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Cutflower Industry Of The Philippines!, Growing at double digit
Ek-ek
post May 27 2004, 10:46 PM
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CUTFLOWER INDUSTRY SITUATIONER REPORT


I. BRIEF OVERVIEW

CUTFLOWER refers to blooms that are cut from their stems and used as corsages, wreaths and special flower arrangements for different occasion like weddings, birthdays, and other festivities. It is described as "fresh flowers" which can also be used as additives in perfume processing and for other purposes.

The cutflower industry is considered as one of the country's sunrise industries. The domestic supply of cutflower is still insufficient to satisfy the demand, which results to large importation of cutflower especially during the peak season. Some of the cutflower commonly grown in the country are anthurium, aster, chrysanthemum, orchids, rose, gladiola and baby's breath.

Anthurium is a herbaceous, hothouse plant. It has large often highly colored leaves, a cylindrical spadix and a colored spathe. These are used and displayed in various arrangements. Most Philippine producers cultivate mainly the old Hawaiian varieties, such as Karumana and Nitta. Other varieties grown in the country are Baguio white and pink,Obake, Netarade, Miyana and Tulip variety. Some companies into commercial cultivation use varieties intended for export source mainly from Holland.

Aster is a strongly branched perennial with numerous flower heads growing in a dense cluster. The most commonly cultivated variety is the Novi Belgii with white flowers. It is mostly used as filler in arrangements.

Chrysanthemum is a herbaceous bush. The flowers core in large and medium sizes or in clusters. Cluster chrysanthemums can be found with more blooms per stalk. They can be used in arrangements. The local varieties have long been cultivated and their producers call them various names other than what is registered. For example, in Cebu, producers cultivate such unregistered varieties as those they call Puto-Puto and Buddha.

Rose belongs to the family Rosaceae, and is the most important flower traded in almost all world markets because of its favorable value-to-weight ration and high volume of sales.

Orchid belongs to the family Orchidaceae. There are four types of orchids: a epiphytes or air plants which grow chiefly on trees in nature; b)lithophytes which clings to the surfaces of rocks; c) saccophytes which grow in decaying vegetation on the forest floor; and d) terrestrials whichsend their roots into soil or sand. The most popular varieties of ordhics are Vanda and Dendrobium. Others are Cattleya, Cybidium and Phalaenopsis.

Gladiola is an African plant of the Iris family with an erect sword shaped leaves and spikes of brilliantly colored irregular flowers arising from flattened corms. Varieties grown in the country are Red Japanese and the Friendship Pink.



II. INDUSTRY STATUS AND PERFORMANCE

A. Production

The country experienced a steep fall in the supply of cutflower from 1995-1999 with an average negative growth rate of 11% per annum. Total production during the period was 56,964 metric tons with an annual average production of 14,241 metric tons.


Source: Bureau of Agricultural Statistics

In 1999, production was dominated by rose with 23% share from the total production of 9,727 metric tons. This was followed by orchids and gladiola both with 20% share, chrysanthemum and aster both with 13%, baby's breath with 7% and anthurium with 4% share.

Southern Mindanao is the major producer of orchids in the country contributing 40% to the total production in 1999. This was followed by Bicol and Western Visayas regions with 25% and 22% contribution respectively. On the other hand, CAR is the major producer of rose, chrysanthemum and gladiola with 56%, 59% and 84% share in the total production respectively and the second top producer of baby's breath with 43% contribution. Southern Tagalog is the major producer of aster with 63% share in the total production while baby's breath production is excelled by Western Visayas with 46% contribution. For anthurium, the top producers are CAR (23%), Southern Mindanao (22%) and Southern Tagalog (17%).







B. Area

Cutflower production does not require a big tract of land for cultivation unlike other high value crops. The total area cultivated to cutflowers from 1995-1999 is decreasing from 1,284 hectares in 1995 to 1,056 hectares in 1999, with an average growth rate of negative 4% per annum. During the said period, the biggest area devoted for cutflower production is from CAR with total area cultivated with cutflower is estimated at 1,935 hectares (35%) followed by Southern Tagalog with a total area of 1,069 hectares (19%).

In 1999, 34% of the area was planted with gladiola, 21% with rose while orchids and anthurium both occupied 13% of the total land area devoted to cutflower.

C. Yield

The highest yielding cutflower is aster with an average yield of 205.12 metric tons per hectare (mt/ha) from 1995-1999. This was followed by orchids with an average yield of 178.54 mt/ha and baby's breath of 137.63 mt/ha.

