APEC is concerned with all sectors of business and trade that are germane to the 21 member countries. One interesting case study is the cut flower trade that has blossomed in Yunnan Province, China. This economic success story has lifted over 20,000 Chinese farmers out of poverty and has made this south-west China province an Asian leader in the cut-flower industry.
The success of flower exports from Yunnan speaks to the power of international trade as an antidote to rural poverty. Flowers have replaced subsistence crops throughout Yunnan and the people have benefitted mightily. From a starting size of 16 hectares, the province now boasts of over 10,000 hectares of flower production. Yunnan has formed a strategic partnership with the world’s largest cut-flower auction, VBA, in the Netherlands. Both partners are committed to the highest international standards for cut flowers, while respecting the environment and ecology of the province.
Large catastrophes such as the Japanese tsunami often result in the deaths of hundreds or thousands of innocents. The demand for funeral flowers under such circumstances can be overwhelming, save for the tremendous production capacity of locations like Yunnan.
This capacity is seen in the numbers: 21,400 household growers and almost 400 companies are engaged in the flower trade in Yunnan. These producers supply cut flowers of the highest international quality. The value of the industry is at least one-half billion dollars annually and growing. Yunnan also supplies 50 percent of China’s domestic market.
The history of this success story can be very informative. Here are the highlights:
- In 1994, a cooperative of farmers was created in Yunnan and quickly exceeded the production levels of another flower producer, Shanghai Province.
- A year later, provincial officials took notice of the growing success of the cooperative and endorsed it. That year, a plan was developed to diversify biological production of different flower species and away from tobacco and vegetables.
- The tobacco industry decided to invest in Yunnan flower production, and by 1996 had put over a $1 million into the growing industry. This influx of capital facilitated the import of international expertise that was critical to the ongoing expansion of the sector.
- A long-range business plan was developed that performed a market analysis of the cut-flower industry in Yunnan and highlighted important challenges. The plan called for a better comprehension of international markets, resolution of logistical issues and the introduction of new technology.
- In 1997, the Yunnan Flower Association was launched, and, with the help of bodies like the International Trade Center, was able to successfully overcome all obstacles. Today’s success is tribute to the foresight and planning during this period of time.