Colombia is the second largest flower exporter in the world and traders as well as ornamental growers should take advantage of this. Several Dutch entrepreneurs with an understanding of, or experience in horticulture in the region, discussed the possibilities during a meeting at Sion Orchids in De Lier, the Netherlands, on May 30, 2017.
Overall, the experts do see opportunities, certainly in the areas of automation, water and integrated pest management (IPM). Automation, because labor has been a major, if not the biggest problem; water because a large part (the Savanna) of the country is dry; and IPM, because it is increasingly asked for by customers.
From top left, clock-wise: modest in number but a committed audience; Ed Smit of Ideavelop; Mark Fikkers, director of Havatec; and Jan Omvlee, chairman of Holland Horti International.
The Colombians know that they produce to export (a domestic market is practically non-existent) and the entire grower-to-consumer story is professionally set up, explains Ed Smit of Ideavelop. "The 'turning around of the chain', from a supply driven to a demand driven supply chain, is much more a reality over there than in the Netherlands, and also regarding logistics and marketing the Dutch can learn a lot from them."
Best practice
If a Dutch person, or any other foreigner, wants to go into business over there, Jan Willem van Bokhoven, director of Holland House in Bogota, Colombia advises to take a number of issues into account. "The business in Colombia is structured more hierarchically, so you have to make sure you get to meet the top boss. In addition, you must show in concrete terms what you have to offer (take your machine along), visualize concretely what the customer's benefit is and ensure to build up confidence (how do you help the customer when he is confronted with a problem)."
Mark Fikkers, director of Havatec in Colombia confirms Jan Willem's findings. "Particularly, you must have patience, but that doesn't mean that there is nothing to gain in this country." Fikkers is currently introducing his bunching machines to the Colombian market. "At the moment there are a few bundling machines in use and it is a certainty that tomorrow, or in one year, or in 5 years, they will be used everywhere. Then they can’t do without them anymore." However, it has not happened yet. According to Fikkers, it probably has to do with short term thinking. "One is hesitant for large investments, even if that would be ‘logical’ from our point of view; And the aforementioned 'service' is an issue. Without a real foothold and a person/entrepreneur on the spot, who speaks the language, can be contacted and knows the business, it will become very difficult."
From top left, clock-wise: Jan Willem van Bokhoven, director of Holland House; Welcome by Eric Moor, host and director of Sion Orchids; Aart van den Bos, director Verbos and co-author ‘Green Opportunities with an Orange Touch’; and Frank Goedhart, director of Flower House
Colombia has nearly 7000 ha of ornamental cultivation and the quantity of stems produced together represent an export value of 1.5 billion USD. Production is dominated by big players (less than 25 ha is called 'small', up to 200 ha is 'medium', and only then does it become ‘big’). 10 groups do about 80% of the stems. And yes, stems: there is not that much production of (flowering) potted plants and these crop types cannot be expected in the near future (especially from a logistical point of view). Covered vegetable cultivation is also practically unknown, and also offers little perspective. Mexico dominates the Americas, it will be impossible to break into that market, and moreover, the Colombian does not eat vegetables (but fruit).
The way up
The country itself has grown rapidly over the past 10 years, having free trade agreements with some 50 countries, and is much less of a protectionist than the rest of the region, and has become (relatively) much safer in those years. Problematic is the mentioned labor - horticulture simply has a bad name - and the infrastructure cannot hold a candle when comparing it to Belgium. At present there are about 150 Dutch companies active in Colombia, of which an important part is related to ornamental cultivation. This number has grown strongly, particularly in recent years.
The meeting was organized by Ed Smit and Renee Snijders of Ideavelop. Part of the meeting could be followed digitally via a webinar (Renee interviewed from Costa Rica, Jan Willem van Bokhoven in Bogota, Chris de Jong of Dekker Chrysanten in Rio Negra, and Mark Fikkers, on the spot.)