FLORICULTURAL USE OF NATIVE PLANTS
Australia produces a range of native and exotic fresh cut flowers and foliage, as well as dried and preserved flowers for domestic and export markets. About 85 per cent of the flowers sold in the Australian domestic market are traditional exotic flowers.15 Victoria is the major Australian producer of such flowers, with the farm-gate value of production estimated at $112-152 million.16 By comparison, the majority (about 90 per cent) of Australian fresh and dried flower exports are native species. The opposite pie chart shows flower exports from Australia by type in 1995-96.
On a world scale, Australia's flower industry is small. The majority of cut flowers17 are grown and consumed in the Northern Hemisphere, with Western Europe (particularly the Netherlands) the largest producer and consumer, followed by Japan and the USA.18 The supply of flowers from the Southern Hemisphere to northern markets tends to follow a north-south axis. Countries such as Israel and Zimbabwe therefore mostly supply Europe; Australia's primary markets are in Japan and the USA.
Source: The Australian Wildflower Industry. A Review (second edition) 1997.
It is estimated that the world trade in cut flowers is currently worth around $40 billion. Of this trade, 1 per cent, or $400 million wholesale, is in Australian wildflowers, with Australia supplying only about 10 per cent ($40 million)19 of world production, about $27 million of which is exported.20
Historically the wildflower industry was based on bush-picked material, particularly in Western Australia. Conservation concerns, however, and market factors such as demand for high-quality product and consistency of supply, has driven the industry towards cultivation. In 1995-96 about 15 per cent of Western Australia's production was from wild-harvest, compared with about 50 per cent in 1985.21 In Victoria, the vast majority of wildflowers are cultivated.
Victoria exported $7.3 million worth of flowers in 1998, and is the second-largest Australian exporter (22 per cent) after Western Australia. The majority of these exports are wildflowers. Western Australia, which currently dominates the wildflower industry, accounts for 53 per cent of floral exports.22 The Committee notes that not all of the product exported from Victoria is grown here; some is cultivated or wild-harvested in other States. The percentage of floral exports by State is shown on a pie chart on the next page.
Percentage of Floral Exports Per State - 1997-98
The top three native-flower exports from Australia are wax flowers (Chamelaucium spp.), kangaroo paws (Anigozanthos spp.) and Grampians thryptomene (Thryptomene calycina).23 These species are all `fillers' or `focal fillers' for floral arrangements. Filler flowers are typically lower-value, higher-volume products. Australia also exports high-value `feature' flowers, such as banksias, proteas and waratahs. 24 Western Australia is the major producer of wax flowers and kangaroo paws, which are endemic to that State.
Other wildflower species currently exported include those from the following genera:
a) Banksia;
b) Leucadendron;
c) Protea;
d) Boronia; and
e) Erica.
Australia's main markets for wildflowers in 1995-96 were Japan ($14.4 million), the USA ($4.6 million), the Netherlands ($3.2 million) and Germany ($2.2 million).25 Although historically Japan has been the main market for flower export from Australia, the Japanese recession has forced exporters to explore new opportunities in South-east Asia.
Australia wildflower exports have increased dramatically over the last 13 years, 
growing from $1.3 million in 1983 to $27.5 million in 1997-98.
Dried Flowers and Foliage
Dried flowers are a significant component of floral exports from Australia. The export value of dried and preserved cut flowers and foliage more than tripled between 1988 and 1996-97 to $10.38 million, and evidence suggests this is the fastest-growing sector in the Australian wildflower industry. Victoria is currently the largest Australian exporter of dried flower and foliage products, accounting for 40 per cent of exports.26
The billy-button daisy known as `drumsticks' (Pycnosorus globosus), which is wild-harvested by two or three pickers from roadsides and private lands in the north of Victoria, is used as a dry flower.27 Recent developments include the use of juvenile bracken (Pteridiumesculentum) as a dried product for use in floral arrangements.28 Many native grasses, which have an attractive appearance when dry, are also suitable for this use.29 Plantation-grown eucalypt foliage is being used to create preserved dried plant material, using a newly developed Australian technique of imbibition.30 As with a number of innovative enterprises that use native species, this development was undertaken by an established business working in a related industry.31
Distribution
Flower growers may sell direct to retailers or sell through a wholesaler. A large proportion of growers avail themselves of major distribution centres. The Committee observed one of the world's largest auction houses - the Aalsmeer Flower Auction. This is operated by a cooperative of growers and uses a `Dutch auction' system (first bid wins). It operates a strict quality program - all flowers are graded by auction-house staff prior to sale (and any defects listed). Products of low quality are not accepted for sale. Quarantine standards are, however, much lower. An abutting wholesale market area has been established in recent years to assist smaller buyers - charging the auction selling price plus a fixed loading. Initiatives currently under development include electronic commerce (remote buying), greater emphasis on cool room storage, self-inspection schemes and direct transport links to a nearby airport.
