hemraj

Chapter I

INTRODUCTION

1.1. Background

Floriculture is the cultivation of ornamental plants that is flowering plants, foliage plants, fruit bearing plants etc. It generally covers flower crops handled by florist shops in such varieties as cut-flowers, potted plants, bedding plants and others.

Floriculture business in Nepal is in an increasing trend ever since this business was first studied in the late 1980s. Floriculture is an export potential industry. Nepal as a tourist destination has good market opportunities for floriculture products. It provides employment and thus income is generated. This industry directly contributes to better living and environment. More than 342 species of indigenous flowering plants grow in Nepal according to a survey made by the Ministry of Forest and Land Conservation in 2006 but the government has not taken any initiative to register the patents of plants.

Floriculture is generally divided into:

1. Commercial Floriculture: Flowers are cultivated for sales and profit making purpose

2. Amateur Gardening: Cultivation of flowers for the enjoyment of individuals and not for sales.

3.Amenity Horticulture: Cultivation of ornamental plants and flowers in private home, landscape, parks, plaza and other public places for the benefit of the family, the city dwellers, and the corporate employees.

In the beginning, different types of flowers used to be imported from India and other countries. Currently nursery men are seriously involved in this business. There is substantial demand for floriculture products in the country especially in the Kathmandu valley. There are many climatic zones in Nepal where different floriculture products thrive commercially. The future of this business in Nepal is very bright as it is a worldwide business.

Floriculture business in the early period was not significant. In the year 1992/93 there were 80 nurseries in two districts i.e., Kathmandu and Lalitpur. In the year 2005/06 floriculture business flourished and the number of nursery increased to 350 in thirty four districts. Scope and knowledge of floriculture among people increased and in the year 2009/10 number of nurseries increased to 600 across the country. The above information depicts that floriculture business is developing day by day in Nepal. (FAN, 2010)

Cut flower business has been centralized mostly in the Katmandu valley. This localization is mainly due to access to consumer-orientation and favorable natural conditions. By and large, the establishment of such industries takes place wherever consumers with sufficient purchasing powers are living. The existence of most of the hotels, big business houses and international houses helps to encourage the establishment of these industries in Kathmandu rather than in other places. Similarly, the topological and climatic conditions prevalent within the valley support the establishment of floricultural enterprises. Cut flower business has shown steady and continuous development in Nepal. Due to urbanization and modernization, the demand of the cut flower has increased tremendously. In view of unmet demand for cut flowers, there is ample scope for promotion of this business within Kathmandu valley. Promotion of domestic production is expected to substitute cut flowers imported by hotels and other consumers, from India.

Production of cut flower has been categorized into two seasons i.e., summer season and winter season. In summer season, the demand of flower has been fulfilled by the Nepalese grower whereas in winter, wholesalers/retailers import flowers from India, as demand is not achieved by the Nepalese production. During the summer, the demand of the cut flower is accomplished by the production within Kathmandu, Bhaktapur, and Lalitpur.

1.2. Statement of the Problem

The prospect of floriculture in Nepal is very bright. Whilst Nepal’s floriculture sector has been making remarkable progress in recent years on the domestic front, the next step of developing the sector to become internationally competitive will be a tough challenge. Apart from in the bulbs business, Nepal does not necessarily posses unique natural advantages, qualifying its floriculture sector to automatically become a winning player in the international floriculture market. There are locations, up on the mountains, where special appropriate microclimates could be found; but these will be difficult to develop because they are not very accessible, and lack the basic infrastructures. It should be noted, however, that this is different when considering flower bulbs production, providing an interesting niche for competitive advantage. Innovating growers and businesses are coming up in Nepal; but these are not in the best situation to innovate because even the most advanced flower farms are running under the “downward spiral” concept. In response to low prices, efforts are made to save costs with the consequence that quality ultimately is affected and hence prices remain low. The smaller motivated growers hardly believe in their capability to cope with the industry’s advancement, seeking for the government to provide them with enabling support. The government of Nepal, however, is not creating an enabling environment that would be encouraging for export. In fact some of the trade and tax regulations are discouraging for export. A series of restrictions are serious impediments to export development. Several prior studies and workshops already identified these bottlenecks, but so far no improvement could be reported.Thus, this research work has been made to find out the situation of floriculture in Nepal, its problems and prospects.

1.3. Objective of the Study

The main objective of the study is to find out the general trend of floriculture business and actual presence of cut-flower business in Nepal, especially in Kathmandu valley. The study was conducted to find out the possible ways to promote floriculture products in the domestic and external market. Further, the study also aims at finding the possibilities of commercial floriculture production. The study also hopes to find the suitable environment for the enhancement of floriculture activities in the major cities in Nepal.

1.4. Significance of the Study

Floriculture is an export potential industry. It provides employment to many people which contribute in better living standard. Nepal as a tourism based country has good market opportunities for floriculture products. The major importance of the study is that it will help to find out the general trend of floriculture business in Nepal, especially Kathmandu valley. Moreover, the study will help to find out the contribution of floriculture business in economic growth of the country and to find out the problems of floriculture business in Nepal. The study will also help to find out the share of cut flower business in floriculture business. It will be helpful for future reference to the interested persons who want to study floriculture related business and can be used as secondary data for another report writing purpose.

1.5. Research Questions

For the purpose of the study the following questions were taken into account and the effort was to find out the solutions of them: the major flowers being sold, the average sale per day, the major consumers, the major source of flowers and other flori-products, how much land the nurseries occupy, from where the flowers and other flori-products are imported, in which countries the products are exported, whether the local or national production sufficient for the market, whether the government policy supportive to the floriculture business, etc.

1.6. Limitations of the Study

The study is a general assessment of the promotional and marketing trends of floriculture business and cut-flower business in Nepal and hence may lack in some quantitative analysis especially regarding the costs involved. The same applies to the measurement of cost-effectiveness of the investment in floriculture business promotion. Because of the invisible nature of the trade, it was also difficult to obtain accurate secondary data on the subject.

Information of expenses incurred for advertisement / publicity which could not be obtained from the different floriculture related industries but the data analysis gave an insight into the impact of the promotional measures and needs as for the floriculture in Nepal is concerned. Mostly the study used secondary data and information provided because of the shortcomings in collecting primary information on the subject. Due to insufficient time some quantitative analysis lacked.

There was inadequate data for exact findings. Due to time and budget, the consideration was given only in Katmandu valley. The resources constraint was another limitation. Due to lack of adequate co-operation by nurserymen and florists there might not be desirable data collection.

1.7. Structure and Organization of the Study

The study aims at partial fulfillment of the requirements for the degree of Masters in Public Administration. The whole paper has been presented into five main parts, each containing several sub-sections.

Chapter one includes background of the study, statement of the problem, objective, significance, limitation, and structure and organization of the study along with research questions.

The second chapter deals with literature review of floriculture, evolution of floriculture in Nepal, FAN, and a glimpse of floriculture business in Nepal.

Chapter three discusses about the process of research methodology and its design. It also describes about the sources of data obtained and the process of data presentation.

The fourth section deals with the presentation of the data, analysis and derivation of the research findings.

The fifth and last section concludes the thesis with major findings, conclusion and recommendations.

Chapter II

RIVIEW OF LITERATURE

2.1. Introduction of Floriculture

Floriculture, or flower farming, is a discipline of horticulture concerned with the cultivation of flowering and ornamental plants for gardens and for floristry, comprising the floral industry. The development, via plant breeding, of new varieties is a major occupation of floriculturists.

