Tanflora exports 1 mn cut roses to Europe

Valentine's Day shipments put agri-zone on a par with Kenya, Ethiopia.

Tanflora Infrastructure Park, the country's first agri-export zone (AEZ) for cut roses, has for the first time exported one million cut red rose stems during the Valentine's Day season, to Europe. This has placed it on par with bulk exporters such as Kenya and Ethiopia which traditionally cater to the European markets.

The Hosur-based park, which currently produces 3 million stems a year, plans to raise capacity to 40 million stems in 2007-08 and 70 million stems by 2008-09. This will make it the fourth-largest rose stem producer in the world.

During this Valentine's Day season, along with the bulk order, Tanflora was able to fetch a better price "� Rs 20 a stem compared with the previous year's Rs 16-18. "Normally, red roses grown in the country fetch Rs 15-18 a stem in the European markets during the season, but owing to bulk supply, our price realisation was higher this year," Managing Director Najeeb Ahmed said.

"We have now demonstrated that an Indian company can match the large farms in Kenya and Ethiopia in volume, quality and cost," Ahmed added.

The country currently has as low as less than 1 per cent share in the estimated $50 billion global flower market, which is growing at 10 per cent every year. Its flower exports are worth more than Rs 300 crore (around $70 million), while the domestic market is valued at about Rs 600 crore.

Higher price realisations have come through a presence in the European flower auction floors. "By securing a membership at the Aalsmeer flower auction in the Netherlands, we were able to sell flowers directly to many European retailers. We have applied for the membership of the Japanese auction centres to reach wholesale importers and supermarket chains," Ahmed said.

For sales, Israel, Africa and India target Europe, Asia and Australia, while South America caters to North America.

Tanflora, a joint venture between Bangalore-based floriculture firm M N Associates and Tamil Nadu Industrial Development Corporation (Tidco), is modelled on the lines of the Israeli co-operative farming. About 25 growers have been allocated five acres each in the park. Plus, there are greenhouses, a central processing facility and a cold storage.

While the cultivators concentrate on growing, Tanflora as a one-stop shop takes care of the water supply, collection to packaging, refrigeration, logistics, marketing, training, technical consultancy and laboratory facilities. Revenues earned are shared between growers and Tanflora in the 3:1 ratio.

Tanflora, with a project cost of Rs 24.85 crore, is the country's first floriculture AEZ. So far Rs 18.1 crore has been invested through Tidco and M N Associates contributing equally to put up an equity capital of Rs 5.82 crore, bank loans of Rs 3 crore, a matching amount from growers and grants from the APEDA (Agricultural and Processed Food Products Export Development Authority) and ASIDE (Assistance to States for Development of Export Infrastructure).

"The success of this co-operative has given APEDA a model that can be replicated for other floriculture belts in places such as Bangalore, Pune, Chandigarh and a few north-eastern states," said R Ravindra, assistant general manager, APEDA south.