Orchids Production and Market in Europe Professor Chiachung Chen National ChungHsing University Taichung Taiwan, 40227 Three stages: 1. Developing: 1997-2007 2. Over supply: 2008 – 2010 3. Stabilizing: since 2011 The major markets 1. The Netherlands :50% 2. Germany 3. Belgium 4. Italy 5. Denmark 6. Switzerland 7. UK The different requirement 1. The Holland: two spikes, all kinds of flower sizes and colors 2. UK : one spike, long stem, big flower 3. North Europe : two spikes, small flower, 20-30 cm stem. 4. Italy: northern, big size southern, small size How to analyze the orchids market of Europe 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: Miracle crop! Incredible pot flower! Quantity increase! Price jump! The sale quantity of Phalaenopsis sales from 2003 to 2007 in the Holland 5000 4500 *10000 uni t s 4000 3500 3000 2500 2000 1500 1000 2002.5 2003 2003.5 2004 2004.5 2005 2005.5 2006 2006.5 2007 2007.5 The average prices of Phalaenopsis from 2003 to 2007 in the Holland Average cost: 3.86 Euros 5. 6 5. 4 Pr i ce, E u r o s 5. 2 5 4. 8 4. 6 4. 4 4. 2 4 2002. 5 2003 2003. 5 2004 2004. 5 2005 2005. 5 2006 2006. 5 2007 2007. 5 The change rates in the orchids markets from 2003 to 2007 in the Holland Year Cymbidium 2003 2004 11741 13113 (+11.7%) 13864 (+5.7%) 15557 (+12.2%) 15529 (-0.18%) 2005 2006 2007 Dendrobium Miltonia Oncidium Paphiopedilum 5569 4680 5768 2356 7030 4507 5399 2691 (+26.2%) (-3.7%) (-6.4%) (+14.2%) 8405 4084 4459 2686 (+19.5%) (-9.5%) (-17.4%) (-0.1%) 10342 5119 4767 3383 (+23.1%) (+25.3%) (+6.8%) (+25.9%) 11728 6660 4611 3627 (+13.4%) (+30.1%) (-3.2%) (+7.2%) Stage II. Over supply The floods of Phalaenopsis ! Disaster of orchids industry! The change of the auction price of Phalaenopsis 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 Phalaenopsis in Naaldwijk auction market Year 2008 2007 2006 1-20Ws 120,997 63,831 36,074 21-25 Ws 26-35 Ws 58,880 49,455 153,684 97,432 152,921 61,346 The typical variety: Anthura Gold Price) One spike 1. Anthura Gold Two spikes branch 2006 2007 2.8 3.6 5.306 4.685 4.305 3.750 2008 2.1 3.505 3.612 Stage II. 1. At lease 15 companies, 25 ha has withdrawal from the market! 2. The production has reduced 25 % Data source: 2008-2010 The 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$ Supply 2010 2009 2008 450 400 Su p p l y , t h o u san d s 350 300 250 200 150 100 50 0 5 10 15 20 25 30 Week 35 40 45 50 55 Price Price EU$ 2010 2009 2008 6 ,0 0 0 5 ,5 0 0 5 ,0 0 0 Pri ce, EU $ 4 ,5 0 0 4 ,0 0 0 3 ,5 0 0 3 ,0 0 0 2 ,5 0 0 2 ,0 0 0 1 ,5 0 0 1 ,0 0 0 0 5 10 15 20 25 30 Weeks 35 40 45 50 55 The 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. Recovery Decrease the quantity of Phalaenopsis and others orchids Supply 400 350 U n i t s, t h o u san d s 300 250 2011 unit 2010 unit 200 150 100 50 0 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 Price 6,000 5,000 Pr ice E U$ 4,000 price price 3,000 2,000 1,000 0 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 Stage III. New era of the orchids industry 1. Diversity of the Phalaenopsis 2. More Orchids were supplied: Cymbidium, Dendrobium, Miltonia 3. New market: USA 26 Ws Flask 26 Ws 2 inch pot 6-10 Ws 4 inch pot Spiking Traditional flowchart for the Phalaenopsis production in Europe 35-40weeks 26 weeks 2 inch pots flasks 26 weeks 4 inch pots 6-10 weeks spiking 3 inch pot 9-14 weeks 15-20weeks 2 inch:6cm 3 inch :9-10cm 4 inch :10.5-12cm 5 inch :15cm 6-10 weeks 2" pot 3 inch pots 6-10 weeks 20-26 weeks 5 inch pots 6-10 weeks Total:40-42 weeks flowchart for the Phalaenopsis production in Europe Prices and numbers of spiking Red two spikes one spike 6 5 Price, E U$ 4 3 2 1 0 0 10 20 30 Weeks 40 50 60 The assortment of Phalaenopsis in the Netherlands The production system Standardization Easy to be copied to other countries 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 for market! The selection varieties of Floricultura b.v. For sale: 2011-2013 The required variety for the Netherlands Phalaenopsis 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 market The window of the Europe market is narrowing for Asia Opportunity in Europe market I. Sell products 1. 2 inch size 2. Plants with two spikes by air freight Opportunity in Europe market II. 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