Floriculture crops include bedding plants, flowering plants, foliage plants or houseplants, cut cultivated greens, and cut flowers. As distinguished from nursery crops, floriculture crops are generally herbaceous. Bedding and garden plants consist of young flowering plants (annuals and perennials) and vegetable plants. They are grown in cell packs (in flats or trays), in pots, or in hanging baskets, usually inside a controlled environment, and sold largely for gardens and landscaping. Geraniums, impatiens, and petunias are the best-selling bedding plants. Chrysanthemums are the major perennial garden plant in the United States.

Flowering plants are largely sold in pots for indoor use. The major flowering plants are poinsettias, orchids, florist chrysanthemums, and finished florist azaleas. Foliage plants are also sold in pots and hanging baskets for indoor and patio use, including larger specimens for office, hotel, and restaurant interiors.

Cut flowers are usually sold in bunches or as bouquets with cut foliage. The production of cut flowers is specifically known as the cut flower industry. Farming flowers and foliage employs special aspects of floriculture, such as spacing, training and pruning plants for optimal flower

(The introduction section has been derived from the websites www.wikipedia.com/floriculture, www.myflora.com and FAN Souenir, 2009)

harvest; and post-harvest treatment such as chemical treatments, storage, preservation and packaging.

In Australia and the United States some species are harvested from the wild for the cut flower market. The term cut flower refers to flowers or flower buds (often with some stem and leaf) that have been cut from the plant bearing it. It is usually removed from the plant for indoor decorative use. Typical uses are in vase displays, wreaths and garlands. Many gardeners harvest their own cut flowers from domestic gardens, but there is a significant commercial market and supply industry for cut flowers in most countries. The plants cropped vary by climate, culture and the level of wealth locally. Often the plants are raised specifically for the purpose, in field or glasshouse growing conditions. Cut flowers can also be harvested from the wild.

The cultivation and practices of raising cut flowers form a part of horticulture. They are often included in that branch of horticulture called floriculture.

In most countries, cut flowers are a local crop; because of their limited life after harvest they have to be marketed quickly. In India, much of the product has a shelf life of only a day. Among these are marigold flowers for garlands and temples, which are typically harvested before dawn, and discarded after use the same day.

There is also a market for 'everlasting' or dried flowers, which include species such as Helichrysum bracteatum. These can have a very long shelf life. The largest producers are, in order of cultivated area, China, India, and the United States. The largest importer and exporter by value is the Netherlands, which is both a grower and a redistributor of crops imported from other countries. Most of its exports go to its European neighbours.

In recent decades, with the increasing use of air-freight, it has become economic for high value crops to be grown far from their point of sale; the market is usually in industrialised countries. Typical of these is the production of roses in Colombia, mainly for the US market, and production in Kenya and Uganda for the European market. Some countries specialise in especially high value products, such as orchids from Singapore and Thailand.

The total market value in most countries is considerable. It has been estimated at approximately UKL 2 billion in the United Kingdom, of the same order as that of music sales. Ornamental plants are plants that are grown for decorative puproses in gardens and landscape design projects, as house plants, for cut flowers and specimen display. The cultivation of these forms a major branch of horticulture.

Most commonly ornamental garden plants are grown for the display of aesthetic features including: flowers, leaves, scent, overall foliage texture, fruit, stem and bark, and aesthetic form. In some cases, unusual features may be considered to be of interest, such as the prominent and rather vicious thorns of Rosa sericea and cacti. In all cases, their purpose is for the enjoyment of gardeners, visitors, and/or the public.

Similarly certain trees may be called ornamental trees. This term is used when they are used as part of a garden or landscape setting, for instance for their flowers, their texture, form and shape, and other aesthetic characteristics. In some countries trees in 'utilitarian' landscape use such as screening and roadside plantings are called amenity trees.

For plants to be considered as ornamental, they may require specific work and activity by a gardener. For instance, many plants cultivated for topiary and bonsai would only be considered as ornamental by virtue of the regular pruning carried out on them by the gardener, and they may rapidly cease to be ornamental if the work was abandoned.

Ornamental plants and trees are distinguished from utilitarian and crop plants, such as those used for agriculture and vegetable crops, and for forestry or as fruit trees. This does not preclude any particular type of plant being grown both for ornamental qualities in the garden, and for utilitarian purposes in other settings. Thus lavender is typically grown as an ornamental plant in gardens, but may also be grown as a crop plant for the production of lavender oil.

The term ornamental plant is used here in the same sense that it is generally used in the horticultural trades. The term largely corresponds to 'garden plant', though the latter is much less precise, as any plant may be grown in a garden.

Floristry is the general term used to describe the professional floral trade. It encompasses flower care and handling, floral design or flower arranging, merchandising, and display and flower delivery. Wholesale florists sell bulk flowers and related supplies to professionals in the trade. Retail florists offer fresh flowers and related products and services to consumers.

Floristry is a term can refer to the cultivation of flowers as well as their arrangement, and to the business of selling them. Much of the raw material supplied for the floristry trade comes from the cut flower industry. Florist shops, along with online stores are the main flower-only outlets, but supermarkets, garden supply stores and filling stations also sell flowers.

Floral Design or floral arts is the art of creating flower arrangements in vases, bowls, baskets or other containers, or making bouquets and compositions from cut flowers, foliages, herbs, ornamental grasses and other plant materials. Often the terms "floral design" and "floristry" are considered synonymous. Florists are people who work with flowers and plants, generally at the retail level. The term is not to be confused with floristics (the study of distribution and relationships of plant species over geographic areas.). Floristry is also not to be confused with horticulture which more broadly relates to the cultivation of flowers and plants.

The floral industry is one of the major industries in many developing and underdeveloped countries. Floriculture as an industry began in the late 19th century in England, where flowers were grown on a large scale on the vast estates. The present day floral industry is a dynamic, global, fast-growing industry, which has achieved significant growth rates during the past few decades. In the 1950s, the global flower trade was less than US$3 billion. By 1992, it had grown to US$100 billion. In recent years, the floral industry has grown six percent annually, while the global trade volume in 2003 was US$101.84 billion.

The floral industry essentially consists of three major components: the growers, the wholesalers and the retailers whose businesses are quite intermingled. The recent trends are more towards eliminating the intermediaries, the wholesalers between the growers and the retailers, so that the flowers are made available at considerably low prices.

Some flowers are sent packed flat in boxes. This enables large amounts of flowers to be packed in small spaces like aircraft holds. Other flowers cannot survive for long periods out of water such as orchids, gerberas (gerber daisies) and water lilies. These are either sent with their own sealed water container (called picks) on each stem end - for more expensive or tropical flowers - or are transported in buckets of water (This method of transport in water is often referred to as ["Procona]"). The latter method extends the life of flowers and reduces labor time as flowers are ready for sale, but obviously also reduces the amount of flowers that can be transported as they are much heavier than dry-packed flowers and hence air transportation charges are higher.

Flowers take a number of routes to the consumer, depending on where they are grown and how they are to be sold. Some growers cut and pack flowers at their nurseries, sending them directly out to the consumer by mail order. Some flowers are sent to packing companies, who grade the flowers and arrange them in bunches for sale to supermarkets or to deliver by mail order. Some flowers are graded and sleeved by the growers and sold at wholesale flower markets; the wholesalers then sell them on to florists who condition and arrange the flowers for the consumer.

Traditionally, the center of flower production has been near their largest consumers: the developed world, where Japan, Western Europe and North America were both major producers and consumers. The major consumer markets being Germany (22 percent), the United States (15 percent), France (10 percent), the United Kingdom (10 percent), the Netherlands (9 percent), Japan (6 percent), Italy (5 percent), and Switzerland (5 percent).

