Office of Agricultural Affairs, Tokyo Royal Thai Embassy Report for Research Study on Thai Flowers and Cut Flowers in Japanese Market September 2008 Key Research Net Corporation No.11 Riki bldg., 7-5-34, Akasaka, Minato-ku, Tokyo 107-0052 Tel 03-5563-0868 Fax 03-3583-5555 [email protected] www.keyresearchnet.jp Contents Summary ------------------------------------------------------------------------- 1 Introduction ---------------------------------------------------------------------- 5 I. Position of Floricultural Industry in Japan ----------------------------- 6 (1) Flowering plants indispensable to people’s living -------------------------------------- 6 (2) Leveling-off demand for flowering plants in Japan ------------------------------------- 6 (3) Growing import of flowering plants ------------------------------------------------------ 7 (4) Necessity of production cost reduction ------------------------------------------------- 7 II. Flowering plant markets in the world----------------------------------- 8 (1) Producing square measures for flowering plants in the world ------------------------ 8 (2) Production value of flowering plants in the world -------------------------------------- 8 (3) Growing consumption in Western countries and stagnant consumption in Japan -- 8 (4) Retail distribution channels in the world flower markets ------------------------------ 9 III. Productions of cut flowers/flowering plants in Japan ------------- 11 (1) Production square measures for cut flowers and flowering plants in Japan -------- 11 (2) Production value of cut flowers and flowering plants in Japan ---------------------- 11 (3) Future prospect of flowering plant production in Japan ------------------------------ 11 (4) Situation on number of registrations for new varieties of flowers -----------------24 IV. Import of cut flowers and flowering plants in Japan -------------- 28 (1) Laws and regulations applicable to the imports of cut flowers and flowering plants ----------------------------------------------------------------------------------------------28 1. The Customs Law ----------------------------------------------------------------------------28 2. Plant Protection Law ------------------------------------------------------------------------28 3. Convention on International Trade in Endangered Species of Wild Fauna and Flora (Washington Convention) ---------------------------------------------------------30 4. Plant Variety Protection Law ---------------------------------------------------------------30 (2) Import of cut flowers and flowering plants ---------------------------------------------30 1. Decreasing domestic production and increasing import --------------------------------46 (3) Plant quarantine on imported cut flowers -----------------------------------------------47 V. Distribution of cut flowers and flowering plants in Japan -------- 50 (1) Distribution of flowering plants ----------------------------------------------------------50 (2) Distribution of cut flowers ----------------------------------------------------------------50 1. Cut flower markets ---------------------------------------------------------------------------50 2. Article characteristics of cut flowers ------------------------------------------------------56 3. Markets for orchid ---------------------------------------------------------------------------59 (3) Wholesale markets for flowering plants -------------------------------------------------68 (4) Wet-type refrigerated distribution by bucket and others ------------------------------68 VI. Market trend and consumption trend of cut flowers and flowering plants in Japan ------------------------------------ 72 (1) Market trend revealed by interviews with industry participants ---------------------72 (2) Market trend revealed by consumer questionnaire survey ----------------------------74 1. Consumer questionnaire at flower shops -------------------------------------------------74 2. Consumer questionnaire survey at flower schools --------------------------------------84 3. Flower consumption trend in Japan revealed by consumer survey ------------------90 (3) Retail market of cut flowers ---------------------------------------------------------------91 (4) Market trend and consumption trend in flower markets in Japan (Conclusion) ---94 (5) Future perspective of flower consumption market in Japan --------------------------94 1. For expanding flower consumption -------------------------------------------------------94 2. For expanding Den-phalae consumption -------------------------------------------------95 3. Introduction of MPS (Flowering plants certification system) -------------------------95 VII. Cut flowers in Thailand ----------------------------------------------- 101 (1) Import of orchids-------------------------------------------------------------------------- 101 (2) About dendrobium phalaenopsis (Den-phalae) --------------------------------------- 103 1. Wholesale price of Den-phalae ---------------------------------------------------------- 103 2. Production of Den-phalae in Thailand and its export to Japan -------------------- 103 3. Import of Thai Den-phalae in Japan ----------------------------------------------------- 109 4. Shipment of Den-phalae from farm to its arrival in Japan -------------------------- 110 5. Import and export cost for Den-phalaes ------------------------------------------------ 111 6. Comments by importers not handling Den-phalae ------------------------------------ 111 7. Consumers’ comments on Thai Den-phalae ------------------------------------------- 112 (3) Other Thai flowers ------------------------------------------------------------------------ 112 (4) Japanese consumers’ comments on Thai flowers in interview-style surveying at shop fronts ----------------------------------------------------------------------------------- 112 (5) Position of Thai cut flowers in imported cut flower markets in Japan ------------ 112 1. Position of Thai cut flowers in import markets in Japan ----------------------------- 112 2. Competitions between Thai cut flowers and domestic or other countries’ cut flowers ------------------------------------------------------------------------------------- 112 (6) SWOT of Thai cut flowers -------------------------------------------------------------- 113 1. Strength -------------------------------------------------------------------------------------- 113 2. Weakness ------------------------------------------------------------------------------------ 114 3. Opportunities ------------------------------------------------------------------------------- 114 4. Threats --------------------------------------------------------------------------------------- 115 VIII. R&D and technical development for flowering plants in Japan ------------------------------------------------------------------------ 117 (1) National Institute of Floricultural Science (NIFS), National Agriculture and Food Research Organization ---------------------------------------------------------------- 117 1. About NIFS --------------------------------------------------------------------------------- 117 2. Cultivation and blooming regulation study team -------------------------------------- 118 3. New character flowering plant development study team ----------------------------- 118 4. Flowering plant quality analysis study team ------------------------------------------- 118 5. Development of new variety ------------------------------------------------------------- 118 (2) Research Institute of Environment, Agriculture and Fisheries, Osaka Prefectural Government ---------------------------------------------------------------------- 120 1. New technique to cut buds for quality preservation ---------------------------------- 120 2. Quality preserving technique for distribution ------------------------------------------ 120 3. Imported flowers and domestic flowers ------------------------------------------------ 120 4. Contrivance for flower production ------------------------------------------------------ 121 IX. Floriculture enterprises in Bangkok and Chiang Mai ----------- 121 X. Advices to Thailand ------------------------------------------------------ 122 (1) Den-Phalae --------------------------------------------------------------------------------- 122 1. Refrain from excess supply to Japan ---------------------------------------------------- 122 2. Elimination of short supply period (off-crop season) --------------------------------- 122 3. Invention of new variety of Den-phalae ------------------------------------------------ 122 4. Regular shipment on specific day of week. -------------------------------------------- 122 5. Indication of size --------------------------------------------------------------------------- 123 6. “Let’s present Den-phalae on special day” campaign -------------------------------- 123 (2) Marketing of flowers other than Den-phalae suitable to Japanese market ------- 123 (3) Alternative production center for domestic cut flowers ----------------------------- 124 (4) Seedling supply business ---------------------------------------------------------------- 124 (5) Ornamental plants ------------------------------------------------------------------------ 125 (6) Fragrance flowers ------------------------------------------------------------------------- 125 (7) Thai flower feature article in Japanese flower magazine --------------------------- 125 (8) Advertisement in flower magazine -----------------------------------------------------