Financial Times

Sri Lankan brand for flowers
The demand for cut flowers and foliage is rising across the world and provides a good market for Sri Lankan growers. Dr. Neville Fernando, a doctor who ventured into politics and gave it up for a business in printing and later into hospitals, has now transformed his skills into the flower industry. He says he has set up a Plant Tissue Culture Laboratory at Homagama. In this article the former parliamentarian discusses the potential in a growing global demand for cut flowers and foliage, which Sri Lanka has so far failed to exploit.

Demand
The total acreage under flowers and foliage cultivation is estimated to be about 200,000 hectares with Sri Lanka's contribution being only 200 Ha. Over the last few years the demand for cut flowers has increased and keeps on increasing annually at a rate of 15-18 percent.

The annual consumption of cut flowers is approximately $ 27 million in Europe and about $ 40 billion worldwide. Netherlands is the biggest exporter (60%) followed by Colombia, Italy, Israel, Spain and Kenya and then countries like Sri Lanka, Zimbabwe, and Ecuador. While exports from sub-Saharan Africa is about Sterling Pounds 2 billion, Sri Lanka's share is a paltry Rs. 700 million in this high value market.

Major consumers
The US, Japan, Netherlands, Germany and France account for 85% of all cut flower sales worldwide. According to available information, the biggest importers in European countries are Italy and France. Netherlands is another big potential area with the United Kingdom.

Importers say one of the main constraints for co-operation with new markets is the quality. Quality can be improved by better management, communication, constant and regular supply, standard size and packaging.

One of the common complaints is that no Sri Lankan supplier can provide 10,000 anthuriums of the same colour, size and length of the stem. The various flower shows at the Vihara Mahadevi Park clearly indicate the poor quality of the exhibits with only a few products for impulse buying. Most of the plants look sick and weak.
A majority of the nurseries are on small plots of land resembling the garden forests of the Kandyan areas. A few Jak, arecanut, coconuts, plantains and some flowering plants form the "garden forest flower nurseries of the low country". Unfortunately only a few recognized large nurseries can supply good quality material of similar size, colour, length of stem, etc, and on a constant basis.

In spite of these negative features a few Sri Lankan flower growers have established themselves in Japan and Europe. According to one source, Sri Lanka exports about Rs. 750 million worth of flowers.

These figures can be improved as Sri Lanka has the potential and the resources such as climate, land and expertise. Today Kenya which has almost the same climate as Sri Lanka contributes to 1% of the European market where demand is rising; there is a buoyant market for small leaf foliage; a market seeking novel items and where importers like to work with new suppliers.

Market for Sri Lankan flowers
Germany has the biggest potential for Sri Lankan flowers. It is said that every German family buys flowers. There are also small groups of buyers. The gift section is growing. Germany produces only 20% while the balance is imported.
Sri Lanka as a tourist destination, for over a quarter of a century, is well known to Germans. German tourists returning home very often carry boxes of orchids, anthurium and other flowers.

Cut flowers market
There are certain important prerequisites to enter the cut flower trade. Because of the perishable nature of the products the supply chain becomes very important.
It demands an effective and uninterrupted cold chain and an highly efficient long and short distant haulage (in Sri Lanka smooth transport is a problem considering the state of the roads). If there is a breakdown either in the cold chain or rapid transport or if the goods are held up at quarantine it results in large losses.

Cut flowers vary in their qualities, as do customer preferences. Since inspection of the product by the buyer is not possible the transaction depends mainly on the credibility of the supplier. The sale of flowers is through auctions, agencies or direct contact.

In some cities chocolates, jewellery and wine compete with the flower trade as these are also bought for the same purpose. Hence if the prices of flowers become non-competitive chocolate, jewellery or wine would instead be purchased.

Market info
The Internet is the most important source of information. It gives addresses of organizations, trade journals, exhibitions, buyers and their requirements. The Sri Lanka Export Development Board also provides information to cyber traders who can join the EDB Internet by paying Rs. 850.

In marketing Sri Lankan flowers and foliage traders can follow the example of tea. In the beginning, tea was marketed as Ceylon Tea for more than 150 years. Now tea sells under different brands.

Till Sri Lanka becomes a popular source of flowers it is advisable for all flower producers to get together and brand flowers under a Sri Lankan label. Kenya is now in the process of developing a Kenyan label. (The writer could be reached at nevillef@slt.net)

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