Holland remains the center of production for the European floral market, as well as a major international supplier to other continents. The flower auction at Aalsmeer is the largest flower market in the world. Since the mid-1970s, the production and distribution of cut flowers in Netherlands has burgeoned. In 1995, Dutch growers produced over 8 billion blooms and the flower auctions collectively traded more than 5.4 billion guilders (about $3.2 billion) in cut flowers and potted plants, contributing over 4 billion guilders annually to the Dutch balance of trade.

Experts believe that the production focus has moved from traditional growers to countries where the climates are better and production and labor costs are lower. This has resulted in a paradigm shift in the floral industry. The Netherlands, for instance, has already shifted attention from flower production to flower trading, though it plays an important role still in the development of floricultural genetics. The new centers of production are typically developing countries like Colombia (second largest exporter in the world), Ecuador, Ethiopia, Kenya, and India. Other players in this global industry are Israel, South Africa, Australia, Thailand and Malaysia. New Zealand, due to its position in the Southern Hemisphere, is a common source for seasonal flowers that are typically unavailable in Europe and North America.

In Africa, Kenya is the largest exporter, supplying a large percentage of Europe's flowers, the industry there is represented by the Kenya Flower Council. In South America, Colombia is the leading flower producer and exporter accounting for 59% of all flowers imported to The United States in 2006. The United States imports 79% of its flowers. Ecuador has become, in recent years, the leading South American rose producer and is well known throughout the world for its high quality, large headed roses due to the high altitude location of its rose farms.

2.2. Evolution of Floriculture Business in Nepal

Floriculture business in Nepal has been a popular and successful business ever since the prospect of floriculture business in Nepal was studied in late 80s. Mr. Shree Krishna Shrestha, studied about the prospect of floriculture business in 1988 for TPC (Trade Promotion Centre) which resulted in the establishment of Floriculture Association of Nepal (FAN) on 15 Nov, 1992.

Floriculture business remained very traditional before 1990. Many types of flowers used to be imported from India and other countries during some special occasions by hotels and nurseries. There were no flower showrooms in Kathmandu Valley. Traditional floriculture in Nepal is gradually turning to a modern lucrative business since early nineties. Entrepreneurs’ enthusiasm and investment in this sector has been growing spontaneously with the encouragement received from the domestic as well as foreign markets. Currently many nurserymen are seriously involved in this business. There is substantial demand for floriculture products in the country, especially in Kathmandu Valley, the production of plants and flowers are not able to cope with the demand.

Floriculture is emerging as a lucrative business in Nepal with the volume of flower export to India, Japan, Europe and Qatar growing in size each year. There are over 160 nurseries in the Kathmandu Valley alone, and over 600 across the country. The flower industry directly or indirectly provides employment to over 30,000 families. The dramatic growth in contribution of

[The Source of Evolution section is Trade Promotion Centre, Nepal Overseas Trade Statistics (2005/06 to 2009/10)]

floriculture to the agricultural sector and subsequently to the economy was backed by the positive responses of the stakeholders including private sector organizations and business associations such as FAN with the support of Agro Enterprise Centre (AEC) of FNCCI. (FNCCI, 2008)

Cut flower is an emerging business having a short history in Nepal. It started from Kathmandu and expanded to cities like Biratnagar, Dharan, Chitwan and Pokhara. For the upliftment of the cut flower and for the promotion of its business, the FAN (Floriculture Association of Nepal) was established in collaboration with AEC (Agro-enterprises Centre) in 15th November 1992 with 10 founder members from nurserymen and people interested in floriculture at the C.D.O. office of Lalitpur district. FAN now has 208 members from all over Nepal. The floriculture wholesale market was established on 31 August, 1998 by FAN.

The number of nurseries has increased from 80 to 1200 and the number of floriculture shops/retailers increased from about 50 to 1200 from 1992 to 2010. The volume of floriculture business in Nepal is growing at the rate of 10-15 percent a year. Today, the sector employs more than 30,000 families with more than 60 percent women employees. This sector has already fetched investment over NRs. 375 million in infrastructure and planting materials. Although Nepal started exporting floral products just a few years back, its reach has gone up from India, USA, Japan, the Netherlands, Norway, Australia, Taiwan, Italy, Germany and some of the Gulf countries. (Source: FAN, 2010)

2.3. Floriculture Association Nepal (FAN)

Floriculture Association Nepal (FAN) was established on 15^th Nov. 1992 with the ten founder members. The FAN is an autonomous body working with the sole objective of developing and supporting overall development of floriculture sub-sector in Nepal. Promotional activities of the FAN focus on organizing and participating in trade fairs and exhibitions, study tours and observation visits, operation of wholesale outlet, conducting market research and analysis. The FAN has already organized fourteen floriculture fairs in Kathmandu. Development activities of the FAN are more focused on technical aspects such as training, trial productions (gladiolus, chrysanthemum, rose, and tuberose), mother plant distribution (gerbera), production analysis, in developing business plans and feasibility study. The FAN’s publications including reports, souvenirs, and directory are useful in transferring technology and knowledge among the entrepreneurs. FAN also provides institutional support to WIF.

The basic aim of FAN is to promote floriculture business in Nepal collectively. The association works for the benefit of this industry members including growers/ producer and retailer. It has various activities that help in enterprise growth to ultimately establish floriculture as an export oriented industry in Nepal.

FAN has been organizing flower exhibitions and trade fairs every year in Katmandu and some major cities of Nepal since 1993. It has established flower whole sale market in Katmandu and some flower shops in Katmandu, Pokhara, Chitwan, Nepalgung etc. It conducts trainings on flower arrangement, nursery management, gardening, cut flower production and management etc. (FAN, 2010)

2.4. A Glimpse of Floriculture Business in Nepal

Floriculture business has become an increasing trend ever since the prospect of floriculture business in Nepal was studied for the first time in 1988. This statement is supported by the fact that there is addition of new products (cut flowers) each year in the local market associated with opening of new florist shops in the neighborhood and new wholesale centers. Recently, cut flowers are also exported from Nepal which is a great achievement of this sector. The disappointing fact is that commercially grown items are limited to few flowers and ornamental plants. However, the business is expanding steadily. The gross sales record of cut flowers indicates that there has been upsurge in the total number of sticks transacted and there is an increasing demand for cut flowers in the domestic market. The sales record for individual species also depicts a clear increasing trend of volume with decreasing trend of average price for some of the species such as local and Dutch rose, carnation and tube rose. Cymbidium orchid, which is produced in low volume, does not compete with imported ones, shows increasing average prices every year despite the increase in volume of production. This indicates still a higher demand for orchid even at higher price. (Shrestha et. al, 1999)

According to an estimation of the FAN currently total annual transaction of all floriculture items including landscaping and gardening services comes to about Rs.375 million. The gross sales records of cut flowers from FAN wholesale market for the last eight years indicate that there has been upsurge in the total number of sticks transacted. There is a clear increasing trend of business volume with decreasing average prices for some of the species such as local and Dutch roses, carnation and tuberoses.

The transaction of ornamental flowers and plant is higher than the others flowers and plant. The transaction of seasonal flowers and plants and cut flowers are very less in comparing to the ornamental plants but slightly higher than the other flowers and plants such as shrubs and climbers, flowers and plants for Bulbs and Rhizomes, Tissue culture, landscaping and gardening.

