Looking to outsource the cutting production ended up in investing in a Turkish joint venture. The company in question is Danish Kalanchoe nursery Knud Jepsen a/s (Queen Genetics). After exploring the possibilities in Turkey, they saw the opportunity to take advantage of the country's developing local pot plant market and decided to establish a joint venture with their Turkish partner Agrico. Their joint venture, named Queen Tarim, produces cuttings for growers all over the world and finished pot plants in the region Izmir, Turkey. It was established in 2012 and has grown rapidly - and is still growing - in assortment and size.
Ozan Kılınç and Ebru Akgün Özdemir with the Queen Poinsettia.
For both Agrico and Queen Genetics, the joint venture offered great opportunities to expand. For Queen Genetics, this joint venture not only enabled them to outsource their cutting production, it also gave them the opportunity to expand their breeding activities. "In order to be more attractive to Turkish retailers, a broader assortment was needed which was one of the reasons we decided to expand our breeding activities with crops that are in line with the Kalanchoe product", Commercial Manager at Queen Genetics Frederike Israel explains. "And as the crops are pot plants, they will also enable our growers to alternate between the Queen crops and grow, for example, a particular crop in a particular period of the year.
For Agrico this joint venture also offered the opportunity to tap into new markets. "For us, the cooperation opened up a rapidly developing market and export possibilities", says Ozan Kılınç, responsible for Sales at Queen Tarim.
Queen Tarim was established in 2012 and increased rapidly in size and assortment. Regarding size, over the last years, they increased their production acreage from 1.5 ha in 2010 to 10 ha in 2018, and they are planning to increase to 36 ha in the future.
Also, in the assortment, they increased fast. Queen Genetics has been breeding Kalanchoe for many years, and their Queen branded products have gained a worldwide presence. Since the joint venture, they increased the assortment. "They breed the varieties in Denmark and here in Turkey, we produce the cuttings and finished plants", says Kılınç. Currently, Queen Tarim produces Kalanchoe, Schlumbergera, Campanula, Hibiscus, Chrysanthemum and Succulents cuttings for growers abroad, but also produce them in finished plants for the local market, together with pot roses. Soon, two new varieties will be introduced; the Euphorbia milii and Poinsettia.
Why increase in assortment?
According to Kılınç, the Turkish wholesalers prefer to purchase different varieties. "Consumers ask for different varieties. So, by having a broader assortment, we can present more products and satisfy our customers which will turn into more sales."
Most popular product
So when having built up such a broad range, what is the most popular product? According to Ebru Akgün Özdemir, responsible for Marketing at Queen Tarim, their main product was and still is the Kalanchoe. "We have the best quality Kalanchoes in Turkey - they have the highest ethylene tolerance on the market which increases shelf life and decreases waste."
Next to supplying a product, Queen Tarim does more in order to increase their clients' sales. "We focus on solutions that can easily be implemented and have close dialogues with our customers. Next to this, we support all marketing efforts through unique packaging solutions and interactive relations via social media. By using our concept, we guarantee better sales per square meter on shop level." says, Özdemir.
Decrease value of Lira
Over the last year, the Lira decreased against the Euro, did it impact the sales of Queen Tarim? "Even though the value of the Turkish Lira has been decreased against the Euro we were still able to continue our sales. By providing campaigns to our customers we did not feel a big difference in this situation." Says Kılınç.
"Our vision is to become market leader of pot plants in Turkey and neighbor countries and become the preferred cutting supplier of world’s most important breeders", says Özdemir. "Our company mission is to supply cuttings to the world’s important breeders and growing pot plants that make people’s life beautiful by using their knowledge in growing marketing and sales.
Queen Genetics at the IPM Essen
Curious about the assortment of Queen Genetics? They are presenting their our full collection, including their new varieties in their assortment, at stand G14 in hall 6 (Danish hall).