Key for Spain's ornamental sector: Exports and new sales channels
by Market Insider
Thursday, 30 Jul. 2015
Flowers and ornamental plants make up a
key subsector within Spanish horticulture, and both exports important for its
future growth and the development of new sales channels, namely through large
distributors, are key elements for its promotion.
Last year, the
industry suffered a sharp decline in private consumption and a dramatic
reduction in demand from government institutions for public parks and public
works, the impact of which was made worse by the VAT increase in January 2013,
according to a sectoral report from FEPEX.
While 2014 was a critical
year for ornamental horticulture, which was one of the agricultural sectors most
affected by the economic crisis, 2015 is shaping up as a year of recovery,
partly because the VAT was reduced again in January to the lower rate of 10%.
FEPEX General Secretary José María Zalbidea said that this year "there
is a clear improvement in the domestic market," due to the lower prices
resulting from the return to reduced VAT and an increase in demand as a result
of local and regional elections.
Zalbidea has also defended the
marketing of flowers and ornamental plants by large distribution chains, where
it is "almost non-existent," and added that Spain is the only producer and
marketer that barely sell these products through this channel.
Also
addressing the topic, the president of the Flowers and Plants Committee at
FEPEX, Juan Daniel Marichalar, pointed out that "it is a pending issue, which
has already started to develop in the Canary Islands with good results, and with
the key being a commitment to offer quality products," he emphasised.
Additionally, both stressed that these are products which can be supplied all
year round at an affordable price and that demand is on the rise.
"As soon as there is supply, it will be purchased by the consumer," says
Zalbidea, to which Marichalar adds that "what can't be seen, won't be bought,"
thus considering it essential to develop these new sales channels.
Furthermore, Spain is considered the country with "the greatest potential for
growth in Europe" in the export of ornamental plants; not surprisingly, Spanish
flowers and plants are "greatly successful" in foreign markets, according to
José María Zalbidea.
The Spanish production of ornamental plants is
one of the most environmentally friendly, based largely on natural cultivation
and not on heated greenhouses, and it also has a certified quality system of
good agricultural practices, something which is increasing more demanded by
consumers.
According to the aforementioned report, ornamental
horticulture represents 3.2% of the overall crop production, with a cultivated
acreage amounting to 5,300 hectares and domestic production worth € 900 million.
The cultivation of ornamental plants is also important from a social standpoint,
since it requires plenty of labour and thus generates employment.
About 40,000 jobs are linked to the production of flowers and ornamental
plants, concentrated in areas where there is great dependence on this sector,
since in the most important production areas there are no alternative crops or
economic activities.
The main producing regions are Andalusia,
Valencia, Catalonia, Canary Islands, Galicia and Murcia.
Source:
FloralDaily / Efeagro