The Ever-Evolving Cuttings Market

Top 10 Cuttings Producers–World Map 2013

Change is a constant among the world’s vegetative cuttings producers. In any given year, the companies on Greenhouse Grower’s Top 10 Cuttings Producers list are added or dropped for many reasons, including consolidation and economics — and 2013 is no exception.

Agribio Group’s purchase of Ecke Ranch last year moved it up to the number one position on our list. Both Agribio and The Dümmen Group are owned by holding company DNA Green Group, but operate as separate entities, according to Mark Schermer, general manager of Fides Oro, also a part of DNA Green Group.Dümmen’s volume increased by more than 200 million units, though it remains at No. 5.

Cohen Nurseries has a new, state-of-the-art facility in Gderot, Israel, accounting for an additional 3.4 hectares of production space, which moved the independent producer to No. 6. this year from No. 7 in 2012.

Florexpo reduced its production slightly in Costa Rica, bringing the operation down one spot to No. 9. Although the operation says its biggest challenge is constant industry consolidation, it is confident in its independent position.

“We have found our place in the market as the last truly independent supplier for North America,” says Florexpo’s Fernando Altmann. “Customers have responded positively to the fact that we offer what they want. We are not forced in a way to offer our own genetics, since we have none.”

Changes In Latitude
While most of the cuttings producers are staying put in the countries where they have stock production, a few changes are underway.

The Dümmen Group will expand its El Salvador farm in 2014 with 20 new acres of greenhouses to produce Ecke poinsettias, according to Perry Wismans. As a result, the existing Ecke farm in Guatemala will be closed.

Beekenkamp reports it is looking in Central America for a possible future site, as shipping from there to North America is faster than out of Africa.

Marlon Carrera from Syngenta Flowers says the company will consider moving its chrysanthemum production outside the U.S. if Quarantine 37 is lifted.

Logistics, Politics And Economics
Because of new security rules and political agendas, shipping from overseas production sites in Ethiopia is becoming a concern, says Martijn Kuiper, Beekenkamp Plants’ sales manager.

“Due to tensions in the region, shipments out of different countries like Ethiopia are being checked more intensively,” Kuiper says. “Because of doubts by the airlines about the security checks in Ethiopia, there are additional checks at the European airports before the cuttings are transferred to the U.S. This causes delays of the shipments, with all kinds of possible problems.”

A dispute between the different airlines and a decision by the Ethiopian government to more-or-less favor its own airline have caused the number of flights from Ethiopia to decrease, Kuiper adds.

“Both issues are not in our grip,” he says. “This makes it more difficult to keep a reliable supply chain. It is also why we are looking at Central America.”

Europe’s tumultuous economic climate has caused problems for Selecta Klemm. Spain’s economy is down and consumption is being cut back drastically. Italy is facing a difficult situation, with both consumers and growers in a holding pattern, and Greece is a small market but has gone down by 50 percent, reports Per Klemm.

“In a situation where there is no growth in the overall European markets, this is for sure not helping, hence being, in my eyes, one of the biggest challenges for 2014,” Klemm says.

Since this economic crisis is not new, Klemm says Selecta Klemm has been implementing its contingency plan over the past few years, directing its efforts toward becoming more competitive.

“We will not cut back our production — actually, it’s the other way around. We intend to increase our market share and production, and see good possibilities to do so,” Klemm says. “But growing volume and turnover in a growing market is, of course, a different ball game than doing this with the current economic development.
“The present situation will accelerate the processes we have already been seeing for some time. Our industry is becoming more professional and there is consolidation on all levels of the value chain. The good thing is, the ones that adapt and have the right strategy will get stronger by this process and the ones that already had a hard time before will drop out. At the end, we should have a healthier situation for
our industry.”

A Worldwide Labor Shortage
Offshore cuttings producers are facing labor shortages in the countries where they set up shop to avoid this very challenge.

Paul Gaydos of Athena Brazil says Brazil’s economy is growing, especially in the state of Sao Paulo, where competition for labor is increasing.

