Chinese Flower International Trade Status Analysis in 2007

PART 2

Xu Xiangyu, Chen Yi, Li Chunyan

(1.CFNA Flower Branch 100062; 2.Beijing Huake Runnong Consulting Ltd 100125)

Chinese international flower trade shows show a strong growth trend, which demonstrates the development of the Chinese flower industry's comparative advantages, market and trade potential. The Chinese International flower trade analysis in 2007 can be a reference for international flower trade enterprises.

1. Analysis of flower products exports status

(1) Pot Plants

Chinese total exports for pot plant volume was about 35.09 million U.S. dollars, an increase of 18.6 % over 2006. Exports to The Republic of Korea, The Netherlands and Japan maintained good growth momentum amounting to 9,317,000, 8,917,000, 4,597,000 U.S. dollars, respectively. The export amount of the top three countries, reached 38.15%, 40.77%, 13.78% respectively, however, the Japanese market growth rate slowed down significantly.

The export amount for Hong Kong, United States and France performed at a market downturn, with year-on-year exports decreasing by 38%, 42% and 59%. At the same time, Macau, Malaysia, Philippines, India, Vietnam and Singapore in the Asian region, Germany, Turkey, Italy, Denmark, Sweden in the European region had a increased demand for Chinese plants. Germany, Malaysia and Turkey's exports had a year-on-year growth rate increase of 644.99 %, 215.03 % and 212.74 % respectively. The highest export market rate was from Kuwait in the Middle East and South Africa in the African region in 2007. (Figure 7, Figure 8).

Throughout 2007, the destination countries and regions for Chinese plant exports showed the following characteristics: the export amount of the top three countries totaled over 70%, which increased significantly over 2006; gaps expanded between other countries and regions and the three countries mentioned above in absolute value of the export amount; emerging market expansion achieved significant development; pot plants exports were still focused on potted foliage plants, but as foreign companies enter the Chinese flower marketaccelerated, potted flower plant exports will come into a period of rapid development, such as the Cymbidium produced by South Korea- owned enterprises to Korean market export showed rapid growth.

Figure 7: Destination Countries and Regions for the Chinese Pot Plant Exports in 2007

Figure 8: Export Volume of the Major Destination Countries and Regions of Chinese Pot Plant in 2007 Showing Changing Trends

Chinese plant exports were cyclical and have certain difference for different countries and regions. Take the pot plant export destination country and regions which make up the top five as the example, South Korean and The Netherlands market demand for the whole year had large fluctuations in demand, the South Korean market demand peak occurred in March and April, but demand levels were off from May to December with the export amount only accounting to 50% compared to the peak month; The Dutch market demand peak appears in December and the other months demand was steady with the fluctuation is so great. The Japanese market peak was in March and June with January in a low market demand; Hong Kong’s market demand was from January to March in the peak while the U.S. market was mainly in January, February and April (figure 9).

Figure 9: Chinese Pot Plant Monthly Export Volume to Destination Countries and Regions Changing Trends in 2007

Provincial, municipal and regional distribution data of the autonomous regions for Chinese plant exports in 2007 showed that Fujian and Zhejiang provinces were still the main export plant provinces. The export amount accounted for nearly 80% of the total (figure 10); Fujian province export growth rate increased by 36.23% compared to 2006. Guangdong province in 2006 showed a negative growth and in 2007 showed a slow recovery with a growth rate of 9.3%; the gap between Guangdong and Fujian pot plants in exports continues to increase. ShandongProvince plant exports were a new force with sudden increases in 2007 with exporst increasing 62.1 % compared to 2006. Jiangsu province and Shanghai city plant exports declined with exports decreasing 44.5% and 63% respectively.

Figure 10: MajorProvinces and Cities Share of Chinese Pot Plant Export in 2007

Figure 11: Main Export Provinces of Chinese Pot Plant Monthly Trends in 2007

Comparison of main provinces for monthly Chinese plant exports trends (figure11) and destination countries by month for Chinese plants (figure 9), it is not difficult to come to a conclusion: export volume to Korea for March and April in 2007 increased and had an increase for the entire year, of which exports to South Korea from Fujian occupy a dominant position.

Chinese version ©Copyright 2008 to Xu Xiangyu, Chen Yi, Li Chunyan

(1.CFNA Flower Branch 100062; 2. Beijing Huake Runnong Consulting Ltd 100125)

English Translation ©Copyright 2008 to Berl Thomas and Associates, Inc. USA