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| Oregon nursery stock draws interest in Japan | ||
| 11/08/2006 | ||
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Five-year project to develop overseas market making progress The Netherlands has been exporting nursery stock to Japan for the past 150 years. A special, targeted project involving Pacific Northwest nursery growers is only in its fifth year of trying to make inroads. Still, there are signs that the effort is taking root following a successful three-day trade show in Japan a few weeks ago. The IFEX horticultural show in Chiba, Japan is one of the largest of its kind in Asia. Some 24,000 visitors attended with 4,000 exhibitors representing Europe, Asia, Africa, Oceania, and the Americas. The only U.S. presence at the show was a booth largely funded and organized by the Western United States Agricultural Trade Association (WUSATA) that included three Oregon nurseries. "This show provides us a platform to be in the Japanese market, and promote the Oregon brand of plants and U.S. plants in general," says Patrick Mayer, trade manager with the Oregon Department of Agriculture. ODA and its State of Washington counterpart initiated the Japan market development project five years ago, and have coordinated efforts through WUSATA and the nursery industry. "The Dutch and other suppliers from around the world were at this show, so it is important for us to be there as well. It has given us an opportunity to meet with a lot of customers in one setting. Also, we wrote orders in the show booth, which is somewhat unusual in terms of trade shows- especially in Japan." During the show, nursery companies operating in Oregon, Washington, and three other states wrote orders valued at nearly $170,000. That may not sound like much, but the sales most certainly represent future orders and some established relationships between U.S. nurseries and Japanese buyers. About a third of the orders are for patented plant material, which will generate royalties and propagation fees in perpetuity. Plants sent to Japan from Oregon and other states generally are starter plants or bare root trees sold to Japanese nursery growers who grow the plants on to finished size for usually a year or so before selling them to either a plant auction house or directly to landscape architects and retail stores. "The Japanese are interested in our plant material," says Mayer. "Until recently, the palette of plants available for gardens or landscapes in Japan was somewhat homogenous. Our ability to produce a similar plant but with different characteristics has caught their attention." Mayer says hydrangeas are a good example. Originally from Japan, newer varieties with special characteristics have been developed by Oregon growers. Of particular interest is a hydrangea that blooms all summer- something not normal for native hydrangeas in Japan. "Anytime there is a new variety of plant developed with a unique feature that expands its utility or creates interest, that is where the opportunity is for our growers," says Mayer. The traditional landscape in Japan is changing as younger consumers are interested in western-style homes. The plants used in a home garden or landscape are more often reflecting that change. Until relatively recently, Oregon nursery products were almost exclusively marketed domestically. But as the state's number one agricultural commodity has continued to expand, some growers are looking at the export market as a way to counteract cyclical declines in demand for some plant varieties. "The Japanese market development project is a win-win opportunity for our growers," says Ann Murphy, Director of Marketing for the Oregon Association of Nurseries (OAN). "There are climates that complement where our product can be grown successfully. This project has also been a lot less expensive for our growers to gain access to Japan than if they had attempted to do it on their own. We have seen sales in excess of a million dollars to Japan because of the project, and that's just after a few years of investment in the WUSATA project." Murphy says at least a dozen Oregon nurseries have benefitted from the project the past five years. That includes Van Essen Nursery of Lebanon, Synergy Nursery of Independence, and Ryan Creek Nursery of Aurora- the three nurseries that participated in last month's IFEX show. "Some of our growers have been exporting for quite some time, but only recently has the industry tried to leverage itself to create market opportunities for more growers instead of individuals trying to do it themselves," says Murphy. "We want them to be more comfortable and successful outside the domestic market." The assistance of ODA and the funding from WUSATA have been tremendously helpful. ODA's Mayer is part of OAN's Export Task Force. Immediate sales is not the only benefit of the IFEX show. Making connections with Japanese growers also allows a flip-side for Oregon nurseries. "Japanese growers are producing some varieties that are of great interest to our market," says Murphy. "This creates opportunities domestically for our growers to distribute unique product from Japan." The growing relationship between the nursery industries in Oregon and Japan has extended to a large horticultural show held annually in Portland. The Farwest Show, produced by OAN, has attracted inbound trade missions from Japan that also solidifies the link. Individual Japanese growers and buyers have been able to tour Oregon nurseries as they attend the Farwest Show, providing even more opportunity for export trade. For now, it is the IFEX show in Japan that has generated excitement. "IFEX has put Oregon on the international stage as being a producer of quality plant material," says Mayer. "We're not yet at the level of Holland, but in Japan, Oregon has already established a name as a producer of nursery products. If we are going to be a player on the world stage, we need to be at these kinds of shows." Oregon participants agree- showcasing Pacific Northwest and U.S.-grown plants at IFEX will continue to provide opportunities for a diversified marketing effort by the nursery industry. For more information, contact Patrick Mayer at (503) 872-6600. Story of the Week pdf version http://oregon.gov/ODA/docs/pdf/news/061108nursery_japan.pdf Audio Story of the Week http://oregon.gov/ODA/news/061108nursery_japan_audio.shtml |
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