The Ethiopian export flower sector is growing strongly and taking up an ever more important position in the local economy. Many Ethiopian farm owners are relatively new to the flower business. After having set up the production facilities, their initial focus lies on production issues. They are now also getting to the point of recognising that many other areas are critical to success.

Since October 2007, CBI and EHPEA have organised a series of workshops for the Ethiopian flower export sector. After two initial training missions in 2007 on the working of the EU flower market and on quality & cool chain management, a more extensive training programme was carried out in 2008. The training programme covered subjects like the European market channels for flowers, customer requirements, cool chain issues, internal client orientation, and Human Resource Management, amongst others.

Master Classes Flower Export 2009
Following the success of the previous training activities and upon request of the Ethiopian flower sector, CBI organises four Master Classes as a key activity of CBI’s 2009 floricultural training programme in Ethiopia. The programme has been developed in close cooperation with EHPEA and focuses on different aspects of flower export marketing.

In the course of the Master Class training series, participants write a concise export marketing plan. The structure of the export marketing plan is used as the framework for the special topics covered in the training programme: Corporate Social Responsibility (CSR), post-harvest and logistical requirements, market research in the flower business, getting the best price on the auction, and internal and external communication and client orientation.

The four Master Class sessions are organised in early May, mid June, mid September and early December of this year. CBI trainers include Milco Rikken (ProVerde), Dana van Hes (E4 Consulting), Jeroen van der Hulst (Flowerwatch), Maarten van Schie (OTV Wageningen) and Maarten van Woerden (Helicon).

The training series is carried out in close collaboration with EHPEA, the Ethiopian Horticulture Producers Exporters Association and the Royal Netherlands Embassy in Addis Ababa.

A two-day training programme for flower growers in Guatemala on ‘External and internal customer orientation’ was carried out in February 2010. The training programme was an initiative of CBI and Agexport. The objective of the training was to improve the knowledge and skills of the participants in understanding customer requirements as well as the European market channels and requirements. After the training, participants were informed about present market conditions and developments. They were able to translate and implement market information, client expectations and feedback to the different levels in the farms.

CBI’s export development programmes for cut flowers are designed to help entrepreneurs in selected African countries to adapt to EU market requirements in order to create conditions for market entry or market consolidation.

Each country programme combined different elements: technical assistance, training in export marketing and management and market entry assistance. In Egypt for example, the programme mainly focused on logistic cooperation and MPS certification. In Kenya, CBI was of the opinion that there is enough knowledge available in the country itself to help to companies to develop their product quality, so instead the programme focused on developing export marketing (including a market tour to the Netherlands), HRM skills of the middle managers, and cooperation between the farms. In Uganda, improvement of product quality and farm management were the main issues, next to marketing training.

ProVerde has been involved in many parts of the programme, amongst which:

Kenya
• Series of workshops on export marketing and corporate social responsibility.
• Market scan “Position of the Kenya flower industry in the EU”.
• Series of workshops on strategic planning and writing an export marketing plan.
• Individual farm counselling sessions.
• Market tour and meeting event.

Uganda
• One-week seminar and market tour in The Netherlands.
• Seminar & on-farm training: “From Product to Market orientation”.
• Workshop “Internal and External Customer Orientation”.
• Workshop “Building partnerships in the European flower market”.

Egypt
• Market tour and seminar.
• Strategic marketing seminar and clustered farm visits in Egypt.
• Seminar and clustered farm visits on Corporate Social Responsibility.

South Africa
• Workshops on entrepreneurial skills for flower exporters.
• Individual counselling session.

Market scans
In preparation of training missions, ProVerde carried out a number of market scans. The main objective of these market scans was to get a better understanding of strong and weak points of the floricultural sector in the specific African country and to identify opportunities and threats, all from the view of the European customer. Typically, a number of managers in the Netherlands flower industry were interviewed who have experience with cut flowers and foliage from that specific African country. The results of the market scan were used in the workshops and provided to the companies participating in the programme.

