General
- The flower auctions
play an important role in the distribution. Flowers and plants come here
together and the florist or wholesaler can buy the flowers in front of
the clock, or even by computer or Internet. A very large assortment
flowers with a high quality find their way to the world-wide
consumer.
Technology
-
Electronic
markets are defined as interorganizational information systems that
allow the participating buyers and sellers to exchange information about
prices and product offerings. Research on the effects of IT on exchange
organizations and processes is relatively new. Early research applied
transaction costs and agency theory to predict shifts from hierarchies
to market form of organizations.
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The demand
for traditional flowers for religious purposes is quite large,
especially around the temple towns. The production, harvesting and
marketing of traditional flowers for local marketing are typical women's
activities. However these flowers are produced in open field conditions
mostly during the mild winter months without use of any advanced
technology. As a result the quality and the quantity available for
marketing are quiet heterogeneous and vary according to the prevailing
weather conditions.
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Recently
large scale commercial companies have started to invest in the
Floriculture sector, sometimes in a j oint venture agreement with
foreign companies. These ventures aim at the production of high quality
flower production to supply the local market throughout the year but
also for export. Greenhouse technology is being introduced from abroad
with high investment cost which is not adapted nor affordable by the
small scale women producers.
Report
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Driven by
high-tech production technologies, floriculture is capital as well as
labour intensive. Cost of capital and labour critically affect the
competitiveness in the industry and determine profitability at the
enterprise level. Competition is between the grower exporters in the low
cost production regions, such as the high tropics, and the high cost,
intensive production units of the temperate countries. The recent fall
in price of imported flowers and the higher cost of airfreight are
improving the competitiveness of the domestic producers in the temperate
countries which are also the markets.
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Producers
can take their flowers to the auction every evening, place them on the
special auction trolleys that can be conveniently hauled into the cold
stores for over night storage, taken out the next morning and the
trolleys can be passed across the clock for auction. The money is
deposited into the grower’s bank account after deducting all charges
which include auction and handling cost. In this marketing sequence, the
locally grown flowers are sold much fresher than the imports and
therefore get a premium. The payment for all sales through the auctions
is fully assured.
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Today,
flowers represent a global billion-dollar industry. In 2000, the market
for cut flowers and potted plants reached an estimated total of 6.8
billion euro in global sales. Germany is one of the most important core
marketplaces. More than a third of all cut flowers are sold in
Germany. Each German spends almost 85 per year on cut flowers and potted
plants. The flower market will continue to grow, and by 2012 should
surpass today's values by 45 percent, according to the latest prognosis
of the Dutch Flower Office (BBH), the marketing and sales promotion
organization of the Dutch ornamental plant sector. The Netherlands is
the indisputable global market leader among flower exporters, and
according to the prognosis, its market share will continue to
grow.
Entrepreneur
who want the information on General, Flower Growers, Technology, Company Profiles,
Associations, Indian Flower Auction Centre, License And Agreements,
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