7. CUT FLOWER PRODUCTION IN THE PHILIPPINES - Teresita L. Rosario[7]

1. Introduction

The Philippine Ornamental Horticulture Industry has come a long way since the 70's when cut flowers were considered its major component and the growers were hobbyists or plant enthusiasts. In the mid 80's the industry became a huge income source and potential for a foreign revenue earner. Interest in the commercialization of horticultural products grew to a point where the government recognized its importance and contribution to the local economy. The number and size of farms had continued to increase adopting modern technologies where appropriate and in some cases foreign technology was sourced to boost production and quality. Promotion on the use of Ornamental Horticulture products increased people's awareness of the benefits that can be derived from the industry.

The floriculture industry in the Philippines is almost synonymous with the ornamental horticulture industry; the former connotes flowers; the latter, includes flowers and other ornamentals. The country offers the following horticultural products for both domestic and external trade:

• Cut flowers - fresh flowers and flower buds that have been cut from the plant suitable for bouquets, wreaths, corsage and special flower arrangements.
• Foliage and other plant parts - fresh leaves and branches of trees, shrubs, bushes and other plants, grasses, mosses, lichens and the like suitable for ornamental purposes.
• Dried ornamentals - dried, dyed, bleached plant materials such as grasses, statice, eucalyptus.
• Other ornamentals - trees, shrubs, bushes, roots, cuttings and slips used indoor or for landscape purposes.

The phenomenal growth of the Ornamental Horticulture Industry in the last few years has led the Department of Agriculture to include the cut flower in its Key Commercial Crop Development Program (KCCDP) for 1996 - 2000. The Department of Trade and Industry adopted the ornamental crops as its "Export Winner" and the Department of Science & Technology recognized it in its Science & Technology for National Development (STAND 2000). Young as it is, the industry has shown its vital role in the local economy, and slowly it is penetrating the export market and emerging as a true global competitor.

2. Present Situation of Cut Flower Production

Cut flowers are grown throughout the Philippines but the industry was originally confined only to a few, small growers. In the last few years, an increased awareness and recognition of high return on investments, rapid population growth, higher standard of living, more hotels and restaurants, influx of tourists has led to more demanding and choosy clients. An increased demand triggered more production but despite the larger area devoted to cut flower, there is still a short fall in the supply. The demand for the domestic market is so big that the country has no option but to import some cut flowers, mainly chrysanthemum and orchids from other countries. This is strongly evident during Valentine's Day (Feb. 14), All Saint's Day (Nov. 1), School Graduation (March and April), May Flower Festivals and Yuletide Seasons (December). The major commercially grown cut flower varieties in the Philippines and their area of cultivation are shown in Tables 1 and 2.

In general, gladioli, aster, sampaguita, chrysanthemum and heliconias are grown in the open field. Depending on the cultural and light requirements of the cut flowers grown, greenhouses and net houses are usually constructed both in the highlands like Benguet and areas of low elevations. Semi-terete vandas are grown in the open, usually mounted on driftwoods; strap leaf vandas and dendrobiums on commercial basis are usually protected by 2 - 3 layers of fish nets and raised in pots/baskets.

Anthurium production generally uses a more advanced technology - in greenhouse complete with computerized fertigation facilities. In some areas, net houses provide the necessary light requirements of the cut flowers.

Roses are grown either in the open or in greenhouses, the same is true with the gerbera. Greenhouse structures protect the cut flowers from the intense heat of the sun and heavy rains. Cultural and management practices are also easier to control inside and can be scheduled regularly regardless of the weather outside.

The flowers of Jasminum sambac or sampaguita are usually used as leis or garlands usually with religious connotations. The plants are grown near houses or along roadsides for easy access and convenience on the part of the grower.

Flowering is controlled in chrysanthemum and aster production, usually in the form of supplementary lights. Sometimes growth regulators are applied in chrysanthemums if they are intended as potted flowering plants.

Cold storage to break the dormancy of corms and cormels of gladiolus is available. Post harvest facilities for cut flowers are also available at the University of the Philippines, Los Banos. Big growers have their own storage facilities.

3. Production of Planting Materials

Depending on the kind of cut flowers grown, planting materials are produced through cuttings, bulbs, tubers, corms, tissue culture, embryo culture, etc. For orchids, community pots, flasks/culture bottles, top cuts and overgrown seedlings are purchased either from abroad (Malaysia, Thailand, Hawaii) or from local nurseries. From the initial purchase, the cut flower grower can produce some of his planting materials for the farm.

Chrysanthemums are propagated mainly by cuttings, roses by budding, marcotting and cutting, anthurium by division or production of suckers, gladiolus through corms and cormels, heliconias by division. For big farms, the initial planting materials are imported, as in anthurium and chrysanthemum.

