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Orchid exporters affected by airport shutdown, slowing economy

Almost ten thousand orchid growers and exporters are being affected by the slugglish world economy and uncertainty of Thailand’s internal politics. They are calling on the new government to boost domestic damand for orchids to make up for their export shortfall.

Mana Koocharoenchaimahanathee is one orchid exporter affected by the shutdown of Suvarnabhumi airport by anti government protesters a few weeks ago. He said the day the airport closure took place, his order lists totalled 160,000 Baht. Unable to deliver his orchids to overseas customers, he finally decided to sell flowers on the domestic market instead and earned just 4,000 baht.  He then gave away flowers to motorists on Pinkhao Nakhonchaisri road.

"When we failed to deliver orchids to our customers, they decided to buy the flowers from producers in other countries. We have a lot of competitors and we ‘ve given them a chance to win our business. It will take some time to snatch our market back," said Mana Koocharoenchaimahanathee, an orchid grower/ exporter.

In the meantime, the over week-long Suvarnabhumi airport closure has caused damage of around 300 million Baht to the entire Thai orchid industry. Although orchids can now still be exported before Christmas, some foreign customers have switched to using other flowers instead, due to the uncertainty in Thai politics.

Thailand is the world’s biggest orchid exporter with 80 percent of the market share and export value of four billion baht annually.
However, the Thai orchid industry lacks continuous government support .

"The Ministry of Agriculture and Cooperatives is the main agency, which should provide more support continueously.  It convened meetings from time to time, but no serious action was taken. Before any concrete measures were put into action, the government was changed again," said Thai Orchid Exporter Association Vice president Anek Chaipichitpaiboon.
 
Because of the world economic recession, the orchid market’s situation is expected to slow further in 2009 and affect around 10,000 orchid growers in Thailand.

"Profits made out of the orchid business seem to be decreasing as people tend to buy necessary goods rather than dispensable flowers. This happens in every country including Japan," said Hal Trading Export Co., Ltd. General Manager Sittichai Mapaisansin.

Currently, the orchid industry value in the domestic market is only two billion baht per year. To boost greater domestic demand, orchid entrepreneurs are, therefore, calling for the new government to enhance awareness among Thais of orchids as precious flowers, as is perceived by foreigners.                            

 Features : Last Update : 10:59:24 13 December 2008 (GMT+7:00)

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