. Agreements have been reachedbetweenFloraculture International and leading growersandtradeassociations in 32 countries. This unique partnership includes a complimentary copy for each member of the registered associations. Floraculture International is proud to announce the cooperation with the following associations. For more FCI partners see page 48.

Partners of FloraCulture International

TableofContents

June/July/August 2016 Volume 26 Number 06

Cover story: Unraveling provenance of roses Fair competition in the market place is good for everyone, but when the playing field is perceived to be uneven, problems can arise. by Ron van der Ploeg and Jean Vernon

Results and reports / Royal FloraHolland

Florists' chains in France

Royal FloraHolland will reevaluate its cooperativebusinessmodelinthenexttwelve monthsaftertheworld’slargestflowerauction reported a turnover of €4.6 billion in flower and plant sales for 2015, an increase of 1.4% over the previous year. by Ron van der Ploeg

Voices of doom over Brexit

“Too much risk and too much uncertainty.” “A very much disturbed trading situation for a considerable length of time.” Voices of doom over Brexit dominate among floral wholesalers. by John Sutton

Brexit can only make business more difficult

Sampling consumer input

Keukenhof's three specially designed pavilions for both changing and permanent flower shows are more than just attractive crowd pullers. by Ron van der Ploeg

Denmark: a new reality

Floradaniaoffersabehind-the-sceneslookat the country's leading pot plant companies. by Aldo Colombo and Ron van der Ploeg

French florists are increasingly under pressure, due to the relatively small size. They are forced to sell flowers and plants at relativelyhighpricestokeeptheirbusinesses profitable.

by Marie Francoise Petitjean

Zero-in on zero residues

Real IPM Kenya is putting its money where its mouth is and making its Road Map to Zero Residues a very public affair.

by Louise Labuschagne

Departments World News International Events Advertising Index

08 44 49

Columns From the editor Buon Giorno

07 17

100% LEDs in roses?

Dutch horticultural research institute runs a trial to demonstrate that100% LEDs in rose cultivation is possible.

by our own correspondent

Plants For Europe feels it is important to outlinewhattheyforeseeasthelikelyimplications of Brexit for plant breeders, both British and from other countries. by Graham Spencer

W.F. Leenen & Zn.

Every spring, FloraCulture International visits W.F. Leenen & Zn, an exclusive breeder of Narcissus, Fritillaria and Hippeastrum varieties that go by the name Sonatini™.

by Jaap N. Kras

Floradecora: well on track

Launching in Frankfurt at what is touted one of the world ‘s largest consumer-goods trade shows (2,873 plus exhibitors from 67 countries), Floradecora is well on track for a successful inaugural event.

by Ron van der Ploeg

Auctions from around the World This month, part two of Auctions from around the World provides a comprehensive overview of Veiling Rhein-Maas, Plantion and Aucnet. In ‘From Wall Flower to Wallstreet Flower’, Royal FloraHolland chief executive Lucas Vos outlines how to deal with the rising threat of Fintech, while also speaking about his growers. They tell him that they will use the auction clock less frequently, but urge him to cherish theclock’sroleworldwideasasource to determine pricing, causing a devil of a dilemma. by Ron van der Ploeg

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

FloraCulture The business magazine for worldwide floriculture

Editorial & Administration Offices Angie Duffree

FloraCulture International Postbus 1000, 1430 BA Aalsmeer, Netherlands T +31 6 533 46 605 Circulation Administration: FBW Woerden P.O. Box 612, 3440 AP Woerden, the Netherlands T (31) 34 84 31 393 E info@fbw-woerden.nl Editors:RonvanderPloeg(ron@floracultureinternational.com) Editorial team: William Armellini, Chris Beytes, Alicja Cecot, Aldo Colombo, Arturo Croci, Audrey Gerber, John Ingwersen, Jaap Kras, Marie-Françoise Petitjean, John Sutton, Anthony Tesselaar, Jean Vernon and Jennifer Zurko. Founding editor: Debbie Hamrick Published by: Royal FloraHolland Frequency: FloraCulture International ONLINE serves our digital and mobile audience monthly, while FloraCulture International in print is a quarterly magazine, published four times a year. FCI’s four major PRINT issues will divide the year in four seasons: Spring (March), summer (combined June/July issue), autumn (October) and winter (January). Circulation: FloraCulture International has a circulation of 133,404 subscribers (4,573 print issues, 6,801 direct digital magazines and 122,000 indirect digital magazines) in 142 countries. BloomBrief newsletter has a circulation of 6,800 subscribers worldwide. Printer: Muller Visual Communication Amsterdam. Designer: Finnmedia, Aryen Bouwmeester Copy correction and sub-editing: Richard Melnick Cover photograph: RosaNatura

World Wide Advertising Office

Dr. Sun Jing Xian

Niranjan Deshpande

Europe, Africa, Asia/Pacific International Accounts Management: FloraCulture International, Postbus 1000, 1430 BA Aalsmeer, Netherlands T +31 6 533 46 605 Angie Duffree (angie@floracultureinternational.com) Italy, Southern France: Arturo Croci, (arturo@floracultureinternational.com) USA, Canada, Central America: Paul Black (pblack@ballpublishing.com) Ball Publishing, 622 Town Road, PO Box 1660, West Chicago, IL 60186, United States T (1)6 30 23 13 675 F (1)6 30 23 15 254 Miami: William Armellini (william@floracultureinternational.com) China: Dr Sun Jing Xian (consultingflower@yahoo.com.cn) India: Niranjan Deshpande (team@kisan.com) T (91) 20 302 52 000

From the editor by Ron van der Ploeg

The world’s most famous spring garden, Keukenhof closed its gates ending a ‘wonderful season’ on May 16th and announced that in the third consecutive year it attracted more than one million visitors. The beautiful, cool spring permitted flowers to bloom for the full 54 days the garden was open. The growth trend is remarkable, considering Keukenhof has not had any new, major exhibits in the past few years. Much of the success may be attributed to 75% of guests traveling from abroad to feed their flower fix and take an affordable holiday. Visitors came from more than 100 countries. Most notably, the number of visitors from France and America increased. China and Southeast Asia remain emerging markets. The crowd pushed the total attendance to 1.1 million, 175,000 fewer than last year. Speaking to the press on Thursday, May 12th, Keukenhof chief executive Bart Siemerink emphasised not being too worried about attendance being slightly lower than last year. “Budgeted attendance was 800,000 and this visitor mark allows us to cover the costs.” Siemerink encouraged people to visit anytime in the spring, but added that certain times are better than others. “The Saturday of the annual flower parade is particularly popular with 66,000 tourists in attendance, however, the visitor experience is best when there are fewer than 35,000 guests. As such we have to look at ways to spread out our attendance.” Of note, attendance of younger generations is significantly increasing, according to the organisers. The buzz has been very positive among millennials, using social media to alert their friends that there is a wow factor at Keukenhof. Of the total number of visitors, 15% have links to the floral industry and this month’s issue includes reports from the best of Keukenhof’s indoor flower shows. The opening of each show is combined with a grower’s meeting and awards ceremony. I believe there are many more benefits of Keukenhof for the ornamental industry as a whole. Take Cyclamen and Primula expert, Schoneveld-Breeding, whose permanent exhibit was one of the focal points of the flower show in Keukenhof’s Willem-Alexander pavilion. Plant pot-shaped loveseats, an idyllic rowboat floating on a sea of primulas with primula-clad banks creating beautiful backdrops for photos, while a green screen photo booth allowed visitors to select from six different backgrounds for their pictures. The Keukenhof theme for 2017 is Dutch Design. Keukenhof expects Dutch Design to add inspiring events to the flower park and attracdt new partners. Imagine the marketing leverage possible if the phenomenal success of Keukenhof was to work with Royal FloraHolland as partners in an integrated marketing programme! Bart Siemerink sees Keukenhof as a collaborative activity and would welcome any good suggestions or ideas. Keukenhof is open in 2017 from 23 March to 21 May.

Follow us on facebook and twitter FloraCulture International is published monthly. Worldwide distribution. ©2016 FloraCulture International magazine. All rights reserved. No portion of editorial may be reproduced in any form without written permission of the publisher. Publisher is not liable for advertisements using illegally obtained images. Send address changes to FloraCulture International magazine, Postal address: Postbus 1000, 1430 BA Aalsmeer, Netherlands

Ron van der Ploeg, editor ron@floracultureinternational.com

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

World News The Netherlands FloraMondo’s digital marketplace destined for success FloraMondo, the world’s largest digital marketplace for flowers and plants powered by Royal FloraHolland, has expanded its presence in Europe and South America. Recently, FloraMondo’s supply in offer was increased with specialty flowers from Colombia. Adding Colombian flowers to its already vast portfolio of products, will help FloraMondo become leader in the markets where it operates. Online shoppers can now also order fresh tropical flowers, roses and hydrangeas from Colombia via FloraMondo on Sundays through to Tuesdays. One week later, on Monday, the purchases will be delivered by Flower Handling Services in Naaldwijk, the Netherlands. The customers are very enthusiastic about FloraMondo's international supply. FloraMondo continues to focus on contracting new growers in Colombia, with current product offers from Alexandra Farms, Inversiones Napy, Prima Rosa and Zyon Flowers. Commenting on FloraMondo Wilko Heyl of W.K. Heyl BV said, "FloraMondo enables me to buy really fresh and more exclusive flowers, such as Heliconia and Ginger. Only once the flowers have been ordered are they harvested and a week later I have them in my box! Transport from nursery to airport and then to the Netherlands is extremely fast. I receive the flowers in a box that is suitable for our logistics flows, and each box

is filled with the number we specified. This allows us to offer our buyers lovely products in quantities they will find interesting." FloraMondo is available 24/7 for the promotion of all flowers and plants, which growers can sell directly via Auction Presales and direct trade. The platform is visited by more than 750 buyers, representing 65% of the Royal FloraHolland sales. Over 150 web shops of buyers are now linked to FloraMondo. Growers are equally enthusiastic about the huge market coverage of FloraMondo. A grower from Alexandra Farms explained, "FloraMondo allows us to offer all of our products to a large number of potential buyers at once! This saves us time and increases our coverage!" Alejandro Restrepo from Inversiones Napy is also positive. "FloraMondo allows me to draw the attention of my European buyers to my weekly supply via direct trade. We are pleased that the payment is arranged through Royal FloraHolland.

We have just started using FloraMondo, and we would like to continue optimally promoting our products in this way!" Via FloraMondo direct sales/trade, it is also possible for buyers to select a foreign delivery location. In FloraMondo international growers can choose to deliver to these foreign delivery locations (Addis Ababa Airport, Bogota Airport, Nairobi Airport, Quito Airport and Tel Aviv Airport). This is a step towards meeting the logistical wishes expressed by buyers. Ordered products from abroad can be transported directly from the airport to the desired location. ||| You are a buyer and you want to know more about FloraMondo Read more about FloraMondo www.royalfloraholland.com/en/ services/floramondo-for-buyers/ You are a grower and you to read more about FloraMondo  www.royalfloraholland.com/ en/services/floramondo-for-growers/

France Salon du Végétal moves to Nantes for summer 2017 edition Horticultural trade association BHR announced last month next year’s Salon du Végétal will be held late June (June 20-22, 2017). The show organisers also announced that the Salon is set to relocate to the Parc des Expositions de La Beaujoire in Nantes, France. The 2016 Salon du Végétal at the Angers exhibition centre (February 16-18, 2016) hosted 483 exhibitors (of which 142 came from abroad) and 12,366 visitors. The attendance figures were slightly lower than in 2015 when the Salon registered 522 exhibitors and 13,500 visitors. “This can be explained by our much stricter industry professionals only policy. The E–badge available by internet was more secure and controls were carried out at the various entry points to prevent amateurs from visiting the trade show,” concluded show organiser Serge Tsvétoukhine in February. |||

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

France Emova Group to acquire florist franchise Au Nom de la Rose Emova Group (FR0010554113 – ALMFL), comprised of three complementary franchise businesses, Monceau Fleurs, Happy and Rapid’Flore, announced last month it has entered into exclusive talks to acquire florist franchise Au Nom de la Rose. Emova Group is among Europe’s leading distributors in floral products with annual sales totaling €100 million. The group has 300 franchisees and owns the master franchise licenses for three established florist brands: Monceau Fleurs, Rapid’Flore and Happy. The plan to acquire Au Nom de la Rose is part of Emova’s profitable and sustainable growth strategy. In the coming years, the group’s focus will be on efficient product sourcing, e-commerce, clever marketing and an optimized product portfolio. Emova Group president Laurent Pfeiffer said that, “The acquisition of Au Nom de la Rose will enable further growth by adding a top brand and wellestablished franchise network to our business.” He added, “What’s more, the acquisition is meant to create synergy between the two groups while benefiting from the expertise Au Nom de la Rose has built over the years in e-commerce.” Founded in 1991, the Au Nom de la Rose group operates a network of 74 shops (19 fully-owned shops and 32 franchise stores in France and 23 franchise stores in Spain, Kuwait, Italy, Ukraine, Russia, Bahrain and Kazakhstan. The concept store is based on one product: roses, with a focus on the gift sector and a number of rose side products. Au Nom de la Rose is owned Finaroses Holding, controlled by Fina Investments SA. |||

Turkey Expo 2016 Antalya opened with world class ceremony The President of the International Association of Horticultural Producers (AIPH), Bernard Oosterom, congratulated Turkey on creating a spectacular A1 International Horticultural Exhibition, during his speech at the Opening Ceremony of Expo 2016 Antalya on 22 April. Speaking alongside President Erdogan of Turkey, Prime Minister Davutloglu, senior Turkish government ministers, Secretary General of the BIE and ambassadors from around the world, Mr. Oosterom addressed the 5,000 guests and TV audiences telling them, “This Expo has brought together the horticulture industry, countries and their governments from all over the world around themes designed to promote ‘a green life for future generations’. Visitors will be able to immerse themselves in the wonder of plants and flowers and learn for themselves that plants and green cities are vital components of life today.” Over 60 countries, institutions and Turkish municipalities are participating in the Expo which opened to the public on 23 April attracting over 35,000 visitors on its first day. Visitors from around the world have until 30 October to visit the 125 hectare Expo site. AIPH approval is necessary for any country organising an International Horticultural Exhibition to which other countries will be invited to participate. Expo 2016 Antalya was approved by AIPH in 2008 and commenting on the Expo, AIPH Secretary General and Chairman of the International Honorary Jury,

Tim Briercliffe said, “I would encourage everyone to visit this Expo. Alongside the different country gardens, developed in association with many AIPH members, there is also an amazing display of mosaiculture exhibits. The organisers have also planned many other live events and attractions which are expected to attract millions of visitors in this popular tourist area.” He continued “This is the first major international event hosted in Turkey and will certainly pave the way for other such events here in the future.” President of the Turkish Ornamental Plant and Products Exporters Association and AIPH Board Member, Osman Bagdatlioglu was involved in initiating the Expo back in 2008. Following the opening ceremony he said, “I am so pleased to see the result of many years hard work. Antalya has the potential for major expansion in the international trade in ornamentals. This Expo helps to put us on the world horticulture map and the industry will use this to promote further growth.” ||| Find out more about Expo 2016 Antalya at www.expo2016.org.tr Tickets are available from expoant.com/bilet/expo_tickets.html

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

Roses Fair competition in the market place is good for everyone, but when the playing field is perceived to be uneven, problems can arise.

