After Mothers Day.  4 months of Winter

The 2009 Mothers Day trading period was a much needed shot in the arm for Retailers. Confidence was at its highest levels amogst shop owners since late 2008. The early onset of cooler weather combined with unseasonally "Dry" spell during the week up to MD assisted flower sales with perfect weather for the buying public to enjoy celebrating their Mum! The winter this year has arrived 4 weeks earlier than 2008. Whilst this means cropping is slower to produce than this time last year it will go some way to balance what happened with the unseasonally high temperatures experienced prior Valentines Day. Current supply levels in BRISBANE are around 15% down on last year.

 

Industry in Crisis. Why the flower Industry is going backwards

Although much of the civilized world is facing a global economic crisis, our very own flower industry is facing its own "industry" crisis. Key indemic challenges such as lack of loyalty, lack of regularity in points of purchase, lack of consultation between grower and buyer groups, no common goal or shared pathway to assist with the expansion or improvement of the industry as a whole all help keep the australian flower business on the path of self destruction. Whilst many points have been raised above let us focus on just (2) points. Lack of understanding & care factor for both sides. It would appear that flower growers are not valued by the flower buyer at all any more as most buyers treat the flower business as an off the shelf supply arrangment rather than a perishable, seasonally affected business. Conversely the Flower buyer has contempt aimed at them from the supply end because of the pricing that is implemented by the retailer in the supply chain. The answer to this growing divide is not clear. One thing is for certain though, if both sides of the flower world dont start to value each others efforts and skill sets then the only clear winners wil be the import sector as the local number of farms and shop keepers will continue to decline. Regularity of Supply & Purchase. Why is it still a battle to get flowers at the right times? Sure supply and demand plays its part but in outlets where the supply demand scenario is leveraged to achieve a higher price for the supplier (Such as the flowerauction is) why then is there a struggle to get adequate market share of the available product? The buyers are also irregular in their approach. Too often a supplier that has not supplied during a peak time or one who has not been up to speed In his grading will be rewarded by the buyer through the purchase or pricing. Buyers must increase their understanding of the overall supply and demand scenarios and reward those growers who do the right thing as a general rule. Reward the suppliers by buying their products before other suppliers in the same product lines. In short attitudes have to change and mindsets have to shift focus towards a commonality rathern than an individual basis.

 

The "L" word. Levy

For as long as the Italian flower growers have been planting crops in the southern states, so too has the debate about a flower levy been going on. No one can agree on how it should be implemented, policed and supported or indeed spent. The talk has to stop and action has to be taken. No longer can the flower industry sit back and watch as the market share moves from flowers to gifts, alchohol and leisure experiences. There has to be a voluntary scheme that people opt into. There then has to be support from the retail buyers to support those companies who help to fund industry promotion. As I stated publicly in the last grower meeting relating to the levy held in Sydney in 2008, CFA will take the first step (if supported by other wholesalers) and put its hand in its pocket for 1% as a contribution toward a levy. Add this to the 1% that the growers will probably pay in and 1% from the retail sector, all of a sudden flowers could be promoted with a 3% budget which would be worth approximately $200k per annum. There has never been a greater need for action than now. If you have any comments on the items above please feel free to submit them to nick.christensen@flowerauction.com.au Please be aware that all comments submitted will be taken as having been approved for publishing and public comment.