Flower industry in China’s rural economy is becoming the most promising industries

Now, the chinese flower industry in the transition process in the face of the external environment is very good, especially driven by domestic and foreign markets, the domestic flower industry chain are maturing and government policies to improve the three major environmental factors, the flower industry in china’s rural economy is becoming One of the most promising industries, a vast number of investors in the eyes of high-growth industries.



First, the rapid growth of domestic and foreign markets for China’s flower industry has provided a broad space. With people’s living standards improve, the domestic flower market is now rapidly expanding, flowers and gradually entered the household, a snack box instead of cut flowers as visiting friends and relatives of elegant gifts. In Beijing, Shanghai, Guangzhou and other cities, flowers, annual production of 30% to 40% growth rate is still far from meeting the needs, China has become the world’s seven big consumer of cut flowers. Even so, the domestic per capita consumption is still less than 2, flower consumer market still has tremendous potential to be tapped.



In the international market, China has long played only a minor role, exports of flowers was just over $ 500 million in the international market has huge room for growth. Especially with the flower industry in recent years, domestic restructuring, increasing emphasis on flower quality, China also began to have some flowers into the EU, U.S., Japan’s three major world center of flower consumption, foreign market prospects are very promising.



Secondly, after 20 years of development, the domestic flower industry chain is becoming perfect for all types of capital into the industry to provide the necessary conditions. From flower to flower traders, researchers from the breeding to the flower distribution company, domestic flower industry chain has been basically perfect. Although European and American countries compared to chain level is low, but the perfect flower chain already has a vibrant development of the situation.



In addition, a number of provincial government attach great importance to the domestic flower industry environment greatly improved. According to Reporters survey, not only in Yunnan, Sichuan, Guangdong province emphasis on flowers and other traditional flower industry, Shaanxi, Gansu and other provinces had small flower industry in recent years have begun to flower industry as a new industry in rural areas of support. Many local governments as a special financial allocation from the support fund to encourage growers to expand acreage, improve, develop new varieties of flowers, the flower industry is facing an excellent external environment for development.



Private capital, foreign investment, venture are crowding the flower industry



High growth and good development prospects, the flower industry has become the new hot spot for foreign investment, private capital, foreign investment and venture capital crowding, trying to have a share.



In the capital, private capital is the first to enter the flower industry. Yunnan Flower Industry Co., Ltd. Jinyuan Fei-Peng Lee, executive vice president, told reporters that the company early in 1994 to enter the flower industry, expanding investment in recent years. To the end of May this year, the company has 6,000 acres of flower planting base, nearly 2,000 farmers have flowers for the company, more than 100 varieties of flowers grow, exports to 30 countries.



Fei-Peng Lee said in the past 20 years, the domestic private capital in the flower industry has been on several rounds of “game”, a large number of dead enterprises, but also grow the number of enterprises. Yunnan is now the number was more on the strength of private enterprise, but five flowers, these companies can get more than 10 million yuan of bank credit, while new varieties of flowers have their own R & D personnel.



After 2005, foreign investment is from the beginning inroads into the domestic flower industry, and becoming more deeply involved. First, provide breeding, then the plant where the domestic conditions “enclosure” their flowers, and then spread to the circulation, we can say now is China’s flower industry, foreign investment has been an important investor.



For large-scale foreign investment, in-depth into China, the domestic flower business is very stressful. Some flowers, told reporters that private entrepreneurs, foreign investment into China, in addition to bring in capital, there is a high flower planting techniques, coupled with the local government welcomed foreign investment, foreign flower industry in China has caused great national capital threat.



Venture capital is only in recent years to enter the domestic flower industry, the number is not much, mainly in Kunming, Shanghai, Beijing, Shenzhen and a few other cities. Most of these risks the use of equity financing of investment mode, controlling 10% to 20% of the shares, does not participate in company, but only from the high growth of the flower industry to earn high profits. Currently, venture capital in the domestic flower industry’s influence in general is not great.



Beware of the negative effects of hot money speculation



As long as there is involvement of the local capital, in addition to investments there must be speculative, the domestic flower industry is no exception. Since the beginning of this century has been the rapid development of the domestic flower industry, the industry has appeared in several examples of capital speculation, speculation in previous years, especially orchids, the flower industry, resulting in a considerable negative impact.



According to the reporter, 2005, 2006, under the constant speculation in the domestic orchid skyrocketed, high quality with the bluegrass, the seedlings was even pushed to tens of thousands, hundreds of million. Speculation orchid is one of the most typical method of making funded by several hundreds of millions of investment funds, in the orchid market together Zuozhuang. 3 in case the dealer to buy a number of orchid seedlings, and then, if seedlings offer 5 external sales, partner buy dealer gave, and then to another dealer to sell 100,000 high-priced, competing in the market, raise prices, will continue to raise the price of blue, play a “drum pass flower” of the game, resulting in orchids “myth.”



Constantly buying and selling process, and then the soft propaganda through the media, resulting in one or a few orchids prices soared to attract other investors to follow suit to buy, the market price of orchids is far deviated from the value. When large numbers of people heavily invested fly orchid market, the story of this rich orchid made a lot of production. No more money into the expected, the dealer will throw in the hands of a large number of orchids, from cash. When the dealer pulled out more money later, bound to affect the price of orchids, in the absence of sufficient funds to support, orchids prices fall, retail investors will lose everything speculation, debt, or even go bankrupt.


Wild orchids speculation, the Chinese flower industry has created a significant negative impact. First, wild orchids is almost gone. Due to excessive dredging, have rich resources of wild orchids, now almost disappeared. This all fit in the Chinese region of wild orchids are common. Some mining blue people “carpet” dig, dig to see the blue, not sparing even the seedling root and left. Over-excavation of resources to China sharp decline of wild orchids, Chinese orchids are endangered situation.

Two irrational speculative capital on the capital investment normally flower industry has created a significant negative impact. Some of the flower industry had long-term investment for investors, because profits attract speculative capital has entered the field of speculation, the speculative “bubble” burst, many investors suffered very badly, some even out of the flower industry.

In an interview with reporters, many experts suggest that flowers in the flower industry has increasingly become a new hot spot for foreign investment, in order to the healthy development of the industry, the risk of capital speculation more flowers in advance prevention.