Western Australia’s largest cut flower grower and wholesaler, Floraco, is set to cease trading on September 30. The company blames rising production expenses that have allowed cheaper imported alternatives to overtake the local market.
According to Flower Industry Australia, imported flowers are estimated to now account for 50 per cent of the cut flowers supplied in Australia.
In an email to customers, seen by The Western Independent, Floraco managing director Guy de Kok said the agricultural landscape had changed significantly.
“The employment market, rising costs, ongoing input material supply issues and government departments seemingly focused on everything but local businesses. It all leads to a situation where the reward does not align with the amount of effort required to produce flowers at the level we strive for,” Mr de Kok said.
Data from the Department of Agriculture, Fisheries and Forestry reveal that in 2023-24, Australia imported $96.7 million worth of fresh cut flowers.
While the cost of imported flowers is kept low, experts at Flower Industry Australia said workers’ rights, pesticide regulations and quality control were often the price that’s been paid.
If the largest WA grower struggled to keep up with the growing import market, what does this mean for the future of small-scale farms?
Co-owner of Paulik Flowers in Beeliar Vera Stanley is a third generation WA grower whose business has been affected by the rising production costs. She now focuses on growing foliage like gum and holly.
“We were growing acres of field flowers and had a staff of 25 working for us. Eventually we had to start scaling down because everything became expensive. We’d be picking 5000–6000 bunches of chrysanthemums for Mother’s Day,” she said.
“The rose growers that were out there, they just could not compete with the prices of the import roses from Kenya and Ecuador. Wholesalers were only paying around $5 for a bunch of 10 or 20 roses at the time.”
Ms Stanley said the long hours amongst the cost of fertilisers, water, electricity and wages are why many of the local growers had pulled the pin.
Owner of The Flower Market Ron Hayward has been in the industry for over 20 years and merchandises across WA supermarket stores and farmer’s markets. In early October, the business will expand into a wholesale division and supply local Perth florists.
Mr Hayward explained 40 per cent of his supply came from local growers. He said there were many benefits to supporting locals.
“The turn-around is a lot quicker, you can get it to the markets a lot sooner compared to the supply-chain of imported flowers,” Mr Hayward said.
“Supporting local businesses and their quality is important. You can probably buy an Alstroemeria grown in Ecuador for cheaper, but one grown here is always going to be better.”
How will this affect local florists?
Florists are facing the brunt of rising prices among higher consumer expectations. Former business owner of SJOG Florist and Gift Shop Julie Di Marco said owning a florist shop had its own challenges of long hours, struggling to get requested stock and choosing between fair, but profitable, prices.
“Any business is hard, but a perishable is another level again.”
Julie Di Marco
“Small businesses won’t be viable anymore, a few big businesses will stay afloat but unless they have a niche market, your strip shop or shopping centre florists aren’t going to be long lasting,” she said.
Categories: Agriculture, Cost of Living, Environment, General