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Home£¾£¾ Development Planning For Yunnan Flower Industry


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Development Planning For Yunnan Flower Industry

¡¡¡¡This plan bases its ideas on the opportunities and challenges brought about with China¡¯s entry into WTO and economic globalization, and on the analysis of the development experience and trend of domestic and foreign flower industries. In view of the preponderance and problems with the development of Yunnan¡¯s flower industry, it puts forward development ideas, targets, priorities, and regional layouts for Yunnan¡¯s flower industry in three periods, namely short term (by 2007), mid term(by 2010), and long term(by 2020), and countermeasures to meet the targets. This planning is a new mid and long term planning following the ¡°Ninth Five-Year¡± and the ¡°Tenth Five-Year¡± Development Planning for flower industry of Yunnan Province. It is a guiding document aiming to promote industrial upgrading and realize a long- range, steady, and healthy development for Yunnan¡¯s flower industry.

¡¡¡¡¢ñ.Present Condition of Yunnan¡¯s Flower Industry and Factors in Favor of Its Further Development

¡¡¡¡1.Present condition of the industry

¡¡¡¡A. The flower industry has been of certain scale. In 2002, the flower planting area in the whole province was 7,864.7 hectares and the flower industry fulfilled a total output value of 3.41 billion RMB yuan (equivalent to 0.41 billion US dollars) and earned an export income of 18 million US dollars. The planting area of the fresh-cut flowers (leaves) was 4,000 hectares, accounting for 51% of the total planting area and yielding some 2.334 billion branches of fresh-cut flowers. The planting area of dry flowers was 254.3 hectares and some 3.623 million branches of dry flowers were sold. The planting area of potted flowers, potted landscapes, and potted plants was 344.4 hectares with an output of 9.548 mil lion pots. The planting area of nursery stock was 121.5 hectares, yielding some 14.16 million nursery grown plants. The lawn area was 970 hectares and that of edible flowers, medicinal flowers, and flowers for industrial use was 2,589.3 hectares with an output of 3,211.2 tons.

¡¡¡¡B. Yunnan leads fresh-cut flower production in China. Yunnan has ranked first in the whole country for successive nine years in planting area and output of the fresh-cut flowers, which account for 22% and 26% of the total amount respectively. The fresh-cut flower products of Yunnan take up about 50% of the share in major consumer markets of China.

¡¡¡¡C. The regional layout begins to take shape. There have come into being several production areas of the temperate fresh-cut flowers mainly around Kunming and Yuxi in central Yunnan Province, several production areas of the tropical fresh-cut flowers, tropical orchid, and indoor foliage plants mainly around Jinghong and Yuanjiang in south Yunnan Province, several breeding and production areas of flowering bulb seed balls mainly around Lijiang and Shangri-La in northwest Yunnan Province, and several production areas of nursery-grown garden plants mainly in Honghe, Wenshan, and Simao.

¡¡¡¡D. The occupancy in domestic markets and the export volume increase rapidly. About 80% of the fresh-cut flowers produced in Yunnan are sold to over 70 large and middle-sized cities in the whole country, about 10% to 15% of the flower products are exported to Japan, Singapore, and South Korea, and Taiwan and Hong Kong of China, some products are even sold to Europe and Australia.

¡¡¡¡E. The enterprise structure and function become more and more complete. The business scopes of the 365 flower enterprises in the whole province cover planting, processing, marketing, gardening facilities, and gardening equipment engineering.

¡¡¡¡F. The establishment and operation of Kunming International Flower Auction Market and Yunnan Flower Logistic Center have effectively improved the trading and circulation, and laid good foundation for perfecting marketing system based in production area.

¡¡¡¡2.Major backwardness and problems with the development of the flower industry

¡¡¡¡A. The flower industry is of low industrialization standard and small production scale. There has been no radical turn into specialized, standardized, and intensive production and operation with proper scale.

¡¡¡¡B. There is low scientific and technological standard and lacks powerful scientific and technological supporting system. The flower farmers have received only low standard professional education and insufficient professional training.ª¥

¡¡¡¡C. The marketing system is by no means sound. There is no unified brand and the trading cost is high due to low market growth degree and existence of multiple competitions.ª¥

¡¡¡¡D. The internal industrial structure is far from rational. The temperate fresh-cut flowers outshine other varieties. The breeding and production of the tropical fresh-cut flowers and the cold and cool flowering bulb seed balls are under slow development. The foliage plants make up only small proportion of the total volume of the fresh-cut flowers. The deep processing of flower products and development of other supporting industries lag behind.ª¥

¡¡¡¡3.Factors in favor of the industry¡¯s further development A. Conditions for quickened development have been mature.ª¥

¡¡¡¡The commencement of the early harvest plan of China ASEAN Free Trade Zone focusing on zero tariffs and China¡¯s entry into WTO provide Yunnan¡¯s flower industry with a broad development space. Yunnan¡¯s flower industry will directly face the whole world, especially the regional grand international market with a population of 1.7 billion, a total GDP of more than 2,000 billion US dollars, and a total trade volume of 1,300 billion US dollars.