D. Trade

1. Exports

The country's volume and value of total exports has been fluctuating for the last five years from 1995-1999 with an average growth rate of 11% and 8% per annum respectively. Average volume traded during the period was 1,291 metric tons valued at US$ 1,899.



Source: Bureau of Agricultural Statistics

In 1999, total export of the country was 1,515 metric tons valued at US$2.011 million. The highest income incurred from cutflower exports was accrued from fresh foliage contributing 31% to the total value of exports from 1995-1999. This was followed by other live plants, cuttings, slips with 29% contribution and cutflowers and flower buds fresh and dried with 19% and 11% contribution respectively. The average annual volume exported for the period is 1,291 metric tons.




The biggest market for the country's exports of other live plants, cuttings, slips is Korea absorbing 65% of the total volume traded from 1995-1999 with an average annual volume of 236 metric tons. The total volume exported to Korea in 1999 was 369 metric tons valued at US$ 230,000. The average annual growth rate of the country's volume and value of exports to Korea is 41% and 8% respectively.

Japan is the biggest market for the country's exports of cutflower and flower buds, fresh absorbing 88% of the total volume traded from 1995-1999 with an average annual volume of 90 metric tons. The total volume exported to Japan in 1999 was 79 metric tons valued at US$ 313,426. The country's total exports to Japan from 1995-1999 is declining with an average annual growth rate of negative 6% which was due to the reduction of our exports of cutflowers fresh.

The major buyer of dried cutflowers is Netherlands contributing around 41% of the country's total exports from 1995-1999 with an annual average volume imported of 22 metric tons. In 1999, the volume exported to Netherlands was 26 metric tons valued at US$192,280. This was 44% of the total volume exported for 1999.

USA is the major buyer of fresh foliage importing 69% of the total Philippine exports from 1995-1999 with an annual average volume imported of 430 metric tons valued at US$ 413,240. In 1999, volume exported to USA was 562 metric tons valued at US$ 492, 593.

2. Imports

The Philippines imported a total of 1,858 metric tons of cutflower from 1995-1999 valued at US$9.019 million. Volume of cutflower importation is fluctuating during the period. However, from 1997 it continuously increased until 1999 with an annual average growth rate of 24%.




Major imported products are other live plants, cuttings, slips contributing 35% to the total value exported during the period, cutflower & flower buds, fresh with 28% contribution, orchids other than in flask/compot contributing 14% and bulbs, tubers in growth/flowers with 7% contribution. The major source of Philippine imports of other live plants, cuttings, slips from 1995-1999 was from Israel contributing 30% to the total imports with an average volume imported of 27 metric tons per annum valued at US$ 321,337. In 1999, the country imported 1 metric ton from Israel valued at US$ 67,083.




Majority of Philippine imports of fresh cutflower and flower buds from 1995-1999 came from Thailand contributing 40% to the total with an annual average volume imported of 50 metric tons valued at US$ 323,077. This was followed by Malaysia, which contributed 30% to the total volume imported during the period at an average importation of 37 metric tons valued at US$83,717.

Thailand dominates the Philippine market in terms of supplying orchids other than in flask/compot during the period 1995-1999 contributing 78% to the total volume imported at an annual average importation of 60 metric tons valued at US$ 211,360. In 1999, the country imported 81 metric tons from Thailand valued at US$ 190,606.

The major supplier of bulbs and tubers in growth/flowers is Netherlands contributing 98% of the total volume imported from 1995-1999 at an annual average importation of 6 metric tons valued at US$ 134,792.

3. Balance of Trade

The country is still a net exporter of cutflowers both in terms of volume and value traded. Although the country became a net importer in terms of value in 1995 and 1997, it continuously become a net exporter in volume terms from 1995-1999. The balance of trade in 1999 was US$765,233.

E. Domestic Demand

1. Major Demand Areas

Major demand areas in the Philippines are Metro Manila, Quezon City, Cebu City and Davao City.

According to a study conducted by DA-AMAS in 1999 as a part of their project on Cavite, Laguna and Batangas (CALABA) Program for Ornamentals and Vegetable showed that majority of Quezon City cutflowers are supplied by Batangas, Cavite and Laguna. For instance, 80% of the orchids and roses marketed by Quezon City florists came from Batangas (20% and 40% respectively) and from Cavite (60% and 40% respectively). Laguna on the other hand is the major source of asters and sampaguita.

For Dangwa market, cutflowers coming from the Northern region accounted for 70% of the supply while 100% of orchids and asters in Dangwa came from Batangas and Tagaytay and Laguna respectively.

