The Rabobank has again published a ‘horticultural update’. The developments in the market are discussed and the future is, in safe terms of course, predicted. We can read for example that the horticulture had a good start this year; that vertical farming is interesting from a research perspective, but an overnight switch to vertical farming is not likely to occur, and stricter European legislation with regard to neonicotinoids will require company adjustments.
A number of insights into the Chinese market are more concrete, which the bank has taken from a report, commissioned by the Dutch embassy in China, about the Chinese greenhouse horticulture. It is determined that the sale of ornamental growth products in China is growing with double figures (>10%). This mean a number of things according to the bank: a lagging domestic production and chances for trade, technical suppliers, and knowledge export.
Image: Rabobank
The Chinese horticulture grows in a Chinese manner: thunderous. This means that ‘ some developmental phases’ in the chain organization are skipped, according to the Rabobank. ‘In the sale of flowers China directly switches from disorganized street vending to e-commerce per mobile phone. You can hardly find a professional florist.
It also means the domestic production cannot keep up with this growth in consumption, and that this imbalance will not be solved quickly, which means opportunities for trade companies. ‘Shortages are restocked with product from the region (particularly Vietnam), but also from ‘more remote destinations, such as The Netherlands.’
Added to that is the fact that the domestic production chain is fragmented and inefficient. ‘There is often a considerable loss of product or quality, and most of the transport is not refrigerated. If companies organize well, it is possible to distinguish themselves.’
To conclude, it's the smaller production companies which have difficulties with the increasingly strict environmental demands imposed by the government. In short, production has to be lifted to a higher plain, which increases costs and which increases the demand for qualified personnel. This leads the Rabobank to conclude that the Dutch growth knowledge should be very much salable.
The report in question is produced in commission of the Dutch embassy in China. Reason was the recent trade mission, including Mark Rutte and minister Carola Schouten and lots of entrepreneurs. The report is not yet finished, but the Rabobank managed to get hold of a concept text.
Click here for the Horticultural update May 2018 by the Rabobank