Raising The Bar
Cuttings producers capture global demand by investing in crops, farms and technology-driven systems and services.
June 19, 2008
In the two years we've been tracking global cuttings production, we've seen the baseline volume jump by about 30 million cuttings each year. In 2005, GroLink/Athena ranked at No. 10 producing 64 million cuttings. The next year, the number climbed to 90 million, and now we have a three-way tie at 120 million between GroLink/Athena, Paul Ecke Ranch and GGG International. (Turn to page 44 to learn more about Athena's production in Brazil.)
We also welcome two new companies to the ranking - Oro Farms of Guatemala and GGG International of Germany. Ranked at No. 4 with 220 million cuttings, Oro Farms has emerged as the largest licensed producer. Unlike the three companies above it, Oro is not a breeder producer, but is licensed with many breeders to produce cuttings.
Based in Germany, GGG International is strong in Europe, shipping 80 percent of its cuttings there, but building more business in the United States through strategic relationships. Production farms are in Kenya, Spain and Israel.
Most of the Top 10 are both breeder producers and licensed producers of other genetics. Fides, Selecta and Dömmen are most focused on their own genetics. Fischer has its own geraniums, poinsettias and New Guinea impatiens but produces Goldsmith's vegetative annuals. Ecke Ranch breeds poinsettias but has partnerships with many breeders for annuals.
A year ago, Ecke Ranch purchased Oglevee, which bred geraniums and specialty crops, such as streptocarpus, begonias and New Guinea impatiens. "Growing revenue requires the addition of key crops, such as geraniums," says Ecke Ranch COO Steve Rinehart. "The recent acquisition of Oglevee has allowed us to capture revenue growth."
Dömmen plans to expand its vegetative annuals lines, which now include calibrachoa and osteospermums. New farms in Kenya will be devoted to these crops. "We always have been known as a leading producer in the big industrial crops - geraniums, New Guinea impatiens and poinsettias," says Perry Wismans, Dömmen's global business development officer. "After introducing a number of other product lines, the next step is to become a full supplier in vegetative annuals."