Flower exports 'wilt'

Press, 1 November 1985, Page 21

Flower exports 'wilt'

The Japan study would have been useful to the cut flower industry a year ago, but now it was irrelevant because of the Government’s economic policies, said Mr Robin Gormack, chairman of the New Zealand Flower Council.

Mr Gormack said he was concerned that flower exports to Japan would almost cease during the coming year because of the Government’s policies. The policies were causing the cut flower industry to wilt because the export drive was being strangled. Flower exports had increased from less than SIM to SIOM in four years, but a

major reversal was already taking place. “While our major markets are holding inflation to around 3 per cent, ours is rampant at around 17 per cent.” The effects of high inflation were devastating, said Mr Gormack. For instance, statice (mentioned in the study as a possible export crop to Japan) last year had cost $19.30 for a 500 gram packet of yellow seed. This year it cost $415.15.

“Cost increases such as that make it unprofitable to grow, let alone export.” Heating costs had also increased dramatically and electricity, especially in the South Island where the con-

cession had almost been eliminated, and coal costs had risen significantly. The cost to growers who hadto finance long lines of credit for exporting had risen from II per cent last year to 27 per cent, and air freight charges were up to 55 per cent dearer. Growers also had to pay for M.A.F. inspection and research assistance.

Unless the New Zealand dollar dropped to a more realistic level which reflected the record overseas trade deficit flower exports to Japan and other countries will decline and cease altogether, said Mr Gormack.