2014 CIOPORA Chronicle

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Fruits Apple orchard. (Photo credits: Better3Fruit). When there were few club varieties, the club sponsors could select which individual producers, packers or marketing firms they wished to handle their variety. Often, licenses were granted to firms, producing districts and countries that were already highly competitive. The remaining producers, districts and countries, fearing that they would increasingly fall behind, agitated successfully for their own breeding programs that could develop new varieties suitable for local conditions. At the same time, the drive to breed winning new varieties has intensified in university and government research centres and in the private sector. The result of all this activity is that there are now many new club varieties competing to attract new members, a reversal of the past situation. Changing motivations for adopting new varieties In the past, the goal of many breeders was to find a new variety that could become a blockbuster like Gala or Fuji. However, the underlying principle of most club organizations, namely, maintaining price premiums through controlling volume, acts as a natural brake on extensive production. In the meantime, most integrated producer-packer-marketers have altered their expectations for new varieties. The large retailers that they serve want a diverse portfolio of apple varieties, including, twelvemonth supplies of major varieties like Golden Delicious, Gala or Pink Lady and access to one or more exclusive varieties so they can distinguish their apple offerings from those of competing retailers. What is a breeder to do? Given these changing conditions, breeders and sponsors of new apple varieties need to view their task as creating both a new product and a new business to handle that product. The new product must serve a specific need in the marketplace. It must be distinctive in physical attributes, in its name, the market segments it might appeal to, and the promotional support it receives. Breeders need to have clear targets for where in the market any new variety will fit. Has it mass market appeal? Can it appeal to a specific market segment? Could it be offered exclusively to selected retailers for limited periods? Since developed country markets are so crowded, is there greater potential in developing countries? Intensive market research to answer such questions should precede all breeding efforts. Sponsors of new varieties also need to have a clear business model they are pursuing, including guidelines about product, pricing, promotion, competition, market opportunities, potential breakeven point, and other aspects of the future business. They need to be able to offer the potential for significant profit to future club participants. Don’t forget the silent majority While innovation is important to every industry, it is vital to keep current mainstream varieties (what I call the ‘silent majority’) healthy. Even within the next decade less than 3 percent of the world apple production will be club varieties. Given the intense competition from so many other fruits and snacks, and weakening demand among the young, unless the silent majority can find a large promotional voice, the entire apple industry in the developed world could face further shrinkage. That fate can still be avoided. ||| About the author After receiving a M.A. (1968) and PhD (1970) in agricultural economics at the University of California, Davis, Dr. O’Rourke was a faculty member in the Department of Agricultural Economics at Washington State University in Pullman for 30 years. He specialized in international marketing of fresh fruits. From 1985 to 2000, he also headed WSU’s IMPACT Center, a multidisciplinary program that introduced many new agricultural products, new technologies and new databases on trade issues. Dr. O’Rourke is the author of four books and numerous professional journal articles, bulletins, and popular reports. After retiring from Washington State University In May 2000, he became president of his own consulting firm, Belrose, Inc. which publishes a monthly newsletter, The World Apple Report and a number of annual reviews of various fruit crops. The most recent special study examined ‘Asian Import Demand for Apples, Pears, Sweet Cherries and Kiwifruit: Potential to 2020.’ He has been a consultant to many government agencies, industry organizations and large businesses around the world, and is a frequent speaker at international conferences. Dr. O’Rourke was a member of the Washington State Governor’s Council of Economic Advisors from 1993 to 2012, and a reviewer on the Biotechnology panel for the Washington Technology Centre for over a decade. He is the author of numerous professional journal articles and four books, including his 1967 book Marketing in Ireland, which was the first Irish textbook on the subject. 32 www.FloraCulture.eu | CIOPORA Chronicle June 2014
Company profile ‘Think global, act local’ is a frequently used slogan. But what exactly does it imply? A perfect case study to explain the implementation of this idea is the Poinsettia business. Selecta Klemm reports. by Richard Petri Poinsettia is the quintessential Christmas plant. Selecta Klemm’s Poinsettia breeding is a world of regions Poinsettia is the quintessential Christmas plant. In 1828, the American ambassador to Mexico, Joel Poinsett, discovered this beautiful shrub growing along the roadside. He took some cuttings and planted them in his greenhouse in South Carolina. From that day on the plant found its way in the world. Poinsettia are used as decoration and as a gift item during the winter season around the world. The plant is also gaining more admirers in East Asian countries, where the Westernstyle Christmas celebrations are becoming increasingly popular. In Turkey and Egypt, Poinsettia have a long tradition with no reference to Christmas. Demands from growers and consumers The business of Poinsettia means meeting the demands of thousands of growers and millions of consumers all over the world. Selecta has been working for decades on varieties suited for different regions becoming one of the world’s leading Poinsettia breeders – which highlights Selecta’s success with this crop. The mother stock plants are selected, grown and maintained in East Africa from where the cuttings are transported easily and quickly to European destinations. The finished product, however, doesn’t withstand transportation logistics too easily, which stresses the importance of local rooting stations close to the market to keep logistic lines short and to ensure the best plant quality for consumers. Major challenge Poinsettia breeding itself is another challenge. Wouldn’t it be nice to have one universal variety covering all production requirements and regional demands? Apart from the environmental and climatic impact (i.e. day length), different production standards, multiple growing approaches and a plethora of trading channels require different Poinsettia varieties for different European markets. As red is still the most important colour of Poinsettia, Selecta is currently selling a wide range of different commercial red varieties in different colour shades. A very large portion of the portfolio is taken by Christmas Feelings® Red, one of the most successful Poinsettia varieties worldwide. Christmas Feelings® is definitely a Poinsettia superstar. It is a variety of great commercial value; they branch freely and are very vigorous and productive. Mediterranean versus Scandinavian markets But while this rather compact variety is so successful in Northern Europe, the Mediterranean consumers prefer plants with a different look. In sun-kissed countries, people are used to large Poinsettia plants, grown in voluminous pots and featuring big bracts. Selecta has been working tirelessly on breeding new varieties to meet these demands and found the answer in varieties such as ‘Noel’, Poinsettia growing. ‘Happy Christmas’ or the new introduction – ‘Christmas Aurora’. Scandinavian growers, on the other hand, are specialised in minishaped plants. Easy packing is essential for the Danish Poinsettia industry. Selecta’s ‘Christmas Eve’ and ‘Christmas Beauty’ are excellent mini varieties, but again ‘Christmas Feelings®’ has made its way into the Danish production with an increasing market share in the total Poinsettia production. As consumers are getting more concerned about the usage of chemicals in professional horticulture. Selecta has developed a new variety, ‘Christmas Glory’, that can be grown without any plant growth regulators. It can also be used for organic production due to its resistance against any disease or pest. This mini excursion into the European Poinsettia markets shows that breeding efforts will and should never stop. With changing requirements the challenges remain in Europe – a continent of regions, a continent of local solutions offered by Selecta. ||| CIOPORA Chronicle June 2014 | www.FloraCulture.eu 33
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