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...
crider-rd2-internal_Rough-Brothers_featured

July 1, 2015

Rough Brothers Is Acquired By Gibraltar Industries

RBI Solar Inc., Rough Brothers Manufacturing Inc. and affiliates have been acquired by Gibraltar Industries, a manufacturer and distributor of products for residential and industrial markets, for $130 million. Capitalizing on its 80 years of design-build experience and leadership as the largest greenhouse manufacturer in North America, Ohio-based RBI has established itself during the past five years as North America’s fastest-growing provider of photovoltaic (PV) solar racking solutions. The transaction will enable Gibraltar to leverage its expertise in structural metals manufacturing and materials sourcing to meet global demand for solar racking solutions. The company also announced that it anticipates its second-quarter 2015 financial results will be in line with its previous expectations. “Acquiring RBI is an important step in the transformation of Gibraltar into a company with a higher rate of growth and best-in-class financial metrics,” says Gibraltar CEO Frank Heard. “This acquisition directly aligns with key end markets and product platforms […]

Read More

June 30, 2015

Opportunities Abound For Women In Horticulture, Says Dosatron International’s Lela Kelly

My love for horticulture goes back to my grandparents who were farmers in upstate New York. My family’s involvement in agriculture left a lasting impression that has spanned decades, and still drives my passion for our industry today. I started my career in horticulture when I owned a greenhouse, nursery and garden center in Sayville, Long Island, N.Y. We specialized in ground cover production, later branching out to producing perennials and bedding plants.     I then went onto wholesale hard goods distribution. In the 1980s, I was the first woman salesperson on Long Island. What an eye opener that was! New York is a very special place, different from anywhere else in the country. You cannot imagine how difficult it was walking into greenhouses and nurseries as a woman, in a man’s world. Luckily, I grew up in New York City in an Italian family, who taught me great […]

Read More
Medal of Excellence Award

June 30, 2015

Get To Know The 9 Variety Finalists For Editor’s Choice And Industry’s Choice Awards

Greenhouse Grower‘s Evening Of Excellence reception is rapidly approaching. Here, you can learn more about the varieties that are finalists for the Medal Of Excellence Editor’s Choice and Industry’s Choice Breeding Awards. Thank you to the 2015 sponsors of Greenhouse Grower‘s Medal Of Excellence Awards, Landmark Plastic, Nufarm and Stockosorb. Editor’s Choice Asclepias ‘Monarch Promise’ (Hort Couture) Basil ‘Balsamic Blooms’ (EuroAmerican Propagators) Celosia ‘Dragon’s Breath’ (Sakata Seed) Dianthus Jolt Series (PanAmerican Seed) Salvia Grandstand Series (Green Fuse Botanicals) Scabiosa ‘Kudos Pink’ (Hishtil Nurseries) Industry’s Choice Basil ‘Balsamic Blooms’ (EuroAmerican Propagators) Bidens BeeDance Series (Suntory Flowers) Celosia ‘Dragon’s Breath’ (Sakata Seed) Dianthus Jolt Series (PanAmerican Seed) Lobelia ‘Starship Deep Rose’ (Kieft Seed) Vinca Valiant Series (PanAmerican Seed)     Join us Monday, July 13 in Ballroom 2 at the Columbus Convention Center to find out which varieties will receive the coveted awards. The reception begins at 5:15 p.m. and the ceremony […]

Read More
Latest Stories
Feature image The Aphid Guard Aphid Banker Plant, coming soon to the market, supports beneficial insect populations.

June 21, 2015

The Latest In Crop Protection

Protecting your plants from the latest threats is no easy task, but new product lines promise to safely and effectively eliminate a wide range of pests and diseases, without harming your employees or the environment.

Read More
Bee On Flower

June 18, 2015

Pest Management And Marketing Strategies For Bee-Friend…

Michigan State University Extension shares pest management practices to produce plants that are safe for pollinators and marketing strategies for clearing up confusion about bee-friendly plants.

