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Queensland's cut flower industry stands firm in tough times
Queensland, Australia
October 15, 2003

The Queensland cut flower and foliage industry has achieved a 2% increase to $132 million in gross sales values in the previous year despite challenging domestic and international market conditions, according to a new report by the Department of Primary Industries - Queensland (DPI).

The annual DPI report, Prospects for Queensland Primary Industries: 2001-02 to 2003-04, provides economic forecasts for each of Queensland's major primary industries and offers a disucussion of the issues influencing industry growth and profitibility.

This year's prospects report highlighted a 2% increase in Queensland's cut flower and foliage industry value despite being one of the most difficult years in the industry's memory.

The report lists some of the major obstacles to the industry in the previous 12 months which included reductions in production and sales as a result of the drought, constraints to cut flower exports due to flight cancellations to Asia during the SARS outbreak, a rising Australian currency and a battered Japanese economy (Japan is the largest importer of Queensland cut flowers and foliage).

Flower Association of Queensland Inc. President, Mr Brian Shannon of Shannon Roses, praised the industry for its ability to increase its value under such difficult circumstances and stated that, "I think these figures are a reflection of our industry's increased professionalism in areas like export marketing and individual business development, which have enabled our growers to not only withstand turbulent market conditions, but improve their overall performance."

Mr Shannon went on to acknowledge the Queensland Department of Primary Industries and Department of State Development saying that, "The valuable industry development assistance our industry receives from the Queensland Government has played a crucial role in our industry's growth over the past year, and I thank them for that."

The DPI forecast of the industry's short-term future earnings potential is modest, predicting a similar return for the coming year and stating the constraints of increasing competition from China, proposed air freight increases and the need to boost domestic sales through marketing and promotion as some of the biggest issues facing the industry in the near future.

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