¡¡¡¡ The implementation of the West Development Strategy, construction of ecological environment, and quickened urbanization offer a good opportunity to flower industry development.

¡¡¡¡ With the guidance and support of governments at all levels, Yunnan¡¯s flower industry develops steadily in production scale and benefit and has been of the foundation for overall upgraded development.

¡¡¡¡The ever-increasing consumption demand has become a driving force for flower industry¡¯s development. The flower consumer market shows high-speed expansion. In recent years, the flower consumption in the world increases by an annual rate of 10% and the domestic flower consumption also grows by over 16%.

¡¡¡¡The international flower production transfers from the developed countries as the traditional production areas to the developing countries, which are of more superior climate conditions, richer resources, and cheaper labors. Such transfer brings an important strategic opportunity to development of Yunnan¡¯s flower industry.

¡¡¡¡B. The possession of superior resources lays a good foundation for further development.

¡¡¡¡a. Climate resources. Most areas in Yunnan suffer from neither bitter winter nor hot summer. On the contrary, they are of mild climate, sufficient sunshine, plentiful rainfall, and free of extreme disastrous weather. Kunming and its neighboring districts in central Yunnan enjoy a spring-like weather in four seasons, being quite beneficial to all-the-year-round planting and balanced production of the fresh-cut flowers. It is a rare area in China that is most suitable for producing fresh-cut flowers.

¡¡¡¡b. Land resources. The per capita land and cultivated field of Yunnan are higher than the average of the whole country. The fields in basin areas that are suitable for planting flowers are of fertile soil in different types and of low land rent.

¡¡¡¡c. Labor resources. There is sufficient labor force with low daily cost.

¡¡¡¡d. Germ plasm resources. With complete mountain vertical climate band and complex and changeable environment, Yunnan takes up only 4% of the total area of the country but possesses over 16,000 varieties of higher plants, including over 2,500 varieties of flowers of high ornamental value belonging to 110 families and about 490 genera.

¡¡¡¡C. The broad flower consumer market brings about favorable commercial opportunity. International markets: International markets demand mainly fresh-cut flowers. There are three major flower consumption centers in Europe, America, and Japan and the per capita consumption shows the trend of increase. The flower industry of Yunnan, so long as it can produce counter-season flowers and flowers of local characteristics of Yunnan with high quality and low cost, will be able to make its way into the markets in Europe, America, Japan, and Australia. Hong Kong of China and Singapore are not only the flower consumer markets, but also the enter-ports of flower export. Although Japan, South Korea, Thailand, and Malaysia are flower producers, Yunnan can make complementary trade with them due to several factors such as weather discrepancy and adjustment of industrial structure. Domestic market: China is the flower consumer market with the greatest potentials in the world. At present, its flower consumption is turning from the group consumption and holiday consumption to household consumption. According to the relevant estimation, the domestic flower consumption of China will increase by 30% during the coming five years.

¡¡¡¡¢ò.Development Ideas and Targets of Yunnan¡¯s Flower Industry 4.Guiding thoughts Closely stick to the main idea of industrial upgrading, build flower industry into one that enriches the people and one with Yunnan¡¯s characteristics that exerts great influence on economic and social development of the province and into a new industry that brings about economic growth.

¡¡¡¡5.Development ideas - Seek guidance from market demand, give full play to resources and regional superiorities, allocate resources in a reasonable way, make efficient use of domestic and international markets, build up an open-style internationalized flower industry. - Seek support from scientific and technological innovation, combine import with research and development, strengthen market competitiveness by upgrading product quality and standard of post-harvest processing technology in an all-round way. - Set up the concept of modern flower industry, lay stress on fresh-cut flowers (leaves and branches), widen and extend industrial chain continuously, build flower industry into a great modern industry with complete functions, including production of fresh and dry flowers, deep processing of flowers, flower seed production, cultivation of nursery stock and ornamental plants, package, preservation, processing, storage, and transport of flowers, material flow distribution, gardening apparatus, horticultural facilities, specialized materials(base material, flower fertilizer, anther), scientific research and education, technical popularization service, and marketing. - Optimize regional layout and form superiority of regional industry in accordance with the natural and economic laws. - Deepen reform and innovate mechanism, develop in a specialized, large-sized, intensive, industrialized, and export-oriented way.

