Chapter 1

Floriculture

Introduction:

Background of the study:

Colorful flowers with pleasant fragrance have been a source of attraction to

mankind. Flowers provide pleasure through enlightening colors and spreading

fragrance. Therefore, man has always taken support of flowers as a token of

expression of kind sentiments on number of occasions andconsequently, ever

increasing demand of flowers has made the floriculture of paramount importance

for conducting economic evaluation and marketing investigation.

In Pakistan, there was not any in depth study regarding the economics and

marketing of floriculture. However, some researchers have conducted economics

and marketing studies of floriculture including Valdellon and Lizarando (1983),

Subrahmanyam (1988), Mitra(1989) and Koelemeijer (1991).

The Netherlands, with its geographic location and development of capital intensive

production, has become the world’s main exporter of floricultural products.

Schnieder (1991) compared the production structure and marketing system of

floriculture industry in the Netherlands and recommended rationalizing marketing

in which the profitable segments of the channels should be maintained and the

unnecessary steps eliminated for future growth.

Floriculture in Europe:

Safflower exploitation in European floriculture rapidly increased during the last

two decades of the last century. In the year 2000, 35.2 million flowering stems

were supplied to the (local cooperative flower auctions) and the total value of sales

in that year reached about € 5.3 million, so that safflower was ranked 39th among

all cut flowers in terms of its commercial importance. At the time it was ranked

19th among imported cut flowers, with a sales value of nearly € 2.6 million.

However, from 2001 onwards, flowering stem production and imports of safflower

appear to have decreased and currently safflower is ranked 59th with a total sales

value of only € 3.4 million (19.2 million stems sold). Today, twenty cultivars are

grown for ornamental purposes, although over fourty varieties have been offered

and subsequently rejected in the last decade. Spineless races of safflower are

available as late cultivars only, grown mainly outdoors for dried flower production.

Early varieties recommended for greenhouse fresh flower production remain

weakly spiny. Safflower varieties are still important for the flower trade, but

further breeding work seems to be necessary with the current cultivars.

Safflower is a multi-purpose plant cultivated since ancient times not only for its

dyestuff content in flowers, oil in achenes, and for medicinal activity its substances

but for floristic purposes were a fulgent inflorescence also exploited long ago. In

Egypt, antique safflower wreaths were applied at sepultures. Seed companies

E.C.K. Wrede and J. Moos were offered safflower seeds for gardens as early as the

beginning of the nineteenth century, and many authors reported about the

cultivation of safflower in flower gardens in their times. But in professional

horticultural literature safflower is mentioned as exception only: in larger scale, its

importance is increasing as a consequence of higher demand for dried flowers in

the last two decades of century.

Floriculture in Japan:

In 1603, a new Shogunate（Shogun : a hereditary commander-in- chief in feudal

Japan） was set up in Edo （Tokyo） by the Tokugawa family. During the Edo

period（1603-1868, Japan was isolated because Shogun forbade people to travel

abroad and there was very limited trade with other countries. Therefore, this period

was peaceful and various cultures flourished throughout Japan. Floriculture was no

exception. Every class of peopleemperors, generals, headquarters, merchants and

the commoners ） was fascinated with floriculture. Enthusiasm for floriculture

initially spread among the upper classes, and then permeated quickly to the

commoners. Edo city was full of greenery

and the city itself was like a garden （ Ogasawara, 2008. British plant hunter,

Robert Fortune （1812-1880） visited Edo and described in his book ‘Yedo and

Peking' that ‘One marked feature of the people, both high and low, is a love for

flowers. Almost every house which has any pretension to respectability has a

flower garden in the rear, oftentimes indeed small, but neatly arranged; this adds

greatly to the comfort and happiness of the family.’ The upper classes had large

gardens, while the lower classes kept plants in containers in front of their houses.

Regular flower markets were held in temples and shrines to sell container plants

and they were popular among the commoners. It is considered that Japanese

floriculture in this period led the world. This paper re- views how Japanese

floriculture developed and flourished in the Edo period.

Floriculture in China:

Since the 90s, many Chinese farmers switched from growing vegetables to flowers,

due to higher revenues. Particularly Yunnan province (SW China) has developed

into a major region for flower production, mainly because of the favorable climate.

This province now produces approximately 60% of Chinese flowers and exports

are more and more flowers are exports to other Asian countries. A major problem

is the lack of cold chain. Only at logistic centers as auctions and airports cold

storage is available, albeit inadequate. The packaging and handling is far from

optimal as well. Despite improvements in recent years, plant breeders' rights are

still a problem. Protection is now possible for many species (based on UPOV

1978), but registration and enforcement are inadequate. The Chinese government is

aware of its importance, however, and supported by Plantum NL and Naktuinbouw

the developments are positive. The Dutch sector in China is particularly active in

propagation material, since in that field cultivation technique makes the biggest

difference. In 2006-2007, 6 Dutch companies have established a production facility

in China, backed by EVD grants. Furthermore, a number of Dutch bulb exporters

have been active on the Chinese for many years, often hampered by phytosanitary

problems though. Over 80% of the flower bulbs used in China are imported from

the Netherlands. In the season 2009/10 the value was 25 million euro, up 60%

from the previous season. Lily and Tulip account for 77% and 17% of these

imports. The demand for Dutch propagation material is large, especially when

combined with good cultivation guidance. The retail market is still immature,

especially since it is aimed primarily at low cost and less at quality and new

varieties. Although coming from a low level, China and surrounding markets are

emerging markets, so the quality of demand will grow in the coming years. To let

China make the previously mentioned system jump, there are good opportunities

for Dutch supporting industry with know-how and products, such as greenhouses,

installations, cold storage, training and education, etc., especially if Chinese

governments offer financial support.

