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The Blooming Business

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The blooming business

To Valentine’s Day or Mother’s Day every second rose that is produced in Kenya, will be exported to Germany. But the journey until the roses end up in a discounter or in a flower shop is very hard and long. In the last few years, the flower industry has extremely increased and it actually got bigger than the music industry.

The world’s largest exporter of roses is called Sai Ramakrishna Karuturi and is from India. He owns land eight times the size of Mumbai. Four years ago he additionally bought the biggest rose farm of the world with 4500 workers, 160 ha land and 650 million roses, that leave the farm every year. He has a huge power in the flower trade and plays actually a big role in it. He makes a turnover of 25 Million euros every year and he managed to get a 9 percent market share in Europe in the last few years. Customers that are very important for him are Edeka and Aldi. Discounters want goods that are cheap, fast and durable at once. To fulfill the discounter’s requirements, the African workers ship only the rose buds and not the blooming flower abroad. That makes sure that the roses are durable for a longer time.

Mr. Karuturi sells 55 % of the output through the auction in the Netherlands and the rest through wholesalers and retailers. Also 100 % of the African rose production is exported to Europe. Even though Africa and Latin America export huge amounts of cut flowers, the Netherlands is the biggest export country. Exports from the Netherlands to Germany make a significant part of the world cut flower trade respectively of the whole world trade.

FloraHolland, the most known flower auction, is located at six different locations. The one at Aalsmeer is the largest flower market in the world. 39 auction clocks run constantly at the FloraHolland centers every day. That implies that 125000 auction transactions are

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