Physical Factors
New Zealand has over 2,000 growers, but probably only 400 have full-time operations. There is a range of sizes from the hobbyist/lifestyle to large commercial operations. Large operations have committed significant capital investment into their infrastructure and many are continuing to expand while smaller operations frequently change ownership or decline.
The domestic flower market has been estimated to be worth over $70 million annually, but accurate statistics are not available due to the wide number of outlets for product. It is generally well or even oversupplied, so returns are marginal. About one-third of growers produce for export only, one-third for local only and the remaining third export their top of the line product while selling the rest on the local market.
This last season the industry as a whole suffered negatively from a long, cold, wet spring which delayed growth and flowering for all summer crops, although quality and growers' competitiveness remained high with the introduction of more desirable "focal" strains of existing varieties for the key cut flowers.
Cymbidium Orchids
The total cymbidium export volume for 2002/03 was 2.95 million stems, down 11% on the 3.3 million stems in 2001/02 despite good early season "spiking" (young flower stem growth). Overall the cymbidium orchid quality was not as good as in previous years due to less than optimum growing conditions throughout the country, which resulted in weak stems and less vibrant colours in the flowers. However, demand for cymbidium orchids was stable, with growers continuing to upgrade their varieties to those with more desirable colours and to provide a more consistent supply. The only expansion occurring in the industry is by a few of the larger growers.
Production volumes for the 2003/04 season are expected to be similar to the previous two seasons. Increasing volumes of early season (mid-June to mid-July) varieties may cause an oversupply for this period, but the main crop is currently running about three weeks later than last season, which will help to offset this.
Calla - Cut Flowers
Calla cut flower production in 2002/03 was down from the previous two seasons at 5.6 million stems. Predictions had been for an increase in volume, but the poor spring weather impacted on the calla crop more than any other flower type. There was a high incidence of short stems. As well, the outdoor flush from New Zealand's earliest region, the north of the North Island, was late (at Christmas/early January period) when markets are normally quiet.
Weak market conditions in Japan, where traditionally higher prices are received for tall stems, reduced returns to growers. Increased volumes of newer and better performing varieties (in terms of yields) have replaced old stock to offset these lower returns.
Production volumes for the 2003/04 season are expected to be higher than 2002/03, due to expectations for "normal" spring weather conditions.
Calla - Tubers
Milder summer conditions favoured tuber production this season. As a result, the predicted increase in calla tuber exports occurred, up 46% from 38 tonnes in the 2001/02 season to 56 tonnes in 2002/03.
Volumes are expected to continue to increase for the 2003/04 season, due to the expansion of new varieties now being commercialised in New Zealand, which will further enhance its competitiveness. New "focal" calla varieties with a number of advantages, such as more vibrant, desirable colours, shape and form, and improved disease resistance and productivity, are now being released from recent breeding programmes initiated by major industry players.
Sandersonia - Cut Flowers
Sandersonia flower export production in the 2002/03 season was 2.1 million stems, down 42% from 3.6 million stems in 2001/02. A reduction in volume was expected due to small-scale growers continuing to exit the industry.
Sandersonia are produced 12 months of the year. They are a crop suited to cooler climates and, being grown under protected cover, seasonal changes do not normally affect quality as much as other crops. However, this year the poor spring weather decreased the numbers of stems being produced from each tuber.
Major growers (200,000+ stems pa) are expanding, with an emphasis on more reliable quality and consistent supply, which has maintained their competitiveness in the Japanese market.
Predictions for the 2003/04 season and for export volumes are for a further fall as growers continue to exit the industry and prices in the Japanese market remain low.
Sandersonia - Tubers
Sandersonia tuber exports were estimated to be over 1.5 million units for 2002/03. Over 80% of all tubers are sold to Japan where low prices and (domestic) crop substitution have reduced the demand for these significantly. Efforts to develop markets outside Japan are continuing and have resulted in some low volume sales. The outlook for the 2003/04 season is for a further decrease in tuber production as a result of continued weak market conditions.