Unraveling the provenance of roses

n the world of cut flower roses, competition is fierce, but in Holland rose growers are fighting back against poor imitations. The Dutch rose growers are facing increasingrivalryfromcheaperimports, competing for their share of the market. It’s a growing problem with some imports masquerading as 10-day vase life Dutch roses when in fact many are three-day wonders from far distant shores.

High-tech forensic tests

by Ron van der Ploeg and Jean Vernon

In the quest for a fair and even playing field, some growers have turned to high-tech forensic tests to determine the origin of roses. Researchers at the Swammerdam Institute for Life Sciences at the University of Amsterdam have been employing isotope-fingerprintingtechniquestodifferentiate Dutch roses from the rest. The ratio of isotopes in plants is strongly influenced by the local growing conditions, such as temperature, humidity and soil. “The University of Amsterdam is developingpracticalandaffordable forensic tests with which they can provetheoriginofplants,together with independent horticultural knowledge centre Naktuinbouw. In partnership with some Dutch rose growers, methods are being developed to identify the origin of roses. The results of an initial pilot study showed that the developed method has potential to differentiate Dutch roses from, for example, Indian and Kenyan roses. The goal of these methods is to answer questions regarding the origin of roses, e.g. are non-Dutch roses being sold as Dutch?, but these methods may also prove to be useful in origin questions regarding the occurrence of plant diseases,” explains Dr Eva de Rijke fromtheUniversityofAmsterdam. It’s not new technology but this is a newapplication.“Thesetechniques

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

have been around in forensic and geological research for quite some time and the method we are using for roses is based on those used for tree ring isotope analysis for example for climate reconstruction,” she explains.

Traceability

It’sabigproblemandgrowershope these new techniques will give them an easy to use and accurate solution. “The Dutch ornamental horticulture industry needs change,”saysaspokespersonforthe Dutch Rose Industry. “For many decades it has been in the position of the leading producing country and trading partner for roses. This success is now constantly being undermined.” “If growers abroad in places such as Africa,weretogrowbetter,cheaper andmoreenvironmentallyfriendly roses with a longer shelf life than their Dutch counterparts, the future for Dutch grown roses would be over. But this is clearly not the case,” they say.

Consumer interest

The consortium of interested parties behind the project, which hasalreadysecuredfundingiskeen to emphasise that establishing the provenance of Dutch roses is not only for the sake of the Dutch rose grower. “The market is currently being flooded with look-a-likes from abroad with an average three-day vase life, while Dutch grown roses will easily survive for more than 10 days. The problem is that in the marketplace both products are easily interchanged and are being presented as completely identical products. The result is an often disappointed rose buyer who will not make a repeat purchase. This will lead to a destruction of the marketplace, and that’s exactly what the project holders are worried about.”

The research project is expected to take a few years, but the extensive research being carried out in the lab will eventually result in a tool to establish the true provenance of the roses. “If a consumer buys a bouquet of roses, he or she should be guaranteed a minimal vase life of 14-days. If the flowers start to die much earlier, they should be able to go back to the producer and introduce a claim. And if the help of the aforementioned analysis reveals that the rose is from the same breeder but grown in a completely different country, then there is at least a proof of things,” explains the spokesperson. Traders are also being warned to be careful of freely exchanged provenances or varieties. At stake, the spokesperson says, is the very integrity of the Dutch rose itself. “Trust is hard to gain but easy to lose.” |||

Financial results Royal FloraHolland will reevaluate its cooperative business model in the next twelve months after the world’s largest flower auction reported a turnover of €4.6 billion in flower and plant sales for 2015, an increase of 1.4% over the previous year.

Royal FloraHolland questions shelf life of own business model

n a conference call Thursday, May 19, Royal FloraHolland’s chief executive Lucas Vos was particularly upbeat in his welcome address. “We are in good shape, but there’s no time for resting on our laurels. There’s still much work to be done with our new business strategy now underway as of last year. The ultimate goal is to raise profit margins for both membersandtheircustomers,sotheycan continuetosucceedandsecurenew businessinanincreasinglycompetitive global economy.”

Higher-than expected earnings

by Ron van der Ploeg

Vos reported higher-than expected earnings after tax of €12 million, compared to €9.6 million in 2014. Half of this amount is allocated to thereservefundwhiletheremainder will be paid out to members. Turnover increased slightly by 1.4% to €4.6 billion with median prices for flowers and plants up 0.9% from 2014. Shining a light on a few product groups, Vos said that the 2015/16 tulip season was not the best. “An early Easter left growers suffering from declining sales, so new marketing tricks would definitely help here.” He went on to say that 2015 was a difficult year for Phalaenopsis growers faced with a drop in prices and

market saturation. “But the first months of 2016 have shown a clear improvement with better prices.” Overall rose prices were slightly down, with Kenyan and Ethiopian growerschallengedbytheinstability of exchange rates between the dollar and the euro. Last year, Royal FloraHolland sold less through the auction clock, meaning turnover fell by one percent, whereas turnover from direct sales between growers and traders rose by 3.8 percent.

Effective cost management

Vos said that the world’s largest salesplatformforflowersandplants will continue to focus on effective cost management. Operational costs fell more than expected by €7 million to €377 million. This on account of lower staff costs (110 full-time employees fewer) and lower depreciation costs due to fewer investments and the sale of real estate. Solvency improved in 2015 from 23.4 percent to 24.8 percent, and risk-bearing capital increased from 49.4 percent to 54.4 percent. Creating a bit of a headache are the auction’s myriad 175 different and outdated computer and operating systems, which are currently being removed. Eventually, the auction will outsource its IT department to a third party, which will result in another cut back of 150 full time employees.

Smaller transactions

Over the next few years, the auction will be forced to cut over €100 million in costs to keep its tariffs favorable. In an era rife with increasingly smaller transactions, the auction views New Auctioning as a strong contender to revitalize

the industry. This new approach to auctioning is based on disconnecting the price setting from the logisticsprocesswithex-work(read ex-nursery)auctioning,withflowers sold directly from the greenhouses and fields. It is already clear that Auctioning 2.0 must be combined with an advanced transaction system. Vos thinks that in the future a new type of 24/7 platform will be the dominant thing, but was quick to add that there will still be a place for the traditional auction clock. “Because the reality is that we are dealing with a push product: the flowers need to be picked and sold, and we need a marketplace for that.”

New forms of membership

Founded in 1911, the cooperative Royal FloraHolland was formed in response to an imbalance of power in the market between supplying growers and their customers. 105 years on, big shift in business are taking place with at high number of small- to medium-sized growers in-country and around 750 flower farms, mainly based in Kenya and Ethiopia, which market their flowers through the Dutch auction clocksandintermediaryservices.“Is our current business model futureproof?,” questioned Vos, Different members have different needs and that’s why the auction is now studying different forms of membership each with its own tariffs. Over the past few months, members have been regularly updated about how the new membership slowlytakesshape,whilehavingthe opportunity to express their own views. Whether members should still be required to sell their productsexclusivelythroughtheauction is still under debate. |||

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

UK “Too much risk and too much uncertainty.” “A very much disturbed trading situation for a considerable length of time.” “Export of flowers and plants will drop for sure if a cheaper British pound against the euro develops as a result of the UK deciding to leave the European Union.” These are recent comments from prominent figures in the flower trade. The first is from a major British cut flower grower, the others from Dutch exporters to the British market.

by John Sutton

THE RESULT OF THE REFERENDUM MAY WELL BE A NARROW VICTORY

Battle for Brexit, battle of blooms

n the 23rd June there will be a referendum for British voters, to answer the question: should the UK leave the European Union? If a majority vote ‘yes’ to this proposition, the British government is committed to act accordingly.Itwouldthennegotiate arrangements for imports from EU countries and exports to them.

So much is at stake!

The United Kingdom is the fifth largest economy in the world. It is the second largest export market for cut flowers and plants from the Netherlands, itself responsible for around half of the world’s cut flower exports. In 2015, the UK spent over €900 million on cut flowers and indoor plants from the Netherlands. A large majority of the British political establishment is in favour of remaining in the EU. The UK government has been joined in this by both of the significant opposition parties, Labour and the Liberal Democrats. Nearly all the companies and employees in the very important financial services sector of the British economy, centred on the City of London, are also anxious for the UK to stay in the EU. The National Farmers’ Union is advising its 55,000 members to vote to remain. So is the country’s largest trade union, Unite, with almost 1.5 million members.

Weight of arguments

Despite the weight of the arguments presented by these stakeholders in favour of UK membership of the EU, the result of the referendum may well be a narrow victory either way. Most of the national daily press – still an influential force – is for Brexit (Britsih exit from the EU). So is

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

one smaller political party, the UK Independence Party. This is of recentorigin,butreceivedover12% of the national vote in the general election of 2015. Some very prominent politicians in the current Conservative government are campaigning for Brexit. Public opinion surveys show that older voters are more likely than younger people to vote for Brexit, and the record of general election behaviour also shows that theseolderpeoplearemorelikelyto turn out to vote. In discussions in the UK about Brexit, immigration levels into

the UK are a major issue. Leaving the EU could result in these being brought under tight government control in future. This is a major feature of the appeal of ‘leave the EU’ campaigners to British voters. The ‘leave’ campaigners argue that trading arrangements made with EU countries after Brexit would most probably be little different from those in force now. This, they say,isbecauseofpowerfulinterests within the EU wishing to have continued open access to the UK market. Examples given are the German car industry and French wine producers.

Sowhatmightbetheconsequences of the British exit from the EU for flower and plant exporters in the Netherlands, the country that is by far the most important supplier? Uncertainty is the key word most often on their lips. No-one can know what the impact will be on exchange rates for the British pound. No-one can know what trading arrangements would be agreedbetweentheUKgovernment and the EU, or how long it would take for agreement to be reached. British growers produce only about 15% of the cut flowers sold in supermarketsandbyotherretailers. Theymightbeexpectedtowelcome future conditions that could make for a less favourable situation for imports that compete with their own production. So how do they feel about the prospect of Brexit? In practice, many of them have wide-ranging anxieties about the consequences of their country no longer being a member of the EU.

Stability of exchange rates

One concern is the stability of exchange rates between the pound and the euro. Many of the productionneedsofBritishgrowers areimportedfromtheNetherlands. Theseneedsrangefromglasshouses to planting material. Ian Collison, head of a family business in eastern England growingforsupermarketcustomers, is not in favour of Brexit. He needs to buy 20 million tulip bulbs a year from the Netherlands, and uncertainty about the impact of Brexit on exchange rates between

ARCO VAN DUYVENVOORDE IN NAALDWIJK, WHO DELIVERS TO FLOWERVISION CASH & CARRY STORES IN THE UK, IS NOT ENCOURAGED BY WHAT HE LEARNS OF DOING BUSINESS WITH NORWAY AND SWITZERLAND, EUROPEAN COUNTRIES OUTSIDE THE EU WHO HAVE SPECIAL TRADING ARRANGEMENTS WITH IT the British pound and the euro is very unwelcome. For Ian Collison, like many British growers of horticultural crops, the expansion of his production in recentyearshasbeenmadepossible only by the free movement of labour within the EU. Without the recruitment of staff from Poland and elsewhere in Eastern Europe, business growth would have been very much slower and smaller. Most UK employers in horticulture and farming have a positive perspective on immigration. Very widely they find that the wages and conditions that they can afford to offer are unattractive to the establishedpopulation.Immigrants are ready to accept outdoor work and unsocial working hours. This has enabled businesses to thrive, helped economic growth and increased the government’s tax revenues.

