Propects of value addition in flowers & it`s Global and Indian senerio

Presented by:Manisha JindalM Sc(Horti) Floriculture and Landscaping Archi.Junagadh Agriculture universityJunagadh Gujrat

Prospects of value addition in flowers

INTRODUCTION

Value addition is a process in which for the same volume of aprimary product, a high price is realized by means ofprocessing, packing, upgrading the quality or other suchmethods.Value-added floriculture refers most generally tomanufacturing process that increases the value of primarycommodities.Value-added floriculture may also refer to increasing theeconomic value of a commodity through particular productionprocess eg.organic produce, or through regionally brandedproducts that increase consumer appeal and willingness to paya premium over similar but differentiated products.

Value-added floriculture is regarded by some, a significantrural development strategy.Value added floriculture is a process of increasing theeconomic value and consumer appeal of any floralcommodity through changes in genetics, processing andpackaging diversification with this profitability of acommodity is increased especially small scale floricultureindustry.Profit potential is increased when an indistinctive rawcommodity is converted into a unique product.The value addition for marketing flowers includes adoptionof postharvest technology and improved logistics.

Essential oil extraction from flowersCut flower production for occasion/flower forcing

fresh dried

Live plant/potted plantFoliage and other parts of plants

freshdriedpotpourri

Areas of value-added floriculture

Value added technology

. Working with flowers is of course a benefit, but a successfuloperation requires a great deal of highly specialized knowledgeand skills, since the industry is highly technical and scientific.

It includes preparation of garlands, bouquets, veni, button-hole, flower

baskets, floats, floral wreaths, corsages etc can add value up to 5-10

times from flowers and green foliages

It also includes making of dry flowers and extraction of essential oil or

pigments.

These new models of value addition in flower have high export

potential and can play a significant role in generation a new flower

market strategy.

Even making of value added products is an artistic and creative work

much more closely related with women

No much scientific technology is needed for preparation ofthese products except some training and economic support.

This couldn’t be seen in isolation as income generating

activity.

Infect it is supplemental to existing income.

In case of urban or rural women, they can attend to

their daily house hold maid or labour.

Just some extra time & effort to earn some extra

income is needed.

Different Value Added Products

Flower ornamentsFlower bouquetsFloral handicraftsGarlands Flower basketsFloral wreathPot PourriFlower arrangement Edible flowers

Essential oilsFragrancePhyto chemicalHerbal medicine Plant pigments Dye yielding ornamentals Tinting of flowers Drying of flowers

Flower ornaments

Garland

Veni

Gajra

Crown

Boutonnières Corsages

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Dry Flower

Basket

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WREATH

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FLOWER ARRANGEMENTS IN SEALED GLASS CONTAINERS

Essential oil

Cosmetic and

toiletriesDental

preparation

Medical

Foodbeverages

Tobaccoindustry

Adhesive

Paper and printing industry

Textile industry

Petroleum Industry

Motor industry

Paintindustry

Insecticide industry

oUnstable prices for raw commodities

oFederal farm policies

oChanging consumer preferences

oMake more money by cutting out the middle man

Why use value addition in floriculture

Flower Ornaments and Flower arrangement are the important methodof value addition.Value addition of flower crops also includes post-harvest and

processing technologies.

Post-harvest includes:Stage of harvestGradingPulsingPackingIncreasing the vase life

Processing includes:Drying of flowers,PotpouriTinting of flowersExtraction of essential oil, dyes and drugs.

Methods of Value addition of flowers

To improve quality.

To enhance selling.

To gain higher profit.

To reduce post harvest loss.

Can provide demand for high quality.

Use of unsold flowers (unmarketable) ie roses used gulkand.

Increase export.

To generate employment.

Objectives of Value Addition

To improve the profitability of farmers

To empower the farmers and other weaker sections ofsociety especially women through gainful employmentopportunities and revitalize rural communities.

To provide better quality, safe and branded products to theconsumers.

To emphasize primary and secondary processing.

To reduce post harvest losses..

Need for value addition

Reduction of import and meeting export demands.Way of increased foreign exchange.

Encourage growth of subsidiary industries.

Reduce the economic risk of marketing.

Increase opportunities for smaller farms and companiesthrough the development of markets.