International Scenario and Trade:

About 305,105 ha area was under flower production in different countries of the

world, of which the total area in Europe was 44,444 ha, North America 22,388 ha,

Asia and Pacific 215,386 ha, the Middle East and Africa 2,282 ha and central and

South Africa 17,605 ha. Flowers grown under protected greenhouses in different

countries around the world total 46,008 ha. India has the maximum area under

ornamental crops (88,600 ha) followed by China (59,527 ha), Indonesia (34,000

ha), Japan (21,218 ha), USA (16400 ha), Brazil (10285 ha), Taiwan (9.661 ha),

The Netherlands (8,017 ha), Italy (7.654 ha), the United Kingdom (6,804 ha),

Germany (6,621 ha) and Colombia (4,757 ha).

Globally more than 145 countries are involved in the cultivation of ornamental

crops and the area under these crops is increasing steadily. The production of

flower crops has increased significantly and there is a huge demand for

floricultural products in the world, resulting in growing International Flower

Trade. The world consumption of cut flowers and plants is increasing and there is a

steady annual increase of 10 to 15 per cent in all importing countries. Due to

globalization and its effect on income,there is growing per capita floriculture

consumption in most of the countries .In case of developed countries, the

consumption of flowers is closely linked with GNP per capita income and urban

population.

Table.1: World production of flowers and potted plants (in million euros)

Country 2010 share in 2010

Countries 2010 Share in 2010

Eu 10 310 39.4%

USA 4 719 18.0%

China 3306 12.6%

Japan 2606 9.9%

Columbia 1104 4.2%

Australia 763 2.9%

Canada 731 2.8%

South Korea 598 2.3%

Kenya 333 1.3%

others 1726 6.6%

Total 26196 100.0%

Source: AIPH (International Association of Horticultural Producers)/Union Flours

(International Floricultural Trade Association)

Looking to the international situation in the flora culture industry, Holland is

market leader with about 65% of the total sales of flowers and plants. Not only that

but Holland is also maker leader by supplying all kind of young plants material,

seed, equipment and they have a very high standard and they are updated with the

latest trends and techniques. Holland is also the middle point of the daily market in

selling flowers and plants. The two big auctions "Aalsmeer" and "Flora Holland"

which are operating five days a week, play a major role in the international selling

of flowers and plants and what Wall street in New York is for the International

Financial World that are this two auctions for the Flora Industry.

On those auctions the daily world market prices are settled and in a few minutes

people all around the world can follow this by high communication systems and

latest techniques. Last 40 years Holland created a big Flora Culture Industry and

now the day more than 100 countries are sending their flowers and plants to this

market and from there wholesalers send them to customers all over the globe.

Those wholesalers are able to supply each customer with wide range of products.

About every day millions of different flowers and plants in all kind of colors are

available for the International Buyers and all according the International Standards

which took about 40 years to develop and at the moment everybody in the world

are following this International Standards.

The countries like Canada, USA, France, Britain and Italy have well-established

flower industry. Demand for flowers is now even discernible in developing

countries, where cultivation of flowers of various types holds a promise of

increasing economic returns under the efficient and reliable marketing system. In

Pakistan, the flower business is mainly concentrated around the big cities like

Karachi, Lahore, Islamabad, etc. and is also turning towards a booming business.

Therefore, with increasing demand of flowers for number of utilities, flower

business is likely to gain expansion.

Floriculture industry in Pakistan:

Pakistan is also engaged in the production of Cut flowers for past few decades;

however it is an infant industry as far as its growth is concerned. Though Pakistan

has one of the most fertile lands and climatic conditions for production of flowers

are favorable but due to lack of resources and skilled persons the industry has not

been developed at par with other sectors of the economy. Most of the flowers

produced in Pakistan are sold locally and a small quantity is exported to Middle

East. Similarly a large number of fresh cut flowers are wasted due lack of

infrastructure, improper packing, mishandling and other related problems.

But unluckily in agrarian economy of the country, the floriculture remained a quite

neglected segment of agriculture. Thus, this study has been conducted to examine

the economic returns associated with the flower production and marketing margins

of various functionaries involved in marketing channel of flowers in Lahore

market. The main objective of this paper is to determine the economics and

marketing of selected flowers right from producers, retailers, intermediaries to the

final consumers, to identify the constraints in flower business mainly at farm and

retail level and to provide recommendations in enhancing the flower business in

Pakistan.

