13 August 1992 Signals Right for Bright Cut Flower Industry

Although the cut flower industry in New Zealand is not well developed or very cohesive the signals are there for a potentially bright future, says Lincoln University floriculture specialist Dennis Farr.

"All predictions from the industry worldwide are for continued dramatic expansion over the next few years and an export figure of half a billion dollars has been mentioned in relation to New Zealand," he says.

"Unfortunately the infrastructure for such expansion in this country is not yet in place."

Last year Mr Farr, who is a lecturer in Lincoln's Horticulture Department, spent time in The Netherlands, a country where the floriculture industry is regarded as a success story.

"My perceptions of the Dutch floriculture industry are that it shows motivation, enthusiasm, confidence, innovation, efficiency, and a willingness to co-operate for the good of all. Similar attributes need to become predominant in New Zealand if our industry is to develop further.

"Over the years the industry in New Zealand has suffered from fragmentation but despite everything the value of cut flower exports has risen steadily from $1.3 million in 1979-80 to about $14 million in 1987-88, and around $30 million today."

Globally the cut flower market is worth about $6 billion annually.

Mr Farr points out that floriculture is both a labour and capital intensive operation.

"In terms of labour, a flourishing industry in New Zealand could help with unemployment.

"On the capital side, there is a need at the moment for investment. This is for both the physical structures – the greenhouses and environmental control technology that goes with them – and the plant material of the flowers which are in demand."

Looking at the Northland situation, Mr Farr says that potential advantages would be that the greenhouses would require less heating in the winter, however protection from overheating in summer would have to be considered.

Proximity to the major domestic market and international terminal of Auckland is also an advantage.

As for specialist varieties which might be grown in Northland, Mr Farr says that the floriculture industry is characterised by a huge diversity of plant species and consequently it is very hard to say that any one species has more opportunity than another.

Worldwide the majority of cut flowers sold are roses, chrysanthemums and carnations.

"New Zealand can grow good carnations but as an export product you are talking about a commodity crop. Ours are the same as everyone else's."

In terms of the money required to set up an operation Mr Farr points out that an investment of several hundred thousand dollars would be "pretty low" for a fulltime business.

"So, although floriculture is an industry with potential growth it is one which needs to be approached carefully in terms of capital outlay and market planning."

Lincoln University has been teaching floriculture as an undergraduate diploma subject for a number of years and is now setting up a special floriculture topic at the level of the Postgraduate Diploma in Horticultural Science.

"As a university we are doing our part to have research information available and trained personnel in place to capitalise on the predicted expansion of the cut flower industry," says Mr Farr.

Ian Collins, Journalist, Lincoln University, Canterbury, New Zealand