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As in any sector depending on imports, soared exchange rate has seriously influenced end value for consumers, who have already had to reduce unnecessary spending. Experts argue that despite serious decline in consumer interest and a number of technological difficulties, the market may be interesting for investors.
It would seem that it's time to expand the Russian production. However, local producers are not in a hurry to capture the market by offering a better product. "Domestic producers have raised the price of their products after their foreign colleagues, despite the fact that the quality of flowers is incomparable. Of course, over the last year energy consumption increased. What is more, import fertilizers are needed for the specific production. Yet, despite the transport and customs costs, import flower is cheaper than domestic one! And quality is much higher. "As for me, it seems like a profanation, "- Mr. Sysoenko said.
However, Tamara Reshetnikova the director of the consulting company "Growth Technology» says that the reason why Russian flower market is interesting is that almost all the roses greenhouses are technologically modern, and products of high quality can be grown there.
"Of course, there are anumber of problems. For example, the most pressing issue is planting material. There are no licensed producers of certified seedlings in Russia. To breed a plan variety that is suitable for greenhouse cultivation, more than one year is required. This is a serious breeding work, which is not carried out in Russia at all. There are companies which try to breed import seedlings, but it is illegal. In addition, the quality of the flower falls as a result. If it is possible to grow 250-280 units of roses per one square meter per year in European greenhouses with quality seedlings, then average yield of greenhouses in Russia is less than 100 units on average. As a result, those who initially hoped to save money on seedlings, suffer losses. Of course, there are cultivars that impossible to grow due to Russian climate conditions, for example, Ecuadorian, Colombian roses with long thick stems and large buds. They are grown in the highlands, where the atmosphere pressure is lower, the air is more rarified, the amount of oxygen is smaller and temperature differences are insignificant. These conditions are perfect for roses, and we cannot simulate them despite the fact that these are the roses that are still the most popular among Russians. Another problem is the attempts of local producers to save money due to violations of production technologies. In the end, the bud turns out to be smaller and flowers wither faster".
Author: Ulyana Larionov
You can read the full article the Analytics section of "Abireg" business edition (February, 12)
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