Pattoki serve is the centre for floriculture activity in Pakistan about 1million of

pieces of cut flower are daily exported from Pattoki to different market in Pakistan

more important of which are Karachi, Peshawar, Lahore and Islamabad.

Production area in Pakistan:

As compared to other provinces floriculture is relatively better developed in Punjab

due to increasing competition in agriculture sector and the presence of major

markets of Lahore, Rawalpindi, Faisalabad and Islamabad. However it is still far

behind in competition at international level. Pattoki is the major center for

floricultural production and marketing in Pakistan. In recent years flower

production has also increased in Kasur and Sheikhupura districts. Other flower

producing areas include Lahore, Chunian, Okara, Kallarkhar, Rawalpindi,

Faisalabad, Narowal, Sahiwal, Gujranwala, Manshara and Abbotabad.

Major buyers of the cut flower are in the larger cities including Karachi, Peshawar,

Lahore, and Islamabad. However marketing of cut flowers in these areas is still

unorganized. In most cities flowers are brought to wholesales markets, which

mostly operate in open yards. The markets are dominated by few flower merchants

who buy most of the produce and distribute them to local retail outlets. The retail

florist shops are scattered at different locations normally operating on roadsides.

The production and consumption of cut flowers has increased over the past decade

and this increase is expected to continue. Demand for cut flowers is growing

tremendously as more and more people are becoming aware of the beauty of

flowers as decorative items. Weddings, birthday parties, seminars, and other such

social gathering events are incomplete without floral decorations.

There is a great scope in value addition of flowers as well specially for essential oil

production of rose, tube rose, jasmine etc. similarly there is a good demand for use

of these flowers specially rose in traditional medicine.

Floriculture exports can earn huge revenue for the government Pakistan has a lot of

potential to develop floriculture. But lack of attention of concern authority is

prevented growth in this sector. The market demand of floriculture products is

growing fast, the chief executive officers of harvest he said that Pakistan is a

country of small farming household agriculture is the best option for enhancing the

income for the poor. They need much less land and the water for production than

other crops. He said net against the investment much higher for these crops as

compared with others convectional crops. He said the product over high demand in

all over the world. He said that there is lack of resources and skilled persons to

developed the floriculture industry up to international standard. Pakistan has export

potential land in global market like UAE, Saudi Arabia, and Russian federation

and European Union. The majority of flowers produced in Pakistan in winter

season. While Europe yield low production is the same season due to snow. It’s in

excellent opportunity for Pakistan to promote the floriculture sector to fulfill the

demand of European market. 8 countries exports 74% of the value of the world

floriculture crops of the Netherland, Israel, Columbia, Italy, Belgium, Denmark

and United States. More than 50% of the floriculture products come from the

Netherland if we compare Pakistan with Netherland we have in area of 20 time

larger, manpower to 10 time, bigger and better climate soil and irrigation system.

And our market need to draw the experience of other countries our production need

to be stream line in according to their policies. And other to compete the world

market we need to study the economic trains, such as shortage or oversupply of

some flowers specious and particular reason as such factor result in change in price

that may become too low to grow them economically flowers prepared in all types

ceremonies as well as in perfume industry and many Auradic and Greek medicine

preparation. Here included the flowers tubrose, tulip, lily, jasmine.

State bank of Pakistan has issued directive to bank for issuing soft loan and order

to boost this industry ZTBL (ZarriTaraqyati Bank Limited ) can also play

important role for boosting this sector in the country.

Types of flowers produces in KPK:

Varieties of Flowers to be Produced

In this report feasibility of following four flowers will be considered for production.

Gladiolus Marigold Statice Chrysanthemum

1.GladiolusThe gladiolus, popularly known as “Sword Lily” is an easy-to-grow flower, especially valued for use in floral arrangements. Gladioli produce tall spikes of large blossoms, in a rainbow of colors including white, pink, red, purple, yellow, orange, salmon, and even green gladioli are available, along with many bi-colors. It is found in South Africa and Mediterranean regions.

Season of growth

"Glads" grow from corms (bulb-like structures) that are not winter-hardy. They must either be dug in September or stored until planting time the followingApril, May, or replaced annually. Some gladiolus experts recommend treating them as annuals because you are more likely to get large, healthy blooms eachyear that way, and you don't have to fuss with storing them.

Special requirement

Plant Gladiolus as early in the spring as the soil is fit to work. Nitrogen has significant effect on the flower health in different

cultivars. The blooming season can be stretched by making succession

plantings, by planting bulbs of several sizes, and by using varieties which take different lengths of time to mature.

Varieties

Gladiolus is found in a variety of types that include both the species and hybrid glads. The different types of species represent the geographic and ecological range of the many species in this genus. The different combination of species used to create the different hybrids has led to the establishment of several different types of hybrids as well.

2.MarigoldMarigolds are hardy, annual plants and are great plants for cheering up any garden. Broadly, there are two genuses which are referred to by the common name, Marigolds viz., Tagetes and Celandula. Tagetes includes African Marigolds and French Marigolds. Celandula includes Pot Marigolds. Merigold originated in Africa and have been cultivated in subcontinent for quite sometime.