Handbook Cut Flowers ProVerde compiled the 'Handbook Cut Flowers'. The handbook is an information source and reminder of all topics discussed during the Export Coaching Programme for Cut Flowers in Egypt, Kenya, Uganda and Zambia. It will also help exporters deal with some practical problems. It contains useful checklists, exercises, practical worksheets, and questionnaires.

During a series of market tours, companies were invited for a one-week market tour in The Netherlands.

When having the desire to export to the EU, it is essential for exporters to understand how the market operates. Who is buying flowers and what does that buyer expect from it? What happens with price and market position if this expectation is not fulfilled?

The market tours generally consisted of a combination of company visits and supporting workshop trainings.

The company visits focused on the most important players in the logistics and market chain of flowers in the Netherlands: from arrival of flowers to transport, agents/importers, auctions, buyers and outlets like supermarket and flower shops.

The programme was set up as a practical exercise. In this way, the programme linked directly with the day-to-day work experience and responsibilities of participants. To make sure that the market tour would be a lasting experience, participants received assignments for each visit and were asked to make an action plan and formulate learning points to present to their colleagues.

The production of tropical flowers (mainly Heliconias, Gingers, Strelitzias and Calatheas) and foliage is increasing strongly in Colombia. Most farms have planted or are in the course of expanding their cultivated area. As a result, the supply of tropical flowers has increased strongly over the past few years.

As part of UNCTAD's BTFP export promotion programme for tropical flowers and foliage, two identification missions have been carried out to assess the current situation of the sector, give recommendations for further programme activities and to select companies suitable for further participation in the programme.

Besides company visits, four workshops were held in Cali, Pereira, Medellin and Bogotá.

The main objective of the export promotion programme was to support development of exports of tropical flowers and native foliage in Antioquia, Cundinamarca, El Eje Cafetero and El Valle del Cauca.

The missions were carried out in close collaboration with UNCTAD's Colombian counterparts in Colombia: the Alexander von Humboldt Institute and Proexport Colombia.

In collaboration with ProFound, ProVerde regularly elaborates CBI market surveys. The market surveys are distributed to manufacturers, exporters, trade promotion bodies and other interested parties in developing countries world wide.

Key-elements of the CBI market surveys are: market segmentation, market access, tariff and non-tariff barriers, market trends, competition and price levels, import and export figures, and trade channels. Moreover, the market surveys discuss export marketing guidelines, which help the exporter to evaluate whether to get involved in international business, and learn how to go about exporting.

Selection of CBI publications:
- Market Survey Cut Flowers and Foliage (1997, 1999, 2005, 2006, 2007, 2008, 2009)
- Market Survey Plants and Young Plant Material (1997, 1999, 2005, 2006, 2007, 2008, 2009)
- Product Survey Summer Flowers (2005, 2007, 2008, 2009)
- Product Survey Tropical Flowers (2006, 2007, 2008, 2009)
- Marketing Guide Cut Flowers and Foliage (2003)
- Marketing Guide Fresh Fruit and Vegetables (2003)
- Exporting Fresh Fruit and Vegetables (1997, 1999)
- Marketing Guide Pot Plants and Young Plant Material (2003)

ProVerde regularly carries out workshops on how to conduct market research, for in stance in October 2008 in Albania (see website Albinvest) and April 2009 in Vietnam.

There is more information on the EU available than you can handle. That's why CBI trains exporters to use the web to conduct market research in a quick and effective way. Get to know relevant market research techniques and methods.

At the end of the training exporters will have knowledge on and be able to apply:
• Market research techniques
• Web-based market research
• Develop own market research targets, -questions and –plan for the EU
• Find potential EU market information and EU buyers

The Ethiopian Horticulture Producers and Exporters Association (EHPEA) requested the Royal Netherlands Embassy in Ethiopia to finance a process towards the preparation of a Horticulture Development Strategy in Ethiopia.

The general objective of this process was to create a sector-wide and export-oriented development strategy for the Ethiopian horticulture sector developed and widely accepted by relevant stakeholders.

In December 2005, a fact finding mission was organised to analyse the horticulture sector in Ethiopia and to identify the main strengths and bottlenecks to development of the sector. An inventory was made of opportunities for diversified horticulture production and exports.