Read More
NSOrganicPlantFood3-1-1_featured

June 13, 2015

UMASS Fertilizer Trials Recommend Nature’s Source Organ…

In a recent online fact-sheet at its Extension website, the UMass Amherst Center for Agriculture, Food and the Environment lists Nature’s Source Organic Plant Food 3-1-1 as “the best liquid organic fertilizer,” according to Dr. Douglas Cox, Stockbridge School of Agriculture. It is called-out by the Extension after a number of years of studying the use of organic fertilizers for growing commercial greenhouse crops. The trials evaluated traditional water soluble and granular slow-release chemical fertilizers. Dr. Cox recommends Nature’s Source Organic Plant Food 3-1-1 as a liquid fertilizer that is readily available, cost effective, OMRI-listed and with good label directions for greenhouses. He also mentions the ease-of-use in how it mixes well with water and can pass fertilizer injectors. “Nature’s Source is currently the best liquid organic fertilizer,” Cox wrote in his article “Organic Fertilizers – Thoughts on Using Liquid Organic Fertilizers for Greenhouse Plants,” “I have seen no foliar chlorosis yet with this fertilizer. Nature’s source is widely available and a great […]

Read More

June 10, 2015

BASF’s Sultan Miticide Receives California Regist…

BASF Sultan miticide recently received registration in California, giving ornamental growers a new rapid, targeted mode of action for mite control. Sultan miticide, with active ingredient cyflumetofen, offers ornamental growers targeted knockdown of all life stages of tetranychid mites, with long residual control. It has practically no toxicity to beneficial insects, including predatory mites and pollinators. Sultan miticide offers a new mode of action to combat cross-resistance with other commercial miticides, and is compatible with integrated pest management programs (IPM). “The long-awaited California registration of Sultan miticide is exciting news. Greenhouse, nursery and landscape professionals in the state now have a new class of chemistry that gives them fast control over all life stages of plant-damaging mite populations,” says Joe Lara, senior product manager for BASF. “Sultan miticide now provides California growers with a much needed new first choice for miticide resistance management programs that won’t disrupt populations of beneficial […]

Read More
Bee on a Sedum

May 27, 2015

Industry Associations State Their Support Of National P…

AmericanHort, Society of American Florists, American Floral Endowment and Horticultural Research Institute joined together to embrace key aspects of the federal government’s recently announced National Strategy for the Protection of Honey Bees and Other Pollinators. The long-awaited strategy has three major goals: reducing honey bee colony losses, increasing Monarch butterfly populations, and restoring or enhancing millions of acres of land as pollinator habitat through public and private action. According to the statement, the associations are studying the details, but they agree that the overall approach appears balanced and mostly sensible. The rest of the statement reads as follows: “The national strategy’s overarching goals dovetail well with the focus of the ongoing Horticulture Industry Bee and Pollinator Stewardship Program. Under that initiative, we have directly funded several priority research projects, and collaborated on additional research funded by others, to provide critical scientifically sound guidance for professional horticulturists. We are developing a grower […]

Read More
Bee On Flower

May 20, 2015

White House Task Force Releases Pollinator Health Strat…

An interagency Pollinator Health Task Force commissioned by President Obama released its “Strategy to Promote the Health of Honey Bees and Other Pollinators” on May 19. The strategy, released in accordance with the Presidential Memorandum issued last June, is accompanied by a Pollinator Research Action Plan, which outlines needs and priority actions to better understand pollinator losses and improve pollinator health. The recommended actions will be supported by a coordination of existing federal research efforts and accompanied by a request to Congress for additional resources to respond to losses in pollinator populations. Pages 47 through 52 specifically address pesticides and pollinators. The report calls out plant production, native plants, mosquito control and all urban uses in its Pollinator Action Plan. RISE (Responsible Industry for a Sound Environment) says it supports the goals of improving pollinator health and habitat contained in the White House Pollinator Task Force’s release of its National […]

Read More
r3bv2 disease

May 20, 2015

SAF And AmericanHort Ask Government To Take Ralstonia O…

The Society of American Florists (SAF) and AmericanHort want Ralstonia solanacearum, Race 3, Biovar 2 (R3Bv2) taken off a list of animal and plant diseases that the federal government has determined could be misused as terrorist weapons. SAF and AmericanHort submitted formal comments together on the horticulture industry’s science-backed position on the matter. According to Lin Schmale, SAF’s senior director of government relations, extensive research has proven R3Bv2 does not belong on the government’s list of animal and plant diseases that can be misused as terrorist weapons. Every two years, USDA’s Animal and Plant Health Inspection Service (APHIS) requests a public review of the Select Agent list, asking for comments on whether plant or animal diseases should be taken off the current list or added to it. In the floral industry, R3Bv2 can have a devastating impact on geranium (pelargonium) crops, Schmale says, and both the potato and tomato industries also could be adversely affected by introduction […]

Read More
Two-spotted spider mites, adults and eggs

May 18, 2015

Beware Of Spider Mites In Bougainvillea And Mandevilla …

Greenhouse growers need to scout for spider mites on bougainvillea and mandevilla and use appropriate treatments that minimize pesticide resistance.