Season of growthThe marigold is hardy and easy to grow. They can be grown in wider climatic conditions. It is mainly propagated by seeds. It is a very tolerant plant, growing in any soil that is not waterlogged, but prefers directly by sowing seeds from March and April. Plant to Plant distance should be from 15" to 18" so that branches may have room to spread. The pointed-oval leaves are slightly hairy. The flowers, either single or double, are brilliant yellow or bright orange with long flowering season.Marigolds require approximately 60 to 75 days flowering after seeding; therefore seeding indoors should be done in late Feb. The plants should be ready for planting outdoors late March and early April.

Special requirement Do not fertilize marigolds for 7 to 10 days after transplanting Thereafter use fertilizer about equal in nitrogen and potassium

content. Growers should test medium pH and soluble salts on regular basis. Provide water on weekly basis Plant distance should be selected so that equal amount of sunlight

is available for every plantVarietiesMarigolds come in different colors, yellow and orange being the most common. Most of the marigolds have some odor and has great value in cosmetic treatment. There are many varieties of Marigolds available today. Some of the majorMarigold varieties are listed below:o African or American Marigolds:

o French Marigoldso Signet Marigoldso Mule Marigolds

3.StaticeStatice or Sea-lavender is any of 120 species of flowers in the genus Limonium. The genus was formerly often known by the synonym Statice. Statice Flowers come in white, lavender, and pink colors. The tiny funnel-shaped Statice flowers have a delicate, airy, hazy appearance, almost like smoke.

Season of growthStatice is easy to grow and salt tolerant. Statice Seeds can be initiated indoors 6-8 weeks before planting or sown directly outdoors. Seeds are planted in nurseries in Feb while they are shifted outdoors in March and April.

Special requirement Statice is fairly drought tolerant. Statice Seed can be planted directly inthe ground after frost has passed. Once established, plants can be propagated in spring. Statice is easily grown in full sun and in well drained average to sandy soil. Statice is a low maintenance plant. The plant benefits from a light fertilizer in early spring. Potential pests or diseases are rare.

VarietiesSome species of Statice have an offensive odor. English Statice comes in 1- to 2-inch clusters of Calyxes, each about 1 inch across. Stems are 1 to 1 feet long. TheGerman Statices' small gray bracts arch backward, while the English Statice feature calyxes that are yellow, white, purple, lavender or pink with tiny white or yellow flowers inside. Latifolia Calyxes are white with blueviolet flowers. Statice Flowers can be spray dried with a fixative.

4.ChrysanthemumChrysanthemum was named from two Greek prefixes, 'Chrys', which means golden (the color of the original flowers), and 'anthemon', meaning flower. Chrysanthemums are one of the most popular flowers in the world, next only to the Rose.

Season of growth

Chrysanthemums are easy to be grown and are propagated by division of roots, cuttings and seeds. Chrysanthemums are not specific to any season. Chrysanthemum plants can be grown in any kind of soil, but they require a sunny weather for best performance. Chrysanthemums have a long flowering period. Chrysanthemum seeds are sown in those areas which experience low rainfall during the rainy season. Usually, the Chrysanthemum seedlings are transplanted after about a month of sowing. But sometimes seeds can also be sow directly and seedlings thinned out after germination. Chrysanthemum plants flower in about three months of sowing.

Special requirements Chrysanthemum plants can be grown in any kind of soil, but they require a

sunny weather for best performance. Chrysanthemum seedlings are transplanted after about a month of sowing.

But sometimes seeds can also be sown directly. After the transplants, the Chrysanthemum beds should be weeded and

watered regularly. In some cases staking of Chrysanthemum plants is necessary. A careful check should be made of diseases and insect pests and prompt

control measures adopted to control them.

VarietiesChrysanthemum flowers bloom in various forms, and can be daisy-like, decorative, pompons or buttons. Chrysanthemum blooms come in a huge variety of shapes and sizes. Chrysanthemums come in wide range of colors. In addition to thetraditional yellow, other popular colors are white, purple, and red. They are very popular in floral bouquets and flower arrangements.o Corn Marigold or Corndaisyo Tricolor Daisyo Crown Daisyo Shasta Daisyo Alecosto Yellow Daisyo Fever Fewo Florist´s Chrysanthemumo Pyrethum Daisyo Marguerite

Land / Field Preparation:

The first step for the production of cut flower farm is preparation of Land / Field. First of all the field has to be leveled. Small channels will also be required for water supply. The best way for field will be to divide the field in parallel cut flower fields having water canals on one side and driveway on the other. So the water canal will water the fields on its both side and it will be the case with driveways.Wind can also cause damage to the flowers to protect the site from wind breaking trees or shrubs should be grown around the farm. Artificial windbreaks can also be used if there is a danger of competition between trees and flowers for available moisture and nutrients.Building and other infrastructure is also required for the production of cut flowers which are described in detail in a separate heading. Bed preparation depends upon the variety of the flowers. If plants are relatively tall with dense foliage, the bed should be narrower because insufficient sunlight will penetrate the center of the flowerbed, resulting in poor plant growth. Workers can easily reach 2 feet into a flowerbed to make a proper cut and remove the flower without damaging the crop.So the flowerbeds will not be wider than 4 feet.

