Britain`s Cut Flower Growers Boosted By Weak Pound

Tue, 17 Mar 2009

Cut-flower growers in the UK are benefiting from the weak value of the pound against the euro, as retailers increase their stock of British produce at the expense of Dutch growers.

The poor exchange rate has made it cheaper for retailers such as Tesco to buy in the UK instead of the traditional large purchases from Holland . Tesco said it has switched a proportion of its cut-flower supplies from Holland to the UK.

David Fryer, Tesco’s cut flowers technical manager, explained: "Most large British retailers buy their cut flowers from Holland because Dutch growers have the scale of operation that makes it economically viable to buy from them."

"With the current poor exchange rate that is no longer the case and the big UK flower retailers are taking more blooms from British growers."

He added: "While we have always supported British growers, we are now putting more orders their way, which will result in a potential annual increase of around £10m. But if you add all the big UK flower retailers together, this could mean an estimated extra £50m income for British growers."

One of the first UK growers to report an increase in orders is Winchester Growers, which currently supplies Tesco with daffodils .

The Penzance-based company, which also grows tulips, lilies, dahlias and sunflowers, said orders have risen by 15 per cent rise in the last few weeks.

Commercial director Simon Pearson said: "The falling value of sterling has been good news and if current demand for tulips and daffodils is anything to go by, this will be a very good season for us."

He added that the credit crunch is also having a "marked effect" on flower-buying trends, with consumers purchasing more affordable flowers instead of exotic blooms, and that this should also help increase demand for UK-grown varieties.
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