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:

6/27/2017 Azerbaijan: Zagatala revives floriculture industry
6/27/2017 Increase popularity of your flower in Japan with IFEX Flower Awards 2017
6/27/2017 NL: Cut flower prices under pressure by warm weather and French holiday
6/27/2017 Bulgaria: Tough year but good harvest for oil rose growers
6/26/2017 US: CSKT Forestry Department greenhouses help spread diversity
6/26/2017 Chrysanthemum lifts villagers out of poverty in north China
6/26/2017 US: Rural unemployment rates declined for all education levels
6/26/2017 Swedish Midsummer boosts Dutch flower trade
6/23/2017 US: Florida’s nursery & landscape industry generates big economic impact
6/23/2017 AIPH publishes 2016 international statistical yearbook
6/23/2017 Prices of cut flowers under pressure
6/23/2017 Royal FloraHolland and FloraXchange join forces
6/22/2017 Royal FloraHolland closes florists clock in Naaldwijk
6/21/2017 New roadmap for Australian nursery industry
6/21/2017 India: Saplings are flying off the shelves
6/21/2017 Australian wildflowers popular in Japan
6/19/2017 Kenya flower industry addresses sustainability
6/16/2017 Japan challenged by aging among farmers
6/16/2017 Revenue FloraMondo Clock Presale for roses increased 60%
6/15/2017 Dutch exports up 7.5% to € 3 billion

 

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