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APIP Agricultural Policy Implementation Project

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in both activities. Finally, there are wholesalers who never import although<br />

they may purchase from an importer.<br />

The flower market at Rungis is located in warehouse C-1, a huge facility<br />

that houses the booths of between 75 to 100 wholesalers. Most wholesalers are<br />

very interested in discussing potential imports because they are always looking<br />

for new sources of flowers, especially high quality flowers. One interesting<br />

trend among French wholesalers is that they are targeting a growing "niche"<br />

market for high quality French flowers, especially roses, at premium prices. The<br />

increase on the market of lower-cost lesser quality imported roses has aroused<br />

the market for high-quality French roses, which French growers are actively<br />

promoting.<br />

The import season is from September to mid-June, although some countries<br />

(Kenya and Thailand) start exporting around the end of August. The developing<br />

countries that are well-known at Rungis for their flowers include:<br />

0 Colombia: carnations and spray carnations<br />

* Kenya: mini-carnations, statice, and astromeria<br />

• Peru: gypsophila<br />

• Morocco: roses (80 percent); mini-carnations (10-20 percent)<br />

As discussed earlier, roses are the most important imported flower and the<br />

most popular flower in France. Popular red roses include first Vega and<br />

Samantha, and second, Madelon, Cardinale, Royal Red, and Red Success. Popular<br />

pink roses include Omega and Sonia. One rose that is popular but not imported<br />

is Mme. Delbard. One wholesaler asserted that it is too expensive to import a<br />

60 cm. rose that costs 70-75 FF CIF Rungis (per bunch of 20). This price can be<br />

contrasted with that of the Vega, as reported by one wholesaler: a 60cm. "extra"<br />

quality is 48FF (per bunch of 20) in Morocco, 51FF CIF Rungis to wholesaler, and<br />

60FF at Rungis to retailers. Apparently, an expensive imported rose like Mme.<br />

Delbard would have to be of extremely high quality to compete well with French<br />

and European roses. Quality-price differentiation is very important and in<br />

Morocco different rose growers produce according to different quality standards.<br />

One wholesaler cited the price/quality differences among three growers she was<br />

importing from:<br />

* Grower 1: 42FF/bunch of 20 for "lere choix", 38FF for "2eme choix"<br />

* Grower 2: 46FF/bunch of 20 for "extra" quality<br />

* Grower 3: 48FF/bunch of 20 for "extra" quality<br />

Price differences among flowers from different growers can be significant,<br />

as illustrated in the example above where a 1OFF difference between growers l's<br />

"2eme choix" and grower 3's "extra" flowers represents a discount of about 20<br />

percent for lower quality. Demand for Moroccan roses was very strong at Rungis<br />

but they receive mixed reviews for quality. Several wholesalers indicated that<br />

Moroccan roses were actually flooding the market and that while in general<br />

quality was mediocre, a number of growers were able to regularly supply the<br />

market with roses of consistently excellent quality. One wholesaler said he<br />

worked with one Moroccan grower "like a partner," although they had no written<br />

contract. In fact, most of the importer-wholesalers indicated that they avoid<br />

taking equity positions inoperations although they often develop close and long­<br />

17

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