Read More
CrownBees_Blue-Orchard-Bee-Female_Artz

May 14, 2015

Pollinator Health 2015: What’s Next For Horticult…

The news on pollinators and neonicotinoids continues to fluctuate between good and bad. Research and outreach efforts backed by the Bee and Pollinator Stewardship Initiative help move the industry in a positive direction.

Read More
empress-intrinsic-brand-fungicide

May 13, 2015

BASF’s Empress Intrinsic Fungicide Is Approved Fo…

BASF’s Empress Intrinsic brand fungicide received supplemental labeling, providing California growers with an effective drench fungicide for disease control and plant health. The supplemental labeling is for use on herbaceous and woody plants in greenhouse, nursery container and field production in California. Empress Intrinsic fungicide provides protection against the four major root and crown disease pathogens: fusarium, phytophthora, pythium and rhizoctonia. Research shows Intrinsic fungicides control the broadest range of ornamental diseases while improving plant resilience to quality and reducing stresses that commonly occur during commercial production, handling and transportation. “More and more growers across the country are discovering the benefits of Empress Intrinisic brand fungicide treatments at propagation for rooted plugs, cuttings and seedlings, and in drench applications on transplants during the production cycle to protect against the major root diseases,“ says Joe Lara, senior product manager for BASF ornamentals. “A BASF fungicide program utilizing Pageant Intrinsic and Empress Intrinsic […]

Read More
Green Mum Basket

April 21, 2015

Growers Face Dilemma In Managing Plant Growth

Whether you’re applying plant growth regulators, manually pinching plants or using automated trimming, the most important thing is to find the right balance.

Read More

April 20, 2015

Three Michigan State University On-Demand Webinars Offe…

The first rule of effective insect and disease control for vegetables is to take action to prevent problems before they occur. But in order to do that, you need to have an effective pest and disease management strategy in place that incorporates best practices to ensure a successful outcome. Michigan State University offers three pest and disease management on-demand webinars that will get you started and keep you on the right track.

Read More

April 15, 2015

BASF’s Pageant Intrinsic Fungicide Registration A…

The state of California has approved the supplemental label registration of Pageant Intrinsic brand fungicide for disease control in the commercial production of greenhouse-grown tomatoes and tomato transplants for the home consumer market.

Read More
Egg card used for insect control in Parkway Garden’s retail area.

April 13, 2015

Biocontrols Use Requires Commitment

For some companies, a switch to biocontrols is an easy decision to make. Parkway Gardens of Ontario, Canada, began using biocontrols nine years ago after Erik Jacobsen, the company’s owner, wanted to expose Parkway, its customers and the environment to fewer pesticide products. “Many pesticides were increasingly ineffective, and in Canada, new product registration moves with glacial slowness,” Jacobsen says. “The labor cost of applying pesticides is much greater than using biocontrols.” In addition, it was also an opportunity to market the company’s eco-friendliness to a younger demographic, he says. In a Q & A with Greenhouse Grower, Jacobsen explains what biocontrols and methods have proved effective for Parkway Gardens Greenhouse Grower: In what types of greenhouse structures are you using biocontrols? Erik Jacobsen: Our greenhouses are all poly covered. About half the range is a Westbrook 14-foot at peak gutter-connected block, and the remaining half a mix of quonset-style […]

Read More

April 11, 2015

Lowe’s Announces Commitment To Phase Out Neonicotinoids…

Home improvement retailer Lowe’s companies announced April 9 that it has committed to eliminate neonicotinoid pesticides from its stores in a gradual phase-out over the next 48 months. In response, horticulture industry associations issued a statement that Lowe’s position is surprising, considering the most recent and positive reports on the state of honeybee health and recent peer reviewed research, and that this is an issue for which sound science must take priority.

Read More

April 9, 2015

Survey Snapshot Shows Biocontrols Mainstreaming

Have you incorporated biocontrols into your greenhouse operation? If so, you’ve got plenty of company. An anonymous online survey by Greenhouse Grower magazine in December 2014 of more than 156 ornamental plant and flower growers across the U.S. found 81 percent used biocontrols in 2014.

Read More

March 31, 2015

Manufacturers Are Taking Biologicals To The Next Level

Through acquisitions and new products, many crop protection companies are making firm commitments to the future of the biocontrols industry.

Read More
OxiPhos_BioSafe2

March 23, 2015

BioSafe Makes Label Changes To OxiPhos And ZeroTol 2.0

There have been some recent label changes made to the BioSafe Systems product OxiPhos, a systemic bactericide/fungicide that reduces downy mildew spores when tank mixed with ZeroTol 2.0.

Read More