Uncertainty is the watchword

Stakeholders in the flower and plant trade have multiple concerns with the prospect of Brexit. More paperwork and the risks of delays in customs are in the pre-1973 memories of trade veterans like

Leon Eijgenraam of Zyon Flowers in the Netherlands and of Dennis Edwards, whose family flowers business trades in New Covent Garden Market in London. And in the present day, Arco van Duyvenvoorde in Naaldwijk, who delivers to Flowervision cash & carry stores in the UK, is not encouraged by what he learns of doing business with Norway and Switzerland, European countries outside the EU who have special trading arrangements with it. There is heightened anxiety about the pound: euro exchange rate. Sales volumes to the UK are very directly related to the exchange value of the pound. If Brexit took place and turned out to have long term adverse effects on the British economy, a lower value for the pound and reduced consumer incomes would certainly hit expenditureonflowersandplants. But it is also possible that Brexit – if it happens – would have little effect on the flower and plant trade. Meantime, uncertainty is the watchword – uncertainty that will continue for a considerable time if the British electorate chooses to leave the European Union. |||

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

Brexit can only make business more difficult Plants For Europe (PFE) , Europe’s leading independent plant breeders’ agent, based in East Sussex, England feels it is important to outline what they foresee as the likely implications of Brexit for plant breeders, both British and from other countries, and for growers, retailers, landscapers and gardeners.

he United Kingdom will hold a referendum on continued membership of the European Union on June 23rd. All registered voters in the UK will get a vote and the outcome will be decided by simple majority. Therearemanyargumentsbeing put forward for leaving or remaining and it is for individual voters to make their own decision. Plants for Europe emphasizes that it is difficult to be certain about what might happen after a possible Brexit. The Brexit campaign has not been able to say for definite what the policies of a post-Brexit government might be. Further, it is not clear what the negotiating position of the EU would be in such circumstances. However, whilst the issues laid out below are slightly conjectural, PFE believesthatthesituationsthatthey propose are plausible and likely.

by Graham Spencer

n the first instance, it is important to realise that very fewapplicationsforPlantVariety Rights (PVR) now use the national PVR legislation of Member States. To prove this point, there has not been an application for a UK Plant Variety Right for an ornamental plant (except a few roses) since before 2012, and even then there wereonlyafeweachyearcompared to many thousands of applications for EU Plant Variety Rights. Instead, breeders use the European Union Plant Variety Right administered by the Community Plant Variety Office (CPVO), which is an agency of the European Union. This provides a single Plant Variety Right that covers all 28 member nations of the EU. The

All breeders will look to pass the increased cost on in the form of increased royalties.

main advantages of this are: • one set of forms/administration insteadofseparateforms/administration for each Member State • one set of fees • one DUS technical examination • uniformlylegallyenforceableacross all 28 member nations – including any new nations that join in future (e.g. existing rights were automaticallyextendedtocoverCroatia when that nation joined the EU in 2013, without any additional cost to rights holders) It is important to note that, whilst applications for EU Plant Variety Rights from plant breeders outside

the EU are welcomed, they must be placed through an agent domiciled within the territory of the European Union. However, the geographical scope in terms of enforceability of the EU PVR is limited to the territory of the Member States. Ever since EU PVRs were introduced in the 1990s, their scope has never been extended to any nation that was not a member of the EU. It is, therefore, reasonable to assume that if the United Kingdom were to leave the European Union, EU PVRs would no longer be enforceable in the United Kingdom. >>>

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

UK T

he first problem is: what happens to all of the EU PVRs that have already been granted if the UK leaves the EU? Nearly 42,000 applications had been granted by the end of 2015, although not all of those continue to be valid – nearly 24,000 were in force at the end of 2015. There are two possibilities. The UK and the EU could negotiate so that EU law regarding this intellectual property right would continue to apply in the UK. This would have drawbacks – not least, that the UK would be subject to a law over which it had no control and no power if the law was changed–therewouldbenoseatat the EU negotiating table if the UK left. Given that the Brexit campaign is opposed to anything which gives the EU power over legislation in the UK, this outcome seems unlikely. Further, the EU PVR law has never beenappliedtoanycountryoutside the EU since it first came into force more than twenty years ago, so it seems unlikely that the EU would agree to such a solution. Alternatively, the UK could give a special exception to the requirement of UK PVR for novelty for a transitionalperiod(say,oneyear)so that holders of existing EU PVRs could apply for UK rights, perhaps limited in duration to match the remaining duration of the EU PVR. Naturally, there would be the normalfeesinvolvedforanapplication. The current UK fees levied by the UK Plant Variety Rights Office (PVRO) are £741 admin fee for the application itself, plus a fee for taking over a DUS examination report from another agency (in this case, the CPVO) which is the Sterling equivalent of the other agency’s fee. The CPVO charges EUR 20

In the case of Brexit, PVR protection for the UK only would cost the same as protection for the whole of the EU, including the EU annual fee for the first three years.

THE UK IS A MAJOR MARKET FOR ORNAMENTAL PLANTS, SO IT SEEMS LIKELY THAT BREEDERS WOULD STILL WISH TO HAVE EFFECTIVE PROTECTION ON BOTH SIDES OF THE ENGLISH CHANNEL

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

for a certified copy of a report of no more than ten pages (which would be enough for most reports), which equatesto£15.75attoday’sexchange rate. This means that every protected variety that the breeder wished to continue to protect in the UK would cost nearly £760 to protect – fees over and above those that were anticipated and in addition to the normal CPVO fees required for continuing protection in the rest of the EU. For varieties with only a few years left to run of their protection, this simply would not be worth doing – the breeder would lose the opportunity to derive an income from that variety in the UK for the remainder of the protection period. The PVRO works on a “user pays” basis and would not likely to be subsidized by general taxation, so any reduction to these fees seems unlikely. This idea would work effectively (if expensively) for varieties where the application process for EU PVR is complete. For varieties where the application process has begun, but DUS examination has either not commencedornotcompletedandno DUS examination report is available, then it is reasonable to assume that the PVRO will require a DUS examination, as is required by the existing legislation. This attracts a much higher fee and is discussed further in the next section.

he second problem arising from Brexit is: what are the implications for new varieties for which applications for PVR have yet to be made? The UK is a major market for ornamental plants, so it seems likely that breeders would still wish to have effective protection on

both sides of the English Channel (and both sides of the north/south border in Ireland). Again, the UK and EU could negotiate a situation whereby EU PVRs would continue to be valid in the UK. But, as outlined above, this seems extremely unlikely. So, working on the reasonable assumption that two parallel systems for PVR would exist, one for the UK and one for the remainder of the EU, breederswouldbefacedwithsubstantially increased costs. A comparison would be as follows, using applicable fees that are in force today: EU PVR for a Petunia variety • application fee: EUR 450 • DUS examination fee: EUR 1570 • TOTAL: EUR 2020 which is equal to £1590 at today’s exchange rate UK PVR for the same Petunia variety • admin fee: £741 • DUS examination fee: £1480 • TOTAL: £2221 Of course, the EU system also has an annual fee which must be paid after the PVR is granted. This is currently EUR 250 per annum, which equals £197. So, PVR protection for the UK only would cost the same as protection for the whole of the EU, including the EU annual fee for the first three years. The UK PVR offers protection in a market of 64 million people. The EU PVR offers protection in a market of 510 million people (including the UK). You can draw yourownconclusionsaboutthecosteffectiveness of these systems. In order to protect a new variety in both the UK and the remainder

by Arturo Croci

of the EU after Brexit, breeders will find that PVR costs would become roughly twice what they are now. (That does not include the extra administration that would be required.Furthermore,UKbreeders wouldneedtoemployaprocedural representative based within the EU to file their applications on their behalf – we currently charge £550 for that service, per application).

YOU CAN EASILY SEE THAT BREXIT WILL PLACE A MAJOR COST BURDEN ON PLANT BREEDERS

ou can easily see that Brexit will placeamajorcostburdenonplant breeders. There will be three consequencesofthatandtheseconsequences will have an impact on plant breeders regardless of nationality as well as on parts ofhorticulturewhichseemwellremoved from direct plant breeding activity. Firstly, some breeders, especially those working on a small scale, will simply decide that it is no longer worth the effort and may scale back or stop their plant breeding activities. This could cost jobs. Secondly, all breeders will consider whether it is financially viable to introduce so many new varieties. This will reduce choice and stifle innovation in new plants. Thirdly, all breeders will look to pass the increased cost on in the form of increased royalties. This will increase costs for all growers and, ultimately, for retailers and gardeners. Plants will be more expensive.

here are many good reasons to vote Remain on June 23rd – the wider economy, social cohesion, freedom of movement of goods and people.Therearealsogoodhorticultural reasons – a robust and effective plant health system, access to suppliers and markets on the Continent. But for plant breeders and innovators, Plants for Europe thinks that the argument is simple. Brexit can only make business more difficult and more expensive. |||

Buongiorno!

What’s Going on in Italy? The economic crisis in the Western World and, in particular, the subsequent consumer behaviour did not change the law of supply and demand ... but it did change the way people do business. Today, people are putting most of their efforts into developing new, cost-saving technologies and production techniques. But for all the interconnectivity worldwide, the distance between producer and consumer has never been wider. Why did the majority of auction houses, wholesale markets, traders, growers, garden centres and florists continue to focus on increasingly larger quantities, lower prices and profit margins? Italy is a country with a great floral tradition, yet, as is the case with the Netherlands, France and all other high volume producers, it fell into the aforementioned business model. After World War II, the demand for floricultural products exceeded supply. But this is no longer the case as flowers and plants have to compete with a multitude of other products, while being widely available. Over the past several decades, the industry has moved from a product-driven business to a customer-driven model and this has taken its toll. In Italy, it has led to the collapse of many market structures and well-organised companies. The often personal sacrifices to save cooperatives and family-run companies have been huge. Apart from Tuscany, Europe’s epicentre for nursery stock production, the largest flower and plant businesses in Italy are familyowned and mostly located in Lazio (Torsanlorenzo, Altiflor, Di Meo, Selecta and Albani), Campania (Pisapia), Calabria (Papaianni), Apulia (Florpagano, Pagano Plants, Pagano Flowers, Caporal Plant, Capitanio etc.) and Sicily (Giambò, Sicilia Verde, Maimone, Palmara, Piante Faro, La Mediterranea, Martinico Ornamental Plants, Trapani Piante). Almost all other Italian companies, especially those that are in the country’s northern consumer market, have abandoned the traditional wholesale model to sell directly to their retail customers. It is interesting that after a period of losses from substantial bankruptcies, the majority of flower farms and plant nurseries have reevaluate their product portfolios to determine if there is in line with the needs of European consumers. Some of these companies have already based their production on a fourto-five year business model. This goes mostly for products that are not easy to produce and require a longer finishing time. But the plants, trees and shrubs are still profitable. Meanwhile, Europe is witnessing a revival of local distributors with their own specific customer base, focusing on quality and added value. In a market with 400 million consumers it seems that there is a place for these supply chain partners. As always: Viva la Vita!

Arturo Croci is the founder of Italy's leading horticultural business magazine Flortecnica and a walking encyclopedia of Italian horticulture. arturo@floracultureinternational.com

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

Show report This month’s issue reports from the world’s most famous spring garden Keukenhof where three specially designed pavilions for both changing and permanent flower shows are more than just attractive crowd pullers. The opening of each show is combined with a grower’s meeting and award ceremonies.

Sampling valuable consumer input T

heeventsofferindustryprofessionals the opportunity to catch up with the latest breeding breakthroughs, discuss key issue affecting their industry

whilesamplingvaluableconsumer input. An interactive touch screen kiosk served as a polling station where visitors could vote for their floral favourite. Voters were asked

to fill in their nationality, which provided valuable insights in consumer preferences per country. |||

Blaze of colour at Keukenhof’s Chrysanthemum Show Running from May 5 – 10, the Chrysanthemum Show at Keukenhof featured stunning and colourful Chrysanthemum arrangements along with a sizeable number of new cut chrysanthemums.

Lilium Resolute wins Lily Industry Award A significant number of breeders, growers, breeders, buyers and auction reps met inside Keukenhof’s Willem-Alexander Pavilion for meet-and-greet and award ceremony on Friday May 6th. Awarded the Keukenhof Lily Industry Award was Lilium Oriental x Trumpet Grp 'Resolute' of Mak Breeding B.V. This newly launched cut lilium stands out for its large bud size, its sturdy, perfectly vertical stems and dark foliage. The Keukenhof Lily Industry Award for pot lilies went to Lilium AZ 'Londrina' of Lily Company B.V. The jury praised its large blooms and foliage that perfectly fill any pot. |||

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

Around eighty growers, wholesalers, auction reps and breeders flocked to the Keukenhof on May 10th to attend the award ceremony of the annual Chrysanthemum Show. Hosting the meet-and-greet was Thijs van Giessen of promotion platform Chryson who complimented the 35 exhibitors with their stunning display of 156 vases. The jury, composed of chairman Van Giessen, grower Jan Borst, grower Corstiaan van Alphen, wholesaler Arie Schoneveld (FleuraMetz), wholesaler Harm Koningen (Hukra) and product coordinator Dirk van Vuurde of Royal FloraHolland was unanimous to recognise the disbudded Chrysanthemum indicum ‘Magnum’ from 2016 International Grower of the Year winner

Arcadia with the title Best Disbudded Chrysanthemum. The jury particularly praised the large blooms and the harvest being carried out at the right stage of flower development. ‘Magnum’ was also awarded the overall 2016 Keukenhof Award. Eye-catching ‘Zembla Sunny from P. and M. van der Knaap B.V. featured perfectly uniform flowers in golden yellow that won the First Prize in the Spray Chrysanthemum category. Scoping the first prize in the Santini category was Chrysanthemum Indicum Grp tros santini 'Aurinko' of Lewis Flowers from Tuil, which received praise from the jury because of its fresh and distinctive colour. |||

The Oscar of the Dutch Freesia industry At Keukenhof’s annual Freesia Show, the flowers were bright, beautiful… and fragrant as usual.