On the other hand, seventy five percent of anthurium marketed by Makati florists came from Cavite (15%), Laguna (20%) and Batangas (40%) while 100% of its orchids is from CALABA area.

2. Retail Price

Price of cutflower does not depend on supply but on the demand especially for orchid. Pricing is influenced by distance from the major trading areas and volume or mode of buying. The average price of anthurium in 1999 was P 200-350/dozen depending on the size. White orchids are priced lower compared to colored orchids which ranges from P 240-300/dozen and P 100-150/dozen respectively. The price of locally produced rose on the other hand ranges from P 90-160 while price of imported rose ranges from P 120-250/dozen. Meanwhile, the price of aster ranges from P100-200/kg.

3. Relevant Global Perspective

a. Florissimo 2000 report

Florissimo 2000 was held last March 10-20, 2000 at Dijon, France. It was attended by delegations from France, Italy, Germany, Belgium and Switzerland. There are 14 industry players who joined the Philippine delegation as exhibitor.

It was observed during the event that tropical bouquets are gaining wide popularity in the European market. Aside from that, the increasing importation of foliage by European countries indicates big demand for the product. This is an opportunity for the country to expand and aggressively promote our tropical flowers in EU countries. During the event, the best seller Philippine flowers are mussaenda, native orchids and foliage.

b. Chinese Floriculture

Floriculture is an emerging industry in China. In 1997, it had a total of 8,750 ha of commercial flower farm. Realizing that flowers are more profitable than food crops local government encourages production. There is an emerging flower business in China, which revolves around modern large-scale "mother" propagation nurseries. These nurseries provide the "associated" flower growers with young plants, technical and marketing assistance.

Flowers are in demand in China during February and on other occasion such as holidays, weddings, new births, birthdays, gifts and funerals. Flower prices are good during winter while it falls during late spring and autumn.

c. Regulations in Exporting Cutflowers to Europe

Grading and Standardization

Standard H-1 This standard concerns fresh cutflowers and flower buds for bouquets or for ornamental purposes, other than those which are the subject of an individual standard (mimosa, roses, unifloral and multifloral carnations, chrysanthemums, gladioli and strelitzias).
Standard H-2 This standard applies to foliage, leaves, branches with or without decorative fruit and other parts of plants, fresh, whether in a natural condition or dyed, intended for ornamental purposes.
Standard H-3 This standard applies to fresh unifloral of varieties (cultivar) of the genus Rosa, of a kind suitable for bouquets or decorative purposes.
Standard H-4 This standard applies to fresh unifloral carnations, of varieties (cultivars) of Dianthus caryophyllus and its hybrids, suitable for bouquets or for ornamental purposes.
Standard H-5 This standard applies to fresh multifloral carnations, of varieties (cultivars) of D.caryophyllus and its hybrids, suitable for bouquets or for ornamental purposes.
Standard H-6 This standard applies to fresh cut chrysanthemum of varieties if Chrysanthemum morifolium and its hybrids suitable for bouquets or for ornamental purposes. The varieties of Chrysanthemum maximum and Chrysanthemum sagetum are excluded from this standard.
Standard H-7 This standard applies to freshly cut gladioli from varieties of the Gladiolus, suitable for ornamental purposes.
Standard H-8 This standard applies to fresh cutflowers of varieties of Strelitzia reginae, suitable for ornamental purposes, as well as leaves which may accompany them.


Packaging

The products may be packaged in such a way as to be properly protected. Packaging materials, and especially the paper used inside the package should be new, clean and does not cause external or internal damage to the produce. Newsprint when use should not come into direct contact with the produce.

Marking

Identification - packer and/or dispatcher: name and address, or an official identifying symbol.

Nature of produce - genus or species (binomial nomenclature), variety (cultivar) or color of flower, where appropriate, the word "mixture" (or equivalent term).

Origin of produce - country of origin and optionally the district where grown or national, regional or local place name.

Commercial specifications - class, where applicable, size (length code) or maximum and minimum lengths, number of bunches and contents by number or weight of each bunch, or number of stems, or net weight.

Official control marks - these are not obligatory

Presentation - relevant texts on presentation for each species should be consulted, as the number of bunches, or units in the pack vary from one species to another.

* Source: Global Business Opportunities, July 1999
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BatangDamo
post May 28 2004, 09:34 AM
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pretty flowers....
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Ek-ek
post Jun 2 2004, 08:53 PM
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Well, For me I like orchids and Anthuriums!
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