Berliner Boersenzeitung - Blooming shame: Pandemic, Ukraine war hurts Thai orchid industry

EUR -
AED 4.104356
AFN 76.945527
ALL 99.231336
AMD 432.618629
ANG 2.010722
AOA 1036.726011
ARS 1074.130668
AUD 1.641363
AWG 2.011392
AZN 1.900177
BAM 1.955432
BBD 2.252676
BDT 133.324923
BGN 1.955432
BHD 0.420421
BIF 3234.291666
BMD 1.11744
BND 1.441629
BOB 7.70955
BRL 6.162794
BSD 1.11569
BTN 93.249161
BWP 14.748226
BYN 3.651213
BYR 21901.820514
BZD 2.248877
CAD 1.517204
CDF 3208.169723
CHF 0.949813
CLF 0.037598
CLP 1037.43487
CNY 7.880073
CNH 7.870134
COP 4641.826925
CRC 578.891117
CUC 1.11744
CUP 29.612155
CVE 110.244264
CZK 25.088083
DJF 198.672632
DKK 7.466731
DOP 66.967404
DZD 147.657227
EGP 54.142816
ERN 16.761597
ETB 129.466549
FJD 2.459263
FKP 0.850996
GBP 0.838761
GEL 3.050454
GGP 0.850996
GHS 17.539701
GIP 0.850996
GMD 76.544228
GNF 9639.186978
GTQ 8.624378
GYD 233.396101
HKD 8.706365
HNL 27.675794
HRK 7.597486
HTG 147.212311
HUF 393.517862
IDR 16941.281656
ILS 4.226062
IMP 0.850996
INR 93.284379
IQD 1461.525104
IRR 47035.835678
ISK 152.262759
JEP 0.850996
JMD 175.28703
JOD 0.791704
JPY 160.715782
KES 143.92293
KGS 94.131451
KHR 4531.147742
KMF 493.181817
KPW 1005.695207
KRW 1488.976663
KWD 0.340898
KYD 0.929725
KZT 534.90939
LAK 24636.366177
LBP 99910.008054
LKR 340.395975
LRD 223.13803
LSL 19.586216
LTL 3.299509
LVL 0.675928
LYD 5.298004
MAD 10.818165
MDL 19.468338
MGA 5046.050895
MKD 61.603413
MMK 3629.400954
MNT 3797.060466
MOP 8.955716
MRU 44.337661
MUR 51.26838
MVR 17.164402
MWK 1934.436154
MXN 21.694872
MYR 4.69883
MZN 71.34836
NAD 19.586216
NGN 1831.986636
NIO 41.062277
NOK 11.71496
NPR 149.198937
NZD 1.7912
OMR 0.429669
PAB 1.11569
PEN 4.181813
PGK 4.367179
PHP 62.188869
PKR 309.994494
PLN 4.274599
PYG 8704.362807
QAR 4.067535
RON 4.972493
RSD 117.064981
RUB 103.380555
RWF 1504.017111
SAR 4.19314
SBD 9.282502
SCR 14.578258
SDG 672.172563
SEK 11.365705
SGD 1.442953
SHP 0.850996
SLE 25.530486
SLL 23432.148605
SOS 637.580078
SRD 33.752303
STD 23128.748217
SVC 9.762164
SYP 2807.601005
SZL 19.593315
THB 36.793946
TJS 11.859769
TMT 3.911039
TND 3.380564
TOP 2.617155
TRY 38.124254
TTD 7.588573
TWD 35.736828
TZS 3045.827114
UAH 46.114226
UGX 4133.222587
USD 1.11744
UYU 46.101329
UZS 14197.329642
VEF 4047984.459863
VES 41.096936
VND 27494.606824
VUV 132.664701
WST 3.125996
XAF 655.833645
XAG 0.035881
XAU 0.000426
XCD 3.019937
XDR 0.826844
XOF 655.833645
XPF 119.331742
YER 279.723102
ZAR 19.477937
ZMK 10058.30169
ZMW 29.537444
ZWL 359.815167
  • CMSD