In the year 1992/93 there were about 80 nurseries in two districts (Kathmandu and Lalitpur). In the year 1995/96 the number of nurseries increased to 120 in 11 districts. This depicts that people became more aware about the floriculture business and invested in it. In the year 2000/01 number of nurseries is more than 250 in 16 districts. In the year 2005/06 floriculture business flourished and number of nursery increased to 550 in 34 districts. Floriculture business went on blooming day by day in Nepal and in the year 2009/10 number of increased to 600 across the country. This shows that floriculture business is increasing. (Source: FAN, 2010)

At the starting phase, Nepal did not export floriculture productions. Two years later, Nepal started exporting floriculture production. In 1998/99 export of floriculture was about Rs.7 million. In the year 2000/01 export of the floriculture increased to Rs 40 million. Scope and knowledge of floriculture among people is increasing day by day. So in the year 2008/09 total transaction of floriculture was Rs 275 million.

There are over 160 nurseries in the Kathmandu valley and around 600 across the country spread over an area of 110 hectares. Lately, Nepal has been exporting cut flower to countries such as Japan, India, Kuwait and Qatar, among others. The flower industry, directly and indirectly, provides employment to over 30,000 families. ( FAN, 2010)

Chapter III

RESEARCH METHODOLOGY

3.1. Research Design

The study is based on a fact-finding operation searching for adequate information about floriculture business in Kathmandu valley, Nepal. Thus, it is a Descriptive Research. The study was conducted to assess the characteristics and status of floriculture business in Nepal to describe the situation of the subject. Thus, the accumulation of the facts involved gathering of data through both primary and secondary sources. Then the data were organized, tabulated, depicted through bar and pie charts. Due to lack of time and space, the data were reduced to manageable form. The research has used multiple variables for analysis. In this study, the general situation of floriculture has been portrayed. So, the data have been collected, classified and correlated to describe what exists in the floriculture business in Nepal, especially in Kathmandu valley. Since the main purpose of the study was to collect detailed factual information to describe the existing phenomena of floriculture business in Nepal and to make comparisons and evaluations the following steps have followed: As a research problem, the status of floriculture and cut-flower business in Nepal was selected. The data were collected through both primary and secondary sources. The collected data have been analyzed and interpreted with the help of appropriate statistical techniques. The results have been reported as major findings.

3.2. Nature and Types of Data

For the purpose of the study, the data have been collected through both primary and secondary sources. Both primary and secondary sources were approached for data collection. This study was based partly on data compiled by previous investigators as well as that collected through different floriculture related books, journals, magazines, newspapers, etc. The data collected have been compiled according to the requirements of the study. The questionnaire was prepared to ask the nursery owners and the florists of Kathmandu valley. The answers of the questionnaires were both subjective and objective in nature. The subjective data have been used in the analysis whereas the objective data have been presented and analyzed through tabulation and charts.

3.3. Sources of Data

Primary data collection:

The information for the study was compiled by visiting several nurseries such as The Standard Nursery, Panchakumari Nursery, People Nursery, flower shops and Floriculture Association Nepal as well as face to face interview, questionnaires were done.

Secondary data collection:

Secondary data were collected from different magazines, newspapers, brochure and booklets from several nurseries, internet etc. This process includes collection of data through different books, magazines and consultation with floriculture related professionals.

3.4. Population and Sample

Among existing services industry in Nepal, floriculture industry was taken as a sample for the study, so floriculture industry is a sample and population itself. This study was based on finding out the problems and prospects of floriculture business in Nepal. Floriculture business is widely spread in various parts of Nepal. There are over 160 nurseries in the Kathmandu valley and around 600 across the country spread over an area of 110 hectares. So, it is difficult to access all the data from all the parts of the country and it is not possible to meet all the officials and nurserymen. Thus, about 40 nurseries and florist shops centered in Kathmandu valley only were taken as sample for the study was selected by using a convenience sampling method.

3.5. Data Collection Procedures

The study was carried out from June, 2010 to February, 2011 in Kathmandu valley. Data required for carrying out this study were obtained from both primary and secondary sources. The information for the study was compiled by visiting several nurseries such as The Standard Nursery, Panchakumari Nursery, People Nursery, flower shops and Floriculture Association Nepal. Secondary data were collected from different magazines, newspapers, brochure and booklets from several nurseries, internet etc. This process includes collection of data through different books, magazines and consultation with floriculture related professionals.

With regards to Nepalese floriculture information, there is little data about buying and selling volumes of production and trading, which makes it difficult to measure their evolution. Besides, in addition to few total secondary data taken as starting point, inevitable differences arise when comparing them, as the criteria for collecting information, as well as the initiative origins and their objectives, were not always the same.

To collect primary information, semi-structured interviews were designed, with the purpose of obtaining data on the variables being studied, as well as registering other non-expected variables. The most prominent agents within the fresh cut flowers chain in Kathmandu and Lalitpur were interviewed, as well as officials that belong to entities related to the industry. During these visits the information was collected for knowing the status of floriculture business and cut flowers like Gladiolus, Gerbera, Rose and Carnation. Nurseries, wholesalers and different retailer shops were visited and information was gathered from personal interviews. Information regarding the trade of our country about floriculture was recorded from Trade Export Promoting Centre.

Information on the technical and agronomic requirements of cut flower, popular varieties, location and trade situation were obtained from secondary sources by reviewing related literature on floriculture and from the official records of FAN and Trade Promotion Centre. Data were collected in two major ways: review of related literature and dissemination of questionnaires among people involved in different aspects of cut flower business. Various questionnaires were prepared and the people who were actively engaged in this business were interviewed in person and through telephone.

3.6. Data Analysis Method

The results obtained in every instance of information gathering were included in the analysis, comparing it at the same time with information collected in previous stages and carrying out new adjustments. Again, this information was discussed and collaborated with the specialists, in order to achieve consecutive approximations to a definitive description of the system being studied, more objective, reliable and complete.

Chapter IV

DATA PRESENTATION AND ANALYSIS

4.1. World Scenario

The annual consumption of cut flowers in the world is worth US$ 13,000 million. The main importers of cut flowers are the USA, Germany, France, UK, Switzerland, Sweden, Norway, the Netherlands, Denmark, Belgium, Italy, Australia, and Japan. Germany is the largest importer now, followed by the US, France and Britain. Among the exporters of cut flowers, the Netherlands dominates the world trade (65%), followed by Columbia (12%) and Israel (6%). Thailand is world’s sixth largest exporter of cut flowers (Prasad and Kumar, 2005). At present western Europe alone consumes half of the flowers produced in the world and a large expansion in flower consumption is taking place in Eastern Europe, Japan, China, South Korea, Thailand and Indonesia. (Department of Customs, Ministry of Finance, GON, Foreign Trade Statistics and Annual Commodity-wise Descriptions, 2009/10)

4.2. National Scenario

Cut flower business has been centralized in the Katmandu valley. This localization is mainly due to access to consumer-orientation and favorable natural conditions. By and large, the establishment of such industries takes place wherever consumers with sufficient purchasing powers are living. The existence of most of the hotels, big business houses and international houses helps to encourage the establishment of these industries in Kathmandu rather than in other places. Similarly, the topological and climatic conditions prevalent within the valley support the establishment of floricultural enterprises. (FAN, 2010)

Cut flower business has shown steady and continuous development in Nepal. Due to urbanization and modernization, the demand of the cut flower has increased tremendously. In view of unmet demand for cut flowers, there is ample scope for promotion of this business within Kathmandu valley. Promotion of domestic production is expected to substitute cut flowers imported by hotels and other consumers, from India.

According to the quantity of production, the districts of Nepal could be divided into four categories: Group A, B, C and D (Table: 1).

