Valentine’s day is a global day, no matter where country you live, it’s impossible to get away from this day, the hearts around the shop windows, red roses and Cupid darts. In this English tradition, one of the traditional gift is, in a global mode, flowers and ornamental plants. Interflora claim is so clear about that: “Tell him/her with flowers”, flowers that in many cases are from Spain.
Spain, Valentine’s day and flowers
Spain is the fifth position on flowers sector in Europe representing 12% in the European business. Although Holland is on the pole position right now, Spanish companies in this sector is growing thanks to exportations.
In fact, over 70% of Spanish production is selling to european countries and this number is growing. For example, the exportations have growing in November 2014 related to November 2013 in a 25%, so Spain and Germany are the European countries which has had a better increase at the flower and ornamental exportations sector. The Spanish exportations used to go to France, Holland, Italy and Germany.
International flowers trade
Spanish companies can have so many advantages respect other european countries.
In Spain, we have excellent weather conditions in the most and main production fields like Valencia, Canarias or Andalucía; we have so many differents productos, a large production calendar and production system implemented with environmental control.
In this industry, however, companies are small or médium size and this aspect limits their business negociation posibilities in front of big distributors. In fact, the field area that Spain dedicates to flower production is 53.000 ha in more than 4.000 diferents areas. So, it is a concentrated sector to increase their profitability but this is not enough.
We have to take a look into the structure and we have to add other countries producers as China, India, Colombia,Ecuador or Kenya where their production is completely directed to exportations. At these countries, the politics are minor and involves less costs.
This situation implicates a bigger offer in the international trade with lower prices, this can intensify a global market fight. So, the Spanish producers demands to European Union an increase in the flowers and plants imports control to assure a correct product tracking.
The industry thinks that the key to continue improving their market position is to achieve a better difference in the product; position their quality and innovation issues. This can allow to increase the flower demand and there’s a need in opening new growing markets.
Countries who consume more flowers
The 3 bigger flowers and plants consumers are Japan, USA and Occidental Europe; in these areas are, together, the 75% of sales. However, other markets as West Europe present bigger chances. Other need is to bet to a direct manage in foreign markets. Big part of Spanish sales are going to Holland distributors which, after receive it, sell them all over Europe. So, a bigger control on distribution and a national auction establish could reduce the price pressure.