Founders of OGG from left to right: Paul Hoeksema, Abelardo Gómez Quiroga, Tammo Hoeksema and Sander van der Veen.
Disorganized market
Generally speaking the ornamental market in Mexico is quite disorganized, according to Hoeksema. "Flowers and plants are being bought directly at the farm as many growers do not have a fixed distribution channel. It has been the norm for years, but now some frustrations are arising. The growers are realizing that they are putting a lot of time into negotiating with these buyers. Therefore not much time is left to invest in enhancing the quality of the crop and the growth of their company", says Hoeksema.
Bridge between growers and retailers
In order to contribute to creating a more organized ornamental sector, Ornamental Growers Group wants to form a bridge between the growers and retailers. "This is a widely used construction in several countries, including the Netherlands. In this way, growers can focus on the production of their crop and are not dealing with the flower buyers at their farm anymore", says Hoeksema. Several Mexican producers already work this way with very good results like “Chiapas Flower” and “Flores de Chiltepec”.
In the beginning the trade company will focus on buying and selling Phalaenopsis and Anthuriums. This is because Hoeksema grows Phalaenopsis and Gómez Anthuriums. "We will buy products from several growers and will sell them to different high-end outlets throughout the Middle and Middle-North areas of Mexico. And as we are familiar with the products, we can easily assess the quality of the plant."
In order to capitalize the company, Hoeksema and Gómez will also sell their own products to their trade company. Hoeksema owns modern greenhouses in the Chiapas region in which he grows gerberas, lilies, tulips, Poinsettias and Phalaenopsis. The Phalaenopsis are grown in a 0.25 ha greenhouse. Gómez, grows Anthuriums in a 0,5 ha greenhouse complex in Ocosingo, and is currently technifying their installations to enhance the quality of their crop. Both companies are planning to increase their production in the coming years. "At Xochipilli, we just ran our first year of Phalaenopsis cultivation and we produced 20,000 plants. Next year, we are planning to increase the production to 50,000 plants and the year after to 100,000 plants. And for Balashté it is almost the same story. This year, they cultivated 28,000 plants, next year they are planning to do 50,000 plants and the year after 100,000."
Popularity anthuriums and phalaenopsis
According to Hoeksema, the popularity of Anthuriums has been stable for several years and is showing some increase in 2016, but the Phalaenopsis market is really booming. "Annually 600,000 to 700,000 Anthuriums are being grown in Mexico and some increase is expected. The annual production of Phalaenopsis, in contrast, is currently 1,2 million plants, but is expected to reach 4 million a year in 2020. Growers receive good prices, they know how to grow the plants and are willing to invest in their business in order to increase the quality of their products."
Adding value
Next to trading the products, Hoeksema and Gómez will also start adding value to the plants they sell. So, they decided to import packaging products from the Netherlands. "As our target group consists of high-end outlets, we need to offer something extra and add value to the product. For this reason, we are going to import all kinds of packaging material, like pots, tags and labels, which will enhance the presentation of the product. We are currently working with several partners in the Netherlands who will supply us the materials", says Hoeksema.
Increasing quality
Another step that they are planning to take at a later stage is supporting the growers in increasing the quality of their product. "The awareness and importance of quality is starting to arise in Mexico, since competition is getting stronger. Over the last years, quantity has been the major focus of the growers, but now we see that they are putting more emphasis on quality too", says Hoeksema. Therefore, they are planning to support the growers during the cultivating of their crops and are eager to import renowned techniques, fertilizers and more.
Starting in a couple of weeks
Ornamental Growers Group will be in business in a couple of weeks. "The company already exists and we just finished getting import and fiscal permits. We already have contacts with the largest Anthurium growers in Mexico and several Phalaenopsis growers. And of course, we are not limited to these kind of crops. We are planning to put any ornamental plant on the market in the future."
"All in all, I strongly believe that our initiative will contribute to creating a more organized ornamental sector that will not only offer growers the opportunity to increase their sales, but also enables them to enhance their crop quality", concludes Hoeksema.
For more informat
ionOrnamental Growers Group
Tammo Hoeksema
Email: tammo@ogg-mx.com
Abelardo Gómez Quiroga
Email: abelardo@ogg-mx.com
www.ogg-mx.com (under construction)