Diversify the economic base of rural communities.

Overall, increase farmers’ financial stability

Any attempt for value addition should focus forfollowing parameter for deriving maximum benefit.

Unique - The product we develop should be one of its own kinds for whichcrop and variability indigenous to our country should be exploited.

Novelty - The product should be new and unusual like blue or black roseand likewise so that no one can compete.

Export potential - The product developed should have demand ininternational market for higher return and appreciation of benefit of globaltrade.

High value - The product should have high value for low volume for ease oftrading and distribution and the extracts from Indian spices and herbalmedicinal plants can fulfill this requirement.

Choice for value addition: -

Availability - Consistent availability of the product in requiredquantity should be ensured for stable market and faith.

Market - Any product that is developed must have market becausemarket is the key for success of any product.

process the raw materialPre cut, wrap and packageTake a unique approachLabel the productDistinct product appearanceIncrease shelf lifeProvide recipes/cookbookGift baskets or multi-packBuild reputation, relationship

WAYS TO add value

1. A unique product2. An enthusiastic promoter of the product3. The right kind of labeling and packaging4. Aggressive marketing5. A full time presence on the farm6. Strong agricultural or livestock knowledge7. Ability to cater to customers8. Assistance from agencies and universities9. A strong relationships with the local community10.Safe food handling and food safety regulations11.Product liability insurance

Factor required for value added enterprises

Varieties as per market preference

Technology for value added products

Knowledge of standards

Synergy in the plan and approach of agencies atvarious levels in different functional areas viz. research,extension, finance, quality assurance and certification.

Challenges

INDIANSENERIO of VALUE ADDITION

Associated activities of flower growing in india include the dry flower industryand the essential oil industry.

The indian floriculture industry comprises the florist trade , nursery plants,potted plants , bulbs and seed production , micro propagated materials , driedflowers, dried foliage, and extraction of oil from flowers.

India is the 5 th largest exporter of dried flowers, and second largest exporterof dried foliage in the world accounting for around 7% of the world exports indry flowers and foliage.

The main export markets for indian dry flower industry are USA, Netherlands,UK and Germany.

India is second largest exporter of essential oil in the world after USA.Indias exports of essential oil stood at US$ 329 million in 2008-09.

India is the largest exporter of jasmine oil in the world accounting forover 40% of total world exports in jasmine oil.

Among the floriculture products, dry flower leads in export from Indiafollowed by cut flowers, live plants, bulbs, tubers etc.

Dried flowers and plants constitute the bulk of the export from our country.

Export of value added product e.g. oil (extracted in small units set up inproduction zones) rather than the raw material e.g. rose petals, can helpgenerate substantial revenue in international market.

The dried flower industry in India is about 45 years old. There is tremendousexport potential for this industry and a huge amount of raw material is exportedfrom India.

In this industry, cut flower, foliage, ferns, grasses, sedges, seed pods, flowerskeletons; nuts , fruits and cones; barks, branches, lichens and fungus areutilised.

Being of low cost and having high demand, the small scale drying industrycan be started at various parts of the country.

The export units of dried flowers and plants parts are located in tuticorin andKolkata presentaly.

in view of the expanding clientele, less risk and high returns, less investmentand limited competition, in the near future more and more entrepreneurs areexpected to enter this lucrative business.

Dry flower and plant parts

The major importing countries of dried flowers and dried plant parts are theUnited States of America, Germany , the United Kingdom, Western countries.Hong Kong, Japan and Singapore.In floriculture exports from India , these product constitute nearly 60percent.India has share of 10% of the total global dried flower market. India share in export of dried flower in Europe is below 1.5% and is belowone percent of the world requirement.During 2008-2009 dried flowers constituted over 60 percent of cut flowersexports and dried foliage constituted around 97 percent of the total foliageexported from India.India is the 5 th largest exporter of dried flowers and 2nd largest exporter ofdried foliage in the world accounting for around 7 percent of world exports indry flowers and foliage.