¡¡¡¡6.Development principles Adhere to the principle of open-style development, principle of market guidance, principle of giving full play to regional superiority, principle of developing flower industry on scientific and technological advance, principle of laying equal stress on import and innovation, and principle of giving priority to benefit.

¡¡¡¡ 7.Development targets

¡¡¡¡ A. Overall targets: Build up a flower industry system with distinct superiority, outstanding characteristics, complete functions, and efficient operation within about 20 years, build Yunnan¡¯s flower industry into a new characteristic industry that promotes economic growth of the province and promotes increase of farmers¡¯ income and rural well-off construction, build Yunnan into Asia¡¯s largest fresh-cut flower production and export base and sprout breeding and production base, and into one o f the major fresh-cut flower production areas in the world and a modern flower trading center that is leading in China, advanced in Asian, and acknowledged in the world.

¡¡¡¡B. Phase targets: Short term: By 2007, the flower planting area in Yunnan will be 14,000 hectares and the total output value of the flower industry of Yunnan will reach seven billion RMB yuan, accounting for about 12.1% of the total amount of the country. Taking the figure of 2002 into consideration, the annual increase will be 15.5%. The planting area of the fresh-cut flowers (leaves) will be 8,000 hectares, yielding some 4.5 billion branches of the fresh-cut flowers. The sales volume of the fresh-cut flowers will be 3 billion RMB yuan, increasing averagely by 22% annually. The production value in unit has reached 375,000 Yuan per hectare, which increased by 35% compared with year of 2002. The products are sold mainly in domestic market and the rate of export reaches about 20%, earning some 50 million US dollars from export. The province will produce 50 million seed balls, 210 million sprouts, 30 million pots of potted flowers and potted ornamental plants, 30 million nursery stock, and 10,000 tons of edible flowers, medicinal flowers, and flowers for industrial use annually. The flower industry will offer 540,000 employment posts to the society, bring along some relevant industries with a total output value of 1.2 billion RMB yuan, and make 30,000 rural households lead a well-off life. The province will build up several service systems, including the scientific and technological supporting service system, flower quality standard system, flower production and operation information network, marketing network system, and socialized service system for flower industry. Mid term: By 2010, the flower planting area in Yunnan will be 18,000 hectares. The total output value of the flower industry of Yunnan will reach nine billion RMB yuan, accounting for about 12.9% of the total amount of the country and increasing averagely by 8.7% annually. The planting area of the fresh-cut flowers (leaves) will be 10,000 hectares, yielding some 5.7 billion branches of the fresh-cut flowers. The sales volume of the fresh-cut flowers will be 4.5 billion RMB yuan and the rate of export reaches 30%, earning some 100 million US dollar s from export. The production value in unit will be 450,000 RMB Yuan and with an increase rate of 20% compared with year of 2007, followed with an export rate of 25%. The province will produce 300 million seed balls, 450 million sprouts, an d 15,000 tons of edible flowers, medicinal flowers, and flowers for industrial use annually. The flower industry will offer 500,000 employment posts to the society, bring along some relevant industries with a total output value of two billion RMB yuan, and promote the progress of 20,000 rural households on their way to well-off life. The province will basically build up and perfect the scientific and technological supporting service system, build up the flower industry information network system, advance information construction, build up and perfect material flow network system, realize effective resources allocation, and optimize product structure and regional layout. Its flower industry will enforce the large-sized, intensive, and industrialized development strategy and enhance market competitiveness. Long term: By 2020, the total output value of the flower industry of the province will reach over 20 billion RMB yuan, accounting for 20% of the amount of the country. Yunnan will become the domestically advanced fresh-cut flower production and export base that is of the largest scale in Asia, with an export rate of 40%. The rate of export will reach 50% and some 700 million US dollars of foreign exchange will be earned from export. The output and quality of the seed balls and sprouts produced in Yunnan rank first in Asia. The output value of the edible flowers, medicinal flowers, and flowers for industrial use, and their deep processing products will reach eight billion RMB yuan. Those flower products will become another backbone after the fresh-cut flowers. The province will build up a modern flower trade center, a price and information center, and a flower engineering technological research and development center with relatively strong capacity. It will build up several flower industry groups, realize mechanized and standardized flower production, bring into being industrial information network, safe and convenient storage and transportation, specialized social service, and modernized marketing measures. The flower industry of the province will be of the advanced level in the world.