In January 2006, a consultation and feedback mission to Ethiopia was carried out, during which a workshop cum public event was held with relevant stakeholders of the public, private and NGO sector to present the draft strategy report and project outlines.

WAFEX is the leading exporter of cut flowers (fresh and dried) in Australia with warehouse, packing and cool room facilities in both Melbourne and Perth. In 2009, seeing an opportunity to become the world’s leading source of new waxflower (Chamelaucium) varieties, Craig Musson and Adrian Parsons, Directors of WAFEX, established their new company Helix Australia. Having secured a range of new and improved Waxflower varieties, Helix Australia is developing networks of licensed growers locally and overseas in both the cut flower and nursery industries.

To support further development of the both WAFEX and HELIX, ProVerde was asked to carry out a market study on the EU waxflower market. The market study particularly focused on obtaining insight into the distribution chain and leading sales channels for Waxflowers. What is the role of different types of wholesalers, bouquet makers, wholesale markets, types of retailers, etc. Where do waxflowers end up (main countries, players/buyers, market shares, preferences)? The study resulted in a number of ideas for future market and product development in terms of volumes, target channels and markets, and colours and variety characteristics.

The main objective of the market study was to identify those tropical ornamentals that offer good export opportunities in the European markets and which can be produced under Surinam conditions. The study covered particularly the markets for tropical flowers, plants, foliage and young plant material (cuttings).

As part of the project, five product brochures have been written describing cultivation techniques under tropical conditions for selected products: palms, Anthurium foliage, Bromeliads, Dracaena cuttings, and ornamental grasses.

The project was carried out within the framework of the national Agricultural Sector Plan (ASP) and on behalf of the Surinam Ministry of Agriculture, Animal Husbandry and Fishery.

The Kenya Flower Council (KFC) proposed the project “Research and Development on Diversification of Products and Markets, and Post harvest Control in the Floriculture Sector Of Kenya” to the Kenyan-Dutch Partnership Programme for Market Access for Horticultural Produce.

The project addressed some of the challenges in further development of an export-oriented floriculture sector in Kenya that contributes to structural and sustainable poverty reduction. It has been initiated by a broad range of public and private sector stakeholders and is supported by the Netherlands Ministry of Foreign Affairs and Ministry of Agriculture, Nature and Food Quality.

ProVerde provided comprehensive input for the business plan:
• Experiences with similar funds operating in The Netherlands and/ or Europe were reviewed, including modalities of monitoring progress and results, and procedures for proposal submission and their evaluation criteria.
• Review on-going floricultural/horticultural research in post harvest control and product and market diversification in the Netherlands.
• Advise on institutional and organizational set-up for the fund.
• Scope and modalities of operating the fund were proposed.
• Research questions downstream (i.e. in The Netherlands and other EU markets) were identified and prioritised.

CBI's export coaching programmes are designed to help entrepreneurs in developing countries to adapt to - notably West-European - market requirements, in order to create conditions for market entry or market consolidation. These programmes combine different elements: technical assistance on implementing regulations and standards, marketing, organisation of production and operational management, training in export marketing and management and market entry assistance.

The final reports provide conclusions and recommendations with respect to the feasibility of the envisaged Export Coaching Programme, including possible bottlenecks and suggestions with respect to the market entry strategy.

The objective of the evaluations is to review the activities that took place, and to assess the effectiveness of the EDP as a trade promotion tool. Recommendations are provided to improve effectiveness and/or efficiency. Assessment of effectiveness involved measuring the quantitative results of the programme.

Feasibilities and evaluations of the following export programmes have been conducted:
• Fresh Fruit and Vegetables (July 2007 & March 2008)
• Plants and Young Plant Material (January 2007)
• Timber (June 2007)
• Personal Protective Equipment (December 2005)
• Young Pot Plant Material (May 2005)
• Medical Devices (October 2004)
• Engineering Products (June 2004)
• Machine Parts (June 2004)
• Stationary Items (January 2004)
• Mobile Engined Equipment (February 2003)
• Handicrafts (December 2002)

In order to exploit potential in the horticulture industry in Rwanda, the Rwandan government established the Rwanda Horticulture Task Force (RHTF) to formulate strategies for increased production and promotion of horticultural products with export potential, coordinate and champion the necessary actions and investments in the sector and eventually pave the way for the creation of a Horticulture Authority. RHTF has asked ProVerde to carry out a more extensive study into the feasibility of the floricultural sector.