Table 1: Cut flower production at district level

Group District

A	Kathmandu, Bhaktapur, Lalitpur, Dhading, Chitwan, Makwanpur
B	Jhapa, Morang, Sunsari, Dhanusha, Siraha, Kaski
C	Dolakha, Banke, Kailali, Kanchanpur, Doti, Dadeldura
D	Ilam, Dhankuta, Saptari, Gorkha, Sindhupalchowk, Udayapur, Bara, Parsa, Kapilbastu, Bardia. Nuwakot, Sarlahi, Rupandehi, Mahottari Tanahu, Palpa

Source: FAN, 2010

4.3. Major Flowers in the Market

Carnation

Carnation (Dianthus ) belongs to the family Caryophyllaceae. Carnations are flowers which are widely recognized by most people. It means “flower of love” or “flower of the gods. There are approximately 300 species in the genus. They are native to the Eastern Hemisphere and are found naturally in the Mediterranean region, although modern varieties are grown both in greenhouses and in fields around the world. With such widespread commercial production available, there is no limited season of availability. Because of their long lasting qualities and fragrance, carnations are often featured in arrangements at holidays celebrated with flowers, at special occasions such as weddings and parties, and in sympathy arrangements.

There are several types of Carnations such as chabaud/margueriate, border and picotee, malmsison and perpetual flowering. But in Nepali market two types of carnation are popular, those are standard and spray. The demand of the carnation flower is 1,000-1,500 sticks per day. It can be cultivated around 8,000-9,000 plants in a ropani. It is estimated that there is production of 6.5 lakhs stick per annum (Table: 3). Kumari Fresh flower and Flora Nepal Pvt. Ltd. are the renowned producers of carnation (FAN, 2010).

Gladiolus

Gladiolus belongs to family Iridaceous. This large group consists of about 250 to 300 species of gorgeous, tender perennial corms, which are mainly natives of South Africa, although some are found wild in west and central Europe, the Mediterranean to southwest and central Asia, and northwest and east Africa. The name Gladiolus is Latin for small sword and refers to the shape of the leaves, thus these plants have been commonly called Sword Lilies and Corn Lilies. (Field survey and FAN,2010)

There are different types of Gladiolus available in the Nepali market such as American Beauty, Berlew, Bush balland, Camalton etc. In market two types of Gladiolus i.e. single and double are widely available. The demand of the Gladiolus is 3,500-4,500 sticks per day. It can be cultivated around 10,000-120,000 plants in a ropani. Around 800,000 sticks per annum are produced. It is estimated that 340 ropani is being used for cultivation. It occupies the top position with 70% of all sales.

Gerbera

Gerbera (Gerbera spp) belongs to the family Asteraceae. These herbaceous plants are found in South Africa. The fuzzy leaves grow in a rosette close to the soil and are lance-shaped, deeply lobed and about 12 inches long. During the summer, these plants bear many orange-scarlet flowers that resemble daisies atop a long stalk. Generally two types of gerbera i.e., single and double are found in Nepali market. Its demand is around 1,50,02,500 sticks per day. Around 3,000 plants can be grown per ropani. It is estimated that 630,000 per sticks per annum is supplied by domestic producers.

Rose

Rose (Rosa indica) belongs to the family Rosaceae. It is the most popular garden plant in the world, as well as the most important cut flower. There are between 150 and 200 species of wild roses in the Northern Hemisphere, selection and hybridization has given rise to over 20,000 cultivars. It is highly valued for its form, fragrance and endless variety of color. Dutch Rose and Local Rose are most popular varieties available in the market. The demand of Rose is 2,500-4,000 sticks per day. It is estimated that 5,00,000 rose sticks per annum are produced and around 3,000 plants can be cultivated in a ropani (Table: 3). Everest nursery is the largest producer of Rose and only one to export to Japan.

Table 2: Demand and production of cut flowers

Description	Estimated Data of 2009/2010
Carnation Demand (sticks/day)	1000-1500
Carnation production(in ropanies)	8,000-9,000
Carnation production per annum in(sticks)	6,50,000
Gladiolus Demand(sticks/day)	3,500-4,500
Gladiolus production(in ropanies)	10,000- 1,20,000
Gladiolus production per annum in(sticks)	8,00,000
Gerbera Demand(sticks/day)	1,500-2,500
Gerbera production per annum in(sticks)	3,000
Gerbera production(in ropanies)	6,30,000
Rose Demand(sticks/day)	2,500-4,000
Rose production(in ropanies )	3,000
Rose production per annum in(sticks)	5,00,000

Source: Field survey and FAN, 2010

4.4. Major Producers of Flowers and Floriculture Products

There are about 600 nurseries in Nepal, out of which around 100 are involved in cut flower production. There are no authentic data that exhibit the exact number of farmers involved in cultivation of flowers (FAN, 2010). The researchers have identified the five major producers who are involved in production of cut flowers and who provide continuous supply of products to fulfill market demands.

i. The Standard Nursery:

The Standard Group is the pioneer in introducing many products, services, technologies and concepts in floriculture. The organization has opened up florist shops at different location of the valley and provided delivery services for the convenience of its customers. The nursery occupies 2 hectare of land with 29000 sq. ft. of greenhouse covered area and 10000 shade covered area. Its major productions are gerbera, rose (local and Dutch), carnation, gladiolus, orchid, etc.

The nursery has well trained and experienced human resources, having total of 75 human

resources with following specialty: Ornamental horticulturist, architecture, landscape designer, executive officers, florist, supervisors, skilled and semi skilled workers. The Standard Nursery is counted in the list of largest nurseries in Kathmandu. (Source: FAN and field survey, 2010)

ii. Panchakumari Nursery

Panchakumari nursery was established in the year 2060 BS. Its main proprietor is Hirakaji Maharjan. It has been established in small area with different flowers. Hotels and individuals are regular customers of this nursery. Best season to sale flowers is winter. Flower blooming are Gladdious, Dutch rose, Carnation, Jarbera, Orchid, Godabari etc. 100% seeds are imported from abroad, like Holland, Bangkok India. This nursery supplies flower and plants in Katmandu valley, Pokhara and Butwal. Its sales per day is about Rs 3000 to 5000. In appropriate season per day sale is Rs 15000 to 25000. Profit per month of nursery is 60%. Floriculture business also carries risk with it. Damage and wastage of flowers is main problem. Seven employees are employed as gardener.

iii. Flora United: It was established in 2008. It possesses highest number of producers (around 30-45). It also covers highest percentage (35-45%) of supply in total market.

iv. Flora Incorporation: It was established in 2003, and has the second highest number of producers, (25-30). It covers 32-40 percentage of total market.

v. Flora Nepal Pvt. Ltd.: It covers 10-15 percentages. It produces only Carnation and Rose.

Fig:1. Status of floriculture producers

Source: Field survey, 2010

4.5. Retailers in Kathmandu Valley

Retailers are the people who sale goods or commodities in small quantities directly to consumers. The products are bought from wholesalers generally but they also get from nurseries/growers or they import through personal contacts at the time of low production in winter season.

Women in Floriculture, Chameli and Bodhi Brikchya were the first few retailers of the cut flower in Nepal. They were established in early 1990s. There were four retailers during the start of the cut flower business but, today the number has reached to 58. Daffodil, Florist, Women in Floriculture, Design and Bagmati flora are the some of the major retailers. Generally gift-shops and departmental stores function as retailers to sell cut flowers. These retailers are confined to commercial areas of Kathmandu valley such as Tripureshwor, Chabahil, Pulchowk, Kamalpokhari, Maharajgunj, Kupandole and Paknajol. Figure: 2 and table: 3 show the market price of cut flower (per stick) in retailers shop in different years.

