Current status of Phalaenopsis
export from Taiwan- Its
competition on the market
of the U.S.
Speaker：Ms. Stella Yuan
CEO, Agriculture Business Division
Taiwan Sugar Corporation
March 3, 2011
Preface
 Taiwan exports 2.5 billion NTD (about 80 million USD) of
Phalaenopsis to the world in 2010.
 United States and Japan are two major markets for
Taiwan Phalaenopsis, they hold 50% and 35% of Taiwan
Phalaenopsis exports, respectively.
 In America, the orchid market grows yearly. The
wholesale value of orchids exceeded that of poinsettia in
2009. There will be a great increase in North American
market in next three years.
Phalaenopsis market shares (Year 2009)
Units:million plants
Nations
Plants Sales
Plants
imported from
Taiwan
Ratio of
imported from
Taiwan/sales
Japan
20
7
35%
America
20
10
50%
Europe
100
12
12%
China
10
1
10%
Others
10
5.6
56%
Total
160
35.6
22%
America orchid sales changes in 2005Units： 10,000 pots
2009
States
2005
2006
2007
2008
2009
California 778.0
640
650.9
733.4
877.9
Florida
620.2
475.8
525
650
558.9
Hawaii
268.8
290.5
279.3
224.9
175.0
New
7.2
Jersey
New York 27.3
10.5
9.1
22.8
16.9
11.6
11.2
12.6
26.1
Illinions
21.7
0
21.3
19.9
115.7
Ohio
0
0
0
0
125
Total
1800.2
1477.4
1542.1
1706
1947.3
Data Sources：USDA,
Big company has the capability of mass and
planned production
In America market, it requires extra amount of orchids during
important holidays, while at regular time it also needs steady supply.
 The products need to be diversified, more colors, different sizes
and types or with different kind of pots and packing.
 Marketing policy will be focusing on mass market, i.e. grocery
stores, superstores, garden centers and other chain stores.
Mass markets require colorful products
and steady supply
The change of competition and production in
American Phalaenopsis industry
 Traditional orchid production
 The introduction of Netherlands automation
greenhouse production
 International cooperation at different stage of
production
 The Netherlands orchid company invest
production facility in America.
 New orchid growers – Other non-orchid growers
in America change to orchid growers.
Growers in America forcing flowers with the plants
imported from Taiwan
Phalaenopsis automation cultivation in North
America Nursery
Matsui nursery estimates
There will be 70 millions Phalaenopsis plants demands in
American market in 10 years.
Matsui nursery improves cultivation method
for future competition.
Future trends in American Phalaenopsis
market
 The impact of Culture model change -
Traditional Taiwan-America corporation model v.s. Netherlands
automation culture
 More bedding plants and greens growers change to grow
phalaenopsis.
 Floricultura invests production facility in America.
 China, Korea, Thailand, and etc. may get into the American
market in the near future.
【What is the advantage for Taiwan Phalaenopsis industry in the
future ? It is a topic worth of thinking for everybody.】
The Netherlands is the biggest competitor of
Taiwan Phalaenopsis industry
Taiwan exports 32 millions USD phalaenopsis to
America in 2009, and 39 millions in 2010.
There is a 25.3% increase in 2009, yet only
21.7% increase in 2010. The increase rate
slightly going down.
The Netherlands exports 4.5 millions
USD of Phalaenopsis to America in
2009 and 9 millions USD in 2010.
There is a 17.8% increase in 2009 and
146.3% huge increase in 2010.
Floricultura’s strategy in North America
The nursery in Salinas, CA will produce 5
millions plants in 2011.
2-3 millions are in 4”-pot with double spikes.
It cooperates with Matsui nursery, and will
start with providing half million doublespikes plants.
Improvements need to be done in Taiwan
Phalaenopsis industry
Research：
There are gaps in varieties between research
and market.
(Varieties need to fit in local environments;
varieties can tolerate transportation stress.)
Production：
Virus-infected plants are still present in certain
percentage.
Short of SOP for large scale production.
Mid-size or small orchid nursery have
difficulty to maintain steady supply all year
round.
Improvements need to be done in
Taiwan Phalaenopsis industry
Marketing：
A great competition in American market will raise due
to the entering of Netherlands large orchid company.
Precise control of production is urgently needed.
Short of cultivation handbook and poor post-sale
service.
Production doesn't match the need of sales causing low
output of the facility.
Strategy of Taiwan Phalaenopsis industry for
American market
• Actively collect orchid industry information from
other country.
• Cooperate with growers in Taiwan or in America to
scale up the industry.
• Provide new variety, creative products and new
technology.
• Export virus-free plants.
• Increase sale channel or increase production facility
for more local market in America.
Strategy of Taiwan Phalaenopsis industry for
American market
•Tightly corporation between domestic and America growers
Taiwan (Supply)
Breeding materials
collection
Breeding
Propagation
Mature plants production
Pre-transportation
treatment
North America (overseas
facility)
Brand management
Protection of intellectual
property
Market development
Logistic
Forcing flower
Conclusions:
『Good Quality
Low Cost
Varieties variation』
『Cooperation
instead of
Competition』
Thanks !