Announcements

Job offersmore »

Tweeting Growers

Last commentsmore »

Top 5 - yesterday

Top 5 - last week

Top 5 - last month

Exchange ratesmore »




Korean orchid sector fears bankruptcies from antigraft law

Dan Myeong-hak, 55, has cultivated orchids for more than 30 years in Yangju, Gyeonggi. He sighs whenever he sees the 3,970-square-meter (0.98-acre) greenhouse. November and December are usually peak seasons for orchid farms, as public and private companies in Korea make human resources decisions during that period. Orchids have traditionally been the most popular item to celebrate promotions. But it seems the usual won’t apply this year due to the Kim Young-ran Act that went into effect in September.

“Orchid prices were cut in half after the law enacted, but wholesale merchants still aren’t buying,” he said.

A 45-year-old man surnamed Kim who works at a public office in Seoul was promoted to team leader this month. The task that has kept him occupied since then was returning orchids delivered as celebration gifts. “The law says that gifts under 100,000 won ($83) are fine, but I don’t feel comfortable keeping them and the company doesn’t seem too keen either,” he said. “I’ve already told close acquaintances not to send them.”

Orchid farmers and merchants are expressing deep concerns as the market rapidly shrinks in the aftermath of the so-called antigraft law. Sales saw a steep decline after flowers were included in the list of congratulatory gifts limited to 100,000 won. The orchid auctions - the main channel farmers sell products to wholesale dealers - were immediately hit. On Dec. 14, Korea Agro-Fisheries & Food Trade Corporation (aT) said it would reduce orchid auctions from twice to once a week.

The number of orchids sold at auctions saw a steep fall: From Sept. 28 to last month, 40,000 pots were sold during Thursday’s auctions, down 51 percent from last year. The average price per pot declined from 5,081 won to 3,346 won. The real problem is that the decrease in sales is not a temporary one, but the start of a longer depression in the market. “About 85 percent of sales for orchids are gift purposes, so the new law’s effect on the market is expected to last longer compared to other flowers,” said Noh Yoon-hee, a director at aT.

Read more at the Korea JoongAng Daily

Publication date: 1/3/2017

 


 

Other news in this sector:

2/28/2017 Vietnam: Flower trading centre to be set up in HCM City
2/28/2017 "EPA trade deal with Europe is a form of colonialism"
2/27/2017 US (MI): Holland officials say it’s too early to worry about the tulips
2/27/2017 WTO’s Trade Facilitation Agreement enters into force
2/24/2017 Combining three colors year round with Cosmo
2/24/2017 US (CA): Carpinteria Valley flower industry shifting toward marijuana
2/24/2017 US (CA): Growers wrestle with wet, cloudy conditions
2/24/2017 Romania: Flower demand up for Valentine’s Day, Dragobete
2/23/2017 Export of 'useless' flowers halts in Gaza
2/23/2017 "'No deal' Brexit would mean £6bn in extra costs for UK exporters"
2/23/2017 German minister calls for ag investments in Africa
2/22/2017 Less Dutch flowers to UK due to Brexit
2/22/2017 US (OH): Warm weather keeps garden stores unusually busy
2/22/2017 Ecuador opposition candidate vows to restore economy
2/17/2017 Record Valentine's turnover for Royal FloraHolland
2/17/2017 Mexican enthusiasm for Orchids and Anthurium
2/17/2017 Kenya: Slow demand and EPA uncertainty plague flower sector
2/17/2017 Germany: "Valentine's Day becomes more colorful"
2/16/2017 India: Flower traders still grappling with drop in demand
2/16/2017 Kenya: High flower prices sting lovebirds

 

Leave a comment: (max. 500 characters)

  1. All comments which are not related to the article contents will be removed.
  2. All comments with non-related commercial content, will be removed.
  3. All comments with offensive language, will be removed.




  Display email address

  new code