Keigo Nakamura

Thank you for your usual cooperation.
We have visited Holland from Nov 9th to 17th and checked situation of bulb, field condition, bulb growers, and exporters etc.

１． Dutch climate and bulb condition.
Referring “2008 climate graph of Holland”
①Planting of this year’s spring was 2 weeks later due to late frost in end of March to beginning of April.
②Temperature went up rapidly after May, and weak roots growth was concerned, but it’s not sure.
③Climate in Summer was same as last year which is average temperature and sunshine (it’s said as cool in recent global warming), and less power content of bulb was concerned. (Crop 07 was generally less buds counts)
④Temperature went down since end of September with light frost, and bulb growth slow down.
⑤Lowest temperature in the end of October were below 0 degree for few days

　Until September, by above mentioned factor ① to ③, people expected that enlargement of 2008 crop become average to little less, and power content of bulb will be similar to 2007 which is less power than normal.

○ Our company visit main bulb production areas, and checks many fields, dig out sample bulbs per variety, and check bulb condition and sprout development. Especially for sprout development, we visited Holland at same time of year for last 5 years, and measure the sprout, describe it in number then we can evaluate properly, not by feeling or impression.

● Bulb enlargement is so so.

According to result of our sample digging,
Enlargement of crop 2008 looks average and less big size as people say.
Enlargement of crop 2007 was good crop as a result, which was approx 0.3- 0.5cm better growth than this year (by our research), and we think bulbs didn’t have power as it looks.

At a planting of 2008, bigger planting material of variety, which is not necessary to grow big, was planted in dense to control enlargement.

That’s way　　　　small planting material planted in wide grows well
　　　　　　　　　　　Big planting material 　planted in dense grows small

So, big size bulbs result less.
Bulbs which is controlled enlargement by high density is firm, heavy and looks more power contents than it looks.

●Wide steady sprout
By our research, sprout development of crop 2008 compare to crop 2007 is, that length is same level and more wide as under-mentioned. Width is similar to crop 2006, which was good buds counts. Number of inside scale and leaf is less, maybe because of delay of planting or temperature in autumn went down earlier.

	Outer scale	Inner scale	Length of sprout	Width of sprout	Number of Leaf	Length of stem	Width of stem
08/07	106.6%	96.8%	101.7%	104.0%	92.4%	101.2%	107.9%

Controlled enlargement + wide sprout = power contents of bulb should be normal to some better, and buds counts will be more than crop 07, our company think.

Although this is little different expectation from people talk, we are looking forward to result next year.
(Sprout condition of NZ crop 08 was somewhat similar tendency and seems good bud counts. Reference” Report of trip to SH-New Zealand 2″ on our web-site.)

We put pictures we took in the fields at our web- site. Hope your access!

２． Market situation and bulb grower
Sales of NL crop 2008 is unusually slow, due to world wide financial crisis and low flower price make people feel uncertainness and delay order for bulbs.

Asiatic : Main varieties are becoming sold out, because acreage decreased.
LA : Many varieties are unsold, may abandoned harvesting and thrown out.
Oriental : Acreage was decreased, but bulb price has been at low level, which may under growing cost, continue till now. Same as LA variety, some varieties and fields will not become product.

In mean time, factor of price setting like on my last report was discussed, and came to general understanding of situation.
One of my purposes of this trip was to meet growers and explain situation of cut flower production side.
During meeting with growers, I told Japanese lily production and actual situation of forcers, which could be effort to fill up gap between growers expectation and buyers reality.
Remarkable change of 09 SH deal is that main exporters (growers) distribute demanded variety to main importers on priority. It forms the line (chain) from production to sales, and it results stable efficient deal. Dutch people call it Structure Business.
In reality, if deal was small, to make one container become hard or efficiency of shipping become low (delay of shipment = shortage of cooling storage space), that can be reason to intensive sales strategy.
(Specially Influence to LA should be big, because harvesting time is different from OR, and amount is still not much (less cases).
Also, as effect of modification, we have more possibility to switch bulbs to other production area or country, in case of shortage by quality problem or less enlargement, which means less percentage of shortage to forcer (stable supply).
Nakamura-Noen is changing in the situation of efficient distribution way, and reducing bulb price and additional cost (cooling and commission), which forcers can feel merit directly.
(Construction of new facility is also direction of“reduce cost and stable quality and supply”, ”improvement of service”. Please come and check during Lily Fest on June 4-6.)
As a result of SH crop 2008, we have deal 41% of Japanese quantity of distribution (analyzed by major Dutch exporter).
Furthermore, We keep growing to supply good bulbs at low cost, and try better service! )

●Bulb price and Flower price
It’s really difficult period, I feel.
For the bulb production side, bulb price of last year was not a loss, but not interesting too.
For Japan side, influence of very cheap flower price in last year was big, so higher bulb price is not nice, and not necessary to buy at higher price.
Quotation of SH crop 2009 come to similar level as last year, and exchange rate helps to manage lower Yen price than last year.

When I had lunch together with one forcer in Kochi, Grower from Chile & NZ, and major export company, that forcer said “As long as we can obtain good bulb, little higher bulb price is acceptable”.
I agree with it. If we don’t care about quality, flower production is not interesting, is it.
If financially bulb grower becomes difficult, bulb quality will be lower.
Then we can’t produce best flower, and also loose satisfaction on your own product.
But of course, it’s not saying that we pay any high price for quality bulbs.
We do try to be the function for “better bulbs by lower cost”, which is our company’s motto.

　Chili
Sun Harvest

Sapporo	Siberia	Universe	Rio Blanco
New warehouse	New warehouse
Advantage	Casa Blanca	Courier	Santander
Siberia	Sorbonne	Sorbonne	Brindisi
Rialto	Rousillon	Lombardia	checking
Conca D’or	Siberia	Siberia	Sorbonne
Sorbonne	Nova Zembla	Nova Zembla	Vespucci
Rialto	Robina	talking	checking
Willeke Alberti	Corvara	Santander	Santander
Rialto	checking
Conca D’or	Serano	Fairy Tale	Robina
warehouse	checking
Conca D’or	Siberia	Siberia
Sorbonne	Belladonna
Aktiva	Casa Blanca	Couplet	Constanta
Sanna	Siberia	Siberia	Justina
Tiara	Royal Trinity	Viviana	Rialto
Caruso	>Siberia	Sorbonne	Rialto
Le Reve	Robina
Akemi	Sorbonne	Tropic Diamond	Party Diamond
Party Diamond	Rialto