¡¡¡¡C. Targets of environmental protection: The province will accentuate ecological and green ideas and protect environment and wild flower resources from being damaged. By 2020, it will basically spread or realize the method of producing by media or outdoor growing, popularize use of biological fertilizers, biological pesticides, and organic fertilizers, make rational application of fertilizers and pesticides, adopt clean energies and reduce energy consumption, and pay attention to treatment and cyclic utilization of irrigation water and detoxifying disposal of flower wastes. All the export-oriented products will be granted MPS Product Quality Attestation. ¢ó.Development Priorities and Regional Layout of Flower Industry of Yunnan

¡¡¡¡8.Development priorities

¡¡¡¡A. Priorities in product development In developing flower industry, Yunnan will lay stress on production of the fresh-cut flowers and attach first importance to strengthening scientific and technological advance and innovation of the major fresh-cut flowers. It will make great efforts to develop flower seed production, establish and perfect breeding system for flower seed balls, sprouts, and seeds and build up the production and supply base of flowering bulb seed balls at the national level. Another focus will be put on the cultivation and development of markets and establishing corresponding and complete marketing networks all over China. Yunnan will construct a logistic system meeting with the international standard so as to promote the greater production.

¡¡¡¡B. Priorities in scientific and technological research and development a. Introduction and breeding of new varieties, b. Introduction and research of breeding technologies for flowering bulb seed balls, c. Protection, development, and utilization of wild flower resources, d. Introduction and research of technologies on flowers¡¯ post-harvest processing, preservation, storage, package, and transport, e. Introduction and research of key technologies on flower production, f. Introduction and research of flower greenhouse facilities, equipment, and base material production technologies.

¡¡¡¡C. Key construction projects a. Construction of the Yunnan Flower Technological Engineering Research and Development Center, turning it into the leading unit in flower breeding and modern flower industrialized production. b. Model export base in central Yunnan Province for high quality lily (1,000 hectares), monthly rose (2,000 hectares), and carnation (3,000 hectares). c. Construction of a domestic breeding and production base for commercial flowering bulb seed balls with a building scale of 650 hectares and an annual output of 100 million flower bulbs of various varieties. d. Construction of Yunnan flower logistic network. e. Construction of Yunnan flower information network system. f. Industrial development for the media production friendly to environment. g. Construction of modern flower production facilities and equipment. h. Construction of the Yunnan Flower ¡¡¡¡¡¡

¡¡¡¡Culture Center. i. Construction of production base for edible flowers, medicinal flowers, and flowers for industrial use, and refined and deep processing project. 9.Regional layout

¡¡¡¡A. Temperature fresh-cut flower production district in central Yunnan (Kunming, Yuxi, Qujing, and Chuxiong): Focus on the fresh-cut flowers, and moderately develop potted flowers, potted landscapes, and potted ornamental plants and temperate and subtropical nursery stock.

¡¡¡¡B. Flowering bulb and seed ball breeding district in northwest Yunnan (Lijiang and Diqing): Flowering bulb breeding in Shangri¡¯La County (for tulip) and Gucheng District and Yulong County (for lily, common calla, calamus, and short-tubelycoris), try to become the largest breeding base and supply center in China for flowering bulb seedballs, collect, sort out, domesticate, develop, and utilize the rich alpine wild flower resources of the ¡°Three Parallel Rivers¡± Nature Reserve in a planned and step-by-step manner.

¡¡¡¡C. Local characteristic flower district in west Yunnan (Dali and Baoshan): Focus on orchid, azalea, and camellia, set up resources nursery with a view to protecting resources, realize commercialized and industrialized production of local characteristic flowers by adopting high-tech breeding measures and quick breeding technologies.

¡¡¡¡D. Tropical flower and foliage plant district in south Yunnan (Xishuangbanna, Simao, Yuanjiang, Xinping, and Eshan): Focus on tropical fresh-cut flowers, orchid, leaf-cut (branch-cut) plants and develop temperate fresh-cut flower production in winter. For some areas, the ornamental plants and nursery stock also should be developed.

