Braam Youngplants.pdf 1 29-03-11 16:52 Tel. 001 760-723-9568, Fax 001 760-723-9639 “THE SOURCE” Email: info@braam.nl Braam_178x<strong>12</strong>4.indd 1 29-03-11 16:53
Auctions (II) The whole country is suffering under the earthquake. This hurts production and consumption. I hope our readers understand th<strong>at</strong> we want to publish on the Japanese flower industry. Our personal thoughts, however, are with our friends and colleagues in Japan. We hope th<strong>at</strong> the country comes out even stronger than before. by Jaap N. Kras Japan hosts no less than 140 flower auctions According to the Auction Associ<strong>at</strong>ion Japan in Japan there are 140 auctions <strong>of</strong> <strong>flowers</strong> and plants. Total sales have been declining since 2007 from €4.5 billion to €4 billion in 2009. The biggest auctions are OTA with 8.6% market share and an annual a turnover <strong>of</strong> €270 million in 2009 and the Flower Auction Japan with a turnover <strong>of</strong> 220 million in 2009. A strong new comer is Aucnet: an online auction. Aucnet has been selling <strong>flowers</strong> through digital internet auctions for 13 years. Their turnover last year was approxim<strong>at</strong>ely € 55 million. The Aucnet organis<strong>at</strong>ion expects a strong growth for the coming years. A special letter from OTA OTA Floriculture Auction Co., Ltd. is Japan’s largest flower auction when it comes to turnover and scale in a land with as many as 140 flower auctions (in 2009). OTA was founded by wholesalers and not by a growers cooper<strong>at</strong>ive. Because <strong>of</strong> its position, the auction has served as a bridge for the distribution <strong>of</strong> <strong>flowers</strong> between growers and consumers in the supply chain, working both fairly and equally. We now have to redefine ourselves to fulfil evolving roles, because we stand <strong>at</strong> the pivotal point <strong>of</strong> flower consumption and distribution. Firstly, Japan's baby boomers, born between 1947 and 1951, are now starting to reach retirement. The gener<strong>at</strong>ion <strong>of</strong> baby boomers is expected to boost demand for <strong>flowers</strong>, but with a different view from their parents. By making use <strong>of</strong> long term and good rel<strong>at</strong>ionships with the growers and the consumers, we have to increase consumer demand and develop products together with the growers. Secondly, the government <strong>of</strong> Japan formul<strong>at</strong>ed the policy <strong>of</strong> choosing several centralised core markets among a huge number <strong>of</strong> auction markets in Japan. We, as one <strong>of</strong> the centralised core markets, have to play an important role as a the hub <strong>of</strong> flower distribution for the whole <strong>of</strong> Japan and to strengthen rel<strong>at</strong>ionships with regional auctions. Furthermore, OTA’s accumul<strong>at</strong>ed experience and know-how in auctioning and logistics <strong>of</strong>fer perfect opportunities for cooper<strong>at</strong>ion with other Asian countries where vigorous investment in social infrastructures can be seen. With the kindest regards, Mr Ryoji K<strong>at</strong>o Ota Floriculture Auction Co., Ltd. Sales deptartment Business Development Office In general, the turnover has not only been declining because <strong>of</strong> a decreasing demand but also due to the fact th<strong>at</strong> the average age <strong>of</strong> the growers has increased and the number <strong>of</strong> new growers is low. Many growers do not have successors. At this moment the average age <strong>of</strong> the entrepreneurs is around 60. The most important local flower crop is Chrysanthemum and the average age <strong>of</strong> the Japanese Chrysanthemum grower is 72. Many products sold through the auctions do not come for the clocks but are presold to the traders or sold through the cash and carry stores <strong>at</strong> the auctions. The import <strong>of</strong> <strong>flowers</strong> is still very important, but the market share <strong>of</strong> import from Holland has decreased dram<strong>at</strong>ically also due to the rel<strong>at</strong>ion euro - yen. Important import countries today are Malaysia, China, Thailand, Taiwan, Korea but also countries such as Colombia, and India export <strong>flowers</strong> to Japan. Many imported <strong>flowers</strong> are sold through the auctions. OTA is important for selling not only locally grown <strong>flowers</strong> but also imported <strong>flowers</strong>. OTA’sCEO Mr Nobuo Isomura explains th<strong>at</strong> he himself opens the auction each morning by expressing a word <strong>of</strong> Aucnet present<strong>at</strong>ion <strong>at</strong> <strong>2011</strong> IPM. welcome along with wishes for a good successful trade day. Most important products <strong>at</strong> the OTA auction are foliage, Chrysanthemum, rose, carn<strong>at</strong>ion, Dendrobium and other orchids, Hypericum, n<strong>at</strong>ive <strong>flowers</strong> Anthurium and lily. In the same building Flower Auction Japan is hosted. The auctions are independent from each other but rent the premises from the municipal government. CEO Mr. Shunzou Fujisawa said 50% <strong>of</strong> the total turnover <strong>of</strong> € 220 million are cut <strong>flowers</strong> and the other half potted plants. 80% <strong>of</strong> the cut <strong>flowers</strong> are presold and 60% <strong>of</strong> the potted plants are presold, wh<strong>at</strong> means th<strong>at</strong> 20 % and 40% respectively is auctioned. The market share <strong>of</strong> supermarket sales is rel<strong>at</strong>ively low, so experts expect th<strong>at</strong> the main growth in future will come through this channel. ||| June <strong>2011</strong> | www.FloraCultureIntern<strong>at</strong>ional.com 31
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