Orchids Production and Market Orchids Production and Market in Europein Europe

Professor Chiachung Chen

National ChungHsing University

Taichung Taiwan, 40227

 

Three stages:Three stages:

1. Developing: 1997-2007

2. Over supply:

2008 – 2010

3. Stabilizing: since 2011

The major marketsThe major markets

1. The Netherlands :50%2. Germany3. Belgium4. Italy5. Denmark6. Switzerland7. UK

The different requirementThe different requirement

1. The Holland: two spikes, all kinds of flower sizes and colors2. UK : one spike, long stem, big flower3. North Europe : two spikes, small flower, 20-30 cm stem.4. Italy: northern, big size southern, small size

How to analyze the orchids How to analyze the orchids market of market of EuropeEurope

1. The Netherlands: Occupied 50%

2. The tissue culture plantlets production : 75 % from the Floricultural and Anthura b.v. (Harks)

3. Two auction markets owned 60% sales quantity : Aalsmeer and Naalswijk

The first stage:The first stage:

Miracle crop!Incredible pot flower!Quantity increase! Price jump!

The sale quantity of The sale quantity of Phalaenopsis Phalaenopsis sales from 2003 to 2007 in the Hollandsales from 2003 to 2007 in the Holland

1000

1500

2000

2500

3000

3500

4000

4500

5000

2002.5 2003 2003.5 2004 2004.5 2005 2005.5 2006 2006.5 2007 2007.5

*100

00 u

nits

The average prices of The average prices of PhalaenopsisPhalaenopsis from from 2003 to 2007 in the Holland2003 to 2007 in the HollandAverage cost: 3.86 EurosAverage cost: 3.86 Euros

4

4.2

4.4

4.6

4.8

5

5.2

5.4

5.6

2002.5 2003 2003.5 2004 2004.5 2005 2005.5 2006 2006.5 2007 2007.5

Pric

e, E

uros

The change rates in the orchids markets The change rates in the orchids markets from 2003 to 2007 in the Hollandfrom 2003 to 2007 in the Holland

Year Cymbidium

Dendro-bium

Miltonia Oncidium Paphio-pedilum

20032004

2005

2006

2007

1174113113

(+11.7 ％ )13864

(+5.7 ％）15557

(+12.2 ％ )15529

(-0.18 ％ )

55697030

(+26.2％ )8405

(+19.5 ％)

10342(+23.1 ％

)11728

(+13.4 ％)

46804507

(-3.7 ％ )4084

(-9.5 ％ )5119

(+25.3 ％)

6660(+30.1 ％

)

57685399

(-6.4 ％ )4459

(-17.4 ％)

4767(+6.8 ％ )

4611(-3.2 ％ )

23562691

(+14.2％ )2686

(-0.1 ％ )3383

(+25.9 ％)

3627(+7.2 ％ )

Stage II. Over supplyStage II. Over supply

The floods of Phalaenopsis !

Disaster of orchids industry!

The change of the auction price of The change of the auction price of PhalaenoPhalaenopsispsis in Naaldwijk auction market in Naaldwijk auction market

Year 2008 2007 2006

1-20 Ws 3.859 4.742 5.407

21-25 Ws

2.631 3.489 4.058

26-35 Ws 2.891 4.194 3.931

The supply of The supply of PhalaenopsisPhalaenopsis in in Naaldwijk auction marketNaaldwijk auction market

Year 2008 2007 2006

1-20Ws 120,997 63,831 36,074

21-25 Ws26-35 Ws

153,684152,921

97,43261,346

58,88049,455

The typical variety: Anthura GoldThe typical variety: Anthura Gold

1. Anthura Gold

20062007

2.83.6

5.306

4.685

4.3053.750

2008 2.1 3.505

3.612

One spike

Two spikes

branch

Price)

Stage II. Stage II.

