new idea Cut Flower_for Assignment

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Term Paper on Export Potential Market For Cut Flower

Term paper on

EXPORT MARKET POTENTIAL FOR CUT FLOWERS INBANGLADESH

Prepared by : Fatima KhanId : 80903021Course Name : EIB 11

!heory and Pra"ti"e o# Internationa$Business

%ubmitted to : Pro#essor &'r( Khondo)er Ba*$u$+o,ue'ate o# %ubmission : 'e"ember 2-. 2009

/niersity o# 'ha)a

Internationa$ Business 'epartmentEB Proram

Fa$$ %emester 2009

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December 24, 2009

Professor Dr! "#on$oker %a&lul 'o(ue)ni*ersit+ of D#akaDepartment of nternational %usiness

Subject- Submission of Term Paper on Export Market Potentials of Cut Flower in

Bangladesh

Dear .ir

am please$ to present t#e final *ersion of t#e researc# report title$ /Export Market

Potentials for CUT FLOWER in Bangladesh as a partial fulfillment of EM% pro1ram in

D#aka )ni*ersit+

T#e ob3ecti*e of t#is stu$+ was to fin$ problems an$ solutions relatin1 to export of one of

t#e export potential pro$uct Cut Flower5

T#is stu$+ was *er+ *aluable to me #a$ t#e opportunit+ to 1ain more i$eas an$

insi1#ts about '6M issues an$ relate t#e practical or1ani&ational experience wit#

aca$emic learnin1 t is a totall+ new pro$uct an$ t#ere are man+ obstacles for exportin1

t#e pro$uct.Despite all t#e limitation #a*e trie$ to fin$ meanin1ful an$ lo1ical

conclusion

#ope t#e report on abo*e sai$ title will #elp to represent t#e issue an$ export con$ition

of our countr+ relate$ to t#e specifie$ pro$uct

Finall+ woul$ like to t#ank +ou for 1i*in1 me t#e opportunit+ to work on t#is report an$

for +our *aluable 1ui$ance 7 care an$ t#ou1#tful a$*ice in preparin1 t#is report will

furt#er ent#usiasticall+ respon$ for an+ furt#er clarification w#ene*er +ou re(uire

8ours fait#full+

Fatima "#anD :02;

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Pae

I. Exe!"#$e S!mmar% &

II. C'ap"er () * In"ro+!"#on ,

141 %tatement o# the 5esear"h Prob$em

142 %"ope and 6b7e"tie o# the study

143 ethodo$oy o# the study

14- imitation o# the %tudy

III. C'ap"er (- * An o$er$#e o/ "'e #00!e 1

I2. C'ap"er (3 * F#n+#n40 an+ Ana5%0#0 )-

2. Reommen+a"#on an+ Con5!0#on --

2I. B#65#o4rap'% -&

2II. Annex!re7Appen+#e0 -8

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I. Exe!"#$e S!mmar%

n ;9?@A billion from exportin1

about ;@0 pro$ucts to ;?@ countries aroun$ t#e worl$

n *iew of t#e narrow export base an$ limite$ number of market abroa$,

%an1la$es# #as emp#asi&e$ a polic+ of export $e*elopment rat#er t#an

export promotion T#e basic strate1ies of t#e countr+5s export $e*elopment

initiati*es inclu$e implementation of t#e export=le$=1rowt# strate1+ t#rou1#

implementation of t#e measures pro*i$e$ in t#e export polic+B remo*al of t#e

anti=export bias in t#e econom+ b+ #armoni&in1 t#e tariff structureB furt#er

rationali&ation of tariff structureB an$ promotion of export=oriente$ in*estment

T#e Ministr+ of Commerce #as also taken initiati*es to seek $ut+ free(uota free

market access of %an1la$es#i pro$ucts in t#e markets of $e*elope$ an$

$e*elopin1 countries s a result %an1la$es# #as alrea$+ recei*e$ $ut+

free(uota free market access from a number of countries w#ic# inclu$es

ustralia, ew ealan$, orwa+, Cana$a, an$ E), besi$es 1ettin1 some tariff

concessions for exports to n$ia, Pakistan, C#ina, T#ailan$, 6ussia an$ Turke+

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6eali&in1 t#e nee$ for market $e*elopment acti*ities, t#e 1o*ernment continues

