Flower exports record ‘dismal’ season

The 2009-2010 flower export season is proving dismal, with volumes down dramatically from last year. The Southern Africa Flower Growers’ Association (Safga) is keeping an eye on economic improvements in the key North American and European markets and anticipates increased shipments next year as consumer demand for this luxury item grows along with greater disposable incomes. “In terms of volumes there is not much difference to last year, but in terms of revenue 2009 was definitely down on 2008 and we are seeing a bad season overall,” said Rene Schoenmaker, formerly of Safga and now managing director of Bergflora. SA’s flower production season ends in May. “The 2008-2009 season, when the world recession started, was okay. The effects of the recession were felt a little (by flower exporters) but it was not as bad as anticipated,” Schoenmaker told FTW. “But September, October and November (2009) were very different and very difficult. Volumes were reasonably good but prices dropped 35% for some varieties, and 20% overall. This put tremendous pressure on the growers, wholesalers and import/exporters. In some cases the prices fetched this season didn’t cover the growers’ airfreight charges,” he said. “SA growers have to sell 20% to 40% more to get the same return we had last year,” he said. But such increased exports are not feasible because as Schoenmaker noted, flower prices have dropped because of over-supply. Growers shipping more to overly saturated markets where product languishes unsold because of low consumer demand cannot expect to make sales.