Open letter to UFG and all NZ flower growers

open letter to ufg

Hi all, the petition will be handed over to Tony tomorrow after the auction. He is well aware of the letter and was in damage control straight away by ringing me. There is also interest by the press but we only have 10 signatures- far less than anticipated. I am not sure why people were reluctant to sign as I hear everybody complain about the record high prices.

We have a response from Blooming Hill and I have already replied to them- both texts below. I don't know if ufg is going to react at all- it wouldn't surprise me if they didn't. Tony was basically claiming that the pricing is out of their control which is only partially true in my opinion. We can only hope something will change or the pressure will mount...

Thanks again guys, cheers, Martina

15 Shipherd Road, RD3, Puni, Pukekohe, 2678Phone: 64 (09)238 3562 Email: frans@bloominghill.co.nz/ suzette@bloominghill.co.nzwww.bloominghill.co.nz

Dear Florists. In response to the open letter presented to UFG and NZ Flower Growers: We would like to acknowledge receipt and respond as follows: 1.We are aware of the current situation in regard to high flower prices and lack of supply and we realise that these business conditions are tough. 2.We are working on responding to the conditions as best as we can. This takes time to implement.We will inform everyone on our database about our next steps as soon as we are able to. Responding to your questions:(where relevant to us) Not enough product: Low supplyfrom OUR perspective: A lot of growers went out of business over the last 15 yearsbecausethey could not compete withcheapimported product. As a direct result of that, the local flower industryshrank away significantly. There’s been disruption tothe supply of imported products (due to Covid) whichhas exposed this situation. Without imports filling a big percentageof requiredvolumes needed in New Zealand, there’s a majorproductshortage. Local growers cannot immediately increase their production to meet the need.We are going into winter production levelswhich can be substantially lower than summer months. Some growers have crops that were impacted by the Covid lock-downs and they haven’t been able to correct yet. Future Bids hiking prices artificially: This is an economicresult of ‘supply and demand’ and not ‘price-fixing’. There arenot enough flowers foreveryone. Flowers are RARE andprices currentlyreflectthat. The auction is accessible to everyone-so this means that if youreally NEED/WANT to secure a product,you are able to do so,by paying for it. This DOES push prices up!This DOES mean that some peopleare willing to pay ridiculous amounts for things!The auctionservesthe function of ‘establishing true value’;productssellfor what people are prepared to pay for it. Shortages createunfavourable conditions forbuyers. We realise that it’s particularly bleak at present. In the absence of the market-only SOME people would have accesstoproduct. Yes, those peoplemay secure more stable price points, but there would be many peoplewho would just find themselvescompletely shut out. That scenariowould also be unfair and put peopleout of business. We always supply the auction floor for this reason.

When there’s an over-supply in product, as there has been for the last decade, then the tables turn and people pay very low prices for product, often grossly disadvantaging growers. A balance needs to be found: A sweet spot where local growers can sell their product and imported products serve only to supplement the local industry, not undermine it. Times are uncertain. We hope that florists are able to withstand the current difficultiesbecause we need customers to sell to. We anticipatethat the market will stabilise. Other comments: 1.Buyers always pay freight costs. 2.We haven’t had any wholesalers attempt underhanded tactics to secure product. They are also feeling the strain at the moment. 3.We think, and have communicated this to UFG, there needs to be tighter controls on what growers are able to sell and how that product is graded. Better buyer confidence in quality transparency would enhance efficiency and would incentivise growers to ensure what they sell through the auction are off acceptable standards. Being accountable as a grower is essential in ensuring ongoing trust with buyers. I hope this addresses some of the matters.

Kind Regards Suzette and Frans

my reply:

Hi Suzette, thank you for taking the time to answer the letter. I have spoken to Frans in the past and am aware that you guys are serious growers. You grow the best roses (I mean that) but sadly my customers wouldn't pay what I would have to charge them currently.
I am one of the florists who always prefers NZ grown to imported and coming from a Hort. background know that it is very hard to grow flowers well consistently.

There is a big quality issue and we see product on the floor full of native shield beetles, aphids, powdery mildew whatever. Sometimes the auctioneer is made aware and gives us a warning but I agree that there should be more quality control and such product clearly sold as seconds if at all.
Where the auctioneer starts the clock has a big influence on the price of a product and I have seen Rick start some of the lower quality roses (Riverland Nursery's) at $40 a bunch and selling for over $30 since after Mother's Day- just ridiculous. We also seem to have some buyers (probably novices taking part from home) hiking prices such as a bunch of tulips for $9 or calla elfins for $10 (usually 3-4).
The latest Colmar Brunton pole we were asked to take part in sounds as if ufg would like to increase online buying to possibly non florists- that would make the problem even worse- we need a reduction in buyers if anything.
Thanks for letting me know about who pays the freight- this must have changed sometime.
I really feel for my colleagues who pay shop rentals, staff and other expenses related to a shop as some of them will go out of business soon unless a solution can be found,
with kind regards, Martina Tschirky

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