    0.0100

    25.02

    +0.04%

  • BTI

    -0.1300

    37.44

    -0.35%

  • NGG

    0.7200

    69.55

    +1.04%

  • SCS

    -0.3900

    12.92

    -3.02%

  • AZN

    -0.5200

    78.38

    -0.66%

  • RBGPF

    58.8300

    58.83

    +100%

  • GSK

    -0.8200

    40.8

    -2.01%

  • BP

    -0.1200

    32.64

    -0.37%

  • BCC

    -7.1900

    137.5

    -5.23%

  • CMSC

    0.0300

    25.15

    +0.12%

  • JRI

    -0.0800

    13.32

    -0.6%

  • RIO

    -1.6100

    63.57

    -2.53%

  • BCE

    -0.1500

    35.04

    -0.43%

  • RELX

    -0.1400

    47.99

    -0.29%

  • RYCEF

    0.0200

    6.97

    +0.29%

  • VOD

    -0.0500

    10.01

    -0.5%

Blooming shame: Pandemic, Ukraine war hurts Thai orchid industry
Blooming shame: Pandemic, Ukraine war hurts Thai orchid industry / Photo: Lillian SUWANRUMPHA - AFP

Blooming shame: Pandemic, Ukraine war hurts Thai orchid industry

Thailand's orchid growers, already weary after two years of being battered by the pandemic, are bracing for fresh blows to their livelihood as the war in Ukraine and changing weather patterns further cloud their futures.

Text size:

Once considered a popular pastime among the elite in Thailand, orchid growing has developed into a multi-million dollar industry, and the kingdom is the world's biggest producer and exporter of cut orchids.

But the pandemic has seen one in five farms shut recently, according to the Thai Orchid Exporter Association.

"No one has the heart to buy flowers, and transportation is very complicated," said Somchai Lerdrungwitayachai as he stares in despair at the sea of purple at his orchid farm west of Bangkok.

He grows Dendrobium Sonia orchids -- a hybrid variety with delicate white and purple petals. Popular in Japan, China and the United States, they are used for anything from religious ceremonies to college graduations.

At his 20-hectare property, workers treat the cut flowers with a special solution before trimming the stems and fitting them with a small vial, containing vitamins and nutrients, to preserve their fresh appearance for up to two weeks.

But times are tough: Somchai has been dipping into his savings for two years to keep paying his 50-odd employees.

Covid-19 and Russia's invasion of Ukraine have sent the price of fertilisers and pesticides up by 30 percent, he said.

Adding to his woes are dramatically falling sales: pre-pandemic China bought 270 million orchid stems annually from Thailand -- a figure that dropped to 170 million last year.

Once accounting for 80 percent of Somchai's export income, China has been hit with coronavirus lockdowns in a number of cities, including its biggest: Shanghai.

Transporting orchids to the key market by road used to take up to three days, but the same journey can now take between eight and 10 days.

In the flower business, time is money, and wilted orchids are frequently discarded before they can ever reach a Shanghai customer's home to be admired.

- 'Time is running out' -

While Somchai delivers his produce directly overseas, the majority of orchid growers in Thailand use large exporters based in Bangkok.

Air-freight costs have tripled or quadrupled in recent months, depending on the destination, said Wuthichai Pipatmanomai, vice-president of the Thai Orchid Exporter Association and co-owner of Sun International Flower, a major exporter.

Before the pandemic, the company was delivering 3.6 million orchids a month to China, Japan, Vietnam and the United States.

Now, only 1.2 million flowers leave the warehouse, and he has had to let go of half of his staff.

"We have asked the authorities for financial support, but we have not received anything," Wuthichai said. "Time is running out."

Increasing his selling price by 20 percent has resulted in several importers -- particularly those in Europe -- dropping him to concentrate on more local flowers.

The only hope is that sales to Japan remain stable and those to the United States increase with the start of the wedding season, he said.

However, in the long term, changing weather patterns are also troubling for growers.

"We are increasingly experiencing the effects of climate change," Wutachai said, pointing to a recent surprise cold snap at the start of April in which the temperature dropped sharply from 36 Celsius (97 Fahrenheit) to 21C in just 24 hours, affecting orchid production.

"We are worried that these situations will occur more and more frequently."

- Wilting fortunes -

Thailand's coronavirus restrictions have also hit domestic sales -- a lack of tourists meant restaurants and hotels scaled back orders, and bans on gatherings affected Thai Buddhist ceremonies.

And despite the kingdom's international reopening, local demand remains lukewarm.

While Bangkok's biggest flower market appears busy -- wholesalers can be seen scurrying through colourful aisles laden with large woven baskets containing flowers -- vendors tell a different story.

Than Tha Win, waiting patiently at her orchid stall for customers, said her income is down 70 percent.

"Everyone is still afraid to come to the market because of Covid-19," the 21-year-old said.

Meanwhile, 45-year-old vendor Waew said she now has about 600 unsold orchids left over daily and tries to stem her losses by plucking off the petals and selling them as a separate product.

"Stop working with orchids? Impossible, I don't know how to do anything else," she said.

(Y.Berger--BBZ)