¡¡¡¡E. District in southeast Yunnan (Honghe, Wenshan): Focus on foliage plants, potted landscape, and nursery stock, and quicken construction of production base and market for garden plants belonging to Magnoliaceae, Lauraceae and Palmae families. In addition, the following places have certain foundation and potentials in developing certain flowers and plants: Kunming in planting dry flower materials, Luxi County in planting pyrethrum for industrial use, Zhanyi County and Jianshui County in planting the pigment flower of marigold, Honghe and Simao in planting medicinal Erigeron breviscapus and dendrobe, and Yuanjiang in planting jasmine for tea making. They should depend on their own superiorities and quicken their development pace.

¡¡¡¡¢ô.Countermeasures for Development of Yunnan¡¯s Flower Industry 10.Strengthen macro regulation and control and lay a good foundation for upgraded development of flower industry Study, stipulate, and enforce industrial policies, strengthen efforts in poverty alleviation, and increase construction of basic facilities and facilities for public good and scientific and technological investment, perfect policy and regulation systems, establish and consummate early warning mechanism for industries, and realize systematism and institutionalization for supporting and protecting flower industry, strengthen publicity and bring along consumption, organize the corresponding legislation system and strengthen the industrial supervision and the execute of the law so as to protect the benefits of breeders and legal users, strengthen macro regulation and control, and promote the sustainable and healthy development of flower industry.

¡¡¡¡11.Depend on scientific and technological innovation, and upgrade scientific and technological standard of flower industry Set up and consummate flower scientific and technological research, development, popularization, and service system, promote integration of production with academic research with enterprises as the main body, encourage enterprises to set up their own scientific and technological research and development organs, encourage scientific and technical personnel from colleges, universities, and scientific research institutes, on the premise of giving no harm to the interests of their home units, to participate in enterprises¡¯ flower scientific and technological advance and innovation with their proprietary technologies and productive elements such as sprout, and in turn to receive the corresponding distribution from proceeds of technical development, strengthen scientific and technological integration of flower industry, strengthen research and brainstorm of key industrial technologies and common technologies and strengthen popularization and application of the advanced applicable technologies, prepare scientific and technological development planning for flower industry of the province in accordance with development trend of industrial technologies, establish and consummate encouraging mechanism and protect intellectual property.

¡¡¡¡12.Strengthen marketing measures and promote entry of Yunnan¡¯s flowers into world markets Construct marketing platform for flower industry, build up and support leading specialized enterprises and intermediary service institutions, and carry out multi-level and multi-channel marketing strategy, strengthen market network construction, strengthen construction of ¡°green passage¡± for flower marketing, improve trading modes and upgrade trading standard.

¡¡¡¡13.Enlarge investment and bring varied investing and financing channels into being Increase proportion of financial fund investment, improve investment environment and absorb various social funds, establish cooperative relationship between banks and enterprises and increase credit investment, explore financing modes of capital market, give full play to financial measures resulting from policies, and provide flower export with credit insurance and credit support.

¡¡¡¡14.Consummate service and socialized service system Besides scientific and technological supporting system and marketing network system, lay stress on consummating organizational management system, give play to bridge and link role of the Provincial Flower Industry Association in connecting enterprises with government and market, cultivate intermediary organizations, including the specialized flower economic organization with flower farmers as the development subject and beneficiary, consummate intermediary service function and strengthen trade service and trade self-discipline, consummate standardized production and management system, consummate industrialized service system.

¡¡¡¡15.Regard talents as the fundamental factor, and strengthen construction of talent groups in science and technology, production, operation, and management Harmonize education resources, cultivate multi-level and high quality talents for flower enterprises in science and technology, operation, and management, give more and deeper training on productive technologies to flower industry personnel and flower farmers, introduce high level flower talents at home and abroad to start their careers in Yunnan, set up and consummate encouraging mechanism, encourage talents in various fields to display their abilities, encourage talents flow, establish talent and expert bank, and carry out consultation for decision making.

¡¡¡¡16.Broaden opening up and strengthen international exchange and cooperation Keep on making use of the present international cooperation projects and try hard to establish new projects, learn and use for reference the experience of the advanced countries in developing flower industry, track and import new varieties, advanced technologies and management experience and put them under satisfactory digestion, assimilation, and innovation, seize the opportunity that flower production begins to transfer from the developed countries to the developing countries to enlarge the scale of foreign investment under use and increase proportion of the foreign-investment enterprises, go abroad to actively participate in various international flower exhibitions and forums and publicize Yunnan¡¯s flower products and enterprises, encourage qualified enterprises to set up entities and enter markets in foreign countries, strengthen intellectual introduction and the work of dispatching the relevant personnel to visit and study in foreign countries. --------------

By Leading Team of Development Planning for Yunnan Provincial Flower Industry December 5, 2003
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