2015 Study Report of Phalaenopsis Market in Brazil
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1 2015 Study Report of Phalaenopsis Market in Brazil Taiwan Orchid Growers Association Overview Taiwan Orchid Growers Association (TOGA) studied on 14 Brazilian orchid growers in 2015, found out Phalaenopsis, Cymbidium, Dendrobium and Oncidium are the main genus grown. In Brazil, the annual production capacity of Phalaenopsis pot plants achieved 5 million (5,320,000-5,350,000) plants per year, Oncidium 350 thousands and 390 thousands for Dendrobium. On the other hand, Phalaenopsis reached 450 thousands unit of cut flowers per year and 150 thousands for the Oncidium. The study indicates Netherlands, Belgium, Taiwan and Japan provide most of the seedling to those growers. The seedling comes in flask (tissue-culture bottle) or a 1.7inch (5cm) plant while the minority of growers possess tissue culture lab and the ability to reproduce their own seedling. The production cost of those growers is mostly from 3 to 4.66 USD for one plant of Phalaenopsis, 2.3 to 3 USD for Oncidium, 2.6 to 3.6 USD for Dendrobium. The end price varies from one channel from another. Most of the orchid was sold at one auction known as Veiling Holambra and other conventional markets or franchise supermarket. Our Study points out the end price of those orchid, mostly from 2 to 8.6 USD for one potted plant of Phalaenopsis, 2.5 to 2.66 USD for Oncidium, 23.33to USD for Cymbidium and1.66 to 3.33 USD for Dendrobium. As to the price of cut flowers, cut flowers of Phalaenopsis were valued based on the amount of flowers, averaged at 1.98 USD for one spike (6 flowers/ spike). Cut flowers of Oncidium are differentiating between length, the long spike ones tagged at 0.61USD and the short ones at 0.25 USD. Cut flowers of Cymbidium were listed at 1.66USD per spike.
2 The wages for the workers at the orchid farms studied are at the range of USD/Month, higher than Brazil Minimum Monthly Wages. The orchid industry of Brazil The investment of Netherlands Three major seedling suppliers from Netherlands have improved the quality of the industry and other supplementary measurements, for example, the usage of medium matters, means of planting, the improvement of equipment and stabilized the price, quality and seedling amounts. Market expansion and improvement of quality In 2012, the demand of Phalaenopsis in the auction was nearly 5million plants, and the market is expected to reach the record breaking high as 8million plants, what s more, it might reach 10 million in Nowadays, freight containers from Taiwan start a new area of reproduction here in Brazil; don t even have to mention the supplies of seedling are mostly imported in flask. Improvement of quality The concept of cultivating seedling came to the mind of the growers in a blink of eye. Hence, the varieties selection and stability of genus providing became an important factor. The increasing of yield rate is not a one-way issue anymore, due to the fact that Taiwanese companies could import to Brazil via shipping containers. Moreover, the management of the cargo, as to the quality control over the treatment to the size and moisture of the seedling exported, those factors symbol as Taiwanese seedling or even Taiwanese quality became the key reason to decide what role Taiwan could play in Brazilian market. Improvement of equipment The common equipment of green house here are the fan, water wall, interior shading and insulation, might be slightly insufficient for the temperature adjustment. It could lead to the trouble of blooming spike in lower temperature and too early to bloom
3 spike in a relative hot one, eventually made the result of low yield rate and market regulation failure. Lesson learnt and suggestions 1. Choice of orchid seedling Visionary growers already unified their seedling, import the 1.7inch (5cm) ones to take place those tissue-culture contained seedling, by shorten the time of growing and lower the failure rate while moving out from the container, in order to hit the market as soon as possible and make the highest margin of profit. 2. Import of orchid seedling As mentioned earlier, the imported 1.7inch seedling had the advantage over the tissue culture ones. However, it also reflected on the higher price, for those growers with fewer budgets available, they can only afford mostly tissue culture seedling with a smaller amount of 1.7 inch one at present time. In the Foreseeable future, the 1.7 inch seedling will be the main payable for the Brazilian orchid growers for shorter time of cultivation and better yield rate, once the cost could been lower down to certain level. 3. LCL or CFS Brazilian grower had purchased seedling from Taiwanese providers for its quality. To further raise the compatibility and expand the amount of sale, Taiwanese provides should be able to do the LCL (Less than container load) or CFS (Container freight station) before export to Brazil separately. 4.The expense of adjusting productivity Due to the higher market demand on the first half of year than the up coming one; growers adjust their productivity to meet the market demand. However, the temperature on the first half is higher than the condition needed for orchid to grow naturally. Some of the growers build their greenhouse at higher altitude to facilitate the grow of orchid at summer, on the contrast, those grower need to pay extra cost
4 heating up the greenhouse by human factors, to prevent from premature growth of the orchid. 5.Tempurature management The temperature of Phalaenopsis seedling in the greenhouse needs to be control over 27 to 29 degree Celsius, cover with transparent plastic on the top and two layers of plastic on the side, regulating the temperature with a heater and red shading. 16 to 18 degree Celsius is the preferable temperature for the orchid to bloom, for the miniature Phalaenopsis the temperature on the leave tip need to lower to 16 degree Celsius, after the bud show up, the temperature need to steady at 25 degree for the best of growth result. 6. Market demand Higher amount of supply increase the demand on certain aspect of quality. The buyers ask Phalaenopsis plant to be long and abundant on the spikes or with 2 spikes but posses 8 buds or flowers on both spike; 30to 35 cm tall in the pot with a 4-5 cm sized flower and the leaf must be smaller than the flower itself for miniature Phalaenopsis. For the Oncidium, buyers love the long spike ones and value the longevity and easy management for the cut flowers. 7.Sales Channel Netherlands providers and Japanese providers had their market segmentation, the former one focus on bidding market for the simplicity while the latter thrive on traditional market and franchise supermarket for better margin of profit. Nonetheless, these two are too concentrated geographically, both encounter the increase of orchid supply and recession of the Brazilian market. It might be crucial for both of them to expand to the other late coming provinces in Brazil and other counties for export. The strength of Taiwan- How to build the Production Model of Taiwanese seedling in Brazil
5 Sphagnum moss used to be the medium for planting orchid by the Taiwanese growers. Strong knowledge and experience have been built on sphagnum moss usage to judge the quality of reproduction and cultivation. Nevertheless, tariff barrier make sphagnum moss almost impossible to apply at Brazil. Therefore it's crucial to replace the sphagnum moss to coconut chuck, which has been used to the Brazilian growers. Starting a new type of medium usage upon coconut chuck, from flasks to small, middle to big ones, Taiwanese orchid suppliers should be able to build up standards and methodology of cultivation, replicate the success mode from the sphagnum moss (medium) experience. After the SOP of the reproductive have been set, other methods and equipments such as pest control, the application of plug system and fertilizer mixer can be introduced to Brazil as well, replicating the whole Taiwan experience. The arm race of equipment in the blooming Brazilian Phalaenopsis market is a matter of live or death. First mover advantage is gigantic, but the rule of seeing is believing also applies, for the local growers at Brazil, the results of equipment investment must me measurable. To convince the local growers, the data and the resources must be invested in. Taiwan Phalaenopsis System or Alliance Project must be hold to gather and integrate the Taiwanese providers as an entity, or there might be no chance for Taiwanese Corp to win over Brazilian market with the strong competitor like Netherlands.
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