Table 3: Wholesaler and retailer market value of cut flowers during 2008-2010

Wholesale price (NRs/stick) Retailer price (NRs/stick)

Flowers	2008	2009	2010	2008	2009	2010
Carnation	5.37	5.87	6.35	15.5	15.5	15.83
Gerbera	6.58	6.75	7.96	15.5	15.5	15.83
Gladiolus	4.45	4.54	5.35	8.5	9.5	11.33
Dutch rose	7	6.53	6.93	14	14	20
Local rose	3	3.81	4.08	11	11	10

Source: FAN and field survey, 2010

Fig: 2 Graphic representation of cut-flowers in Kathmandu valley:

Whole sale prices of cut flowers (in Rs):

Fig: 3 Retail prices of cut flowers (in Rs):

4.6. Consumers of Floriculture Products

The increase in demand from the past decade indicates the increase in number of consumers. Due to the modernization, the use of cut-flower has increased. Today flowers are being used widely in every traditional, religious-rituals, celebrations and ceremonies. The institutional buyers such as hotels and banks dominate the demand but their demand has remained constant from yesteryears (Figure: 4 and Table: 4). It is the local people that have created increase in demand.

Table 4: Present situation of consumption trend in Kathmandu valley

Constant in demand	Increment in demand
Officials, Foreign diplomatic mission, Hotels, Restaurants	Wedding receptions, conferences, festivals, traditional and various occasions like birth, death, welcome, farewell and other events such as valentine’s day and friendship day

Source: Field survey, 2010

Figure 4: Pie-chart representation of major consumers of cut flowers in Kathmandu valley:

Source: Field Survey, 2010

4.7. Bases of Consumers’ Choice of Cut Flowers

The term cut flower refers to flowers or flower buds (often with some stem and leaf) that have been cut from the plant bearing it. It is usually removed from the plant for indoor decorative use. Typical uses are in vase displays, wreaths and garlands. Many gardeners harvest their own cut flowers from domestic gardens, but there is a significant commercial market and supply industry for cut flowers in most countries. The plants cropped vary by climate, culture and the level of wealth locally. Often the plants are raised specifically for the purpose, in field or glasshouse growing conditions. Cut flowers can also be harvested from the wild.

The consumers select the cut flowers on the basis of some important characteristics of cut flowers. Some of them are as follows:

a) Self life of cut flowers: The main feature of cut flower is its self life. The flowers which do not have certain durability after they are harvested are not categorized under cut flowers. Some flowers are harvested at the stage of bud and some after they blossom completely. However they are harvested they must have self life or durability. Self life of some selected cut flowers are as follows:

Table: 5 Self life of some selected cut flowers

Flowers	During Winter (in days)	During Summer (in days)
Gladiolus	10-15	8-12
Dutch Rose	10-15	8-12
Local Rose	5-10	3-5
Gerbera	12-18	10-12
Cymbidium Orchid	30-45	15-25
Chrysanthemum	5-10	2-4
Irish	5-10	8-12
Tuberose	10-15	8-12
Daffodil	5-10	8-12

Source: Trade Competitiveness of the Floriculture Sub-sector in Nepal (FAN/AEC-2007)

b) Vase Life: Cut flowers have to be managed by keeping them in a bucket or a pot with water. It is necessary to keep them in a vase for their self life. The cut flowers need food and water which should be provided each day by changing water. The stem of the flower has to be cut by 1-2 cm each day by changing water. Thus, the long stem is very important and is directly related to price of cut flowers.

c) Fragrance: Some cut flowers have very pleasing fragrance for which they are important. Such flowers with fragrance are significantly used by consumers for decorating rooms or gifting them in bouquets. Tuberose, some roses, some cymbidium orchids, etc are popular for their fragrance.

d) Colour: Generally, cut flowers embody almost all colours. The consumers can get flowers of their choice of colour. Different colours of flowers are used in different occasions. For example, red roses are highly used in Valentine’s Day, whereas, white flowers are used during mournings.

e) Transportability: The special feature of cut flowers is their transportability. It is difficult for other flowers to be taken from place to place. That is why, there is high demand of cut flowers in international market.

f) Reasonable price: The consumers are getting cut flowers in very reasonable price. While comparing to self life, vase life, fragrance, colour varieties, transportability, the price of cut flowers is very reasonable.

4.8. Buying Behaviour of Nepalese Consumers on Cut Flowers

The consumption of cut flowers or bouquet (cut flower and cut foliage product) has made a giant leap when compared with the consumption pattern in early 90s. In those days cut flower bouquets were rare even in parties of elites. At present, bouquets in parties have become a common fashion or formality. Nepalese flower consumers are of all age groups. The main purpose of buying cut flowers is for gifting. Buying decision is mainly associated by the colour of flowers and their longevity. However, there is difference in the most preferred cut flowers based on age. The middle aged and old generation prefers Gladiolus, whereas the new generation prefers Rose, and the next preferred cut flowers are vice-versa.

On the basis of buying behavior, two categories have been identified: loose form buyers and bouquet buyer. The former is a regular buyer and buys for home decoration whereas the latter is mostly occasional buyer and does so for gifting purpose. For these groups, the most preferred cut flower is Gladiolus and that could be because most of the populations in this category are between middle to old age group whose most preferred cut flower is Gladiolus.

The Nepalese consumer across age groups and buying behavior overwhelming feels that the current prices of cut flowers are reasonable. However, location of florist shop seems to be quite inconvenient and therefore all the surveyed population felt that it should be located in supermarket. Currently, florist shop is located in few supermarkets while the vast a majority of florists are located in a very busy traffic area and are often inconvenient to park and shop.

Older Nepalese consumers were more knowledgeable than their younger counterparts with regard to vase life of cut flowers. However, knowledge in specific keeping systems of cut flowers was poor but identical between the age groups.

In contrast, loose cut flower buyers had more knowledge on vase life of cut flowers and their benefits than the bouquet buyer but neither of the flower buyer applied post-harvest treatment. It is apparent from this survey that loose cut flower buyer who are regular buyer of cut flowers needs to be increased in the near future for rapid floriculture development in this country.

4.9. Import and Export of Cut-flowers

Nepal imports floricultural products and its related goods from UK, France, the Netherlands, Japan, Thailand, Italy and India. The products include live trees and other plants; hybrid seeds, bulbs, roots, ornamental foliage and cut flowers. Cut flower is imported from Thailand, Italy and India. Most of the cut flower comes from India during winter season. The need of import has risen due to the lack of use of modern technology. But from past decade, due to the systematic production of cut flower, import has reduced to some extent.

Nepal has capacity to export cut flowers. But, still there are a few floriculture organizations which export to other countries. Among them, Everest Floriculture exports Roses to Japan. There are some of them which export cut flowers to India occasionally, but in negligible amount. As compared to imports, the export in terms of value has significantly increasing each year.

4.10. Market Channel of Cut Flower in Nepal

Nepal has a tremendous potential in the cut flowers business. Nepal is inefficient to produce the cut flower to fulfill the regular market demands. The public sector and government have to go a long way for the development of floriculture. Even though seasonal demands of the Nepali flowers are fulfilled by domestic production itself, during off-season they are compelled to import flowers from other countries. However, Nepali flower industry is unpredictable because of uncontrolled hold of nurseries in Nepalese market.