The goal of this market survey was to offer Indonesian producers of floricultural products tailor-made information and insight into the Netherlands market for floricultural products. The market survey assisted Indonesian floricultural companies to assess and improve their export potential on the Netherlands market.

The market survey covers the following products groups:
• Fresh cut flowers and foliage
• Pot plants
• Young plant material

To assist Indonesian companies, NAFED was set up in 1971 as a special service agency of the Indonesian Ministry of Industry and Trade.

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In 2003, the National Sustainable Biotrade Programme (PNBS) in Bolivia was launched with the financial contribution of the Governments of The Netherlands and Switzerland, and the technical support of UNCTAD Biotrade Initiative within the biodiversity policy of Bolivia. Its purpose is to contribute to the reduction of poverty and the promotion of the sustainable development, in correspondence with the objectives of the Agreement on Biological Diversity.

In order to find out the market possibilities of some of the biodiversity products, ProVerde carried out a number of Quick Market Scans, amongst which cactus and bromeliads (in vitro).

The goal of the Quick Market Scans was to assist companies involved in the PNBS in their planning and investment decisions and contribute to the development of their export and marketing strategies.

ProVerde carried out a company assessment on a China-based floricultural production and wholesale company that applied for listing of its shares on the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange.

The main objective of the company assessment was to express an opinion on the reasonableness of the cost of sales, production volume, pricing and quality of the company’s products, the gross profit margin, and various other subjects in consideration of and in relation to a fair judgment of the company's business doing.

During two missions to Israel and the Palestinian Territories, ProVerde reviewed the financial management systems of five Aprodev partner organisations:
- PARC (Palestinian Agricultural Relief Committees)
- PHG (Palestinian Hydrology Group)
- PMRS (Palestinian Medical Relief Society, formerly known as UPMRC);
- EJ-YMCA (East Jerusalem - Young Men's Christian Association)
- DSPR (Department of Services to the Palestinian Refugees)

The assessment was conducted in close co-operation with two local accountancy firm: El Yousef & Co (correspondent firm of KMPG International) and Sa'adi, Orgaly, Daher (PricewaterhouseCoopers).

The main purpose of the assessment was to ensure that the Palestinian NGOs meet internationally accepted standards and norms, and to propose appropriate capacity building measures to the Aprodev agencies and partner organisations where financial management weaknesses are observed.

On behalf of the Trade Promotion Bureau of the Brazilian Embassy in the Netherlands, a market study was carried out to identify opportunities for the marketing of Brazilian products in the Netherlands. The study focused on trade structure (distribution channels, common business practice, logistics), sales promotion, market access (regulations, requirements, import restrictions), and practical information for Brazilian exporters. The final report included specific recommendations to Brazilian manufacturers and/or exporters wishing to export to the Netherlands.

Marketing of value-added plants from Thailand
ProVerde offered trade facilitation services to Horticraft, a company specialised in exporting plants and young plant material. On behalf of Horticraft, ProVerde organised the marketing of their value-added plants within the European Union.

Marketing of Chilean floricultural products
ProVerde organised the introduction, promotion and direct sales of a number of products for Timmerman Quality SA, a Chilean grower/exporter of cut flowers. After a successful introduction into the EU market, the Timmerman Quality's new variety Rubus fruticoses 'Navaho' (Thornless Blackberry) is currently auctioned at a number of Dutch flower auctions. Other products which will soon be included in the assortment are different new) varieties of Paeonia. 

Marketing of Indonesian bidiversity products
ProVerde offered trade facilitation services to Dian Niaga, an Indonesian export company specialised in natural products, ornamental products and charcoal. On behalf of this Indonesian company, ProVerde organised the marketing of products to the floricultural and related sectors within the European Union.