Australia remains an unexplored market for the fast growing Indian floriculture trade and industry. Its demand pattern, high production costs and the general dislike on the part of its youth to take up farming activities can prove a blessing for the Indian floriculture industry to push up the sales to Australia, where the demand for flowers is growing rapidly, says M B Naqvi after a visit to Melbourne, Sydney and Brisbane.
"Packaging is very important to get a good price . . . We can grow best quality flowers but if we don't know modern and safe way to deliver them anywhere, the whole effort goes waste. We should be very careful about packaging," emphasised Ali Bhai. |
It is high time India's expanding floriculture industry and trade, eyeing new export markets, took a good look at Australia. For the hi-tech producers of choice Indian cut flowers, Australia and New Zealand could offer a good potential. A visit to Australia, where annual flower consumption is going up by a good 8-10 per cent, was an eye-opener. It provided an insight into the status of floriculture in that country, its strengths and weaknesses, the trends and preferences of its customers, who have high living standards. The peak demand season there, the high labour and other costs, the general dislike of the younger generation to take to flower growing, or for that matter any farming work, are all favourable factors for India to emerge as an important supplier to the Australian market. Of course, the market there is highly competitive and qualityconscious. India has at present only a marginal presence in the Australian flower market.
As a Sydney-based flower importer, said Ali Bhai, CEO of Roses Galore, "India has vast scope for improving its presence in Australia . . . It can capitalize on it if it improves its brand image." Ali says he gets small quantities of Indian cut flowers from South India, mainly Bangalore. Initially, the image of Indian flowers was bad because the quality was not up to the mark. The suppliers had no knowledge of consumer trends, which keep changing. The current consumer preference in Australia, for instance, is for pastel shades in roses, with 5 cm bud size. If a supplier can conform to the these standards, his or her flower can fetch a good price, counselled Ali Bhai. Packaging is another aspect where the Indian exporters are lacking, he said. "Packaging is very important to get a good price... |
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We can grow best quality flowers but if we don't know modern and safe way to deliver them anywhere, the whole effort goes waste. We should be very careful about packaging," emphasised Ali Bhai. Other florists in Sydney also echoed similar feelings. They have experience of importing gerbera from Pune and Anthurium from South India, but they have stopped their import because of packaging problems. "It is a competitive market here, and Indian suppliers could not face its challenges." Countries exporting flowers to Australia include African nations that mainly supply roses and some traditional flowers, and Malyasia, which sends its colourful orchids via Singapore. Entrants to the Australian market include Columbia, Peru, some European countries and China, which has the advantage of cheap labour and geographical proximity. Because of the growing affluence and changing lifestyles, more and more people in Australia are spending money on flowers and plants. This is a new trend in this country, where in eighties domestic expenditure on cut flowers remained low by world standards. A noted floriculture writer Helen Moody offers an explanation for it: "Most Australians live in houses surrounded by gardens, and this, combined with the Australian climate and outdoor lifestyle is not conducive to cut flower purchases." But all this is changing now. Australians are spending good amount of money on buying flowers and plants. The per capita flower consumption in the country does not lag much behind that in Europe and USA. The practice of giving flowers as gifts is becoming more popular; hospitals have special kiosks for sale of flowers; flowers are for all occasions - marriage or social event, business meet or conference, birthday or funeral. That the domestic market is big and competitive is clear from the pages after pages of ads from florists in the yellow pages of telephone directories as also the on-line and website promotion campaigns. Leading international brands like Teleflora and Interflora have a strong presence in this country.
The supermarkets and prominent flower shops have a well organised delivery system, aided by trained designers and bouquet makers. The networking is strong among the leading florists, whether they are in Sydney, Melbourne, Brisbane, Leeds or Perth. Peak demand for flowers is in June to October, when Australia experiences it winter. This is also the time when its domestic production is low. Here is a situation that should make Indian suppliers sit up and think. June to September is normally a lean season in the Indian domestic market as well as export markets like Europe. Maybe, the Indian suppliers could turn this to their advantage and push up the sales to the Australian market. Indian florist trade could do much more. For instance, a new trend among the florists in Australia is to get readymade bouquets in bulk. Bouquets have a good demand there and because of manpower problems the florist shops prefer to get them made-up, instead of engaging themselves in the time-consuming task of making them. This probably is one area where the Indian florists' innate skills and artistry can come into play. They can supply well-designed readymade bouquets in bulk to the leading florists in various Australian cities and towns. Bouquets fetch good money - 25 dollars (Australian) to 100 dollars a piece, depending on the size. The demand for flowers and bouquets is growing not only in the major cities in this country but also in nearby towns and satellite townships where supplies do not match the demand. The Australian floriculture industry, which of late has started growing, remains focused on exotic or soft flowers for domestic market, says Helen Moody. Most of this production occurs in the eastern states. There are many small farms of less than 5 hectares, but a number of growers of significant scale do achieve "world's best practice." From the beginning of 1990's, says Moody, there has been a sense of enthusiasm and optimism about the Australian cut flower industry. Improved technology, a shift to green house production and greater professionalism contributed to increasing production and raising flower quality. While Australia imports flowers from various countries, it is also an exporter of cut flowers, mainly Australian native, or wild, flowers, to Japan and United States.
Western Australia is home to most spectacular wild flowers and the most sought after Waxflower and Kangaroo Paws and colourful Banksias originate there. According to a Department of Agriculture Bulletin, wild flower exports from Western Australia were worth 20 million Australian dollars in 2006. Queensland has large farms for production of widely popular cut flowers like roses and carnations. Good production centres have come up around Sydney. The growers, with a sprinkling of Asians, are mostly from countries like Italy and Greece. Professional Institutes have come up to train people in floral designing. Women's groups are active, spreading the new concepts of landscaping, garden techniques and plant care. To promote flower sales, special days are organised - Daffodils Day, Red Rose Day and White Rose Day, adding to the long list of universally popular occasions like Valentine's Day, Mother's Day, Christmas, New Year and the like. NGOs receive government funds to carry on an awareness campaign on the use of flowers for different occasions. Meetings with florists in Australian cities threw up many new ideas and suggestions. Indian trade should not underestimate the potential of Australian and New Zealand markets. The demand-supply position there would warrant an in-depth study, on the basis of which an action plan can be drawn up. Indian floriculture industry would do well to promote direct interaction with growers, wholesalers, importers, bouquet makers and flower market committees. Australia is a growing market that needs to be tapped by those who can conform to quality specifications and changing tastes. |
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