to pro*i$e support an$ assistance in wi$enin1 t#e marketin1 network, t#e

ob3ecti*e of w#ic# is to ac#ie*e 1reater penetration an$ consoli$ation in t#e

existin1 markets an$ $i*ersification into new markets %esi$es, to encoura1e

t#e exporters to establis# market contacts in potential an$ unexploite$ markets,

participations in $ifferent international tra$e fairs #a*e been or1ani&e$ w#ic#

#a*e resulte$ in familiari&ation of our pro$ucts Marketin1 missions comprisin1

t#e $ele1ation bot# from pri*ate an$ public sectors #a*e been sent in or$er to

explore t#e potential of our pro$ucts in t#e 1lobe

s a measure to broa$en t#e export base t#e countr+ #as i$entifie$ a number

of non=tra$itional items #a*in1 #i1# export potential for its furt#er $e*elopment

Due to *arious support an$ acti*ities un$ertaken b+ t#e %an1la$es#

1o*ernment export of some non=tra$itional items like cut flower an$ folia1e

#a*e been possible

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II. C'ap"er()

INTRODUCTION

1.1 Statement of the Research Problem:

To $o a researc# anal+sis on export market potentials for %an1la$es#i pro$ucts

like /Cut Floer/an$ fin$ su11estion to take furt#er $ecision

1.2 Scope and Objective of the study:

To anal+&e existin1 market of Cut Flower in 1lobal tra$e

To anal+&e 1rowt# of Cut Flower export from a lea$in1 exportin1 countr+ in

siaC#ina

To anal+&e an$ compare opportunities between C#ina an$ %an1la$es#

To anal+&e pro$uction of Cut flower in %an1la$es#

To anal+&e $omestic $eman$ of Cut Flower

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To anal+&e export performance of cut flower

To fin$ out 1o*ernment polic+ relatin1 to /Cut FlowerG export

To fin$ su11estions to facilitate export of Cut Flower from %an1la$es#

1.3 ethodolo!y of the study:

T#is paper is mostl+ base$ on recentl+ complete$ stu$ies lon1 wit# t#e stu$ies,

publications an$ reports on online newspaper constitute$ secon$ar+ information

T#e paper is $i*i$e$ into four c#apters inclu$in1 t#e intro$uction an$ t#e

conclusion C#apter two 1i*es a brief $escription of t#e /Cut FlowerG in$ustr+ in

%an1la$es# C#apter t#ree pro*i$es comparati*e anal+sisT#e last section $raws

conclusion in eac# of t#e areas an$ offers strate1ies of $e*elopment for furt#er

efficient mana1ement

1." #imitation of the Study:

T#e stu$+ #as some limitation

Time was *er+ s#ort to $o t#e researc#

Data are collecte$ from internet

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.ufficient $ata were not a*ailable on internet

Direct communication wit# t#e pro$ucer, seller or wit# an+ tra$in1 #ouse

was not possible

III. $hapter%2 : An o$er$#e o/ "'e #00!e

Fort+ +ears a1o, $eman$ for cut flower b+ consumers aroun$ t#e worl$

was satisfie$ b+ local cut flower pro$uction n Europe, per capita

consumption was si1nificant, an$ consumer culture re(uire$ a lar1e

suppl+ of cut flowers for 1ifts, occasions, an$ e*er+$a+ use s a result,

cut flower pro$uction in Europe was si&able Hra$uall+ as transportation

s+stems $e*elope$ t#rou1#out t#is re1ion, it became possible to $istribute

cut flowers 1rown in sout#ern areas of Europe to nort#ern areas of

Europe Conse(uentl+, t#e European flower in$ustr+ be1an to exten$ its

boun$aries for cut flower pro$uction an$ alon1 wit# t#is expansion 1rew

t#e influence of t#e European flower in$ustr+ T#is back1roun$ #istor+

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coul$ be consi$ere$ t#e be1innin1 of commercial floriculture as we know it

to$a+

T#rou1# t#e ;9


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e(uipment, an$ tec#nolo1+ for new pro$uction operations in siaTo$a+