Table: 6 Total Volume of Floriculture Transactions In Nepal

SN	Description	Rs (million)
1	Seasonal flowers and plants	25
2	Ornamentals plants	100
3	Shrubs and climbers	20
4	Cut flowers	25
5	Export and domestic trades of Bulbs, Rhizomes etc	20
6	Tissue culture and others	20
7	Landscaping and gardening	20
	Total	230

Source: FAN, 2010

Fig: 5 Floriculture Transaction in Nepal

From the above table and pie chart we come to know that the transaction of ornamental flowers and plant is higher than the others flowers and plant. The transaction of seasonal flowers and plants and cut flowers are very less in comparing to the ornamental plants but slightly higher than the other flowers and plants such as shrubs and climbers, flowers and plants for Bulbs and Rhizomes, Tissue culture, landscaping and gardening.

Table 7. Floriculture scenario in Nepal

Year	Number of nursery (approx.)	Number of district
1992/93	80	2
1995/96	120	11
2000/01	250	16
2005/06	350	34
2007/08	400	35
2008/09	550	38
2009/10	600	42

(Source: FAN, 2010)

Above table indicates the floriculture scenario in Nepal. In the year 1992/93 there were about 80 nurseries in two districts. In the year 1995/96 the number of nurseries increased to 120 in 11 districts. This depicts that people became more aware about the floriculture business and invested in it. In the year 2000/01 number of nurseries is 250 in 16 districts. In the year 2005/06 floriculture business flourished and no. of nursery increased to 350 in 34 districts. Floriculture

business went on blooming day by day in Nepal and in the year 2007/08, the number increased to

400 in 35 districts. In 2008/09 it went up to 550 in 38 districts and by 2009/10 the number has reached to 600 nurseries in 42 districts. This shows that floriculture business is increasing.

Table : 8 Yearly export of floriculture production in Nepal

Years	Yearly export of floriculture production (in million Rs.)
1992-1997	----------
1998/99	0.7306
2000/01	4.007
2002/03	18.3
2003/04	11.2
2004/05	16.23
2005/06	32.63
2006/07	20.85
2007/08	24.22
2008/09	28.31
2009/10	30.52

Source: Trade Promotion Centre, Nepal Overseas Trade Statistics (2009/10)

Above table illustrate the yearly export of floriculture production. At starting phase Nepal didn’t export floriculture productions. Two years later Nepal started exporting floriculture production. In 1998/99 export of floriculture was Rs 0.7306 million. In the year 2000/01 export of the floriculture increased to Rs 4.007 million. Scope and knowledge of floriculture among people is increasing day by day. So in the year 2007/08 export of floriculture was Rs 24.22 million. Similarly the export has gone up to 30.52 million by the year 2009/10

Table: 9 Flower Production Scenario in Nepal on 2008/10

Description	Production (Ropanies)
Gladiolus	345
Rose	255
Tube Rose	10
Carnation	30
Gerbera	20
Orchid	55

Source: FAN, 2010

Above table shows the flower production Scenarion in Nepal. The flower which is cropped most is Gladiolus, it covers 345 Ropanies. Similarly the least cropped flower is Tube Rose which covers only 10 Ropanies.

Chapter V

MAJOR FINDINGS AND SUGGESTIONS

5.1. Major Findings

Cut flowers, bulbs, perennial flowers, ornamental plants, landscape and gardening, floral arrangements, and specific decorations are among important business areas currently practiced under floriculture sub-sector in Nepal. Over the past two decades production pattern is changing according to consumers demand behaviours as well as global market scenarios. Since early nineties, cut flower production system flourished especially with gladiolus and roses. Currently more than 50 cut flowers are available in Nepalese market. Among these 5 cultivars viz. gladiolus, and local roses are grown in open areas and Dutch rose, carnation and gerbera are cultivated under covered areas and are available round the year.

The study has found that the first commercial nursery was established in Lazimpat, Kathmandu as early as in 1957 and until 1985 very few entrepreneurs were involved in this sub-sector. In 1992, there were 4 flower commercial growers in two districts with annual turnover of Rs. 10 million.

According to FAN, the demand for flowers has been going up over the years and the export in the year 2010 went up by 60 million as against the Rs 35 million recorded last year (2009). There are over 160 nurseries in the Kathmandu valley and around 600 across the country spread over an area of 110 hectares. Lately, Nepal has been exporting cut flower to countries such as Japan, India, Kuwait and Qatar, among others. The flower industry, directly and indirectly, provides employment to over 30,000 families.

The volume of flower and ornamental plants being grown commercially is very much limited in Nepal. But the business is expanding gradually. The most common plants that are being grown and have potentials are:

i. Seasonal flowers: Inca (African marigold), Zinnia, Dahlia, Petunia, Pansy, Verbena, Antirrhinum, Calceolaria, Cineraria, Celosia and Renuncolus.

ii. Ornamental plants (non-flowering): this category includes Cycus, Tupidianthus, Phoenix, Aerica Palm ( Palm varieties), Nolina, Phylodron, Dracaena, Dhupi varieties, Ficus species, and similar other plants.

iii. Shrubs and climbers: Under this category falls Rose, Bougainvillea, Bleeding heart, Begonia, and Venista.

iv. Cut-flowers: Gladiolus, Roses, Carnations, Gerbera, Tuberose, Cymbidium Orchid, Chrysanthemum, Aster, Lily, Anthurium, Bird of Paradise, tulips, etc.

v. Bulbs: Gladiolus, Gloriosia spp., Zephyranthus, Haemanthus Multiflora (football lily), Polyanthus (Rosani), Lycoris aurea, Achimenes, Kukurma, Calladium, Amaryllis Hippeastrum, etc.

vi. Tissue culture plants: Bamboo, Orchids, Aster, etc.

vii. Foliage: Asparagus, ferns, Nephrolepis, Cordifolia, Junipers, Thuja, etc.

Commercially grown items are limited to few flowers and ornamental plants. However, their business is expanding steadily. The gross sales record of cut flowers indicates that there has been upsurge in the total number of sticks transacted and there is an increasing demand for cut flowers in the domestic market. The sales record for individual species also depicts a clear increasing trend of volume with decreasing trend of average price for some of the species such as local and Dutch rose, carnation and tube rose. Cymbidium orchid, which is produced in low volume, does not compete with imported ones, shows increasing average price every year despite the increase in volume of production. This indicates still a higher demand for orchid even at higher price.

The consumption trend shows there is flourishing demand for cut flowers during special occasions such as festivals and traditional occasions, welcome and farewell of delegates and diplomats and also while celebrating birth and mourning. Blooming trends have been noticed during wedding receptions. This is a very good sign for the growers. The demand for garlands of marigold during festive season is so high that domestic production alone cannot meet the domestic needs. Likewise, even for other crops, domestic production during winter season is not able to meet the domestic demand and products are being imported from India.

Border trade between Nepal and India is very much common and goes unrecorded for the reasons of complicated, time consuming and costly trade procedures. It has been reported that many export consignments are delivered across particularly during rainy and winter seasons when domestic supplies are limited in India. Similarly, Nepal also receives cut flowers during marriage and festive seasons through many border points.

The consumption trends of cut flowers for the last two years by the types of clients show a flourishing business. Demand grows particularly during special occasions such as festivals, traditional days, special events, such as welcome, farewell, birthdays, mourning, etc. A new culture has evolved to accept flowers positively as gifts, which has become a part of fashion also. This is an encouraging sign for the growers.

The wholesale prices record of FAN for the selected cut flowers show an average decrease in prices of Dutch rose and local rose by significant percent, whereas the price of cymbidium orchid increased annually by about 16%. Such an increase in price of orchid is attributed to the involvement of limited number of entrepreneurs and need for heavy investment and longer gestation period. When average retail price for the cut flowers was analyzes, in contrary to the wholesale price, no distinct change was found for the last three years. Prices remained almost constant. Entrepreneurs have been benefiting by increasing the total volume of transaction rather than the price. This is definitely going to attract interest of more consumers as well as growers.

