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...

March 4, 2015

Nexus Corporation’s Cheryl Longtin Encourages Women To Seek Volunteer Leadership Opportunities

When Cheryl Longtin came to the horticulture business in 1994, she applied her experience in the automotive industry to promote the adoption of more technology in greenhouse production. Longtin says horticulture, with its rich family tradition, has long promoted women in the industry compared to other industries, but women in horticulture must continue to seek out opportunities to provide volunteer leadership in organizations that shape the future of the business.

Read More

March 4, 2015

Second Annual GreenhouseConnect Will Bring Growers and Suppliers Together in San Diego This October

Following a successful inaugural event in Tampa last fall, Greenhouse Grower has announced the dates of its second annual GreenhouseConnect: October 26-29, 2015. Representatives of an expected two dozen leading greenhouse operations from across the U.S. will join senior-level suppliers at Rancho Bernardo Inn in San Diego for several days of one-on-one strategic meetings, a growers-only roundtable, informational sessions and a variety of networking events.

Read More
cultivate'15 logo

March 4, 2015

Cultivate’15: AmericanHort Announces What’s New

In an industry that has seen major changes occurring at a fast pace, many industry professionals leave Cultivate with their heads spinning and no clear idea of how to regroup and strategize. Cultivate’15 is “Changing the Game.” As this year’s focus, Changing the Game will call your attention to the ways in which our industry has changed and your opportunities to compete successfully.

Read More
Latest Stories
Rose Rosette on Knockout rose, May 2013. Photo credit: Alan Windham, University of Tennessee

March 2, 2015

Rose Rosette Disease Fight Gets A Boost From Government…

In 2014, $4.6 million was awarded through the Farm Bill to tackle rose rosette disease, a devastating pathogen that affects one of the industry’s most important crops.

Read More
Fig 1 Leafy Gall On Leucanthemum Becky

March 2, 2015

How To Prevent Leafy Gall Before You Lose Plants

Leafy gall is a nasty disease that can go undetected until plant damage is done. Take these steps to protect your crops from infection.

Read More

February 17, 2015

A New Look At Biological Control: Can Plants Affect The…

The success of a biological control program depends on a number of factors including quality of natural enemies, timing of release, release rates and environmental conditions. However, what is typically not taken into consideration is how plants can affect the performance of natural enemies, including attack rate and searching ability. Biological control agents work hard to protect plants, but plants have ways to help themselves, too.

Read More

February 1, 2015

New Pest Control Products For Your Toolbox

Add one of these new insecticides to your IPM program for successful pest control.

Read More
IR-4_profile_Feb2015

January 29, 2015

IR-4: A Pest Management Resource For Growers

Almost 40 years ago, IR-4 (Interregional Research Project Number 4) began serving the ornamental horticulture industry, helping to facilitate the registration of pest management tools. IR-4 does this primarily by surveying growers about their pest management issues and then hosting workshops to review survey results and set priorities for the coming years. Most recently, IR-4 coordinated a meeting of researchers and industry members on pollinator health and neonicotinoid chemistries to start a discussion on the needed research. The next step will be to get the outcomes from that workshop out to the public.

Read More

January 28, 2015

Biocontrols 2015 Conference & Tradeshow: Peace Tree…

Lloyd Traven, a speaker at the upcoming Biocontrols 2015 Conference & Tradeshow, was one of the industry’s early adopters of biocontrols in the greenhouse. Traven, owner of Peace Tree Farm, is evangelical about the technology as an effective tool for resistance management, as well as improved plant quality that contributes to a grower’s bottom line.

Read More

January 27, 2015

Southwest Perennials Improves Production, Shortens Crop…

A father-and-son team find LEDs deliver a higher rooting rate for cuttings propagated under the lights.

Read More
Wainwright-web-620x349

January 22, 2015

Quality Control With Biocontrols

Make sure the shipment of beneficials that just arrived is viable and ready to go to work in your greenhouse, nursery, or field. Here are five steps you can take to ensure success with your biocontrols.

Read More

January 9, 2015

6 New Fertilizer Products For Healthy Plants

These five products add even more options for delivering nutrients to the root zone.

Read More

January 7, 2015

Fertilizers And The Future

As growers look for new ways to cut costs and conserve resources, fertilizer and equipment companies are offering products that strive to save water, reduce toxic runoff and keep chemicals out of the equation.

Read More

December 31, 2014

Gain Greater Control Of Fertilizer With Automated Ferti…

University researchers look at integrating irrigation and fertilization with the help of water sensors to reduce fertilizer treatments and improve application timing.

Read More
As directed by EPA, the bee hazard icon appears in the Directions For Use for each application site for specific use restrictions and instructions to protect bee and other pollinators.

December 9, 2014

Fact Sheet: The Value Of Neonicotinoids To Turf And Orn…

An extensive study of the diverse turf and ornamental industry (“The Green Industry”) reveals that neonicotinoids are the top-rated products used by professionals to control their most important pests in greenhouses, landscapes, lawns, nurseries and trees.

Read More
As directed by EPA, the bee hazard icon appears in the Directions For Use for each application site for specific use restrictions and instructions to protect bee and other pollinators.

December 9, 2014

New Study Finds Neonicotinoids Are Top-Rated Products F…

According to results of a survey by AgInfomatics, professionals in the turf and ornamental industries fear the loss of neonicotinoid products would reduce the quality of their plants and services, increase costs and negatively impact their ability to manage pest resistance.

Read More

December 2, 2014

Grow-Tech Announces BioStrate, Its Newest Hydroponic Gr…

Grow-Tech LLC recently announced the release of BioStrate Felt, a biobased textile specifically engineered for the growing of hydroponic microgreens and baby salad greens.

Read More

November 25, 2014

Former Harris Seeds Co. CEO, Per Jensen, Passes At 85

A passion for plants defined long-time industry influencer.

Read More

November 21, 2014

Ramped-Up Predatory Mite Production To Benefit Growers

Biological pest control company Beneficial Insectary is now producing both Amblyseius (=Neoseiulus) cucumeris and Stratiolaelaps scimitus (formerly Hypoaspis miles) at its facility in California. Domestic production in the U.S. is now benefiting growers in North America by reducing the transit time of perishable predatory mites between producer and grower.

Read More

November 18, 2014

7 New Media And Light Products For Greenhouse Productio…

New media and light products cover a broad sweep of growing conditions.

Read More

November 14, 2014

Skagit Gardens To Eliminate Use Of Neonicotinoid Pestic…

Skagit Gardens, a wholesale grower located outside Mount Vernon, Wash., will eliminate all use of neonicotinoid pesticides beginning in January 2015.

Read More