1. At lease 15 companies, 25 ha has withdrawal from the market!

2. The production has reduced

25 %

Data source: 2008-2010Data source: 2008-2010

The average cost in 2009-2010The average cost in 2009-2010

1. less than 1 ha : 4.22 EU$2. ranged 1 – 2 ha : 4.025 EU$3. More than 2 ha : 3.725 EU$

SupplySupply

50

100

150

200

250

300

350

400

450

0 5 10 15 20 25 30 35 40 45 50 55

Week

Supp

ly, th

ousa

nds

2010 2009 2008

PricePricePrice EU$

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

0 5 10 15 20 25 30 35 40 45 50 55

Weeks

Pric

e, E

U$

2010 2009 2008

The average cost in 2009-2010The average cost in 2009-2010

1. less than 1 ha : 4.22 EU$2. ranged 1 – 2 ha : 4.025 EU$3. More than 2 ha : 3.725 EU$

Stage III. RecoveryStage III. Recovery

Decrease the quantity of Phalaenopsis and others orchids

SupplySupply

0

50

100

150

200

250

300

350

400

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54

Weeks

Uni

ts, t

hous

ands

2011 unit2010 unit

PricePrice

0

1,000

2,000

3,000

4,000

5,000

6,000

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54

Weeks

Pri

ce E

U$

priceprice

Stage III. Stage III. New era of the orchids industryNew era of the orchids industry

1. Diversity of the Phalaenopsis2. More Orchids were supplied: Cymbidium, Dendrobium, Miltonia3. New market: USA

Traditional flowchart for the Traditional flowchart for the PhalaenopsisPhalaenopsis production in Europeproduction in Europe

Flask 2 inch pot

4 inch pot

Spiking

26 Ws

26 Ws

6-10 Ws

flasks

2 inch ： 6cm 3 inch ： 9-10cm

4 inch ： 10.5-12cm 5 inch ： 15cm

flowchart for the flowchart for the PhalaenopsisPhalaenopsis production in Europe production in Europe

2" pot

2 inch pots

4 inch pots

3 inch pot

3 inch pots

5 inch pots

Total:40-42 weeks

26 weeks

35-40weeks 6-10 weeks

6-10 weeks

6-10 weeks

6-10 weeks

20-26 weeks15-20weeks

26 weeks

9-14 weeks

spiking

Prices and numbers of spikingPrices and numbers of spiking Red

0

1

2

3

4

5

6

0 10 20 30 40 50 60

Weeks

Pric

e, E

U$

two spikes one spike

The assortment of Phalaenopsis in

the Netherlands

The production systemThe production system

Standardization Easy to be copied to other countries

Culture Guide for Floricultural b.v.Culture Guide for Floricultural b.v.

Td Tn Light--------------------------------------------------- Growing: 28ºC 26ºC 4000-6000 lux Cooling: 20ºC 18ºC 7000-8000 lux Flowering: 23ºC 20ºC 7000-8000 lux

Breeding the varieties Breeding the varieties for market!for market!

The selection varieties of The selection varieties of FloriFloricultura b.v.cultura b.v.

For sale: 2011-2013

The required variety for the NetherlandsPhalaenopsis

A. Genotype

1. double or more spikes

2. medium size of blossoms, at least 8 cm

3. number of flowers, at least 7 of each stem

4. can be induced to spike within 6-10 weeks

5. bright color

6. compact size, more units per m²

7. others

The required nursery for the Netherlands

B. Plant conditions

1. mature enough

2. virus free

3. no disease, no insect

4. healthy roots

5. others

The requirements for the Netherlands

To meet the greenhouse climate conditions

1. vegetative stage : day temp: 28ºC,

night temp:26ºC light intensity : 6000~12000 lux

2. cooling stage : Td:20ºC, Tn:18ºC LI : 8000~15000 lux

3. flowering stage : Td:23ºC, Tn:20ºC LI : 7000~13000 lux

Opportunity in Europe marketOpportunity in Europe market

The window of the Europe The window of the Europe market is narrowing for Asiamarket is narrowing for Asia

Opportunity in Europe marketOpportunity in Europe marketI. Sell productsI. Sell products

1. 2 inch size2. Plants with two spikes by air freight

Opportunity in Europe marketOpportunity in Europe marketII. Sell varietiesII. Sell varieties

1. Products of plant tissue culture 2. 1500-2000 units of one variety in 2 inch stage for test: numbers of spiking, branching, numbers of flowers, plant structure, shelf life and others.

Suggestion!

I. Technique 1. Select the adequate varieties for the

destination market

Suggestion!

II. Build credibility !

Timing, Quality, Quantity