F.Optimal Connection Market Review Week 60
Week 33 to week 35.
Ishai sharon, our Roses Department Manager, informs us that for week 33 the market showed great improvement and prices for all the flowers were better. The market however was characterized by a much greater reduction in flower quantities. Ishai points out that this particular situation was caused by the cold and rainy weather in both Kenya and Ethiopia. The weather affected the production levels among all the growers.
The markets in Europe saw higher demand for flowers. Ishai explains that this was a result of many people across Europe returning from their vacation. In Russia, he adds, that their school opening day fell on the 1st of September where its tradition for all school children to bring flowers to their teachers.
Ishai Sharon, Rose’s Department Manager
In week 35 there was a considerabe drop in prices; in his view this happened after the sales for the 1st of September came to an end. With the vacation period also coming to an end in France and Germany, he believes that the demand is going to be higher. He added that markets in Europe have started to experience higher demand.
For red roses, the picture according to Ishai is somehow different. He states that markets in Europe received a rather large quantity of flushing red roses from the Kenyan growers. He noted that many growers have already begun planning for the Christmas and Valentine’s Day supply period. This he admits is very positive.
A new roses grower has entered the market. This new investment company is based in Spain and they are growing the Red Naomi variety. The farm has 14 hectares in production. In addition, all the Red Naomi roses from the farm are currently is exported to Holland. The farm quantity Ishai infoems, is around 60 to 70 thousands per day.
Comparing 2016, prices of red roses for weeks 33 to 35 in 2017 dropped significantly; by about 30%. Ishai and his team are going to analyze the situation and,take marketing needed for the coming weeks to get the maximumprivce for growers.
In conclusion for this week, he is very hopeful that the market prices will improve and stabilize in the following week.
Week 36
Ishai Sharon is happy to announce that prices in the flower markets are getting better everyday. In Kenya, the weather has changed again. Flower growing regions are experiencing heavy rainfall coupled with very cold nights, and cloudy skies during the day. The weather has caused low production among growers, and it has a negative affect the quality of flowers being produced.
In Europe the Weather forecast is expected to be cold and rainy. Ishai projects that as a result of this weather forecast, flower production levels in both areas – Europe and Africa, is expected to be much lower while the demand in the market is going to be very high.
Ishai concludes in his report that he expects that the market price will keep improving in the next 2 weeks.
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