Some of the problem faced by the floriculture producer in Pakistan:

It is difficulty of a former to obtain quality plant in the desire variety

Availability of appropriate facilities for harvest and post harvest

management

Non availability of sufficient amount of water in accordance to its need

Lower productivity and high cost of production

Inadequate storage facilities and out debated method used in processing

Inadequate market information

Difficulty in obtaining of suitable land for expansion and in obtaining

financial assistance

Lack of irrigation facilities

Non availability of cold chain storage facilities

Lack of well established information database

Floriculture, or flower farming, is a discipline of horticulture concerned with the

cultivation of flowering and ornamental plants for gardens and for floristrythe

floral industry. Floriculture crops include bedding plants, houseplants, flowering

garden and pot plants, cut cultivated greens, and cut flowers.

Looking to all of this, in Pakistan not much emphasis has been given to this

lucrative business in the past. Recently, Pakistan Horticulture Development &

Export Company (PHDEC) has taken the initiative to promote this important area

of Horticulture with the objective of making Floriculture exports as one of the

sunshine sectors of the country.

Cultivation under controlled environment of Green houses is recommended to

overcome the weather conditions and to provide most suitable growing

environment for top quality and high yield. Green House cultivation is an

expensive medium and can be out of reach of individual farmers

Floriculture in Khyber PukhtoonKhwa (KPK):

The common plants grown by the nurserymen in KPK during a year include Rose

plants, Jasmine, Bouganvallia and other ornamental plants such as Dracena,

Schefflara, Ashoka, Money plants and Elephant Ear etc.

Rose plants are grown by 95% of the total respondents in the research area of

KPK. Rose plants raised from cutting, varies from 200 to 5000 with an average

number of 2720 plants. In district Haripur a large number of rose plants (3750)

were propagated as compare to other districts. More than 95% of the total

respondents propagated jasmine, Bougainvillea and other ornamental plants in the

research area, while the seasonal plants are only raised in two districts such as

Peshawar and Haripur. The result shows that all of the Respondents (99%) grown

ornamental plants in the target area. It is remarkable that like all other floral plants,

ornamental plants were grown in large number of quantity in district Haripur.

Floriculture plants purchased from other Markets:

To fulfill the market demand majority of the sampled respondents purchased

ornamental plants from other markets beside their own produced. Seventy six

percent of the respondents purchased rose plants (6400) on average from other

markets. An average number of Variegated Bouganvellia plants (465) purchased

from other markets by 61% of the respondents, while the other ornamental plants

(3200) were purchased by 67% of the total respondents from other markets. Beside

their own produced large number of floriculture plants purchased from other

markets by the nurserymen in district Haripur.

Beside own produced 76% of the floriculture grower purchased ornamental plants

from Patooki (Lahore), while the remaining 24% purchased ornamental plants

from Gulibagh (Mardan), Tarnab (Peshawar) and Haripur. The plants such as

Rose, jasmine and bouganvellia, purchased from Patooki (Lahore) market were

better in quality and had the ability to attract consumer, while some other

ornamental plants (Araucaria and Ponytail Palm) were not propagated in KPK.

Cyprus plants were mostly marketed from Haripur district. It is interesting that

some of the rose plants produced by their own left for other season, while the

plants purchased from other markets sold during the season because of better

quality. The plants left in the season were transferred from plastic bags to pots and

marketed in the next season on a higher price.

Market channel:

A channel of distribution, sometime called a trade channel, for a product is the

route taken by the title to the goods, as they move from the producer to the ultimate

consumer or final destination. A channel always includes both the producer and

the final consumer for the products, as well as all agents and merchant middlemen

involved in the title transfer (Khan, 1999). Cox and Thomas (1969) defined

marketing channel as: a network of cooperating organizations that together

perform all the activities required to link producers of goods and services to the

end-users.

Thirty eight percent floriculture growers in KPK mainly sold their produce to

wholesalers and directly to the consumer in the local market or at their farm. Some

of the growers (34%) sold their plants directly to the consumers. Those growers,

who have nursery farms in the villages or far away from National High Ways, sold

their floriculture plants to whole seller (18%) or retailer/consumer (10%). In this

business retailer are hawkers, selling from barrows consisting of wooden or straw

baskets. They move from street to street to offer plants for sale. Retailer buys

plants from the whole seller or growers on a credit basis. They repay the amount to

the whole seller or growers the next day, after selling the plants. It is interesting

that most of the respondents in the study area purchased plants from one another in

the local market to make close contact with the consumers and to fulfill the market

demand.

