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Home / Business

Levy plan to help flowers bloom

3 May, 2001 08:51 PM2 mins to read

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By PAULA OLIVER

One cohesive voice could soon be speaking on behalf of the $100 million flower industry, with growers voting on a levy proposal this week.

If they agree, domestic growers will pay 1 per cent of their wholesale income to an industry body known as FloraFed - which has
existed on a voluntary and spot-funded basis since 1998.

FloraFed chairman David Blewden said growers needed to begin injecting cash if the industry was to move forward. Despite holding enormous potential, it had lacked growth for several years.

"Most people in New Zealand don't even know we have a $100 million flower industry, and are quite surprised to hear it," said Mr Blewden.

"Because of the fragmented nature of the industry, and the fact that there has been no national spokesbody, it is very much underestimated."

Mr Blewden said the lack of a united front meant the industry had not been properly heard when the Government set relevant policy terms.

It also meant money-spinning days like Mother's Day and Valentine's Day - traditionally the domain of flower-sellers - have been open to increasing competition from alternative gifts like chocolates and balloons.

The result of FloraFed's grower vote should be known in mid-May.

If it passes, Mr Blewden said the industry would be able to stand on its own feet instead of being seen as piggy-backing on the work of groups like vegetable and potato growers.

Of the 1 per cent levy taken from domestic growers, a quarter would go towards things like biosecurity, making submissions to the Government, education and quality assurance.

The remaining cash is destined for a national promotion strategy, after growers hinted at a recent industry conference that they were keen to see one materialise.

Estimates of the cash generated by the levy are as high as $500,000 a year.

Export growers, who have different needs, will have a separate levy.

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