“Labor will be the issue,” Gaydos says. “Why work long hours in a hot greenhouse when you can get an office or retail job that pays the same wage?”

Gaydos says Athena Brazil has a plan in place to keep the employees it currently has, which is working well.

“Most employees are loyal and very happy to be working with Athena,” he says. “As we grow and need more labor, we plan to bring workers from other parts of Brazil to our area on a contract basis as needed during peak times of the year.”

Ball FloraPlant is facing the same issue, with offshore labor rates continuing to rise every year at aggressive rates, says General Manager Allan Davidson.

“Most of the cost of production is labor, so it dramatically affects the cost per cutting,” he says. “Other costs such as fertilizer and electricity are also increasing. We continue to push efficiencies, yields and train the best employees to try to offset some of these increases.”

Crops To Watch In 2014
Cuttings producers report the crops decreasing in demand include osteospermum, argyranthemum, poinsettia and standard annuals like Impatiens walleriana, due to downy mildew.

The biggest crops cuttings producers reported growing are specialty annuals, perennials and potted plants. Among these, growers feel pre-planted combinations are poised for growth in specialty annuals, as well as crops like petunia, calibrachoa, nemesia, lantana, geranium, lobelia, New Guinea impatiens, bidens, mandevilla and begonia, specifically in the boliviensis group.

Potted crops like kalanchoe and chrysanthemums were named as growth areas. Producers also said succulents and unrooted perennials will increase.

Topics:

Leave a Reply

One comment on “The Ever-Evolving Cuttings Market

More From Crop Inputs...
lucas-greenhouses-plant-roots-growing-mix

March 18, 2018

New Soil Amendment From Kemin Promotes More Efficient Nutrient Uptake and Plant Growth

Valena, a soil amendment sourced from a proprietary strain of Euglena gracilis (algae) rich in beta-glucan, is designed to support the growth of healthy and strong plants.

Read More

March 13, 2018

Greenhouse Biocontrol Goes Mainstream

Biological control has moved into the mainstream for greenhouse growers. And the timing couldn’t be better, as consumer demands for more sustainable production methods for the plants they buy are moving back upstream.

Read More
Jose-Milan-Bayer

February 11, 2018

Bayer Has New Turf and Ornamentals Global Market Manager

Jose Milan will be focused on helping growers deal with regulatory issues, while promoting the environmental benefits the ornamentals industry offers.

Read More
Latest Stories
lucas-greenhouses-plant-roots-growing-mix

March 18, 2018

New Soil Amendment From Kemin Promotes More Efficient N…

Valena, a soil amendment sourced from a proprietary strain of Euglena gracilis (algae) rich in beta-glucan, is designed to support the growth of healthy and strong plants.

Read More

March 13, 2018

Greenhouse Biocontrol Goes Mainstream

Biological control has moved into the mainstream for greenhouse growers. And the timing couldn’t be better, as consumer demands for more sustainable production methods for the plants they buy are moving back upstream.

Read More
Jose-Milan-Bayer

February 11, 2018

Bayer Has New Turf and Ornamentals Global Market Manage…

Jose Milan will be focused on helping growers deal with regulatory issues, while promoting the environmental benefits the ornamentals industry offers.

Read More
Belchim Crop Protection

January 24, 2018

Engage Agro Now Doing Business as Belchim Crop Protecti…

For more than 30 years, Belchim has been providing agricultural customers internationally, including greenhouse growers, with more than 100 well-known products.

Read More
cuttings-facility

December 13, 2017

New Webinars Address Effective Propagation Techniques

e-Gro, an online clearing house for alerts about greenhouse disease, insect, environmental, physiological, and nutritional disorders, recently posted two new propagation-related webinars on YouTube.