Charmelia charms the Alstroemeria professionals HilverdaKooij, Könst and Royal Van Zanten, the three biggest names in the world of Alstroemeria breeding, presented this year’s Alstroemeria show at Keukenhof, between April 27th and May 3rd. The majority of Dutch Alstroemeria producers were also in attendance.

A significant number of Dutch Freesia growers met inside Keukenhof’s Oranje Nassau Pavilion for their annual meeting on Thursday March 31. The Freesia exhibition aims at promoting the production and appreciation of Dutch grown Freesias. Several breeders and growers were honoured at the Awards Ceremony on March 31. The coveted Goemans Trophy, named after the Dutch breeder who created the first double-flowered Freesias, recognises excellence in Freesia breeding and was presented to P. Hofland from ‘s- Gravenzande for their stunning blue Freesia ‘Vera’ with single flowers. A panel of specialist judges was unanimous to present the Best in Show Booth Award to Van den Bos Freeisa while the same company also won the first prize for its Freesia ‘Mijoux’ and ‘Avalanche’ in the category single-flowered Freesias Breeders. Van den Bos also scoped the Keukenhof Freesia Award. On the grower’s side, Tesselaar Freesia from Heerhugowaard walked away with the highest accolade for its ‘single flowered and striped Freesia ‘115-009’ in hues of red and pink, while grower Chris Duijvesteijn from Leidschendam was awarded the first prize for its double-flowered Freesia ‘Red Bell’. |||

Grand Finale

A panel of expert judges was unanimous in recognising Charmelia as the Best New Alstroemeria. Bred by Royal Van Zanten and grown by Together2Grow from Schipluiden, Charmelia represents a completely new type of Alstroemeria, with strong branches and plenty of small, beautifully coloured flowers. Launched in 2014, Charmelia has charmed admirers worldwide. In 2015, this new Alstroemeria was among the winners of the Royal FloraHolland Glass Tulip Award. At Keukenhof, there were not only vases of cut flower, but also dwarf Alstroemeria intended primarily for patio containers. |||

The Grand Finale of the Keukenhof Consumer Judging Competition took place on Monday May 16th. Here are the results per flower category: Tulips: Tulipa ‘Fire Wings’of Maveridge International Freesia: Freesia ‘Red Passion’ of Van den Bos Freesia Rose: Rosa ‘Harlequin’of Nice2get! Narcissus: Narcissus nr 1/12 of W.F. Leenen Alstroemeria: Alstroemeria ‘Jumbo’of Konst Alstroemeria Chrysanthemum: Chrysanthemum ‘Baltazar’of Denim-Fleur Calla: Zantedeschia ‘Captain Promise’of Kapiteyn Carnation: Dianthus ‘Spectro’of Ab van Kester Summer flowers: Peony ‘Command Performance’of MyPeony

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

Auctions from around the world This month, part two of Auctions from around the World provides a comprehensive overview of Veiling Rhein-Maas, Plantion and Aucnet. In 'From Wall Flower to Wallstreet Flower', Royal FloraHolland chief executive Lucas Vos outlines how to deal with the rising threat of Fintech, while also speaking about his growers. They tell him that they will use the auction clock less frequently, but urge him to cherish the clockâ&#x20AC;&#x2122;s role worldwide as a source to determine pricing, causing a devil of a dilemma.

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

2016

Auctions around the world

Veiling Rhein-Maas reportsfirstquarterresults Veiling RheinMaas experienced a successful first quarter of 2016. Over the first three months, sales were in line with seasonal expectations for nearly all product groups, while Easter sales provided a satisfactory conclusion to the first quarter. All in all, Veiling RheinMaas achieved 0.5% more turnover compared to Q1 2015. Once again, the increased turnover for the Veiling Rhein-Maas Clock Service contributed significantly to this positive development.

by Ron van der Ploeg

hemarketplacecustomers could choose from a wide assortment of green and house plants, and prices on the auction clocks showed a positive development. For the garden plants, Primulas experienced a difficult market situation at the start of the year as a result of the weather, until in March when demand increased again. Due to Easter falling early this year, the bulb plants season was shortened, resulting in a large supply being brought to market during an uncommonly short period. Veiling Rhein-Maas was abletorecordgoodmedianprices for the other spring bloomers during the whole season. Veiling Rhein-Maas'focusontreenursery products increased as a result of the adjustment to the auction sequence in early March.

Supply volumes

The number of cut flowers sold at Veiling Rhein-Maas was up on last year, also because Easter fell early. The median prices basicallyachievedthesamelevels as last year. The Clock Pre-Sale channel, which was opened up for some cut flowers in January, quickly became increasingly popularandwasthereforeopened up for almost all cut flower product groups by March. In addition, and for the first time, International Women’s Day on 8 March 2016 clearly influenced cut

flower sales at Veiling Rhein-Maas, resulting in a higher demand than last year.

Premium Quality label

The introduction of the 'Premium Quality'designationforcutflowers, which was piloted for buttercups, went down very well. Once the pilot project has been assessed, Veiling Rhein-Maas will decide whether to extend the designation to other cut flower auction groups. In the first quarter of 2016, the 'Premium Quality' designation was introduced for boxwood as well, enabling it to be sold with this designation from mid-March. |||

Quick facts Year Veiling Rhein-Maas founded: 2010 2014 turnover: €335 2015 turnover: €350 SUPPLY VOLUMES IN 2015 Cut flowers: 670 million stems Houseplants: 76 million units Garden plants: 149 million units Supplying growers: 2400 Buyers: 1600

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

Launching between 23 May and 3 June, was Plantion’s new digital sales channel focusing on supplementary products. Using Plantion Digital Marketplace (PDM) suppliers can, for example, attract the attention of clock buyers to the niche products that are not presented at auction. PDM strengthens Plantion’s one-stopshop character and makes the marketplace in Ede (The Netherlands) even more attractive to retailers.

Plantion bolsters one stop shop by launching new digital sales platform I

n developing PDM, Plantion closely worked together with Vireõ,agrowerfloweringandfoliage pot plants in De Kwakel. Commenting on their cooperation Vireõ supplymanagerMoniqueSpaargaren said, “Together with Plantion and IT company SDF, we developed a system that is user-friendly for both suppliers and purchasers. We were successful. Thanks to the VMCtool (virtual marketplace coupling), suppliers only have to set up their requirements once and after that, placing supply on dm.plantion. nl couldn’t be easier. It will still be important to be meticulous in managing your supply.” For Vireõ itself PDM is a welcome addition, says Spaargaren: “In addition to what we offer at the auction, we also have a number of products under our own label currently not put up for auction. Using Plantion’s new digital marketplace we can nowattracttheattentionofretailers normally buying at auction.”

Benefits for auction buyers from our own correspondent

2016

Auctions around the world

Plantion’s auction buyers can also benefit from PDM, as they can now

findtheauctionproductsalongside a large number of complementary products, using a single point of service. In addition, the digital orders are delivered at the same time astheauctionproductsandpaidfor using the same process. Paul Janssen from Bemmel-based flower shop Veja is thrilled about the new developments at Plantion, saying, “At the clock, you never get to see all the products a specific grower has to offer, but on Plantion Digital Marketplace everything is on show. This means you can also add other products to your order. I’vereceivedpositivefeedbackfrom my clients.” Janssen sees one more advantage to the PDM system: “You can determine the precise amount you purchase, to ensure optimum freshnessforproductsinyourshop. To me, it is an ideal supplement to auctions, even though they will remain our starting point. Nothing beatsseeingtheproductswithyour own eyes.”

Inspiring marketplace

Plantion in Ede is a modern, complete and inspiring marketplace for growers and horticulture retailers.

Plantion creates optimal outlet services for the products of its supliers. Plantion’s services encompass a clock auction (for fresh flowers and plants), a wholesale centre for nursery stock products and a large cash-and-carry store selling fresh cutflowers,pottedplantsandflorist supplies.Additionally,Plantionacts as an intermediary between individual growers and buyers. Many products are also available through the Plantion Digital Marketplace. For more information please visit www.plantion.nl |||

Quick facts Year Plantion auction founded: 2008 (when Bloemenveiling Oost Nederland and Veiling Vleuten merged) Turnover: 2014>€88.5 million 2015> €91.6 million Supply volumes in 2015: cut flowers: 206,031,000 stems potted and garden plants: 969,80000 units Supplying member growers: 300 Number of employees: 142

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

Located in Tokyo’s Kita-Aoyama shopping district, Aucnet is the world’s only skyscraperbased flower auction. In MidApril, FloraCulture International spoke with Aucnet’s sales representative, Mr Shigeru Honda, who said that after a bleak period during which the Japanese flower industry hit rock bottom there are signs of re-emergence.

by Ron van der Ploeg

Quick facts

Aucnet runs its online flower auctions on Sunday, Tuesday and Friday, while potted plants are sold on Monday and Friday.

Anticipation is building at Aucnet ahead of Tokyo Olympics

Year Aucnet flower auction founded: 1997 Turnover: 2014> € 52.1 million 2015> € 55 million ( 1euro=122yen) Sales volumes in 2015: cut flowers: 1.64 million stems potted and garden plants : 70,000 units Percentage of products sourced abroad: 20% Supplying growers: Around 2,800 grower groups located across Japan (March, 2016) Buyers: 950 Within a 300 km radius: about 880 buyers (93%) Predominantly retail florists and wholesalers.

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

lthough Aucnet is not officially a flower auction asdefinedbytheJapanese Flower Auction Association, it runs its online flower auctions on Sunday, Tuesday and Friday, while potted plants are sold on Monday and Friday. April is a busy time for Aucnet, “It’s graduation season and this brings plenty of celebratory occasions. Normally, at this time of year, the weather is warmer and supply volumes at our auction increase. This year, however, we had a lot of cloudy days and due totheadverseweatherconditions our median prices were higher,” said Honda. He added, “Our impression is that consumption has hit rock bottom. Sales have been picking up slowly, but are still sluggish when compared to our ‘golden days’,” Aucnet’s sales representative Shiguru Honda said.

Japan’s most fashionable flowers

High-cost greenhouse production of cut bulb flowers is decreasing. Growersswapthemforflowersthat can be field-grown and, thus, less expensive to produce. According to Honda, among the mostfashionableflowersandplants thesedaysinJapanarelargeheaded flowerssuchasextra-largeEustoma and Ranunculus. In potted plants, succulent and hanging plants are the new craze, especially among the younger generation. These plants require little maintenance, watering and are an important element in home décor. Chrysanthemums, mostly the disbuddedtypesinwhiteoryellow, are particularly popular with Japanese consumers regardless of the season. These flowers are used for Buddhist ceremonies and traditions such as home altars,

2016

Auctions around the world flowers as a typical ‘woman’s thing’ and as such are reluctant to enter a flower shop.” Honda calls for more millennialstargeted campaigns as the market focus on only 50- and 60- year olds aspotentialflowerbuyersmighthave been too limited in scope. “We have toencouragetheyoungergeneration in Japan to buy ornamentals.”

Online flower auctions

funeralsandgravesitesyearround. However, in line with the latest trends, the demand for spray mums has been increasing year after year. “The more traditional disbudded Chrysanthemum blooms conjure up images and feelingsofsadnesssotheyounger generation dislikes them. As such, people have gradually shifted to using other flowers for Buddhist occasions, although mums still retain a dominant position in the Japanese marketplace. Multiheaded spray chrysanthemums are a favourite variety of funeral flowers as they are available in a widevarietyofcoloursandshapes and have a long shelf life,” said Honda.

Millenials-targeted campaigns

Worldwide,fewerpeoplearebuying flowers and plants and Honda says Japan is no exception to the rule. “Nevertheless, a market survey carried out at the beginning of 2016 revealed that the number of Japaneseconsumersbuyingflowers for themselves has increased by 41.9%. When viewed by age group, 30-year olds scored the highest: 30.8%, 40-year olds: 21.1%, 20-year olds: 20.4%, 50-year olds: 15.1% and over 60: 10.1%. Another positive sign is that the number of Japanese men who feel uneasy buyingflowershasbeendecreasing among the younger generations. Older Japanese men think of

Aucnet continues to focus on developing new, state-of-the-art software.

Flowers and plants arrive overnight at Aucnet’s Chiba-based warehouses.