Government efforts were initiated for the development of floriculture sub-sector during the Fourth Plan period (1971-75) with the setting up of Brihat Bagbani Centre (Floriculture Centre) in Sarlahi district in Southern-central part of Nepal. The farm received technical and financial support from the Indian and Australian governments. About 600 varieties of roses and 200 varieties of bougainvillea and other seasonal flowers were propagated during one and half decades of its operation.

Indeed no substantial public efforts have been made for the development of floriculture sub-sector in Nepal. It is thriving without well-defined policy, strategies and any incentives that help to strengthen Nepal’s competitiveness. Master Plan for Horticulture Development (1991-2010) and Agricultural Perspective Plan (1995-2015) are salient on floriculture aspect. It was only in the Tenth Five Year Plan ( 2001-2006) a general priority thrust was given to the development of floriculture, as one of the high value products. The document is still ambiguous on the roles of government including institutions like NARC and HDD, on R&D, technological upgrading, market promotion, HRD and other supportive measures.

As Floriculture business was not prioritized in earlier plan and policies, very little public supports for its promotion are available as yet. Recently the Government of Nepal (GON) has noted the importance and growth prospects of this sub-sector and is seriously listening to the requests of the floricultural entrepreneurs and other stakeholders.

Nepal enjoys tariff preferences in most of the target markets such as USA, Japan, EU and India. Non-tariff barriers are applicable to all floriculture products in all of these markets. Normal standard requirements of the market have to be compiled with. Therefore, exports of recently commercialized floriculture products to these markets are possible with the submission of pythosanitary certificate (PC) issued by the competent authority in Nepal.

Floriculture is cultivation of ornamental of plants. It encourages small scale and entrepreneurs to undertake commercial floriculture production and ultimately helping poverty alleviation. It helps to create employment and income generation. It also contributes to better living and healthy environment. Floriculture business reminded very traditional before 1990. Now it is flourishing day by day in Nepal. Because of Nepal‘s suitable climate, abundant sunlight, cheap labour, soil and adequate quantities of water this business can be taken as profit making business. Different types of flowers seeds are imported in Nepal from abroad and Nepal export blooming flowers, cut flowers and plants to foreign country.

Big hotels, resorts, banks, offices regularly use flowers in huge amount for decoration. This helps regular increase in revenue. So floriculture business can be the income generating, environment friendly business which makes our country beautiful, prosperous, clean and healthy.

5.2. Suggestions

1. The government should make the policy to encourage the farmers. They should provide subsidies on air freight, provide loans, decrease the interest rates and provide the market to domestic products.

2. The government and private sector should coordinate to initiate the hybrid seed production, and proper research on diseases and pests.

3. There should be construction of cooling storage at international airport and wholesale markets in other districts also.

4. Retailers complain about the lack of skilled manpower for the preservation of cut flower and decoration of the bouquet. Government organizations, agricultural institutes and private floriculture companies must spare some fund for research and development and train the human resources to strengthen floriculture business.

5. Technical knowledge related to post harvest handling, packaging, quality maintenance and preservation of flower has to be imparted to flower growers through the medium of training, conferences and seminars by qualified government personnel.

6. Foreign collaboration should be initiated as it can contribute a lot with respect to technical know-how, capital and market knowledge. The government through industrial policy must provide proper incentive package to foreign investors.

7. Quarantine law should be strictly employed during the import of planting materials from India and other countries.

8. The main purpose of buying flowers in Nepal is for gifting purpose and therefore florists need to understand this and modify their product to compete with other gift items such as cards, chocolates, perfumes, etc.

9. Buying decision of cut flower mainly depends on colour and longevity of flowers and therefore growers and retailers needs to give due attention to this factors.

10. Appropriate location is important for any business and florist shop is not an exception. Majority of the surveyed population preferred florist shop in supermarket where people visit on a regular basis for other items of daily needs.

11. Flower sale in Nepal is occasion based and therefore special efforts should be made to encourage loose cut flower buyer (regular buyer) in addition to bouquet buyer (very occasional buyer).

12. Consumer knowledge of post-harvest handling of cut flower is limited. Awareness campaign should be done to teach consumers the benefit of post harvest treatments.

BIBLIOGRAPHY

Chhetri, B. (1999) Status of floriculture in Kathmandu: Role of tissue culture, Master thesis, Kathmandu University School of Science.

Devtec Nepal (1995), Business Plan for Cut Flower Gladiolus, Kathmandu, Nepal, Devtec Pvt. Ltd.

Floriculture Association of Nepal (2009), Floriculture Trade Fair, Kathmandu, Nepal. Floriculture Association of Nepal (2010), Floriculture Trade Fair. Kathmandu, Nepal.

Prasad, S. and U. Kumar (2005), Commercial floriculture, Agribios (India), Jodhpur, pp.4-5 Shrestha, A., D. Shrestha, and S.D. Joshi, S (1999), Cut Flower Business in Nepal- Performance and Prospects, Master thesis, Kathmandu University School of Management.

Flower Marketing in Kathmandu Valley, Kathmandu, Nepal, Ministry of Agriculture and Cooperative, 2002.

Appendix-1

Organizations

Trade Promotion Centre, Nepal Overseas Trade Statistics

Department of Customs, Ministry of Finance, Government of Nepal

. FAN (Floriculture Association of Nepal)

. AEC (Agro- Enterprises Centre)

. TEPC (Trade Promoting Centre)

Wholesalers

. Flora-United

. Flora Incorporated of Nepal

. Flora Nepal Pvt. Ltd.

. The Standard Nursery

Retailers

. Design’s Fresh Flower Shoppe

. Chameli Nursery

. Women in Floriculture

. Bagmati Flora Pvt. Ltd.

. Daffodils Flowers shop

. Florists

. Kumari Flora

APPENDIX -2

Questionnaire

Name of nursery/ flower shop:

Name of proprietor:

Address:

Contact no.:

(Please answer these question as truthfully as possible because it is for the student research work which will be helpful to other researchers for reference.)

Questions:

1.Which major flowers do you sell?

a………………….. b…….…………….c……………………d……………………..

2. What is the average sale per day?

Approximately Rs. ……………………..

3. Who are the major consumers?

a……………………b……………………c…………………..d……………………….

4.What is the major source of your flowers and other flori-products?

a…………………b……………………..c………………………d………………………..

5. (For Nursery owners) How much land does your nursery occupy?

(In Ropani)……………………………

6. From where do you import the flowers and other flori-products?

a…………………..b………………….…c………......................d………………………

7. What do you import from foreign countries?

a………………….b…………………..c……………………….d……………………

8. Do you export, too? If YES, in which countries do you export?

a……………………..b……………….c………………………d………………..

9. Is local or national production sufficient for the market?

a. Yes b. No

10. What products are in high transaction in the local and foreign market of Nepal?

a………………..b………………………..c……………………d………………….

11. Is government policy supportive to the floriculture business?

a. Yes b. No

12. Have the people related to floriculture business been given trainings of packaging, decoration, etc. formally?

a. Yes b. No c. very few d. as apprenticeship

13. What 4 things that you expect from government and other concerned authorities and organizations?

a…………………………..

b……………………………

c…………………………

d…………………………..

14. How many staffs do you have in your nursery/shop?

………………………………

15. Due to numbers of flower shops and nurseries, is there high competition in the market?

a. Yes b. No c. Occasionally

(Thank you for the participation.)

hemraj

Tuesday, July 30, 2013

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Thursday, August 4, 2011

floriculture...