an$ in t#e future, t#e potential for commercial floriculture expansion in

sia, inclu$in1 pro$uction for $omestic an$ export sales of cut flowers, is

1reater t#an e*er before T#e elements for success nee$e$ to transform

t#e sian flower in$ustr+ into t#e worl$wi$e lea$er of commercial

floriculture #a*e been implie$ b+ re*iewin1 t#e e*olution of t#e worl$ cut

flower market place

n %an1la$es# tra$in1 of flowers an$ folia1e is a new concept Jocal

business of flower starte$ 3ust in earl+ nineties, %an1la$es# bein1 1ifte$

wit# fa*orable climatic con$ition an$ fertile lan$ is capable of pro$ucin1 a

lar1e *ariet+ of flowers, folia1es, orc#i$s an$ ornamental plants of

international stan$ar$ En*isa1in1 its potentialit+, t#e 1o*ernment #as put

t#is sector un$er t#rust sector an$ pro*i$e$ necessar+ incenti*es in t#is

re1ar$ T#e cut flower in$ustr+ in %an1la$es# is small w#en compare$ to

1lobal market %an1la$es# is a new entrant in t#e cut flower business

T#e most non=tra$itional item #as now become a promisin1 one, t#e

export of w#ic# re1istere$ a p#enomenal 1rowt# of ?@A0


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Flower s+mbolic beaut+, purit+, peace an$ lo*e T#e+ are intricatel+

associate$ wit# social beliefs an$ no social function is complete wit#out

t#e use of flowers T#e annual 1rowt# potential of floriculture is 2A=:0K

w#ic# is man+ times more t#an t#at of cereals t t#e same time,

competition is also increasin1 worl$wi$e n$ian floriculture #as recentl+

witnesse$ commen$able c#an1es w#ic# #a*e transforme$ it from a

#obb+ist acti*it+, to a commercial enterprise Flowers now merit attention

for t#eir economic 1ain as muc# as for t#eir aest#etic *alue Lpenin1 up

of t#e worl$ market in t#e TL re1ime is pa+in1 wa+ to free mo*ement

of floricultural pro$ucts worl$wi$e, 1lobali&ation an$ its effect on income

1eneration #a*e all contribute$ to increase in per capita consumption of

flowers in most countries Cut flowers occup+ a uni(ue position in t#e

floriculture in$ustr+

it# special care, fres# flowers can be en3o+e$ for t#e lon1est possible

time T#e basic nee$s of fres# cut flowers an$ folia1es are #i1# (ualit+

water su1ar for foo$, #ealt#+ en*ironment an$ sanitation

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I&. C'ap"er (3 * 'indin!s and (nalysis

!pportunities for cut flower export from "sia

T#ere is consi$erable opportunit+ in bot# export an$ $omestic markets for cut

flowers from sout#ern sia n case of export markets, it seems reasonable to set

1oals wit# respect to enterin1 1lobal markets

%elow is a table s#owin1 $ifferent markets an$ t#eir c#arateristics

countr# Characteristics

$ Countries in "sia % &apan'(orea' Taiwan' Singapore

the# are relati)el# near*

shipping re+uirements in terms of

posthar)est storage ha)e been minimal

, Countries in -orth "merica %

Canada and .S"* Central

Europe

The capabilit# for the "sian flower industr#

to initiall# offer these export market

customers low prices

a full production mix'

con)enient and reliable shipping ser)ice

will increase the chances of gaining

market share in a market place which

alread# has suppl#

/ Countries in Eastern Europe there will be opportunities for marketing cut

flowers from Southeast "sia to Eastern Europe'

particularl# northeastern Europe

"nal#0e growth of Cut Flower export from a leading countr#%China

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C#ina #as emer1e$ as a ma3or pla+er in t#e boomin1 worl$wi$e tra$e in #i1#=

(ualit+ cut flowers an$ #as s#own #ow export=le$ 1rowt# can be a powerful

anti$ote to rural po*ert+. n fact, t#e 1rowt# of t#e in$ustr+ in 8unnan #as been so