Honda explained that one of the biggest challenges of Japan’s ornamental horticulture industry are the small family businesses with ageing owners and no successors. “Growingflowersseemsunattractive to youngsters these days. Climate change is also impacting the industry. Periods of torrential rains are followed by extreme heat and this is something new for us. Moreover, transportation poses anotherbigproblem.Flowergrowers are dispersed across the country and flowers need to be trucked to logistical hubs but the number of drivers continues to decrease as it is a very hard job that doesn’t appeal to young people.” Attracting more buyers to their online flower auctions is one of the key goals for Aucnet in the coming year. “Therefore, we put a lot of effort into tailoring our product portfolio to the individual needs of our customers. Although the market has been shrinking year after year in Japan, we expect demand to recover gradually over the next five years because of the 2020 Tokyo Olympics and Paralympics which will bring a tourist boom and additionalspending.Weexpectother auctions in Japan to expand their online presence, so Aucnet will try to differentiate itself by offering a wide range of product and quantities to meet each buyer’s needs.” Aucnetwasoneofthefirstbusinesses to introduce a satellite-connected auction for used cars in June 1985, long before the internet exploded. In December 1997, Aucnet auctioned the first lot of flowers, using its own bespoke software. Moreover, they addedmoreonlineservicesbetween suppliers and buyers utilizing the most advanced IT technology. “We will continue to focus on developing new, state-of-the-art software.” |||

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

From wall flower to wall street flower (2) It is fast becoming apparent to the world’s largest flower auction that their once exclusive domain is being rapidly disrupted by the internet, decreasing clock sales, increasingly smaller transactions, direct shipping and globalization, all changing customer buying habits. FCI sat down with Royal FloraHolland CEO Lucas Vos to get the full story. In this second installment Vos outlines how to deal with the rising threat of Fintech, while also speaking about his growers. They tell him that they will use the auction clock less frequently, but urge him to cherish the clock’s role worldwide as a source to determine pricing, causing a devil of a dilemma.

by Ron van der Ploeg

imply put, no longer is it enough for the more than a century old institution to play merely a mediation role, bringing suppliersandbuyerstogethertodetermine prices. Its physical auction rooms are emptying at a rapid pace and in today’s highly competitive industry the auction faces increasing pressure to justify its worth in the new-look flower world. Now is the time for the auction to evolve into a full service market and meeting place - with the most stable, best possible price at the lowestcost,andwell-oiled,efficient logistics - and into an international platform for the exchange of market data and research findings. The groundwork for the Royal FloraHolland Academy is already laid. Soon after his appointment as the auction’s new CEO on January 1st 2014 it became clear to 48-year old Lucas Vos that he was not a persontomakedistantobservations and he was quick to come down from the ivory tower to interact directly with the community to help growers and customers alike manage the new, constantly changing paradigm of worldwide flower trading 2.0. In spreading his message, Vos takes a pro-active role in marketing the company, using his social talents. He appears in videos on Royal FloraHolland’s YouTube channel, giving a growing group of dedicated followers of his vlogs regular business updates. Vlogger Vos’ mission for the YouTube channel seems to be

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

“ WITHIN ABOUT A WEEK, THE GROWER RECEIVES HIS PAYMENT. WHEN VISITING GROWERS IN TURKEY AND RUSSIA AND BRINGING THIS TO THEIR ATTENTION, THEY STAND THERE OPENMOUTHED.”

clearly stated. In a relaxed, personal style he appears committed to inform,educateandannouncewho Royal FloraHolland are as a group of people.

oyal FloraHolland recently appointedanewprogramme director, Jantine Aerts, who will be in charge of highlighting the added value and benefits that auction membership offers to growers worldwide. When Vos was given two minutes to make his pitch for Royal FloraHolland he responded, “I would say Royal FloraHolland is the strongest organisation in ornamental horticulture in the world, although in South America views on that might differ. It is the largest marketplace that exists, hosting a wide array of varieties; if you really want your products to beknownandmarketedefficiently, then this is THE marketplace. When launching your new tulip or rose at Royal FloraHolland you are automaticallyinreachofanimpressive customer base.” Vos also highlighted the auction’s multi-disciplinary global team who offer clients first class

advicebasedonin-depthknowledge of the industry. “We are willing to assist growers - from home but also from abroad – looking for investment opportunities in ornamental horticulture. And even though we haven’t found the right recipeyet,wearealmostthebiggest activist in getting consumers to spend more on florals.” Standing out most in Vos’ carefully pitched list is the way Royal FloraHolland handles its cash flow. In a recent survey, with 71% of RFH members expressing their satisfaction with the auction’s services, the 100% payment guarantee and quickness ofpaymentswerementionedmajor benefits. “Within about a week, the grower receives his payment. When visiting growers in Turkey and Russia and bringing this to their attention, they stand there openmouthed.”

eanwhile, FinTech startups continue to create a stir in the banking world. The Let’s Talk Payments website, for example, reported that a recent survey by Accenture and CB Insight

>>>

2016

Interview

Auctions around the world

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

revealed that the global investment in FinTech ventures tripled in one year to reach $12.21 billion in 2014. FinTech refers to the technology that is becoming increasingly important in the world of financial services.Thiscanincludeeverything from lending, money transfer, mobile banking to crowdfunding. FinTech is clearly on Vos’ radar. “Clearly, we live in a free world so I canunderstandthattheseinitiatives are taken. If they bolster the cash flow in our industry I don’t oppose them. BUT… if they undermine the cash flow, then we have a big problem. The way our supply chain is organized works. We are the best performingagriculturalsectorinthe NL with the banks relying on us. Rabobank, for example, is heavily invested in our industry, and this is because of our cooperative system and the way cash is organized. If that falls apart from one player with a quick, easy business model, then we are putting the sector as a whole at risk.”

n the same survey as mentioned above, only 47% of RFH’s customersdeclaredbeingsatisfied with the auction’s services. Staff from the Dutch Association of Wholesale Trade in Ornamentals (VGB) reports that there are hardly

any structured talks underway with Royal FloraHolland regarding the RFH 2020 strategy. It may not be surprising that customers would be more satisfied if the auction was able to reduce costs in the supply chain. Is this under Vos’ attention? “Yes, but I don’t agree, because there are indeed structured talks going on indeed and the VGB are heading our customer platforms so they help to select the customers to discuss key issues such as the WFE programme. In the past, VGB and the auction were head to head. But wehavechangedourtune,becoming far more customer-orientated, because only then can we jointly look forward to the supply chain. That’s where we meet the consumer. I believe the VGB appreciates this, eventhoughitputstheirorganisation in a different position. I am willing to embark on joint initiatives. I understand that the supply chain is too expensive and maybe too overcrowded, with e-commerce gainingmarketshareandconsumers wanting to be in direct contact with producers. I also understand that the margins from our growers and customers are pretty low. The money is not made here, but at the point of sale. Meanwhile, we find ourselves in a shrinking market: from 2011 onwards, the consumer is spending

2016

Interview

Auctions around the world

" WE ARE JUST TOO BIG TO BE PERSONAL"

less and less. That is far more important than reducing costs in the supply chain. If we can team up to increase the pie, while also controllingsupplychaincosts,then we have a real value proposition. Am I concerned about what the customers are saying? Yes. On the other hand: Royal FloraHolland has turned into a different animal. Some customers are still waiting for the moment we will revert back to our old ways. Our customers are struggling with their role within the supply chain as much as we are. The little value added within the supply chain is currently done at thegrower’slevel.Somycustomers need to focus far more on opening up new markets.” How? “Well, by creating consumer brands. I can see only a few customers, with the exception of Frans Timmermans and their Certi brand, moving into that direction. This is the era where book stores are now selling flowers. You need to turn around and face the consumer.” >>>

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

sthereanyconcernthatgrowers and trade will set up their own sales platform? “(Long pause)... If I look into the future, at what is happing in the world,itisaboutnetworks,creating fluid and interactive communities. Growergroups,growerassociations are the examples in our industry, but also customers have start to work together more closely. Growersandcustomerssometimes embark on contract farming. I am not too concerned about all these initiatives, but I would prefer them to be somehow part of Royal FloraHolland. Actually, I would promote them, because the auction has 4,500 members, 1,500 customersandanumberofcontract members. But we are just too big to be personal. Connecting ten times a day with growers is sadly enough an impossible job for us. So I am in favour of organisations such as Decorum and Zentoo, but would prefer that jointly we put more effort in finding out what we have in common and how we can strengthen each other. I can see a role for Royal FloraHolland serving as umbrella community.”

ooking back on 2015, Vos reflectedthatthismarkedayear in which the lowest number of growers – 50 in total- left the auction. He has the feeling that supportforthecooperativebusiness model is growing. But that doesn’t mean that everybody is automatically on board, as very recently two big tulips growers waved the auction goodbye. Whichgrowersaredoubtingthe auction’sefficiencyandeffectiveness the most? “The tulip growers; though I am convinced that we still have enough to offer them. But we should move in a new direction, as the discussion is now mostly fixed on costs instead of the value we’ve created in the past and will provide in the future. I can see a dependency on a few brokers, but have I understood their business model, have I understood how I can help them?,”Vos questioned. The very issue is around retail, which has become the most important channel. “As Royal

FloraHolland chief executive I am in the position that I can personally phone my counterpart at AHOLD and ask him about his ideas on marketing tulips. An individual grower cannot do that. Not many of my customers can arrange a signingceremonyinpresenceofthe King, we can. This is an invitation to my growers. Use me for that, use me for things you cannot achieve individually. Tulips are important to us, they are important to Holland and are a vital part of our logo. But let’s also be honest. This tulip season was not the best, next year we will have increased supply volumes and maybe this is the right moment to come together.”

t the last GGM Vos voiced concerns over the high level of complaints regarding product quality. The VGB mentions a lack of reliable product information and urges the auction to come into action. What practical solutions can Vos offer? “At the end of the day I would like to come to a 100% inbound control of supply volumes. The only answer to this is automation.Nowadays,technology must suffice, because you simply cannot have an entire team of quality inspectors checking each batch.”

erfectly in line with Lean Six Sigma business model, Vos is strongly advocating for speaking through data. At Royal FloraHolland 20% of the top suppliers generate 84% of the revenue while 20% of your customers generate 91% of the auction’s turnover. These top suppliers and customers continuebecominglargerandmore oftennowdealwithoneanotherdirectly bypassing the auction clock. Growers tell Vos that they will continue to use the clock less frequently,quicklyaddingthatthey don’twanttheclocktodisappearas it is used as a worldwide reference to determine prices. How to resolve this devil of a dilemma? “(Laughing) Very difficult. You know it is quite something that we areworldpricesettersofflowersand plants so we should be very careful

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

“ THIS COMPANY HAS BEEN TOO INWARD LOOKING FOR A LONG TIME. AS SUCH WE HAVE COME TO A NEW BALANCE BETWEEN EXPERIENCE AND FRESH BLOOD”

with that; a lot of our credibility is based on that. The clock often being used as – in growers’ wording - a dumping ground, only undermines that position. In direct trade there is much going on, and we need to establish a fair picture. It is not necessarily the price at the auction clock that indicates the real market price. Think of the pre-sales order system, with prices being 15% higher than at the clock. We need to look for ways to publish total prices instead of just the clock prices. Here again technology can help.”

ver the next few years, the auction will be forced to cut over €100 million in

costs to keep its tariffs attractive. One of the cost saving tools is the earliermentionedNewAuctioning, anewapproachtoauctioningbased on disconnecting the price setting from the logistics process. It is clear that Auctioning 2.0 must be combined with an advanced transaction system. When Vos was asked directly whether this should be a revitalised clock or an alternative selling system, he answered, “I think that in the future a new type of platform will be the dominant thing. There will still be a place for the traditional auction clock because the reality is that we are dealing with a push product: the flowers need to be picked and sold, and we need a marketplace for that. But the world is moving into a pull situation where the consumer decides when he will buy something, and that’s where the new transaction systems come in. We can learn from the attractiveness of booking.com. In our case, the grower can get back in control when determining the price. At the moment it is too much

2016

Interview

Auctions around the world Oosterom, leaves the auction six months earlier than his official term. How big are concerns regarding continuity and experience within the top level of the organisation? “This is a very fair question. But with Jack Goossens coming in as new president, the auction welcomes a man who knows the auction inside out, having served on the board for a long time already. In that respect I don’t have any concerns. I also believe our advisory council functions very well.” But the fact that Rens has gone and has left Vos without – so to speak- a partner in crime, caused some concerns. “But I am pleased to announce the appointment of Steven van Schilfgaarde as CFO for Royal FloraHolland. Steven brings with him a wealth of experience from his time working in diverse and large organisations. Having said that; experience is good, we need it. But it needs to be properly balanced with new people coming in. Experience from outside our industry is also necessary. This company has been too inward looking for a long time. As such we have come to a new balance between experience and fresh blood.” |||

of a lottery, never knowing how much your product will sell for.” In a scenario of ex-work (read exnursery)auction,whereflowersand plants are sold from the farmyard, how big will be the impact on the vast expanse of empty auction buildings? “Quite a lot; it is clearly one of our aims to reduce our assets. We sold our buildings in Venlo, now trying to sell premises in Bleiswijk. I foresee a future where we don’t own the buildings, but we do use them. It is not necessary that they weigh so heavily on our balance sheets. We see that the auctionneedslessandlessspacebut there is also a shortage of space for our customers. Here in Naaldwijk, there is no space left, the same is the case in Rijnsburg. In Aalsmeer we have some empty places, but these are not very attractive with a lack of daylight.”

