Experts have long been advocating for export diversification to raise the country’s earnings from agricultural goods. For the longest time, the Philippines has been relying on staples such as coconut oil, bananas, and pineapples to prop up its export receipts. Coconut products, including coconut oil, have remained as the top farm export of the Philippines, based on data from the Philippine Statistics Authority (PSA).
The focus on cut flowers or ornamentals is a welcome development as it gives the Philippines an opportunity to diversify its farm exports. For many years, the country has been selling mostly food crops to its trade partners. If the High-Value Crops Development Program is done right and if the next administration sees the value in pursuing the development of the local cut flower industry, the country would have an additional revenue stream.
Citing data from the International Association of Horticultural Producers, the Department of Agriculture noted that the Philippines is among the emerging domestic producers of ornamental plants. The country is considered a net exporter of ornamentals and its major buyers are the United States and Japan. Citing data from the PSA, the DA said exports of ornamentals reached more than $4 million in 2020 (See, “PHL sets sights on $48-B cut flower market,” in the BusinessMirror, April 4, 2022).
The economic potential of the cut flower industry is huge. Citing studies, the government noted that the global market for the flower and ornamental plants was valued at $48.15 billion in 2020, while compound annual growth rate is pegged at 6.3 percent. The market is expected to hit $74.2 billion in four years or by 2026.
For stakeholders to be able to take advantage of the economic opportunities presented by ornamentals, they need support to hurdle obstacles that prevent them from increasing shipments. Among these challenges are the high cost of structures like greenhouses, irrigation, and post-harvest facilities; lack of quality planting materials; and high credit interest rates. Planters and various groups have been pushing for a higher budget for ornamentals to pursue mass propagation, development of new varieties, and improved production technologies.
The Philippines, according to the DA, has vast potentials for cut flower production given its favorable agro-climatic conditions for its year-round production. The country is also capable of growing both tropical and subtropical varieties. Government support is crucial if the local cut flower industry is to become a significant contributor to the country’s export receipts (See, “Climate change, land lack nip floriculture sector in the bud,” in the BusinessMirror, August 8, 2018).
Policymakers have an important role to play to make this industry bloom by ensuring that local cut flower growers will continue to have budget support beyond the term of the current administration. Funds are needed to assist planters in increasing their production via the establishment of production facilities, such as tissue culture laboratories and the conduct of research for varietal improvement. They also need financial support to bankroll initiatives that will improve the marketability of Philippine ornamentals, including the participation of producers in local and international trade fair promotions and related events.