12 A sea of flowers at 2011 Pack Trials - Floraculture International

Auctions (II)
The whole country
is suffering under
the earthquake.
This hurts
production and
consumption.
I hope our readers
understand that
we want to publish
on the Japanese
flower industry.
Our personal
thoughts, however,
are with our friends
and colleagues in
Japan. We hope
that the country
comes out even
stronger than
before.
by Jaap N. Kras
Japan hosts no less than
140 flower auctions
According to the Auction
Association Japan in Japan
there are 140 auctions of
flowers 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 of €270 million in 2009
and the Flower Auction Japan with
a turnover of 220 million in 2009.
A strong new comer is Aucnet: an
online auction. Aucnet has been
selling flowers through digital
internet auctions for 13 years. Their
turnover last year was approximately
€ 55 million. The Aucnet organisation
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 cooperative. Because of its position, the auction has
served as a bridge for the distribution of flowers 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 at the pivotal point of flower consumption and distribution.
Firstly, Japan's baby boomers, born between 1947 and 1951, are
now starting to reach retirement. The generation of baby boomers is
expected to boost demand for flowers, but with a different view from
their parents. By making use of long term and good relationships
with the growers and the consumers, we have to increase consumer
demand and develop products together with the growers.
Secondly, the government of Japan formulated the policy of choosing
several centralised core markets among a huge number of auction
markets in Japan. We, as one of the centralised core markets, have to
play an important role as a the hub of flower distribution for the whole
of Japan and to strengthen relationships with regional auctions.
Furthermore, OTA’s accumulated experience and know-how in
auctioning and logistics offer perfect opportunities for cooperation
with other Asian countries where vigorous investment in social
infrastructures can be seen.
With the kindest regards,
Mr Ryoji Kato
Ota Floriculture Auction Co., Ltd.
Sales deptartment Business Development Office
In general, the turnover has not
only been declining because of a
decreasing demand but also due to
the fact that the average age of the
growers has increased and the number
of new growers is low. Many
growers do not have successors. At
this moment the average age of the
entrepreneurs is around 60. The
most important local flower crop is
Chrysanthemum and the average
age of 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 at
the auctions.
The import of flowers is still very
important, but the market share of
import from Holland has decreased
dramatically also due to the relation
euro - yen. Important import countries
today are Malaysia, China,
Thailand, Taiwan, Korea but also
countries such as Colombia, and
India export flowers to Japan. Many
imported flowers are sold through
the auctions.
OTA is important for selling not
only locally grown flowers but also
imported flowers. OTA’sCEO Mr
Nobuo Isomura explains that he
himself opens the auction each
morning by expressing a word of
Aucnet presentation
at 2011 IPM.
welcome along with wishes for a
good successful trade day. Most important
products at the OTA auction
are foliage, Chrysanthemum,
rose, carnation, Dendrobium and
other orchids, Hypericum, native
flowers 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% of the
total turnover of € 220 million are
cut flowers and the other half potted
plants. 80% of the cut flowers
are presold and 60% of the potted
plants are presold, what means
that 20 % and 40% respectively is
auctioned.
The market share of supermarket
sales is relatively low, so experts expect
that the main growth in future
will come through this channel. |||
June 2011 | www.FloraCultureInternational.com 31