Quick facts • Annual turnover: 4.5 billion euros and 3,200 employees • Plant and flower sales: 12.5 billion items a year • Members: 4,500 of which approx. 750 are based abroad • Customers: 2,200 • Auction clocks: 38 • The Greenport is, with Schiphol airport and the port of Rotterdam, one of the three economic 'mainports' of the Netherlands • Direct and indirect employment within the sector provides 250,000 full-time jobs • The Greenport is responsible for 20% of the Dutch trade surplus • Top five export countries: Germany, the UK, France Italy and Russia • 20,000 varieties of plants and flowers sold at the auction • Top five worldwide import Kenya, Ethiopia, Israel, Belgium and Germany • 100% marketing guarantee • 100% payment guarantee • System of concentrated supply and demand of a wideranging assortment • Standardised and individually tailored service provision

ppointed as CEO on January 1st 2014 Vos is a relative newcomer to this industry. His CFO, Rens Buchwaldt, left the auction in February this year, and his chairman, Mr Bernard

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

Travel report

How Denmark is adapting to the industry’s new reality Floradania, the worldwide marketing arm of Denmark’s ornamental horticulture industry, working together with the GASA Group, invited FloraCulture International to take part in a fast-paced, wide ranging farm tour in the Jutland peninsula and to the Funen island, where a cross section of pot plant companies offered the magazine to experience first-hand a behind-the-scenes look at the country's leading pot plant companies. by Aldo Colombo and Ron van der Ploeg

ising labour costs, steep energy prices and a country where it is not always sunny - Danish growers have their fair shareofheadaches,andareforcedto confrontthesecommonchallenges. Commonplace myth or harsh reality? FloraCulture International sampled sentiments in the Danish pot plant industry. This month, the second episode of the travel report focusesonGartnerietPedersen,Nordic Orientals, Graff Kristensen A/S and Rosa ApS/RosesForever® ApS.

Gartneriet Pedersen

Day two of the farm tour took us to Gartneriet Pedersen in Hørning, near Aarhus. Founded in 1963 by the father of the present owner, Henning Pedersen, the companyspecialisesinthebreeding and production of ornamental

Capsicum,whicharesoldunderthe Maya® brand. The assortment includes a number of varieties with a wide range of colours: yellow, orange, red and purple. Among the tried-andtestedseriesareMaya'Bomba’with extra-large fruits and a 14-15 week crop time, Maya ‘Salsa' including 8 different colours, 4 colours of Maya 'Karneval' in 10-15cm pots and Maya 'Festival' in three colours. Pedersenexplainedthatmanynew varieties are in the pipeline, with breedingfocusingondifferentfruit shapes and an even more compact growth habit compared to existing cultivars. Creating new varieties is a lengthy process which usually takes 4-5 years, and only a handful of seedlings reach the final stage to be granted a variety name. Many crite-

Denmark quick facts Annual production: approximately 600 million plants, 70% of which are exported. Export value Danish flowers and plants: 2.4 billion Danish Kroner (approximately €320 million/year) World leader: Denmark ranks as the world's secondlargest exporter of potted plants. Cash crops (2011): 44 million Kalanchoe, 21.5 million roses, and 16.5 million Campanula. Check out the whole Top 10 here: http://floradania.dk/ branchenyt/top-10/ and http://floradania.dk/fileadmin/ s3/pdf/Markedsinformation/Top_lister/2009-2014_ Oversigt_tabeller_toplister.pdf

Production area in m2 (2014): Cut flowers Pot plants Bedding plants Nursery stock products Total area:

Full name: Kingdom of Denmark Population: 5.5 million (UN, 2010) Capital: Copenhagen Area: 43,098 sq km (16,640 sq miles) Major language: Danish Major religion: Christianity Life expectancy: 77 years (men), 81 years (women) (UN) Monetary unit: 1 krone = 100 ore Main exports: Machinery and equipment, foodstuffs, chemicals GNI per capita: US $59,050 (World Bank, 2010) Internet domain: .dk International dialling code: +45

57.838 2.275.394 476.245 179.250 2.988.727

Henning Pedersen.

riamustbecheckedwhenbreeding new varieties, including colour, ethylene tolerance and shelf life. Henning began working with this crop in 1969. Today the majority of his customers are fellow growers whopurchasesemi-finishedplants. Mostly grown in Ø 9 pots, Pedersencapsicumalsosuitlargerpots. The Maya range proves popular with growers, and the 181-year old Japanese seed company Takii actively markets this product in Europe and the USA. All varieties feature edible fruits although Pedersen, according to Danish law, cannot claim this on the labels. Perennials were the company’s top product by revenue in 2015. Other important crops are 15 varieties of potted bulbs for the Scandinavian market, and botanical Primula. Pedersen grows his plants in 10,000m2 fully ownedglasshouses, 10,000m2rentedglasshousespace, and 25,000m2 field production. |||

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

>>> 33

Travel report Nordic Ornamentals Nordic Ornamentals, previously part of Sakata and, before that, Daehnfeldt, produces young perennial plants, pot plants and cut flowers from seed in a fully equipped 23,000m2 greenhouse. The annual output of the company is 75 million plants, marketed through the GASA Young Plants cooperation. Precise sowing, using three different sowing drums depending on the size and the shape of seeds, contributes to a high quality product. After each sowing the machines are carefully cleaned. Other specialised horticultural equipment and techniques include artificial light, shade cloths, rolling benches, cold storage for seeds and trays, and carefully monitored germination phase. Climate, watering and fertilizer application are computer-controlled, all water is re-used and mixed with rain water in reservoirs. Only new, clean trays are used. Seeds are bought from 15-20 companies, including the main players in the industry. Two substrates, with different pH levels (5.3 and 5.9) are used according to the crop. Biological control is preferred, especially for nematodes, although when necessary chemicals are used to maintain quality. The company is flexible, delivering single tray orders, and can produce to order. Timing of marketing is critical, and surplus production must often be moved fast. Real marketing problems can arise, though only occasionally, when germination is lower than forecast. All trays are optically scanned and, if necessary, empty holes are filled by robots. While we were visiting the company , a batch of cut flower Eustoma (Lisianthus) for a client in Taiwan was prepared for shipment. This crop, when raised in cold climate countries, has better germination and longer stems. |||

Europeanchampioninplantnovelties Being among the best naturally places great demands on quality and product development. And the desire to innovate is blooming. According to figures from the EU Community Plant Variety Office, 54% of all new plant varieties came from Denmark. This is a record-high proportion in relation to the other plant-producing countries with whom we usually compare ourselves.

Queen More Flowers Ellen submitted by Knud Jepsen at the 2016 IPM ESSEN show.

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

Out of a total of 41 new products nominated last January at the world's largest plant fair in Germany, Denmark could present five new Campanula varieties, each with its own special features, and a total of twelve new roses in exciting colours. But it is not only among the heavy-weights like roses and campanula that new ideas are evident. A good example is hydrangea, which, with an annual output of 2.7 million plants, is doing very well indeed. Intensive breeding efforts have also resulted in a number of exciting new Danish-produced varieties.

Nordic Ornamentals director John Nielsen.

Nordic Ornamentals’ flagship products are plug trays.

Young Plants Production and exports of young plants are a vital part of Denmark’s ornamental horticulture and gardening industry, and is a natural consequence of the innovation strategy and associated development which has characterised the business environment since the early 1990s.

A long-standing tradition of excellence The Danish pot plant industry dates more than 100 years back and is evidence of a longstanding production tradition characterised not only by experience, commitment and innovation but also by a unique setup throughout the whole value chain. The first hesitant steps towards exporting pot plants to Belgium were stopped by the Second World War, but when the situation changed Denmark expanded its export activities to

include Sweden, England and Germany. At the end of the 1950s and through the 1960s visionary companies specialising in exports of pot plants, became more numerous, with

exports of Danish pot plants to Scandinavia and Europe culminating in 1972 when Denmark joined the European Union. Yet the logistics aspect, with an effective and professional distribution system, also played an important part in securing the Danish position on the European map of ornamental horticulture.

Graff Kristensen A/S

Upon arrival at Graff Kristensen A/S, in Sabro, also near Aahrus, guests were offered a refreshing Hibiscus juice, with anti-oxidant, anti-cholesterol and blood pressure controlling properties. The company started breeding Hibiscus in 1984, after Poul Graff, the current owner, discovered it when working in the U.S.A. from 1981 to 1982. Founded in 1931, Graff Kristensen A/S had a partnership with Yoder for many years (19912006). When this partnership ended, sister company Graff Breeding, was established. In a massive breeding effort, the company tried to overcome the three main problems of ordinary Hibiscus rosa sinensis varieties: flowers that last from two hours to two days, a blooming period of only 3-4 weeks, and green buds that show no colour. The brand used by Graff for their varieties is ‘HibisQs’ and these plants have no rest

period. As such, HibisQs has a continuous flowering and buds progressively show their colour before completely opening. The company’s marketing efforts are really outstanding: Graff sells only to selected growers, usually one per country, and all brochures and labels are printed with the logos of partner companies. Breeding aims are targeted to the requirements of final consumers in the different continents: in Asia pure colours are preferred, for the USA huge flowers are required, while in Europe two-toned varieties are in vogue. For Poul Graff, the real ‘secret’ in breeding Hibiscus varieties is to start with strong dominant parents for each of the features required.

Helle and Poul Graff.

Clients are invited to trials of new varieties, and annual open days are held in September. Since 1989, Graff has been producing their cuttings in Vietnam in partnership with a local nursery. Hibiscus originally comes from Asia, and there they find the perfect conditions for

propagation. Facilities include 1,5ha for mother stock and 1,3ha for propagation unit. Each week, 2-300,000 high quality cuttings are produced. The company has recently introduced the first varieties of named Q-ismas Star, a new series of Poinsettia. |||

Bravely facing challenges During the 1970s and 1980s the Danish export adventure suffered the first defeats in terms of energy crises consequences; a rapidly growing competition from other pot plant producing countries, as well as tough regulations for national pot plant producers. This new reality was something to which Danish growers had to adapt, and the industry faced up to the new situation and acted accordingly. Some responses to this sea of challenges were climate control and energy saving devices. Since Denmark joined the EU, nurseries have demonstrated

an extraordinary ability of adaptation and flexibility that has surprised a lot of people outside the industry. Having experienced two energy crises, Denmark’s ornamental horticulture has evolved from a protected sector to an international marketplace with almost no restrictions.

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

Travel report Rosa ApS/RosesForever ApS Pot roses rank highly among the flagship products of Danish ornamental horticulture, and leading the pack in breeding, licensing, production, sales and marketing are the production company Rosa ApS in Sabro (founded in 1988 in Sabro, near Aarhus), and the breeding company RosesForever ApS (founded in 1996 in Faaborg). RosesForever is a frequently spotted brandname at horticultural trade exhibitions across Europe, representing a premium quality line of potted roses available in many cheerful colours, and suitable for indoor and outdoor use. Rose breeder Rosa Eskelund is always looking for ways to improve lines of miniature pot roses, resulting in many prize-winning varieties. The two lines of pot roses produced in the Sabro location are Infinity® and Roses Forever®. The Infinity brand, available now in four colours, with yellow as the latest addition, represents extra-large flowers and an incredibly long shelf life. The Roses Forever series is for indoor use, and is available in a wide range of colours, grown on their own

roots. Both Infinity and Roses Forever roses differentiate themselves by their shiny, thick foliage. Each pot size, commonly Ø 6 to pot Ø 12 (and larger by request for some clients), contains the perfect number cuttings, from 2 to 4, to quickly fill the pots. Young plants are supplied trimmed, low or high, according to the clients wishes. As well as selling young plants and semi-finished plants, the company also delivers a full service to clients, providing know-how for cultivation, substrates, watering and feeding. Annual output from 25,000m2 of greenhouses is 5 million young plants, 95% of which are exported, finding their way to customers across Europe. |||

MPS Certification Being subjected to complex global conditions, the industry has still managed to reflect and focus on its own strengths, creating new possibilities. So what corresponds to approx. 50 % of the total Danish cultivation area is MPS certified. MPS is an international environmental cooperation in the green business sector and gives a guarantee to stakeholders that the company in question is aware of its responsibilities and is a trustworthy and central player in the ornamental plant field and related industries.

Miniature rose production at Rosa ApS.

At Rosa ApS, roses in all shapes and sizes are available for the customer.

Visionary growers Denmark’s horticultural sector was built by visionary entrepreneurs. Very early on, growers in Denmark understood that success is simply not doled out, but it must be earned through hard work, persistence, educational commitment, and even a little good luck and timing. Successful performance in export markets has also been due to Danish growers’ testing new plants, developing the ability to consistently provide uniform plants. Close collaboration between research units and nurseries is a dominant feature of Danish horticultural business, and continuing product development was, and still is, one of the absolute strengths of the business.

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

France In France, statistics show that 15, 260 florists shops, account for 37.4% of all flower and plant sales nationwide. Florists continue to be the number one point of purchase, especially for gifts. However, individual florists are increasingly under pressure, due to the relatively small size. They are forced to sell flowers and plants at relatively high prices to keep their businesses profitable.

by Marie Francoise Petitjean

Florists'chainsaregaining market share in France F or ten years, the florist sector has witnessed the growth of retail florist-chains diminishing sales for individual shops. Today, 20% of flower and plantpurchasesatfloristshopsare made at chain stores. How can such success be explained in a sluggish market? The florist-chain business model combines self-service concept

Main florist-chains in France It is estimated that around 700 florist shops operate under a commercial chain brand, thus 4.5 % of the 15,260 florist shops in France. They have a 7.7 % market share of the French flowers and plant market (20% of the florist segment). The main chains are the following: Group

Commercial brand

Emova

Monceau

160

Rapid' Flore

116

Happy

Le Jardin des Fleurs

Oya

Floranova

Mon fleuriste préféré

Points of sale

Au nom de la Rose

Carrément fleurs

Sources: Consumer panel FranceAgrimer-Val'Hor 2014 for market figures, group information for chain information.