1.2: Farm size of the Nurserymen by various districts of KPK:

District Own area in

kanals

Leased area

in kanals

Lease

Rs/kanals

Peshawar 5.7 3.2 6958

Mardan 7.0 5.2 5255

Haripure 30.1 13.6 3536

Sawabi/kohat 1.0 2.2 5535

Total 43.8 24.2 21284

Source: from published paper

Chapter 2

Literature review

This section deals with the relevant literature to the concerned topic. Mostly the

work done on floriculture sector regarding its economic analysis is analyzed in this

section.

Adenuga (2012) it is observed that the low level of awareness impedes the

potential of horticulture's sub-sector. Floriculture resulted in low level of

employment and enhanced poverty. On the average, there was an economic return

to farmer's labor and management of Nigerian Nira (currency of Nigeria) N174,

974.7/ha. The major constraint was inadequate capital that hindered the production

of floriculture while the use of farm size, labor, manure, educational level,

experience and age of the farmers were having significant influence on the

revenues of the farmers.

Manzoor (2001) there was a return of 1.47 per rupee to Rs. 2.36 to producers from

the production of different types of flowers. While on the other side there was a

return of 1.18 rupees against per rupee spent by the retailer. The floral business

was on limited scale and motivation is needed to expand this business by farmers

through some incentives.

Donohou (2003).The floriculture industry is increasing every year. It is now-a-days

an industry of billions of dollars and employs million of people throughout the

world. For a farm of 50 acres an amount of Rs. 3.39 million of capital investment

is needed for purchasing of machinery, construction and equipment. Besides this,

an amount of Rs. 5.3 million is further needed for the purchase of seeds, pesticides,

fertilizers etc. known as working capital. Combining both together, a sum of Rs.8.7

million is needed for the above mentioned farm. While return from this ranges

from Rs. 8.8 million to Rs. 16 million from first to tenth year of such a project.

Presently, floriculture industry's exports are Euro 5.1 billion and are likely to reach

Euro 9.0 billion by the end of 2025. The floriculture exports stood around Rs.63

crore in India in 1996-97 and tripled into Rs. 211 crore in the year 2004-05. The

industry is directly contributing to the economic development of the country

through creating of employment opportunities and earning of foreign exchange.

Hassan (2012) profitability of using a stratified random sampling of 32 farmers of

flower growers for three districts in Bangladesh. There was a gross margin of Taka

(currency of Bangladesh) Tk.1,359,824.20. Besides this, the average marketing

margin for three intermediaries remained as Tk. 638.39 for Wholesale-cum-

retailer, Tk. 187.56 for BRAC and Tk. 689.72 for retailer in Dhaka City. The

problems faced by the farmers: were price of fertilizer, insecticides, lack of

training and scientific knowledge, pest's attack, plant diseases, poor transportation

and communication system, unstructured market, lack of market information and

problems of marketing. The lack of adequate market information, unsold flowers,

demand fluctuation and lack of storage facilities were also the problems faced by

the flower growers.

Ghule & Menon (2013) around 120 countries are engaged in of floriculture.

Almost 90% demand comes from America, Asia and Europe. Exports of

floriculture for floriculture products were expected to reach to $12 in 2012.

Hemert (2005) the floriculture industry of Netherlands is operating on world level.

Its total exports increased from Euro 5.7 billion in 2002 to Euro 5.9 billion in 2004.

Martsynovska (2005 ) observes the share of follower production by EU is 44%

(i.e. $ 10.8billion out of $ 24.4 billion of the world production) EU remained the

major producer of in flower production, followed by China and USA each

producing 12%, Japan11%, Canada 4%, Colombia 3%, Korea 2% and other 10%

of the world production.

Kinderli B. & Cakmak Belgin (2007) analyzed the problems and potential of

floriculture in Turkey. Classifying the floriculturists into two groups' big-modern

enterprises and small-family enterprises. Four different green houses were selected

to analyze the production of roses and camation (a type of flower). The result

showed that the plastic green house used for flowers production by big-modern

enterprises resulted in more profit as compared to geo-thermal heating.

Gudeta D. T. (2012) conducted his research on the floriculture from pre-harvest

and post-harvest dimension in order to analyze the production level, in his study he

found that lack of human resource development, poor technology, poor

infrastructure, and poor cool chain preserving system were the major problems

faced by the flower growers. During study it was found that due to lack of

facilities, the flower growers had to waste half of their produce due to lack of

storage facilities leading to economic loss of the people as well as the society as a

whole.

Hamrick (2004) Netherlands is the main center for the distribution of world

flowers with its computerized system. The production in Netherlands worth was

US $ 3.6 billion. Besides this, Israel, Ecuador, Colombia and South American

countries remained the major producers of flowers while Africa and especially

witnessed an increasing investment for the production of flowers. Developing

countries contributes almost 20% to the total trade, while there is an increasing

competition of the developing countries including Namibia, Zambia, Malawi,

Ethiopia, Tanzania and Uganda.

Chapter 3

RESEARCH METHODOLOGY

The study area is KPK Peshawar and its different areas. The data which was taken

from agriculture extension services of KPK Peshawar, SAMEDA cut flowers pre-

feasibility report and other published paper on floriculture. Simple percentage

technique was used for analysis for cost and benefit. Also studied the market of

floriculture in different Peshawar different bazars.

