Sri Lanka could be a regional leader in floriculture exports: Prof. Ranjith Senarathne

Monday, 10 March 2014 00:00 - - {{hitsCtrl.values.hits}}

Text and pic by P.D. De Silva “Sri Lanka, presently accounts for less than 0.2% of the global flower trade and has the potential to secure a much larger share. Of the total floriculture exports at present approximately 40% is to Europe (Holland, Germany and UK) while another 40% is to Asian countries and about 3% to the USA. The floriculture industry in Sri Lanka has grown in the past twenty five years and provides direct employment to around 4,000 people from semi-urban and rural areas. The floriculture trade in the country has risen to over Rs. 1.5 billion annually. Cut flowers, cut foliage, live plants, bulbs, corms and tubers are the major exports while the domestic trade primarily comprises of cut flowers and indoor ornamental plants,” said Professor Ranjith Senarathne, Vice Chairman of the University Grants Commission and former Senior Professor of Crop Science, University of Ruhuna recently.

“Sri Lanka has an outstandingly rich ecological and biodiversity. We have 3,771 species of flowering plants, of which 926 (28.3 %) are endemic. Yet we import a substantial quantity of flowers. Sri Lanka has great potential to augment production and expand the range of flowers and floral products to enhance value addition. The advent of town planning and landscaping programs across the country and the growth of the tourism industry following the end of the civil war has given rise to a substantial increase in local demand for floral and ornamental plants, which will continue to rise. Anthuriums, orchids, roses and carnations are the major commercial flower crops in Sri Lanka. Commercial gardening of floral and ornamental plants has become popular in recent years, particularly in urban areas. Small holders are mostly engaged in the cultivation of species such as anthuriums, orchids and ornamental plants. Carnations, gerbera and exotic varieties of roses are grown in the Nuwara Eliya District to cater to the local and export markets. “The Netherlands is the epicentre of the production and distribution of floriculture in the world, accounting for 52% of the global trade. The global floriculture industry with an export trade of $ 25 billion shows an annual growth rate of around 10 %. With around 120 countries engaged in it, the floriculture industry which was valued at only $ 11 billion in 1985 grew to $ 44 billion in 2000 and to over $ 50 billion in 2012! “Professionalism, wide assortment, entrepreneurial spirit, constant innovative development and flawless organisation are identified as the keys to the success of the Dutch floriculture industry. USA, Japan, Italy, Germany and Canada are among the other leading producers of cut flowers and plants. Of late, countries like Ecuador, Costa Rica and Mexico in Latin America, Kenya, Tanzania and South Africa in Africa, China, Thailand, the Republic of Korea and India in Asia have emerged as global producers and exporters to Europe and USA. The USA, Germany, Great Britain, France, Italy, Denmark, Switzerland and Japan are among the major importers of floricultural produce and products. The industry is very competitive and quality, variety, freshness and price are of paramount importance. Therefore an effective supply chain management ‘from seed to final customer is crucial.” About 30 business establishments in Sri Lanka are engaged in the export trade with cut foliage and live potted plants accounting for more than 90% of the exports. Cut flowers, mainly roses, chrysanthemums and carnations contribute to the remainder. The local floriculture industry has an annual growth rate of approximately 5% compared to the global rate of 10%. The Export Development Board has in its five-year plan identified floriculture as a key contributor which needs promotion and development in Sri Lanka. Asian countries such as China, India, Thailand and Malaysia are direct competitors. Given the multitude challenges and threats on the one hand, and the emerging lucrative opportunities on the other, it is imperative to effectively deal with the challenges while capturing the emerging opportunities locally and abroad. This undoubtedly demands a holistic approach with global perspectives and the participation of key stakeholders. The type of interventions required in this regard range from policy, production, technology, innovation and infrastructure to marketing. Granting a 100% export-oriented industry status to floriculture as in India, thereby offering tax holidays, soft loans, exemption from import duty on seed material, equipment and tissue culture material, financial assistance for setting up pre-cooling and cold storage units, introduction of a carbon credit scheme to make Sri Lanka the most environmentally friendly flower producing country in the region. The introduction of ICT and e-commerce in the supply chain management to facilitate flow of information, knowledge sharing, speedy and cost effective of transactions, direct addressing of customer needs, the establishment of an Information Hub to provide strategic information on niche markets, shortfalls in supply, emerging production trend and demand patterns within and outside the region and new technology. Building a network of support system through academia, industry research and development institutions with government partnership. The development of novel floral produce, and products such as perfumes, flower extracts, natural dyes, floral designs, custom-made products for functions and cultural festivals at home and abroad including development of a regional and global “floral calendar” where flowers and floral products are used in cultural festivals, religious functions and special days such as Valentine etc. The establishment of a National Research & Development Centre for Floriculture Research with foreign collaboration and support from the private sector, the setting up of community post-harvest management infrastructure to support SMEs that cannot afford such systems on their own are proposals which could be implemented. Against this backdrop, the Standing Committee on Agriculture, Veterinary Medicine and Animal Science (AVMAS) has decided to organise a workshop to provide a platform for the key stakeholders to deliberate on the issues, opportunities and strategies and make recommendations in order to make the floriculture industry in Sri Lanka robust and competitive in a globalised environment. “I hope my suggestions would create a greater awareness among legislators, policymakers, planners and other key stake holders as to the importance of and need for augmenting the floriculture industry,” he concluded.