Location of dry flower industries in India

Tamil Nadu

West Bengal

Maharastra

Delhi

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Essential oils Flower and fragrance plant industry is an upcoming sector withtremendous opportunities for India to have its due share in the international trade inessential oils. Worldwide demand for flavours and fragrances including blends, essentialoils and other natural extracts is projected to increase 4.3 percent per year

India ranks 26th in import &14Th in respect of export in world in the trade of essentialoil. India holds around 0.7% of import & 1.1% of export.Jasmine and tuberose concentrate from South India have created a marks in worldmarked.The major buyers of Indian essential oil are Former USSR, USA, France, UK,Netherlands, UAE and Saudi Arabia.Growth in perfumery is higher i.e.,15%in India compared to 7% in America and 5% inEurope (Verma et al.,2012).The world production of essential oils is growing at more than 10% annually and atpresent it is estimated at about 11000 tonnes valued at over 11 billion US dollars.India contribute 16% to the world production, next only to brazil and USA.India is the second largest exporter of jasmine oil in the world accounting for over 40%of total world exports in jasmine oil. europe continues to be the largest destination ofindias floriculture exports.

Rajkeerth Aromatics and biotech Pvt. Ltd., TamilnaduChemical and Fragrance Corporation, MumbaiNatureway Agro Private Limited, HyderabadMa Vaishno Enterprise, Ahmdabad, GujratK K Aromas, BangaloreFragona Internation , KolkattaD D Shah Essential oil companyUma Aromatics , Moradabad , Uttar Pradeh

Essential oil manufacture units in India

GLOBAL SENERIO of VALUE ADDITION

In the present floricultural scenario when the globe has become a single marketfloriculture has to be competitive, the diversification, quality enhancement andvalue addition have become key words of success in floricultural trade atinternational level.If our floriculture has to be competitive, we will have to diversify and theproduces will again have to be subjected to product development and productdiversification for harnessing full advantage from present scenario anddevelopment.Besides making floriculture competitive, value addition also helps in avoidanceof post harvest losses, industrialization, employment generation, export,extended availability of produce, foreign exchange earnings and productdiversification, easy marketing etc.It is therefore, appropriate time for us to come out of primary processing andbulk exporting and get into newer product development and marketing of readyto consume product through value addition.

Global Senerio

Estimated world production of perfume oils, for all applications taken together isabout 250,000 tons.The global export of these oils, perfumes and flavours increased from US $ 2149million in 1986 to US $ 8254 million during 2002.While imports recorded an increase from US $ 2008 to US $ 5316 during the sameperiod.On the production side, the total worldwide production of essential oils is estimatedat about 1,00,000 to 1,10,1000 tonnes. The production of geranium essential oilalone is estimated to be nearly 400 tonnes per annum, with a value of US $ 20-30million.The world’s largest importer of aromatic materials is the USA followed by Japan(Verma et al.,2012).The best opportunities for flavours and fragrances will be found in the Asia/Pacificregion, which accounts for one third of total value gains between 2009 and 2014.US is the world’s largest user of flavours and fragrances, the fastest growth willoccur in developing regions like Asia, Central and South America, Eastern Europeand the Africa/Mideast region.

Conti….

The world production of essential oils is growing at more than 10% annually and atpresent it is estimated at about 11000 tonnes valued at over 11 billion US dollars.

India contribute 16% to the world production, next only to brazil and USA. India is thesecond largest exporter of jasmine oil in the world accounting for over 40% of totalworld exports in jasmine oil.

Europe continues to be the largest destination of indias floriculture exports.

Leading dry flower product exporting country: Australia

Leading dry flower product importing country: U.K.

Export of dried flowers and plants from India has a potential of

about Rs. 100 crore/year.

Exports of dry flower:India’s total export of dried floriculture products was

Rs. 294.46 Crores in 2009-10.

Market: The USA is the largest consumer of dried and artificial flowers estimated at US $2.4

million annually, followed by Germany and the UK. Other importing countries are West

European countries, Japan, Hong Kong and Singapore (Bhattacharjee and De, 2003).

Major Export Destinations (2009-10): USA, Netherland, Germany, UK, Ethiopia.

The Netherland ranks first in export of dried flowers to the United States of Americafollowed by Colombia, mexico, India and Israel.Australia has taken up this venture seriously recently, and the country is nowemerging as a leader in the export of these products, particulary to Japan, Germanyand the United States of America.

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