Perennial exports remain strong Print
Nursery product from The Netherlands enters the US marketplace through a variety of channels. Some growers ship directly to their customers, or to contract growers in the US that grow on product before it is shipped to retailers, primarily mass merchandisers.  Export companies that buy and sell product from local, often specialized growers, and that are specialized in the complex logistics associated with off-continent shipping, also continues to be an important part of the supply chain.

Regardless of their position in the supply chain, however, both growers and exporters predict that the export of perennials to the US from The Netherlands will remain strong in 2010.  They maintain this optimism despite the strong euro and stiff competition from cuttings produced in Costa Rica and tissue culture production from China and India.  The diversity of producers and product offerings is most often credited as the primary reason for the continued demand within North America.

Although sales are expected to remain stable, growers do note that buying habits have changed in recent years.  Notes one grower,  “Seven years ago as much as 80 per cent of orders were pre-sold.  In more recent years, that number has dropped to only 40 per cent of orders being sold prior to the start of the spring season.”  Their optimistic outlook for 2010 is further supported by an increase in the size of the marketplace overall. “Fortunately, the marketplace for perennials is expanding through increased demand from Eastern European countries,” he explains.

Exporters also predict that the sale of perennials to North America will be at least equal to that of last year.  “Nobody in the world can match the product range of Dutch growers,” noted one exporter.  “We need to take advantage of this diversity, as production within North America is increasing. In addition, besides the costs associated with root washing of product, we are now faced with an expensive euro against the dollar.”  Of the products they buy in from other buyers, 99 per cent is pre-sold to their North American clients.  The selling season starts in late summer and continues to late December.  The packing and shipping season runs from late December to the end of March.  Although some export companies are equipped to do their own root washing, many prefer to contract this work to nearby specialized companies.

Staying in the game, notes yet another grower, sometimes means a change in strategy.  Noting that while sales to the US continue to be strong, orders are placed later in the season than has been the case in previous years, due to the fact that this is a buyer’s market and that the competition for the US marketplace continues to increase.  “We have to compete with unrooted cuttings from Costa Rica and tissue culture from China and India.”   To remain competitive, this grower has recently begun to purchase and grow-on tissue culture seedlings from an Israeli supplier.  This allows them to supply their US grower customers with product in early spring, which can in turn be finished in four-inch or one-gallon pots within six to eight weeks.  This is much more cost-effective than growing on product throughout the winter months.  As a result of this new strategy, this particular grower expects an increase in sales in future years.

Source:  De Boomkwekerij
 

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