Fewer Flowers in the Pipeline: Floral Trend Tracker Tackles Impact On Industry
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Source: SAF Summer 2008 Floral Trend Tracker. | Stem counts of ornamental crop imports are down this season by almost 9 percent, according to the U.S. Department of Agriculture (USDA). Last season at this time more than 2.15 billion stems were imported from sources outside the United States compared to only 1.96 billion so far this season. SAF's Summer issue of Floral Trend Tracker examines whether the decline is just a minor dip in what has been a long-term incline or the beginning of a different trajectory. Some highlights:
• Kevin Priest, AAF, of Cleveland Plant and Flower Company in Parma, Ohio, sees no current shortage of flowers, but he says prices reflect the decreased volume of flowers arriving on American shores. Shawn Seagroatt of Seagroatt Riccardi, Ltd., in Latham, N.Y., concurs, speculating that "the worst is yet to come," probably over the next 36 months. Clay Sieck of The Sieck Company of Baltimore expects quality improvements to follow.
• Despite a decline in imported ornamental stems, the dollar value of cut flower imports is up almost 5 percent compared to last year, hitting $262.4 million in the first quarter of 2008 compared to $249.9 million a year ago.
• To combat market changes, South American suppliers are finding outlets outside the United States to ship their flowers, such as Europe, Asia and Russia. Tim Dewey of Delaware Valley Floral Group of Sewell, N.J., believes South American growers are looking to become less dependent on the American market. The market for South American flowers is now global, Sieck concurs, and Latin American growers search the world for better pricing opportunities. Jose Azout of Transflora in Miami, notes that not only are the destinations changing, but they are having an affect on what is produced, because of different consumer preferences.
• Still, the decline in stem counts delineated above contrasts with the longer-term upward trend in cut flower imports that began in the 1970s. For readers interested in this 30-year perspective, see SAF's The Changing Floriculture Industry Report.
• Of the valued $831 million in cut flower imports, more than 60 percent came solely from Colombia. When combined with Ecuador, almost 80 percent of the value was accounted for — a combined value of $652 million.
Get more insight, including what these trends might mean to the floral industry, in the Summer Issue of SAF's Floral Trend Tracker, available online. Make sure you also check out this week's "Survey Says" section of E-Brief for additional information.
--Ira Silvergleit
isilvergleit@safnow.org
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