Table 1. Major Producers of Cut Flowers in the Philippines

Cut Flower	Luzon	Visayas	Mindanao
Orchids	Laguna, Batangas	Cebu, Negros Occidental	Davao City, South Cotabato
Anthurium	Laguna, Benguet, Cavite, Batangas	Negros Occidental	Davao City Cagayan de Oro City, Bukidnon
Roses	Benguet, Cavite, Batangas, Tagaytay	Cebu, Iloilo, Negros Occidental	Davao City
Chrysanthemum	Laguna, Benguet	Cebu	Davao City
Gladiolus	Benguet, Laguna	Cebu
Heliconias	Laguna	Negros Occidental	Zamboanga
Gerbera	Laguna, Batangas	Cebu	Davao City
Carnation	Benguet
Aster	Laguna
Shasta Dasies (Chrysanthemum maximum)	Benguet
Zantedeschia aethiopica	Laguna, Batangas, Benguet	Cebu
Jasminum sambac (Sampaguita)	Laguna, Pampangas
Lilium (Oriental & Asiatic)	Laguna, Batangas, Benguet		Davao City
Statice (Limonium sinuatum)	Benguet

Table 2. Varieties of Cut Flowers Commercially Grown in the Philippines

Roses	Mums	Orchid	Anthurium	Gladiolus	Liliums	Heliconia
Red Success Mercedes Golden Times Texas White Liberty Jacaranda Raphaela Athena	Regan Series Fuji Series Taiwan Yellow Puto Puto	Jaq-Hawaii ‘Uniwai Pearl’ Jaquelyn Thomas Singapore White Sonia ‘alba’ Walter Oumae White Fairy Sonia Tuang Pink Waipahu Beauty Burana Jade Burana Fancy Chark Kuan Pink Chark Kuan Blue Chark Kuan Orange Chark Kuan Red Saleha Alsagoff Sumalee	Nitta Kaumana Chandler Midori Margaretha Fantasia Tropical Paradiso Lambada Merengue Leigh Mauricia	Friendship Spic & Span	Stargazer Cordelia	Parrot Parakeet Sase Jacquinii Bihai Caribbean Yellow Caribbean Red Kathy Southern Cross

Mist beds for rooting the cuttings and laboratories for embryo and tissue culture of orchids are available. Government agencies like universities and state colleges, regional offices of the Department of Agriculture and Department of Science and Technology usually offer services for embryo culture of hybrids produced by the grower for a small fee. In this manner, the grower can have his own planting materials. These agencies also sell their own produce to the public. Several growers specially the orchid breeders have their own laboratories and offer their hybrids for sale.

4. Marketing

The key players in the marketing of the cut flowers in the Philippines are the breeders/growers, input suppliers, traders, cooperatives, transporters, brokers, exporters, importers, institutional buyers and walk-in consumers.

New and improved varieties of cut flowers form the backbone of the industry. Breeders, therefore, play an important role by developing the varieties and hybrids and help in the production of planting materials for the commercial growers. Input suppliers include the distributors and dealers of farm chemicals like fertilizers, pesticides, growth regulators and the like.

The traders can be individuals or groups of individuals who distribute cut flowers from the producers to the demand site. The traders could be assembler-wholesalers, assembler-wholesalers-retailers, commission agents, wholesalers, florists, retailers or vendors. Alternatively, members of cooperatives grow cut flowers and the organization itself may handle the selling and distribution of its produce to buyers.

Transport of cut flowers is performed both by land and air e.g. planes, buses, vans, and jeepneys. Processing of papers of imported cut flowers and other supplies are performed by the brokers. Cut flowers are exported by corporations, organizations and individual entrepreneurs. Institutional buyers include hotels, restaurants, banks, offices, hospitals and churches.

The quantity purchased by walk-in customers is minimal, depending on the occasion. Employees, students and housewives are the most common walk-in customers.

There are no auction centres in the Philippines. There are only a few cooperatives that market their produce. Attempts have been made by some people to channel their cut flowers through their cooperatives but somehow, it is easier and more convenient to sell their produce individually.

Export of cut flowers is on a limited scale, with gladiolus topping the kind of cut flower exported. Almost all of it, which is about 46% of the total export, goes to Korea (Table 3). The other cut flowers exported to Japan, Brunei, Hongkong and Italy include anthuriums, liliums, and roses (Table 4). More than half of the exported cut flowers go to Japan.

A list of cut flowers imported in the Philippines is shown in Table 5. Chrysanthemums and carnations constitute the bulk of imported flowers from Australia, Holland and Malaysia. Almost half of the flowers are imported from Holland (Table 6).

Table 3. Cut Flowers Exported, 1996

Cut Flower	Country	% Share
Gladiolus	Korea	46.10
Anthurium	Brunei, Japan	43.49
Liliums	Japan	8.93
Roses	Hongkong, Japan	1.33
Orchids	Italy, Japan	0.41

Table 4. Export Markets of Philippines Cut Flowers for 1996

Country	Cut Flower	Quantity (Kg)	% Share
Japan	Anthurium	9,358.62	53.48
	Liliums	1,933.92
	Roses	279.50
	Orchid	6.00
Korea	Gladiolus	10,000.00	46.19
Brunei	Anthurium	55.62	0.25
Hongkong	Roses	10.00	0.046
Italy	Orchids	3.00	0.013

Source: Bureau of Plant Industry Quarantine Division, Department of Agriculture.