Chapter 4

Result and discussions

this chapter 4 contain result and discussion of floriculture, cut flowers with tables analysis and discussion.

Table 4.1: Per acre cost of cut flowers enterprise

Flowers verities

Cost per seed/corn

Average seeds requirement per acer

Per acer average seed price in million Rs

% share of cultivation

Seed corn cost per acer in million Rs

Cost of others inputs in million Rs

Giladlious 7.5 34000 0.255000 65% 0.165 0.0291

Marigold 6 17424 0.104344 35% 0.0366

Total per acer cost of seed/corn 0.202 0.0291

Source: survey of agriculture extension services

The above table 1 showed the per acre cost of every flower according to the above

table Giladlios cost per seed price is 7.5 rupes average seed requirements per acre

is 3400, share of cultivation is 65%, seed corn per acre in millions 0.165% and cost

of other inputs 0.0291 million. Marigold cost per seed is 6 rupes, average seeds

requirement per acre is 17424, per acre average seeds price in million RS

0.104344, share of cultivation in studied area is 35%, seeds corn cost per acre in

million 0.0366 and cost of other inputs is 0.0291 million.

Table 4.2:Physical financial plan of cut flowers enterprise.

s.no Districts Area of production under cultivation in acre

Cost of cut flowers enterprise in million PKR

1 Abbotabad 10 2.310

2 Sawabi 8 1.300

3 Peshawar 8.5 1.964

4 Newshehra 8.3 1.906

5 Haripur 8 1.544

Total 42.5 9.875

Source: survey of agriculture extension services Peshawar

According to the table 1.1 showed the financial plan for the cut flower production

area under cultivation in different district/cities such as in Abbotabad the total area

under cultivation were 10 acre and cost of cut flower is 2.310 in million PKR. The

production area under cultivation in Sawabi is 8 acre and the cost of cut flower

were 1.300 million PKR. The production area in Peshawar under cultivation is 8.5

acre and cost of cut flower is 1.964 million PKR. The production area in

Nawshehra under cultivation is 8.3 and cost of cut flower is 1.906 million PKR.

Production area in Haripur is 8 acres and cost of cut flower is 1.544 million PKR.

Table 4.3:Per acre cost of inputs

Item Unit Qty Unit cost Rs TotalUrea Bags 21/2 2000 5000DAP Bags 1 4000 4000Potash Bags 1 4000 4000FYM Trolly 3 4500 13500Pesticides Spray 2 1300 2600Total per acer cost of other inputs 29100Source: survey of agriculture extension services Peshawar

The above table 4.3 showed the per acre cost of input such as urea total price is RS

5000,DAP total price is RS 4000,potash price is RS 4000,FYM price RS 13500

and pesticides total price is RS 2600.

Table 4.4:SMEDA CUT FLOWERS

GLADIALOLI MERIGOLD(danda)

STATICE CHRYSANTHENUMGule e dadu

Price of per seed corn in RS

5-7 3 3 1.5

Price Rs 288 per bundle 60 per kg 36 per kg 36 per bundle

Net bundle production per acer

2070 3680 kg 18400 kg 9813 bundles

Total revenue Rs

596160 220800 662400 353280

Fertilizer pesticide

Rs 5000 per acer

Spray Rs 1000 per acer

Source: SAMEDA pre-feasibility report 2009

According to the table 4.4: showed the cut flower pre-feasibility study of

SMEDA. It showed the cost and revenue of flowers. Gladialoli price of per seed is

5-7 rupes, price of per bundle is 288 rupes while net bundles produced per acer is

2070 and total revenue is 596160 rupes. Marigold (danda) price of per seed is 3

rupes, price of per kg is 60 while net k.g production per acer is 3680 and net

revenue were 220800 rupes. Statice flower per seed cost is 3 rupes, price of per k.g

is 36, net bundle production per acer was 18400 kg and total revenue 662400

rupes. Chrysanthenum (gul e dadu) per seed price was 1.5 rupes, price of per

bundle is 36 rupes, while net production per acer 9813 bundles and total revenue

353280 rupes. Others inputs such is fertilizer pesticide was 5000 rupes per acer and

spray cost rupes of 1000 per acer.

CUT FLOWERS IN DISTRICT PESHAWAR BAZEDKHEL

Table 4.5:Types of flowers grown in study area

Types of lowers grown Number of respondient Production in percentageMarigold+roses+jasmin 55 36.6%Marigold+roses 35 23.33%Marigold+jasmin 25 16.67%Roses+jasmin 25 16.67%Roses+others 10 6.67%Source: published paper on bazedkhel Peshawar

The above table 4.5: showed flower grown in the study area where 36.6% is

producing marigold+rosses+jasmin,23.3%, marigold+rosses production percentage

were16.675 %, where marigold+jasmin percentage were 16.67% and rosses+others

production percentage is 6.67%.people like different kinds of flowers defending

upon their preference most popular flower like by the people in this area.