successful t#at it is now a business partner of t#e worl$5s lar1est cut=flower

auction, t#e !erenigde Bloe"en#eilingen $als"eerI%! alsmeer flower

auction in t#e et#erlan$s T#e I% #as a stron1 lon1=term interest in

ensurin1 t#at 8unnan meets international stan$ar$s

series of critical $e*elopments $urin1 t#e ;990s saw t#e *illa1e=le*el in$ustr+

1row rapi$l+, an$ subse(uentl+ 1ain entr+ to international markets "e+ steps

inclu$e$-

n ;994 t#e farmers in 8unnan create$ a cooperati*e an$ t#eir annual

pro$uction of 2;0 million cut=flower stems outstrippe$ t#at of .#an1#ai

%+ ;99A success brou1#t pro*incial 1o*ernment attention an$ t#e critical

$ecision t#at t#e public aut#orities woul$ support t#e in$ustr+5s 1rowt#

biolo1ical resources $e*elopment plan was establis#e$ to furt#er $i*ersif+

pro$uction awa+ from sta1natin1 tobacco an$ low=mar1in *e1etable

crops

%etween ;994 an$ ;99@ t#e tobacco in$ustr+, formerl+ t#e pro*ince5s

$ominant sector, in*este$ more t#an ).> ; million in t#e e*ol*in1 cut=

flower in$ustr+, a mo*e t#at encoura1e$ ot#er in*estors to back t#e new

in$ustr+ T#is in*estment facilitate$ t#e crucial intro$uction of international

expertise

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n$ustr+ an$ market anal+sis b+ cut=flower experts #i1#li1#te$ important

c#allen1es for 8unnan5s rapi$l+ 1rowin1 cut=flower sector T#ese inclu$e$-

insufficient un$erstan$in1 of t#e markets, bot# $omestic an$ internationalB

lo1istical issuesB an$ tec#nical c#allen1es relate$ to t#e intro$uction of

new *arieties T#e resultin1 report saw t#e creation of t#e 8unnan Flower

ssociation 8F! in ;99


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w#ere insistence on #i1#=(ualit+ cut=flower pro$ucts is paramount #as

3umpe$ to :0 million,

excee$in1 t#e tar1et set for 20;0

1TC promotes alternati)es to commodit# exports

.ince t#e earl+ $a+s of its existence TC #as been in*ol*e$ in explorin1

market opportunities for off=season fruit an$ *e1etables, as well as cut

flowers, as an alternati*e to commo$it+ exports from $e*elopin1 countries

T#rou1# fiel$ pro3ects in a number of countries in all $e*elopin1 re1ions, it

exten$e$ tec#nical cooperation to #elp farmers take a$*anta1e of t#ese

opportunities

it# #in$si1#t it is safe to sa+ t#at TC assesse$ t#e $e*elopin1 countr+

potential for flower exports correctl+ n ;9?0, t#e worl$ import market for

cut flowers amounte$ to ).> ?A0 million %+ 2002, t#e market #a$

increase$ almost fi*efol$ to o*er ).> 4 billion n ;9?0, $e*elopin1

countries #el$ less t#an a ;0K s#are in t#is market n 2002, t#e+

accounte$ for a market s#are of o*er :0K

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!pportunities for production of Cut flower in Bangladesh

Tuberose, rose, orc#i$ an$ mari1ol$ are amon1 t#e ma3or flowers t#at

make up %an1la$es#s floral basket for exports

Compare$ to an+ ot#er a1ricultural pro$ucts flower plants #a*e fetc#e$

t#e culti*ators muc# more #i1#er net profits T#eir profit ran1es are

approximatel+ :@ percent from rose culti*ation, A? percent from mari1ol$,

an$ 9< percent from 1la$iolas

Production of flowers in Bangladesh

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;0000 culti*ators all o*er %an1la$es# are en1a1e$ in nursin1 a *ariet+ of

flowers an$ folia1es on :000 #ectors of lan$

T#is +ear ;04


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oer an annua$ sa$e o# !a)a 1 "rore orth o# #$oers supp$yin

s tota$ #$oers #or both domesti"

"onsumption and eAportation44 !he "ountry>s #$ora$ reo$ution

as initiated by an enthusiast named %her $i o# Panishara

i$$ae under ?od)ha$i union ho too) a bo$d enture ba") in the

year 1982 bain a handsome pro#it o# !a)a to hundred

thousand #rom "u$tiatin tuberose on his #ather>s 33 de"ima$s o#

$and settin a histori"a$ $andmar)4

Iilla1es suc# as Panis#ara, "ris#na C#an$rapur, Towra, Patuapara,

.+e$para, abina1ar, Manik#ali, %e3iatala, Han1a$#arpur, .#imulia,

n$olputa, Oamla1i, %arbakpur, C#apatala, Haburapur, "#as#k#ali,

6amc#an$rapur, ilkant#a a1ar, an$ %orni #a*e #u1e business potential

of floriculture

Export performance of Cut Flower from ,223 to ,224

Export fi1ure of Cut Flower is 1i*en below

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n million ).D

200@=200< 200


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0*er200@=200

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