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

stores,handtiedbouquetexpertise and centralized purchase and and servicecapabilities,suchasinternet sales and click and collect. This allows them to offer fresh attractivebouquetsatareasonable price, thus positioning them between a traditional florist and supermarket. For investors florist-chains offer an opportunity to enter the floral business with fewer risks, thanks to a proven concept, assistance in finding a good location, building a business plan, training, marketing and advertising. There are two main companies that

dominate the marketplace: Emova (formally Monceau Fleurs), with 354 retail outlets and FloraNova with 160 shops. Both have been developing several conceptstores,accordingtolocation (city center, suburbs, commercial centers)andatargetedcustomerbase. Comparedtoflorists,chainsgenerally sell more ready-made bouquets, including hand-tied bouquets, and fewer flowers per stem. Au nom de la Rose have broken the rules of traditional assortments, by creating a full concept city center shop devoted solely to roses, displayed with non-floral items. |||

Relatively big shops.

Carrément Fleurs This relatively new chain of florists started in the South West of France in 2012 and has since experienced remarkable growth, with turnover rising from €4.9 million in 2012 to €13.5 million in 2015! When asked about their success Carrément Fleurs’ Bruno Pain mentioned the relatively big shops (150 m²) offering a wide range of ready-made and ‘à la carte’ bouquets made by their own florists, strategic locations along busy roads, good visibility, parking and quality product and service. What the industry can learn from Carrément Fleurs is that the concept successfully breaks down ‘thresholdfear’, the uncertainty some people might feel about entering a florist shop.

Shops are open 24/7 and bouquets can be made on site or ordered on the internet and picked up in store. To offer the best customer experience, the chain invests in training and support, be it on floral art or customer-oriented

service. According to the creator, this is key to the success of each project. Carrément Fleurs continues to expand with four openings scheduled for 2016. For more information please visit www.carrementfleurs.com. |||

Good visibility.

Happy stores sell bouquets like shirt collections Happy stores are targeting young, urban customers, with city shops and an ever-changing range of ready-made bouquets. They recently launched their newest concept, the innovative hanging display of bouquets (see picture). The starting point was to optimize the flower display, both indoor and outside the shop, as well as create a new customer experience. Bouquets and plants are displayed in ready-made bags suspended from a metal rack by coat hangers (see picture). The flower/plant bag can be purchased with or without the hanger. The second innovation is regarding marketing. Happy will propose seasonal collections of bouquets, similar to fashion, with fixed price according to size. Of course, as with traditional florists, the customer can ask for a specific bouquet or flower arrangement. To offer a new consumer experience, the traditional counter has been replaced with a workshop table that allows the consumer to share the experience of creating his bouquet with the florist. The Happy store concept is ‘in full bloom’, with plans to open 40 additional shops in the coming years. |||

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

Crop protection

Time to zero-in on zero residues When politicians need to negotiate safe passage through a minefield of difficult issues – they make a Road Map. Real IPM Kenya is putting its money where its mouth is and making its Road Map to Zero Residues a very public affair. Step-by-step progress reports are published on social media (#zeroresidues) and include Youtube videos.

by Louise Labuschagne

he greenhouse, in Thika (Kenya) is open to rose growers to see for themselvesandeventakesamples to test for chemical residues. The programme started two weeks ago and is already showing very encouraging results. By the time the Nairobi IFTEX Show is running there may be even more to shout about. Real IPM Kenya is attempting to demonstrate that even in a very highly infested rose crop, with a highly susceptible variety, on the Equator with all year round growing conditions and during the rainy season – that it is possibletousebiologicalcontrols curativelyforallpestsanddiseases in roses. If it is possible to get out of the quagmire just using biological controls–theyhopetoencourage growers to be more confident about using a bio-intensive IPM programme as the front line way for all growers protect their crops in the New Age of Rose Farming.

REAL IPM KENYA HOPES TO ENCOURAGE GROWERS TO BE MORE CONFIDENT ABOUT USING A BIO-INTENSIVE IPM PROGRAMME AS THE FRONT LINE WAY FOR ALL GROWERS PROTECT THEIR CROPS IN THE NEW AGE OF ROSE FARMING A prophylactic, preventive programme with high application rates and short spray intervals for biopesticidesandpredatorymitesis claimed to be the most sustainable and reliable way to improve yield and quality – is this true? Their challengetorosegrowerseverywhere is SEE IT - BELIEVE IT - DO IT When retailers task their suppliers to reduce chemical pesticide residues, growers hear alarm bells ringing. Theimmediatelyenvisagehugecrop losses,iratebuyersonthephoneand foresee a fast scramble back to the safe bunker ofprogrammesthatrelyonchemical pesticides.

t is not unusual for growers trying bio-intensive IPM to jump ship when they are not sure about achievements or risks. The#zeroresiduesrosegreenhouse is being scouted using the Scarab Solutions state of the art GPS scouting system. (For more information please visit www.scarab-solutions.com) Hand-held smart phones are used by trained scouts to enter information on the presence and severity of the pests and diseases at about 13 observation pints in a 40-meter row. This data is even separated into three strata in the crop (base, middle and top).

Fig 1: The SCARAB map shows a rapid decline in the level of powdery mildew once the high rate Bacillus subtilis programme is applied. This is achieved without any chemical fungicide. 2016-04-15 – 2016-04-26

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

Crop protection Within three minutes of pressing ‘send’ to have the data analysed by Scarab Solutions – a very detailed contour greenhouse map of the individual pests are displayed either on the phone or on a number of computers anywhere in the world. Managers with passwords can immediately see the progress of powdery mildew control or mealybug control etc. – even if they have not been able to visit the greenhouse. Scarab is a very useful tool because it is impossible to ‘cheat’ with the scouting – since the week-onweek comparison of hot spots and spread of disease or pests takes a biologically logical route Not all farm managers would want the owners breathing down their necks from another country. But eventually with a successful

programmes.” Scarab is a very useful tool because it is impossible to ‘cheat’ with the scouting – since the weekon-week comparison of hot spots and spread of disease or pests takes a biologically logical route. Access to this technology and the immediate reports – replace piles and piles of un-read scouting data from the old fashion scouting methods! The Real IPM #zeroresidues rose greenhouse will be publishing key comparisons of ‘before’ and ‘after’ the biointensive spray programme.

SCARAB IS A VERY USEFUL TOOL BECAUSE IT IS IMPOSSIBLE TO ‘CHEAT’ WITH THE SCOUTING – SINCE THE WEEK-ON-WEEK COMPARISON OF HOT SPOTS AND SPREAD OF DISEASE OR PESTS TAKES A BIOLOGICALLY LOGICAL ROUTE

ose growers around the world have serious problems with powdery mildew and may have to spray up to 50 times per year for this disease. If growers could replace fungicides with biological controls – they could make a serious dent in their performance targets for #zeroresidues.Alreadyafteronlytwo weeks, the Real IPM programme

bio-intensive programme, the farm manager will have less to worry about. Ethan Chege, Technical Manager at NIRP Show-house in Kenya says “ I sleep at night now – knowing that I am in control, having successfully implementedthebio-intensivespray

has made powdery mildew ‘history’. Powdery mildew on the stems and leaves were at seriously high levels. The Scarab powdery mildew maps (figure 1 and figure 2) show how this turnaround has happened. Over the next few weeks, similar results are expected on downy mildew,mealybugsandthrips.These are all difficult targets, even for chemicalfungicidesandinsecticides. But even after two weeks – the Scarab maps are showing significant improvements using higher rates of biopesticides and shorter spray intervals for curative programmes. Lowersprayvolumesofwaterarekey to the success of biopesticides. They must not be sprayed to ‘run-off’. Successfulbio-intensivegrowershave had excellent results with just 800 litresofwatervolumesperhectarefor pest and disease control. |||

Fig 2: Scarab map AFTER the Real Bacillus subtilis programme started. In just ten days there is 90% less powdery mildew in the heads and 90% less live powdery on the leaves. This has been achieved without any chemical fungicides. Therefore a prophylactic preventative programme is a reliable substitution for fungicides and runs no risk of resistance developing. Date

Map

Powdery fresh total

Powdery fresh in bud

2016-04-26

Trials

Area

Change

Area

Change

Area

Change

Area

Change

Area

Change

Scouted by

Sector

55 %

-0,74 Reduction

42 %

-0,45 Reduction

38%

-0,38% Reduction

93 %

Upper Class

-0,33 Reduction

4,5 %

Samuel,Tyson

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

Powdery fresh in top

Powdery fresh in base

Powdery dry

Lighting Dutch horticultural research institute runs a trial to demonstrate that100% LEDs in rose cultivation is possible.

Is converting your rose greenhouse to 100% LED lighting possible? P

hilips Lighting, a company owned by Royal Philips (NYSE: PHG, AEX: PHIA) and the global market leader in lighting, is helping rose nurseries to improvequalityandincreaseyields. Philips is involved in a trial that began in April 2016 at the Delphy Improvement Centre in Bleiswijk. In this trial 100% GreenPower LED toplighting with a light level of 200 µmol/m²/s is being used.

Quality and branch weight

The study, which will go on for 18 months, will provide information about the effect of 100% LEDs on the quality and branch weight of roses. The trial ties in with the principles of The New Cultivation: an energy-efficient method of cultivation combined with optimal production. The project is receiving support from the Rose crop cooperative and is partly financed by ‘Kas als Energiebron’ (‘Greenhouseasasourceofenergy’), the Dutch Ministry of Economic Affairs' and ‘LTO Glaskracht Nederland's’ innovation and action program.

Quick facts • Intended result: larger flowers and higher branch weight • Improved energy balance due to lower electricity consumption • Trial as part of The New Cultivation: optimal production and energyefficient method of cultivation

Less excess heat

The aim of the study is to demonstrate that cultivation using 100% LEDs is possible. LEDs are the key to efficient, energy-saving cultivation, which also makes for a better-quality end product. Higher andhigherlightintensitiesarebeing used in rose cultivation because the crop performs best under these conditions. Lamps that use old technology produce excess heat. With LED toplighting, higher light levels can be achieved with less excess heat.

Improved energy balance

“Lighting with LEDs improves the balance between light and heat, allowing screens to be kept closed and creating a uniform climate,” says Arie de Gelder, project leader of the rose trial and researcher at Wageningen University and Research Centre. “The main challenge is to be found in the plant temperature at the top of the crop as compared with conventional lighting. We are very curious to see how the rose crop responds to this. Eventually this combination of light and temperature should give rise to a further improvement in quality in the form of larger flowers and higher branch weight.”

Sustainable cultivation

In rose cultivation, a 25% reduction in electricity consumption can be achieved with LEDs as compared with conventional lighting. A combination of heat exchangers and a heat pump makes it possible to eliminate fossil energy and take a step in the direction of sustainable cultivation. Thanks to a sophisticated combination

of lighting, heating and cooling, with maximum usage of screens, no excess heat will be produced. The direct result of this is lower CO₂ emissions. There will also be lower light emission if the screens stayclosedforlonger.Thebalanced energydistributionandmovement of air make for a resilient crop that is less sensitive to mildew.

Optimal lighting

For Philips, this trial is another step forward. Following successes achieved with tomatoes and strawberries under LEDs, roses are the next trial crop. “We expect to be able to move to even higher light levels with LEDs, with control of light and temperature being separated,” says Leontiene van Genuchten, plant specialist at Philips. “Many growers are convinced that HPS lamps are required in order to obtain a suitable crop temperature. In this trial we will find out whether we get at least the same result using a different cultivation method.” ||| For more information please visit www.delphy.nl

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

International Events June 2016 2 to 6. Ireland Bloom Ireland, Phoenix Park, Dublin, 9am – 6pm www.bloominthepark.com 3 to 4. United Kingdom RHS London Rose Show. www.rhs.org.uk 7 to 10. The Netherlands Dutch Lily Days. www.dutchlilydays.com 8 to 10. Kenya International Floriculture Trade Expo (IFTEX). www.hpp.nl 14 to 16. The Netherlands GreenTech at the RAI convention centre in Amsterdam. www.greentech.nl 14-17. Germany/Netherlands 2016 Flower Trials. 49 Breeding companiesinthreeregionspresent their latest innovations and future developmentsinpotandbedding plants. www.flowertrials.com 20 to 22. United States International Floriculture Expo, United Fresh, FMI Connect and Global Cold Chain Expo at the McCormick Place, Chicago. info@floriexpo.com www.floriexpo.com 21 to 22. United Kingdom HTA National Plant Show at Stoneleigh Park, Coventry, Warwickshire, CV82LZ, UK. T +44 118 9303132 F +44 118 9323453 enquiries@nationalplantshow.co.uk www.nationalplantshow.co.uk 22 to 24. Brazil 23rd Hortitec at the Holambra/ SP convention centre. www.hortitec.com.br 28 to 29. Israel Agro Mashov at the Israel Trade Fairs & Convention Center, Tel Aviv. www.agro.mashovgroup.net July 2016 5-10. United Kingdom RHS Hampton Court Palace Flower Show www.rhs.org.uk 9-12. United States Cultivate’16 will be held in Columbus, Ohio on July 9-12, 2016. www.AmericanHort.org/Cultivate

