Flowers will not disappear on holiday
Dear Madams and Sirs,
Information agency Credinform congratulates fair ladies with the spring holiday – the 8th of March! This day is strongly associated with traditional symbol of beauty and renewal – a bunch of fresh flowers.
It is not a secret that flowers in the Russian stores are mainly imported from abroad. Lack of agro-climatic resources and greenhouse facilities are the reasons of non-possibility to satisfy the whole demand during the year. Deficit of domestic plants is especially noticeable in winter and early spring, when there is a peak demand for flowers due to the International Women's Day.
Devaluation of the ruble against main foreign currencies has made significant adjustments in the flowers market both in monetary and volume terms (see picture 1). Following the results of 2015, 72,3 th tons of flowers were imported, that is by 8,4% less than in 2014 with its 78,9 th tons. Speaking about monetary import volume, the reduction by 19,5% is very much significant (492,7 mln USD in 2015 and 612,7 mln USD in 2014).
Geography of fresh flowers supplies was also changed (see picture 2): the Netherlands being until recently the undisputed leader, gave way to the Latin American Ecuador, which has taken 37% of the market in volume terms in 2015. The relative ease of switching the logistic flows to South America can be explained by the fact, that Ecuador is our country’s long-standing banana supplier. Moreover, good relations between the two countries promoted to abolition of additional administrative and customs barriers for trade.
As a reference: flower products are procured in 69 countries, including the exotic Tanzania, Ghana, Surinam, Malawi, Mali etc.
46,7% of the market belong to roses, the most popular flower in Russia. Then follow golden daisies with 22%, pinks with 8,7% and lilies with 2,1%. The lowest demand is for orchids and gladioluses – 06,% and 0,1% respectively (see picture 3).
Following the statistical data, the highest prices on flowers fall to the end of February – early March. That is absolutely predictable seasonal event due to the highest demand. However, inflation pressure observed in 2015 will probably remain in 2016, because of the ruble devaluation and import prices rise as a result (see picture 4).
Today one fresh cut flower in Saint-Petersburg costs 100 RUB in average, and 78 RUB in Moscow. The rise in price for a year amounted by 15-30%.
Import reduction and rise in prices give a great opportunity to domestic agricultural companies and farming enterprises to occupy the vacant niche and increase the scale of flowers cultivation in a sheltered ground (greenhouses) within the country.
Despite all the difficulties, there is no doubt that the coming holiday will be filled with the fragrance of flowers, warm words and special atmosphere.
In conclusion of our Newsletter, the Information agency Credinform again congratulates beautiful women with a holiday of the 8th March and wishes you all health, happiness and spring mood!