Communication, collaboration, advance planning, connecting with consumers seeking new ways to celebrate, and uniting in the effort to make plants and flowers part of U.S. consumers’ daily lives. These are the key drivers for success, according to the panelists that attended the June 3 virtual Floral Roundtable hosted by Produce Marketing Association. At this week's Roundtable, they discussed the mass-market floral industry’s action plan for continued recovery post-COVID-19 and what’s needed to identify and maximize opportunities for the remainder of the calendar year.
Production Update
Growers and wholesalers report continued improvement in business since Mother’s Day, with consumer demand for floral and potted plants extending past the holiday. Some panelists think the trend is reflective of U.S. consumers now becoming accustomed to having plants and flowers in homes, and adopting a more European mindset as it relates to blooms and plants becoming a normal part of everyday décor and creating comfortable, happy surroundings.
At the height of impact from COVID-19, plant growers in Canada had to discard some product. One reported having to discard 500,000 violets. In addition, they cut back or eliminated cuttings ordered from Holland for spring and summer production. The result is a current shortage of flowering potted-plant availability in the U.S. Margins on poinsettias for the winter holiday season are small, and prebookings typically take place in June and July. Growers who need to try to make up for lost sales of blooming plants are evaluating options.
One breeder said they will see an impact to business later when they send out invoices and see losses from growers who had to reduce plantings from March-May. They plan to offer farms a discount. Increased demand for U.S.-grown and flowers from local farms will also impact breeders’ revenue. At least, the breeder reported business as usual in terms of testing new cultivars, however, and they’re getting ready for future production. (Click here to learn more about the impact of COVID-19, from a breeder's perspective)
Challenges and opportunities
Transportation and getting cut flowers from Ecuador and Colombia continue to be a challenge. Leading up to Mother’s Day, some got innovative and used seating areas of passenger airlines to get product to U.S. markets. Less air freight availability and capacity remain challenges, and costs therefore increase. Sea Freight dropped off leading up to the holiday for some growers because of the instability of the market in March and April; however, growers see sea freight as a strong potential method of transport with proper advance planning.
Labor also continues to be a challenge for growers, who are complying with government mandates and requirements regarding health and safety precautions for workers. Some have reported cases of COVID-19 illness, which requires additional adjustments in schedules and precautions. Many growers have cross-trained employees to ensure more people have needed skill sets. Finding ways to operate more efficiently and effectively across the supply chain was born from necessity, but the learnings have resulted in improvements to operations.
Growers are finding it difficult to plan, know what to grow and what to be ready for. Increased communication and collaboration across the supply chain is needed, said panelists. Repercussions from COVID-19 have impacted growers of all sizes, with some smaller growers who typically have smaller profit margins incurring significant product and sales loss. Some smaller cut-flower growers integrated production during the early stages of the pandemic.
One cut-flower grower said he read an article about “the never normal” and how life will never be the same after this inflection point caused by the COVID-19 pandemic. It’s a new reality that requires agility, ability to adapt and pivot, think differently, and in some cases operate differently. A wholesaler said they are looking to grow their mass-market retail floral business, and alternatives include assisting retailers with transportation, wet packing and other services.
Growers, wholesalers and breeders see opportunity and are optimistic. People are holding microweddings, postponed funerals will turn into life celebrations held later in summer or fall when people can gather more, and other events present opportunities for mass-market floral providers to help people celebrate. Flowers bring joy; everyone has a need for joy these days, said one panelist. American Grown Month in July and PMA’s Joy of Fresh™ campaign also present opportunities for growers and retailers to connect with consumers. Longer forecasting, feedback and communication, and collaboration across the supply chain from farm to retailer are also key.
Click here to register for next week's roundtable at pma.zoom.us on June 10.