Table 4.6: demand of flower in deferent bazars

Demand of flower in deferent area of peshawar

Marigold Roses Jasmin Others

Ramdas bazar 30% 20% 30% 30%Qisakhwani bazar 30% 30% 30% 10%Peshawar cant area 10% 40% 20% 10%Takkalpyan 20% 6% 10% 30%Board bazar 10% 4% 10% 20%Total 100% 100% 100% 100%Source: published paper on bazedkhel Peshawar

The above table 4.6 showed the demanded flower in different bazaar in Peshawar area. the demand of marigold in Ramada’s bazaar is 30%,30%in Qisa khwani bazaar,10% in Peshawar cantt,20% in takal payen,10% in board bazaar. the other flower can also demanded in this area.

Per acre cost on flower production

Economics of scale must be consider as, population are large scale result in lower average cost ,therefore it is to find out the per acre cost in order to analyze the per average revenue and net profit from per acre production in the study area.

Table 4.7:Cost of production per acre

Particulars Total cost in (RS)

Seed cost 1250Tractors hours 1700Urea kgs 1045

DAP(KGS) 3236Nitriopas (KGS) 2108

FYM(kgs) 1800

Pesticide (kgs) 750Marketing cost 1200Rent RS 6000

Labor charges 5500

Total cost 24589Source: published paper on bazedkhel Peshawar

According to the table 4.7: Acre of land used for production of flower having different types of cost as mentioned. seeds cost is RS 1250, tractor hour RS 1700, urea RS.1045, DAP RS.3236, nitropas.RS.2118, FYM RS.1800, pesticide RS.750, marketing cost RS.1200, rent RS.6000 and labor charges RS.5500,making the total of as RS.2499.

Table 4.8: Total cost net benefit

Detail Amount in (RS)

Cost per acre 24589

Total revenue 46440

Net benefit 21851

Source: published paper on bazedkhel Peshawar

The above table 4.8 shows total net benefit such as total cost of production on one acre is RS.24589,while the total revenue is RS.46440 subtracting cost from revenue Net benefit=total revenue per acre-total cost of production per acre=net benefit

Chapter 5

Conclusion and Recommendations

This chapter 5 contain in conclusion and recommendation for the floriculture in

Pakistan.

5.1 Conclusion:

The people involved in this sector are mainly less educated or illiterate, majority of

the people living in the study kpk are poor having a small piece of land owned by

them. The land cultivated on average is also very small; mostly less than an acre.

Large number of people living below the age of forty years has to depend on this

sector for their livelihood producing three main types of flowers namely Marigold,

Jasmine and roses along with other types of flowers in a small amount which are

sold in the main bazaars namely Raamdas, Qissa Khwani, Peshawar Cantonment,

Tehkal Payaan and BoardBazar of the city Peshawar and giving a net benefits to

the flower producers an amount of Rs.21851 per acre. The floriculture business is

though small in district Peshawar but is a profitable one which is carried without

the supervision of government on self-help and self-employed basis

5.2 RECOMMENDATIONS

the culture of floriculture should be developed in peoples

govt should encourage the farmers by giving different compensation and polices

for production of floriculture

govt should practice floriculture cultivation to attract the farmers for this

Most of the production of flowers is on very limited subsistence level,

the government should provide the barren lands to flower growers so as

to bring more and more land for cultivation leads the production on

commercial basis reducing the cost and increasing the output.

Attention should be given to the flower cultivation on commercialized

farming, which needs basically two steps, one provision of more land

for cultivations of flowers and secondly using modern techniques of

production in agriculture sector

policy should be adopted to convert the floriculture sector from

subsistence one to the industrial sector

Floriculture should be introduced also as private enterprise and

different subsidies and tax exemption should be given to manufacturers

to boost up the production of flower.

REFERENCES

Donohue C.R. (2003), “Socio-Economic Impact: AStudy of the Floriculture Industry inUGANDA” UGANDA'S Investment in Developing Export Agriculture (IDEA) project.

Manzoor R., Shahid A.S, Baluch M.H. (2001), “Economics of Floriculture in Pakistan:ACase Study of Lahore Market”, Pakistan Economic and Social Review, VolumeXXXIX, No. 2 (Winter 2001), pp. 87-102

Nasir M. N., Floriculture in Pakistan, Lahore: Agriculture Business Division R&DTraining Wing.

News Letter, Indian Council for Agriculture Research for Goa, Vol. 11, No.1 Jan-June 2009.

Belwal, R. and Chala, M. (2008): Catalysts and barriers to cut flower export: A casestudy of Ethiopian floriculture industry. International Journal of EmergingMarkets. Vol. 3 Iss: 2, pp. 216-235

Schneider, V. B. (1991), “The comparison between Italian and Dutchfloriculture: Technical and economical aspects”. HorticulturalEconomics and Marketing, 23rd International Horticultural Congress,Florence, Italy, 27th August to 1st September. Acta Horticulturae, No.295

G.S.Randhawa and A. Mukhopadhyaya, (1985) Floriculture in India, Allied Publishers Private Ltd., New Delhi 110 064

Smeda (2009)pre-feasibility study of cut flower enterprise