Fresh Orchid to Grow to 10 Billion Baht in 5 Years
veiw 334 Fresh orchid to grow to 10 billion baht in 5 years
Thai orchids are going places. Due to strong market demand worldwide, orchids from Thailand is expected to grow to 10 billion baht in the next 5 years.
According to Mr. Poom Sarapol, Deputy Minister of the Ministry of Commerce, the promising sector growth is a result of new market development and promotion by the Department of International Promotion and the building of strong network with alliance countries in orchid trading business.
According to the Competitive Strategy of Thai Orchid in the World Market (2011-2016), the orchid export is set at 10 billion baht in 5 years. The world orchid situation will be such that orchid outwork will be reduced, and a shortage is forecasted between 2012 and 2014. This will raise the price of the orchid, particularly during holiday seasons. One part of the problems is due to the fact that the cultivation area was damaged by the flood last year. This affected the cut orchid in the world market.
There are four major markets for Thai orchids. 60% of the market comes from Asia. With the growing economy of ASEAN, the orchid demand is also growing at 10%. 20% of the market is from the US with a small growth of 3%. Although the US economy is picking up, the strict import regulations make the export to this market suitable for the experienced exporters.
China will import smaller volume but at higher value. The European market- e.g. Italy, France and Spain, on the other hand, is even more risky. Due to the financial crisis in Europe, the consumer’s pattern will change and consumers are more cautious in spending money on flowers. The European market is expected to shrink by 8%.
Advice to Thai exporters is to come up with new breeds, new production technology to create wider variety continually. Locating new market will also give the industry an assurance of continuing growth. These include: India, the Netherlands, Taiwan, Vietnam, Australia, Singapore, for example. Forming alliance among the orchid and other cut flowers growers will give the industry a better bargain for reduced transportation cost.
Moreover, the use of various standards in environment, social, labor, packaging and labeling can become more important in the future. Eco-labels are getting more acceptance in the European market, while the promotion of building a branded “Thai Orchids” may be helpful in future marketing. Participating in world trade exhibitions and get Thai orchids recognized in the world is also of great importance.
Thai export of orchid in 2011was 2.77 billion baht, with a 1.7% growth . The export figures for the first four months this year (Jan.-Apr. 2012) was 842 million bt., a 4.4% drop from last year. (The reduction was clearly caused by the damage of the flood in the last quarter of 2011.)
Source: Exporter’s Review, July 2012