13-15. United States The 47th Annual Fleuroselect Convention, hosted by Ball/ PanAm will take place from 13 to 15 July in Naperville/Chicago, United States. www.fleuroselect.com 14 July. United States Fresh Connections: Floral Miami in Miami, Florida USA. Connect with familiar faces, form new relationships and stay on top of trends and discover new products and varieties important to the floral community. www.pma.com 17-18 August. South Africa Fresh Connections Southern Africa in Pretoria, South Africa. Delve into the retail and supply chain trends – both global and local – that present exciting opportunitiesforSouthernAfrica. www.pma.com 18 August. Brazil Fresh Connections Brazil in São Paulo, Brazil. Gain insight into innovative marketing strategies, local business practices, consumer and retail approaches for optimal profitability in Brazil. www.pma.com 20-24. United Kingdom RHS Flower Show Tatton Park, near Knutsford, Cheshire. www.rhs.org.uk 21 to 26. Switzerland International Garden Centre Association Congress in Zurich, Switzerland. Small country – plenty of variety. We invite you to gettoknowthefascinatingvariety that Swiss garden centres have to offer. www.igcc2016.ch 26 to 28. United States IGC East Show at the Baltimore Convention Centre. www.igcshow.com August 2016 16-18. United States IGC (Independent Garden Centre) Show at the Navy Pier in Chicago. www.igcshow.com 15-19. Malaysia 15th International Peat Congress. "Peatland in Harmony Agriculture, Industry, Nature" Kuching, Malaysia. www.ipc2016.com

www.FloraCultureInternational.com | Jun-Jul-Aug 2016

24 to 27. The Netherlands Plantarium, the leading international nursery trade fair. info@plantarium.nl www.plantarium.nl 25 to 27. United States Farwest Show at the Oregon Convention Centre, Portland, Oregon. With nearly 900 booth spaces, the Annual Farwest Show is your ticket to the nursery and retail garden centre industry. www.farwestshow.com September 2016 1 to 3. Poland 24thinternationaltradeexhibition Green is Life. www.greenislife.pl 1-4. Mexico Viverismo Flower and Garden Show at Conaplor, Cuautla, Mexico. info@guiaverdemexico.com 1-4. Iran Iran Horti Expo, Tehran. www.hpp.nl 8-11. The Netherlands National Summer Flower Show at the Oude Kerk in Naaldwijk, the Netherlands.Thisyear’scombined theme is ‘Dutch Pride’ and ‘Cut Hydrangea’. info@nzbt.nl www.nzbt.nl 13 to 15. Russia FlowersExpo 2016, the 6th international FlowersExpo trade exhibition is set to take place at Crocus Expo in Moscow from September 13-15. mail@flowers-expo.ru www.flowers-expo.ru 14-16. Italy FloraTrade, international horticultural trade exhibition at Fiera Rimini, Rimini, Italy. www.floratrade.it 21 to 23. Italy Flormart. www.flormart.it 21 to 24. United States SAF Convention Maui 2016, www.safnow.org 21 to 24. United States Save the date: The 49th Annual Sylvia Cup Design Competition takes place on Sept. 24 during SAF Maui 2016, SAF's 132nd Annual Convention, Sept. 21-24, 2016, at the Ritz-Carlton Kapalua in Maui, Hawaii. www.safnow.org

October 2016 5 to 7. France European Congress Hortis and World Urban Parks in Albi, France. www.hortis.fr 7 to 9. United States 2016 Independent Plant Breeders Conference, the Morton Arboretum, Lisle, IL 12 to14. Japan Ifex, Asia’s largest flower trade exhibition at Makuhari Messe, Tokyo. www.ifex.jp 5 to 8. Ecuador Agriflor in Quito. www.hpp.nl November 2016 2 to 4. The Netherlands International Floriculture and Horticulture Trade Fair (IFTF). www.hpp.nl 13 to 15. United Arab Emirates Event organisers Messe Essen and planetfair Dubai LLC have announced the 2016 IPM Dubai and WOP Dubai will take place from 13 to 15 November 2016. Once again, the trade exhibitions will be held at the Dubai World Trade Centre. www.ipm-dubai.com www.wop-dubai.com 24 to 27. Turkey 2016 Eurasia Plant Fair/Flower Show Istanbul. info@cyffuar.com.tr www.flowershow.com.tr/en 30 November to 3 December. Turkey Growtech Eurasia, 14th international greenhouse, agricultural equipment and technology trade fair. www.growtech.com.tr December 2016 RHS London Christmas Show. www.rhs.org.uk January 2017 24 to 27. Germany IPM ESSEN ipm@messe-essen.de www.ipm-essen.de

W.F. Leenen & Zn. Advertorial

GreenTech (June 14-16) is the global meeting place for all professionals involved in horticulture technology in RAI Amsterdam, The Netherlands. With over 350 international exhibitors including all market leaders and innovators, GreenTech focuses on the early stages of the horticulture chain and production issues relevant to growers of flowers and vegetables.

by Jaap N. Kras

Exploring niche markets to stand out “B

eing a family company is the core strength of our business,” said Jaap Leenen. “We are not looking for the short-term results but concentrate on long-term goals. You need to have a long breath if you breed new bulb varieties.”

Niche products

The flowers grown by W.F. Leenen have been cultivated in the Netherlands for over 400 years but still are still niche products on the market. As with tulips, the origin of Fritillarias and Hippeastrum lies in what is now Turkey but was then the Ottoman Empire’s Kurdistan, spanning across northern Iraq, Iran, Afghanistan, Pakistan and the Himalayan foothills. W.F. Leenen began as a breeder of daffodils, a niche market in which they are now a world leader. Basing their work on the first breeding activities at the end of the 19th nineteencentury,Leenenlaunched theirindependentdaffodilbreeding company in 1955. Jaco and Dirk Leenen are the third generation to run this familyowned operation, and today W.F. Leenen is the only specialized daffodil breeder in the world.

Over the past 20 year, W.F. Leenen has expanded their breeding portfolio beyond daffodils to include new varieties of Fritillaria (family Liliaceae) and Hippeastrum (which are sold under the brandname Sonatini®.

Trendsetters

Thecompanybreedsnewvarieties, grows bulbs as propagators and grows their own varieties as cut flowers. “The assortment of bulbs is so wide that, aside from tulips, hyacinths, lilies and daffodils, there are enough other bulb crops to find an original niche to be successful with,” explained Leenen. He added, “From my father’s time on we have tried to be trendsetters, and over the years we have been rewarded for our knowledge and innovative activities. For example, topreventillnessesanddiseases,we startedtogrowourflowersonshells harvested on the beaches. Our products have been rewarded at numerous exhibitions such as Floriade and Keukenhof. A few years ago, we were the Grower of the Year here in the Netherlands and earlier this year we were rewarded as ‘Topteler’, a company leading in sustainability.”

Exclusive varieties

W.F. Leenen’s products are sold as bulbs (propagating material) cut flowers, potted plants and border plants. “We have our own exclusive varieties,” says Jaap. “Sometimes through breeder’s rights and sometimesbygrowingthemexclusively. We apply breeder’s rights on certain varieties - (those we trade internationally - ) of Fritillaria and Sonatini.” W.F. Leenen keeps a direct line to the wants and needs of the end consumers. “We try to be partner for our customers and stick to the market as close as possible,” says Jaap. “We only bring flowers to the market with a long vase life and, if possible, even scenting. We are unique with our fragrant daffodil varieties.” |||

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

Trade show Floradecora: It’s the most wonderful time of the year A Launching in Frankfurt at what is touted one of the world ‘s largest combined consumer-goods trade shows (Paperworld, Creativeworld and Christmasworld together attracting 2,873 plus exhibitors from 67 countries), Floradecora is well on track for a successful inaugural event.

ccording to the organisers, Messe Frankfurt, the new Floradecora show will provideaneffectivemeansofspreading brand awareness and getting your product out in front of new target audience. Speaking ahead of the muchanticipatedshow,Floradecora salesrepresentativeRonaldvanden Breevaart, who worked for the FloraHolland flower auction for many years,revealshisperspectiveonthe significance of Floradecora in an exclusive pre-show interview.

FloraCulture International: Breaking news from Frankfurt: Christmasworld is practically fully booked. No space left at Floradecora?

by Ron van der Ploeg

Ronald van den Breevaart: “Christmasworld confirmed its position as the leading trade show for the decoration sector, after its organisersannouncedlastmonththeyhave sold out of all exhibition space. Floradecora is new and set to become a vital part of Christmasworld. As we enter begin June, a more-than expected 55% of the stand space has already been booked. Interest continuestobestrongwithrequests pouring in from the Netherlands and the rest of the world.”

What is Floradecora’s raison d’être?

“Over the past six years, floral design company 2Dezign has hosted an inspiration event at Christmasworld, a prime example of successfully blending home décor with fresh cut flowers and pottedplants.Visitorscontinuedto ask where they could buy the flowers. What’s more, Christmasworld continues to evolve from a purely Christmas-focused show into a ‘SEASONAL DECORATION AT ITS BEST’ event , catering to thedemandforkeyfloraloccasions such as Valentine’s Day, Mother’s Day, Easter and weddings. Floradecora will draw thousands of retail professionals, industry stakeholdersandvendorsfromseveralcategoriessuchasfloristshops, shoppingmalls,departmentstores, furnitureshops,designandinterior shops, supermarkets, DIY stores, gardencentresandeventplanners. And these are exactly the sales outlets the horticultural industry is looking for.”

How is the floral industry responding to Floradecora’s launch?

“It’s fantastic to see how Floradecoraisgreetedwithoverwhelmingly enthusiastic response. And it’s not only the big exhibitors such as Royal FloraHolland and Landgard who have voiced their interestbutalsootherbignamesin the industry such as the German associationsforgardencentersand Asocolfloresthathaveannounced their plans to send their representatives and buyers.”

What are your expectations for the inaugural Floradecora show? “Floradecora is a learning curve with both exhibitors and visitors having to become more familiar with the new concept that will combine in-store shops, mer-

chandising concepts, hardware showcases and side by side flower and pot plant trials. In the second half of 2016 we will roll out an new marketing campaign highlighting the spectacular debut of fresh cut flowersandpottedplantsandsaleable concepts.”

The 2016 Christmas World show offered a sneak preview of Floradecora including exhibits from visionary Dutch growers. Upon returning from Frankfurt they voiced their concerns over the dominant presence of home décor and seasonal decoration buyers and the absence of flower and plant buyers….

“Among the key areas of interest for trade visitors are Christmas and advent decorations, seasonal decorations and gifts and florist supplies. We believe visitors of Christmasworld are ready to embrace flowers and plants.”

Another comment was that chain stores and individual shops that work with ornamentals already rely on their own supply chain.

“Floradecora exhibitors need to gather knowledge about existing and possibly new sales channels and their logistics. This is one of the key issues raised during discussions with potential exhibitors. What do you sell, does your portfolio include sales concepts, what makes your company stands out from the crowd, do you have a well-organised supply chain? These subjects are part of any commercial conversation. The good old way, with the auction taking care of everything, is only evoked by Dutch growers. And if they mention this Green team Consultancy is ready to help them.” |||

Jun-Jul-Aug 2016 | www.FloraCultureInternational.com

Floraculture International encourages the pursuit of joint activities in areas of mutual interest with national and international societies, companiesandorganizations. Agreements have been reachedbetweenFloraculture International and leading growersandtradeassociations in 32 countries. This unique partnership includes a complimentary copy for each member of the registered associations. Floraculture International is proud to announce the cooperation with the following associations. For more FCI partners see page 4.

Partners of FloraCulture International

Classifieds HELP WANTED FLORASEARCH, INC. Inourthirddecadeofperformingconﬁdentialkeyemployeesearches for the horticulture industry and allied trades worldwide. Retained basis only. Candidate contact welcome, conﬁdential, and always free. 1740 Lake Markham Rd., Sanford, FL 32771 USA Phone (1) 407 320 8177, Fax (1) 407 320 8083, E-mail: search@florasearch.com, Website: www.florasearch.com CONSULTANCY French man 50 years old, looking for consultancy contracts in horticulture. Examines any other proposal. All countries. Contact for more information: mago@lagoon.nc

FollowFloraCultureInternational on facebook and twitter

AdvertisingIndex COMPANY PAGE

WEBSITE

AIPH (IGOTY 2017)................................3......................www.aiph.org/groweroftheyear Anthony Tesselaar Int........................ 36...............................................www.tesselaar.com Corn Bak................................................... 22..............................................www.bromelia.com Danziger Dan’’Flower Farm..............2.................................................. www.danziger.co.il Florasearch Inc...................................... 49..........................................www.florasearch.com Floricultura B.V........................................6............................................www.floricultura.com Flowers & Cents.................................... 36................................www.flowersandcents.org Flowers Expo (Moscow)................... 22...........................................www.flowers-expo.ru M. van Veen............................................ 36..................................... www.mvanveenbv.com Mak Breeding........................................ 28..........................................www.makbreeding.nl Messe Frankfurt (Floradecora)............46.....www.christmasworld.messefrankfurt.com Philips Lighting..................................... 52.......................................www.philips.com/horti Pöppelmann GmbH.......................... 49.................................. www.poeppelmann.com Real IPM ................................................... 36.................................................www.realipm.com Selecta Cut Flowers............................ 51............................www.selectacutflowers.com Takii & Co., Ltd..........................................6..........................................................www.takii.co.jp Vitroplus................................................... 50.....................................................www.vitroplus.nl W.F. Leenen............................................. 45.............................................www.wfleenen.com Wilma’s Lawn & Garden................... 36...................................www.wilmasgarden.com This index is provided as a service to our readers. The publisher does not assume responsibility for errors or omissions.

1 4 1 8De c . 2 0 1 6