The Dubai Flower Centre (DFC), the Middle East’s centre for perishable goods, sees great potential in Chinese and South American horticultural markets following recent visits to China and South America by DFC officials.

The DFC stand at the IPM China 2006 exhibition held recently in Foshan City in the Guangdong province of China, received several business enquiries from Chinese growers and exporters besides international companies. The fair was organised by Messe Essen with its Chinese partner China Flower & Gardening News (CFGN), a leading monthly trade journal.
Ibrahim Ahli, marketing director, DFC, received representatives of numerous Chinese trading companies at the IPM stand and informed them about the Dubai facility which can offer various geographical and infrastructural advantages to Chinese businesses.
“Chinese growers and exporters can benefit from the free-zone environment at the DFC premises. Exporters do not need to pay customs duty for cargo in transit. However, by paying a five per cent customs duty, they can send their products directly to any GCC country through the DFC. Moreover, they can enjoy other advantages such as proximity to the fast-growing GCC markets,” he told those making enquiries.
Of China’s horticultural market of $4.72 billion, the province of Guangdong alone accounts for approximately $792 million - around one sixth of the total Chinese horticulture market. While the total value of exports from China currently stands at nearly $350 million, the Guangdong province accounts for $87.13 million.
With approximately 10 per cent of the total growing area for ornamental plants and bushes in China, Guangdong province is one of the leading regions for horticulture with cultured areas totaling 100,000 acres.
The focal point at IPM China 2006, in addition to being a key business platform, was gathering information, making contacts and exchanging experience. In addition, the exhibitors and visitors were offered a presentation, providing initial insights into Chinese gardening.
“Some Chinese trading companies were enthusiastic about the DFC facilities and were keen to learn the process of setting up offices or warehouses,” said Ahli.  “Another factor that could greatly favour the Chinese growers and exporters who would like to do business at the DFC is the cargo service by Emirates airline.”
Visitors to the stand at the show were enthusiastic because the DFC is a one-stop shop for local and international buyers, traders and exporters and offers several benefits including a closed loop supply chain system that ensures the right temperature from aircraft to the climate-controlled zone, a supply chain intelligence that offers state-of-the-art computerised tracking system, and a business-friendly free-zone environment.
Other features at DFC that generated interest among participants and visitors to the show included the computerised tracking system which ensures access to all parties, giving exporters and importers the ability to track the flight status, product loadings and temperature of their products throughout the supply chain process.
Ahli also pointed out to the representatives of Chinese trading companies that the facilities at DFC cater not just to flowers but anything that is perishable and needs a cool chain process such as fruits, vegetables and fresh meat or fish. The DFC has an annual capacity to handle 180,000 tonnes of perishable products
According to the DFC, South American flower growers and exporters, like their Chinese counterparts, are keenly eyeing the state-of-the-art facilities at the DFC for better transshipment of their perishable goods and for utilising it as a gateway to enter new markets in the CIS, the Middle East, and the rest of Asia, besides other regions.
This was the impression gathered by Ian Strachan, DFC managing director, and Ahli during their three-nation trip that took them to farms in Peru, Ecuador and Colombia. The DFC senior management team also met with key government officials and business leaders in the private sector and apprised them of the salient features of the Dubai facility.
Ahli said “The opportunity to highlight the special features of DFC came at the Flora Exhibition in Ecuador and at a special gathering of 160 guests at Bogota, Colombia. The official export promoting bodies – Prompex of Peru, Corpei of Ecuador, and Proexport of Colombia – along with the many growers in the region seek to expand their markets to cover the GCC region and use Dubai as a redistribution centre. Moreover, the occasion also presented opportunities to explore areas for future alliances in logistics with Latin America and to create awareness for their products in the GCC region.”
The Bogota presentation was attended by officials from the government, airline sector, banks, freight companies, marketing agencies and farms who were keen to get detailed information about DFC because of the crucial role it can play for their biggest industry – floriculture. The participants felt that Colombia can use Dubai as a centre for accessing their existing markets besides tapping the potential of the Middle East as a new market.
The team also visited the Nevado Roses farm in Ecuador, which is known for its exceptional soil due to high mineral content. This has given roses from the region a reputation for long sturdy stems and huge flower heads that can have a shelf life of up to 15 days.
South America is an important location for production of fresh cut flowers and other perishables mainly due to the excellent climatic and soil conditions, which provide exceptional quality. For instance, Ecuador and Colombia are renowned worldwide for their excellent fresh cut roses along with field flowers, fillers and large-scale fruits and vegetables. In Peru, asparagus along with other products such as black maize cob are peculiar to that country and offer an extra advantage to growers. Moreover this has made South American products gain acceptance globally.
“The thriving perishable goods industry in the region has been traditionally supplying their products to Europe and North America. However of late there has been renewed interest among Latin American companies to expand their perishable goods market to other areas due to the demand for its quality and the specialty of the product line,” said Ahli.
Meanwhile, the DFC will provide a whole new dimension to the Second IPM Dubai 2007 as the centre is already nearing capacity as far as warehouse and office-space are concerned, said the official.  Moreover, companies and organisations from as far as Africa, eastern Asia and Latin America are keen to locate their base at DFC because of its logistical and geographic advantages,” he added.
IPM Dubai is an offshoot of the already well-established IPM Essen in Germany which every year hosts more than 1,400 exhibitors and 60,000 visitors. The second edition of the event in Dubai will consolidate its position as the most ideal networking and communication platform for plant producers, seed traders, developers, municipal garden authorities, garden centres, horticulturists and landscape gardeners, hotel managements and wholesalers, among others.