Read More

December 4, 2017

Raker-Roberta’s Young Plants Debuts as Roberta’s Finali…

On December 1, Eric Wallien of Roberta’s Inc. in Waldron, IN, officially purchased C. Raker & Sons in Litchfield, MI. The new identity of the company is now Raker-Roberta’s Young Plants, according to a Dec. 1 letter to Raker’s customers, suppliers, and business partners from Vice President Susie Raker-Zimmerman. “There have been minimal changes in management and we will be providing the same products and services on which we have built our reputation in the industry,” Raker-Zimmerman said in the letter, which also announced the name change and new logo. The sale of C. Raker & Sons was announced in September . A series of events affecting Raker’s financial situation caused the need for the operation to find an alternate solution. Roberta’s had been a customer of Raker’s since 2011, and the fourth generation, family owned grower-retailer was a fan of Raker’s commitment to quality. The agreement to purchase C. […]

Read More
Biocontrols in a Greenhouse

November 27, 2017

4 Opportunities to Educate Yourself on IPM Practices in…

The Michigan State University Extension floriculture team has developed four greenhouse integrated pest management sessions that will be presented at the 2017 Michigan Greenhouse Growers Expo in Grand Rapids, MI.

Read More
Parasitized aphid mummies, ladybird beetle larvae

November 11, 2017

OHP Announces Two New Ornamental Pest Management Tools

OHP recently added two new crop protection tools to its profile of biosolutions: a biological insecticide, and an ornamental fungicide.

Read More
OHP Biosolutions

September 26, 2017

OHP Acquired by AMVAC, But Will Continue to Operate As …

AMVAC has acquired OHP and its chemical and biological crop protection solutions for the greenhouse and nursery markets. The deal will close in early October, and there will be no changes to staff, products, or operations.

Read More
Hydroponics Michigan State Web

September 14, 2017

Hydroponic and Aquaponics Growers Face Possible Loss of…

The National Organic Standards Board is considering recommending that USDA revoke the ability for hydroponic, aquaponic, aeroponic, and other container-based growing methods to be certified organic, according to an update from growers at Upstart University.

Read More
Aphids

July 7, 2017

New Tools for Your Crop Protection Arsenal in the Green…

Over the past few months, crop protection companies have developed several new products designed to help you manage a wide range of insect and disease pests. Here’s a look at some of them.

Read More
Yellow Stick Card for thrips

July 5, 2017

Tips From a Top 100 Grower for Effective Thrips Control

A combination of conventional materials and biologicals can help provide season-long management of thrips in hanging baskets.

Read More
Primula acaulis, Botrytis, Disease, Griffin Greenhouse Supplies

May 30, 2017

BioWorks Launches New Biofungicide for Botrytis Control

BotryStop was developed for the control of pathogens such as Botrytis, Sclerotinia, and Monilinia in several crops, including ornamentals.

Read More
Adult Aphidoletes in web - Feature

May 27, 2017

How to Overcome Biocontrol Challenges by Thinking Outsi…

With a little creative thinking and adjustments to your strategy, you can overcome your greenhouse biocontrol challenges.

Read More
Cannabis Seedling

May 20, 2017

Biocontrols: A Practical Option for Cannabis

With limited options for chemical pest control, cannabis growers are incorporating biocontrols into their integrated pest management programs. More education will cement this solution as a viable option in this emerging market.

Read More
Christmas Cactus

May 18, 2017

How to Increase Branching and Flower Bud Production of …

Based on research completed at North Carolina State University, here are some methods for increasing branching and flower bud production of Christmas Cactus (Schlumbergera bridgessii).

Read More
Herbicide Drift in the Greenhouse

May 15, 2017

How to Identify and Mitigate Herbicide Contamination in…

Herbicides applied off-site or within the greenhouse can significantly damage ornamental and edible crops. Beth Scheckelhoff, an Extension Educator for Greenhouse Systems at The Ohio State University, provides some examples and basic recommendations for mitigating and preventing herbicide contamination and injury in the future.

Read More

May 4, 2017

Bayer Altus Update: Neonic Insect Control Alternative N…

Altus, a butenolide class insecticide with the active ingredient flupyradifurone, will be available beginning May 1, and is labeled for greenhouse and nursery use on ornamental plants, vegetable transplants, and indoor vegetable production.

Read More