Floriculture
This section comments on the major flower crops grown in New Zealand, with the major emphasis on flowers with a strong export component to the marketing mix.
Key Points
- The weaker New Zealand dollar resulted in better returns to New Zealand export growers this season.
- Cymbidium Orchid export flower volumes in 1999 were lower than expected because warm summer conditions reduced flower production, but export prices were stronger.
- Calla export revenue in 1999 was 6% lower than 1998, and Sandersonia export revenue in 1999 was 30% lower than 1998, but both crops are expected to achieve higher revenues in 2000.
- The Japanese market has opened for import of New Zealand grown lily bulbs, with the potential for exports worth up to $5 million per annum within five years.
- Growers will vote on the collection of a compulsory levy within the next few months to fund research and development programmes, and the flower industry body "FloraFed".
Physical Factors
Orchids
Cymbidium orchids are the main orchid type grown in New Zealand. However, there is still a small production of specialised orchids such as Disa and Phalaenopsis, which are filling niche markets in Asia, Japan, and North America. The current Cymbidium orchid production season commenced in May 2000. Export volumes are expected to be higher than the previous season, when volumes were low as a result of warm summer conditions reducing flower spike production.
The number of orchid growers remains static. However, larger producers continue to expand their production area, resulting in New Zealand's production becoming increasingly reliant on a few larger producers. The need to keep bringing in new varieties continues to be the key for sustaining export markets. This will ensure the right mix of colours is being produced, i.e., white, green, yellow and pink. New Zealand has an international reputation for producing new Cymbidium varieties, and this has been assisted by a number of growers having joint ventures with companies from other countries such as the Netherlands.
Callas - Cut Flowers
Calla cut flower export volumes in the 1999/2000 season are expected to be up on 1998/99 due to continued expansion of the growing area by the larger cut flower growers. The main production areas are the Bay of Plenty, Auckland and Northland. An increasing number of growers are diversifying into producing cut flowers both outdoors and under protected cover. Protected cover is necessary for early season flower production in most districts and growers are targeting production at this time due to the higher prices received, particularly over the last two seasons. The main production season is February with the majority of flowers coming from outdoor production. There has been some decline in cut flower production of callas in the Canterbury region, but an increase in production from the Nelson/Marlborough region.
Callas - Tuber Production
The quantity of tissue culture (TC) plants produced over the 1999/2000 season declined, although a similar production area of growing-on tubers remained. Growing-on tubers are produced from TC plants following one season's growth and from divisions off larger tubers. Calla tuber production is becoming more specialised with specific growers developing facilities to achieve economies of scale. This is in response to lower international prices for the smaller grade tubers. This increased grower specialisation has also resulted in fewer brokers, who are specialised in marketing the tubers.
Strong demand for the larger calla tubers (4-5ÿcm and larger) continues from overseas markets such as Japan, Europe and South East Asia. Calla tuber exports are estimated to be in excess of 2.5 million units for the 1999/2000 season. There are fewer varieties being produced in New Zealand, as certain markets are now demanding varieties that perform well under their conditions as well as under New Zealand conditions.
Sandersonia - Cut Flowers
Sandersonia cut flower volumes over the 1999/2000 season have been lower than the previous season due to fewer tubers being grown for cut flower production. The low prices of the previous two seasons resulted in growers converting their operations to tuber production or even moving out of the crop entirely. This reduced production, combined with the favourable exchange rate, resulted in higher prices this season and it is expected this will stimulate increased flower production next season.
There are in excess of 75 small growers of Sandersonia, who have 500m2 in production or less. This is due to the crop being promoted initially as a lifestyle crop. However, there are now fewer small growers than there were in the past, and the larger growers are expanding their growing areas to achieve a longer flowering season of up to 10ÿmonths of the year. Sandersonia flowers are produced throughout New Zealand from Northland to Southland.
Sandersonia - Tuber Production
Sandersonia tuber export volumes have remained static over the past three-four years as a result of tuber prices having dropped to low levels compared to the highs of five-eight years ago. The export sale of Sandersonia tubers is still focused on the Japanese market. Sandersonia growers have the choice of growing for flower or tuber sales, and dropping flower prices over the last three-four years have resulted in growers looking more closely at tuber production. Higher tuber prices are being offered for the 1999/2000 season's tuber crop and this is expected to stimulate increased tuber production next season.
Growers are also looking at lower cost methods of production. A common method being used is for growers to produce their own 'growing on' or 'seedstrike' tubers from seed, thus saving the cost of buying in their growing on stock as higher cost tubers. This method adds an extra growing year into the production cycle.
Lilium
Export volumes of Lilium over the 1999/2000 season is expected to be lower than the 1998/99 season which was 20% lower than the preceding season. This trend of decreasing exports is a result of decreased export prices compared to previous years. The improved prices received during the 1999/2000 season are expected to stimulate an increase in exports over the next few seasons.
Proteacea
Export volumes of Proteacea flower/foliage types over the 1999/2000 season are expected to be very similar to the previous 3-4 seasons. Grower numbers and production area is relatively static although production of new varieties is starting to come on-line as a result of grower replanting programmes 4-5 years ago. The majority of New Zealand's production comes from the Bay of Plenty region.
Peonies
Peony export volumes in the 1999/2000 season were lower than predicted by the industry pre-season. While flower export quality remained high, growers experienced flower quality problems (deformed buds) that reduced total production levels. The exact cause of these quality problems is unknown but it is thought dry seasonal conditions over the last two years may be having an effect on plant nutrient uptake leading to these symptoms. Peony production comes almost entirely from the South Island due to this crop's high winter chilling requirement.
Other Crops of Interest
Alstroemeria is increasing in export volumes again after a four-five year decline. This increase has been due to improved varieties being produced in New Zealand and also renewed global interest in the crop.
Hydrangea volumes are small but increasing as a result of plantings made in the light of continued strong international demand for flowers over the past four-five years.
Other export crops set to increase in production over future years are the new 'Ashiro' varieties of Gentian, and Viburnum.
The future of the new crop Hypericum is uncertain as a result of relatively poor export prices this season. A number of plantings have been made since a range of new varieties were introduced into the country three years ago. However, the crop has proved difficult to grow due to rust disease problems and prices are considerably lower than they were three years ago. The crop is relatively easy to propagate and rapid increase of production throughout the world's flower producing regions has resulted in a huge increase in the flower volumes supplied onto world markets.
Rose flowers are one of the most popular flower crops grown in New Zealand. Very few roses are now exported from New Zealand, as a result of the global trend of rose production in developing countries such as South America, Africa and Asia at cheaper prices.
The domestic market is well supplied by New Zealand growers in the summer, but supply is still limited over the winter. As a result, roses are imported from India and South East Asia in the winter. Over the last 12 months many rose growers have invested in new varieties, with increasing interest in fragrant new varieties from Europe.
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