Cut Flower	Country	Quantity (Kg)	% of Total Importation
Chrysanthemum	Australia	102	36.98
	Holland	8,389
	Malaysia	13,566
	Singapore	586
Carnation	Australia	638	22.05
	Holland	7,691
	Malaysia	5,097
	New Zealand	80
Pompom	Holland	176	7.29
	Malaysia	4,292
Roses	Australia	55	6.81
	Holland	3,069
	Malaysia	513
	New Zealand	145
	Thailand	60
	USA	332
Amaranthus	Australia	990	5.35
	Holland	2,226
	New Zealand	60
Alstroemeria	Australia	990	5.35
	Holland	2.226
	New Zealand	60
Lilium	Australia	301	4.19
	Holland	1,984
	Malaysia	141
	New Zealand	141
Gerbera	Australia	78	3.79
	Holland	1,976
	Malaysia	257
	New Zealand	15
Anthurium	Australia	428	3.58
	Holland	1,545
	Malaysia	202
	New Zealand	10
Tulip	Australia	57	2.95
	Holland	1,629
	New Zealand	71
	USA	50
Misty Blue	Australia	72	1.60
	Holland	61
	Malaysia	852
TOTAL			61,224

Source: Bureau of Plant Industry, Quarantine Division, Department of Agriculture.

Country	Cut Flower	%Share
Holland	Tulip, Roses, Protea, Pompom, Peacock, Misty blue, Limonium, Lilium, Iris, Holland, Gypsophila, Gladiolus, Gerbera, Freesia, Banksia, Alstroemeria, Aster, Anthurium, Amaranthus	50.83
Malaysia	Roses, Pompom, Phoenix, Peacock, Misty Blue, Limonium, Lilium, Gerbera, Freesia, Chrysanthemum, Carnation, Baby’s Breath, Aster, Anthurium	39.75
Australia	Amaranthus, Anthurium, Alstroemeria, Baby’s Breath, Banksia, Carnation, Chrysanthemum, Freesia, Gerbera, Iris, Lilium, Misty Blue, Protea, Roses, Tulip	6.84
New Zealand	Amaranthus, Anthurium, Alstroemeria, Banksia, Carnation, Freesia, Gerbera, Lilium, Roses, Tulip	.98
Singapore	Chrysanthemum	.89
USA	Roses, Tulip	.58
Thailand	Anthurium, Roses	.10

Source: Bureau of Plant Industry, Quarantine Division, Department of Agriculture.

The country has its strengths for cut flower production. It has an ideal climate for year round production with the capability to grow both tropical and subtropical varieties.

Considering the wide availability of land waiting for tillage and production of agricultural crops, it would not be difficult to produce cut flowers since suitable production techniques are already available. The richness and diversity of Philippine flora allows the development of varieties of cut flowers with endemic species as parents. A very important factor that contributes to the cut flower production in the Philippines is the existence of a very active horticulture association, of which commercial growing of cut flowers is one of the main objectives.

The Federation of Cut flower and Ornamental Plant Growers, a non-stock, non-profit private organization was formed in 1990 with the support of the Department of Agriculture to assist the government develop the cut flower industry. Its main thrust is service in the different fields where technical manpower support is lacking. The services are on consultation, skills and training, involvement in the marketing of the products of the growers, establish linkages with non-government organizations like USAID, JICA and Dutch-Flamingo International (FMD). The Federation is involved in advocating new policies for the improvement of the industry and its members.

There is still a substantial shortage of supply of cut flowers in the Philippines. Importation of cut flowers from other countries is quite substantial (Tables 5 and 6). Hence, by stepping up the cut flower production within the country, a substantial amount of foreign exchange can be saved.

6. Constraints in Cut Flower Production Development

The high cost of structures like greenhouse, irrigation and postharvest facilities are some of the major constraints to the producers of cut flowers. The availability of quality planting materials most of which come from abroad is sporadic. For new varieties/types of cut flowers like lilium, gerbera and calla, production technology is still insufficient. With new production technology comes the introduction of new agricultural chemicals which are not readily available locally and work out very expensive when imported. This is coupled with high import duties on other inputs too.

Access to credit sources is also another major problem confronting the growers. The interest rates on loans offered by institutions are high. Growers of roses, chrysanthemums, gladiolus, orchids and anthuriums are in need of financial support during the initial stages of production. Collateral requirements demanded by lending agencies are rarely met and the grower faces the dilemma of whether to continue cut flower growing or not.

On the part of the exporters, there is a shortage of cut flowers volume wise and quality wise. The small growers can not compete with big growers. It will be easier to meet the quality, but the volume needs more attention.

The cut flower industry is still in its juvenile stage and not much information on the feasibility and prospect of the business is available. Hence, investors are slow in getting into the business since lending agencies or banks always demand feasibility studies. Big growers are quite hesitant to provide information because of inherent competition.