Lilies
As expected, lilium flower exports in the 2002/03 season were down 24% to 531,000 stems from 700,000 stems in 2001/02. The industry is maturing with the number of smaller (lifestyle) growers exiting and larger commercial sized growers expanding. Production volumes for 2003/04 are expected to remain steady, even though global production of lilium has increased dramatically, which may affect export returns in the next year.
Proteacea
Proteacea exports over the 2002/03 season totalled 875,000 stems, a 13% decrease from 2001/02. This is a significant drop from the high of 1.54 million stems in 1997/98. Expectations were that volumes would have remained steady at around one million stems, as the markets for proteacea have been stable. However, growers have been replacing older leucadendron with more "focal" varieties, or have chosen not to replant once the crops have reached their maximum life.
Production and returns for the 2003/04 season are expected to remain similar to this year, assuming a normal season.
Peonies
Peony exports continue to increase with 723,000 stems exported in the 2002/03 season (up 33%), despite the poor growing season. Some hail damage occurred causing a range of problems, including an increased incidence of rots (in buds, stems, leaves and crowns), which resulted in lower yields for some growers. Poor weather conditions in the South Island made the crop late and resulted in a wide range of quality grades from that area.
Peony production in the next few years is expected to continue to increase as more recent plantings come on stream. Growers are rationalising the number of varieties being produced with a focus on corals and dark red colours, instead of the traditional red Sarah Bernhardt variety. Continued competition from other Southern Hemisphere producers such as Australia and Chile, who are producing in larger quantities and competing in the same North American market, will increase price pressure. To remain competitive growers are placing a greater emphasis on consistency of supply and better pricing strategies.
Gentians
Gentian exports remained relatively steady at 100,000 stems in the 2002/03 season. The main markets of North America and Europe remain stable with reasonable returns. As volumes and quality of the new "Ashiro" gentian variety increase, the Japanese market will be increasingly targeted as New Zealand is the only country outside the Ashiro region of Japan that has access to these highly regarded varieties, giving growers a significant competitive advantage.
It is expected that export volumes for the 2003/04 season will be slightly down on previous seasons, due to replacement plantings continuing. This decline will be temporary, with an increase expected during the 2004/05 season.
Hydrangeas
Hydrangea production in the 2002/03 season is estimated to be up 15-20%. The cold spring delayed growth, which resulted in early flowers missing the favoured North American Christmas market. The United States (US) market was depressed but still took good volumes, and there is a huge potential for supply in time for Mothers' Day in North America. The Japanese market also showed good potential for expansion this year. The industry is now focusing on better quality as the variety base is beginning to rationalise in favour of the more acceptable commercial varieties. Consequently, volumes for the 2003/04 season are expected to increase further as these new plantings begin to reach full maturity.
Bulbs
In this report, the term "bulbs" has been used to encompass bulbs, corms, tubers, tuberous roots, crowns and rhizomes.
The main bulb exports are callas, sandersonia, tulips and lilies. Peony roots, gladioli, iris and friesia are also exported. Calla and sandersonia exports were discussed previously. This section deals with the other types of bulbs.
Expectations were for an increase in bulb sales in the 2002/03 season and the free on board (FOB) value of bulb exports was around 33% greater than in the 2001/02 season. The main reason was that off-season bulb supplies of peony tubers in particular (from 451 kg in 2001/02 to 2,941 kg in 2002/03), but also lilium, tulips and calla to the Northern Hemisphere markets of Europe, Japan and North America, continue to increase. This trend is expected to continue for the 2003/04 season.
Foliage
There is continued expansion for New Zealand native foliage fillers (greens), especially pittosporum and phormium. New Zealand is filling gaps of increasing market demand, especially in Japan, when other major suppliers (e.g., Italy) are out of season. Greens are a lower value item, so are sensitive to increases in the New Zealand dollar (NZD). However, global trends are changing with more emphasis on foliage than flowers in bouquets, which is predicted to see an increase in export foliage volumes in future.
Contact for Enquiries
Farm Monitoring Programme Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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