In Victoria a `National Flower Centre' was established three years ago, as part of the Melbourne Market Authorities' business at Footscray. Unlike the Dutch auction houses, the centre is owned by a public authority and growers rent space to sell their product, with wholesalers also renting space. The whole centre is air conditioned, with cool rooms provided, and remote selling is being investigated. The Authority is a foundation partner in the Australian Quality Assured Flowers program, which is a voluntary program. Health and disease inspections are undertaken by Agriculture Victoria staff. The Authority is not involved in the health and quality of products that a grower may choose to sell - it offers a convenient place of sale.
Victoria grows the Western Australian endemics, wax flower and kangaroo paw, and other Australian species, as well as South African proteas. However, the Grampians thryptomene (Thryptomene calycina), which is endemic to Victoria, is the State's main native-flower crop. The flower industry in Victoria based on native species is currently estimated to be worth about $7-8 million, growing at 10-20 per cent per annum, with thryptomene production alone currently estimated to be worth $0.5-2 million.32 Other commercially important native species grown in Victoria include wax flower, rice flower, waratah, ixodia, banksia and boronia.
It is estimated that, in Victoria, wildflowers are grown by 128 producers, on a total of 415 hectares.33 This represents 23 per cent of Australian wildflower growers and 19 per cent of the area under wildflower cultivation in Australia. The majority of wildflowers are field grown, with individual holdings generally less than 5 hectares in area. An important characteristic of the wildflower industry is that wildflowers are not the main business activity for the majority (64 per cent) of producers in Victoria.34
There are four major locations of wildflower production in Victoria. These are listed below, together with the major wildflower grown in that area.35
Table 3.1 Major wildlife production locations
Region |
Wildflowers grown |
Melbourne region, mainly in the Dandenong Ranges and the Mornington Peninsula |
Boronia |
South West region, mainly around Warrnambool |
Ixodia |
North Inland (Grampians, Horsham, Mildura) |
Thryptomene |
Gippsland |
Protea |
The Committee visited a large wildflower farm in the Grampians area - the Mount Talbot/Black Range Thryptomene Farm. The main crop produced is thryptomene (Thryptomene calycina), which is indigenous to the area. Other species grown include eucalyptus (for foliage), riceflowers (Ozothamnus), wax flowers (Chamelaucium), boronia, and ericas. New varieties are introduced every year, sourced from specialist plant breeders. Most of the crop is exported - to USA, Canada and Japan. The enterprise operates over a number of properties covering some 1200 hectares, requiring only small inputs of artificial watering and fertiliser application.
The nature of this operation is in marked contrast to those that the Committee had the opportunity to visit in Israel. The largest flower grower visited there operated on 25 hectares, with another very successful farmer operating on four hectares. These farms rely on high inputs of technology and infrastructure to artificially manipulate the growing environment - but produce similar quantities of wildflowers to the Victorian enterprise (20 tonnes per week).
Detailed statistical information on the number of growers and types and value of products is not available.
Overview of Selected Individual Species
The following summary has been based on material included in the landmark reference book by Johnson and Burnett36 and a handbook prepared by the Rural Industries Research and Development Corporation.37
Wattles (acacias)
Many wattles flower prolifically and have attractive foliage. They are also tolerant of most soil types and a wide range of climate. Most current production is in coastal Australia, including in Victoria, and is based on relatively few of the 800 species of the genus. The most commonly grown species are Cootamundra wattle (Acacia baileyana and Acacia baileyana purpurea) and silver wattle (Acacia dealbata). They are sold to the domestic and export markets, with Asia (especially Japan) the focus of export, but plants also going (as `mimosa') `'to Europe and USA. Wattles are also cultivated in Europe and Japan.
Banksias
Banksias are visually impressive, have long shelf life and are available in a variety of colours and forms. They are sold fresh and, to a lesser extent, in dried form. From an export perspective, they are readily identifiable as Australian (now a market-attractive selling point). They are widely grown in southern Australia, including Victoria, and sold in fresh and dried form. Most production is geared to the export market, particularly to Japan, but the market is still expanding - into other Asian and European countries. Most banksias are propagated via seed collected from native stands, although cultivated seed and rooted cuttings are becoming available. New cultivars are continuously being developed. `Birthday candles', a now very popular dwarf form of the hairpin banksia (Banksia spinulosa), was developed in Victoria.
Boronias
Boronias offer scented and attractive flower displays. They are grown in southern States including Victoria, mostly from cuttings (they are also grown in New Zealand, California and Israel). Wild-picked material is still important in Western Australia. The dominant domestic and export crop is the red boronia (Boronia heterophylla). Export markets are growing and include Asia, Europe and Canada. They are comparatively difficult to grow, have a short flowering season and short vase life, attributes being addressed by current research and development.
Eucalypts
The juvenile foliage of many eucalypts is attractive and is sold in many countries around the world. More recently a market has developed for buds, open flowers and gumnuts. Lack of uniformity in yield and quality are issues currently being addressed by the industry. Australian suppliers compete against those in France, Italy and USA. The main species grown for foliage production are cider gum (Eucalyptus gunnii), silver-leaved mountain gum (Eucalyptus pulverulenta) and silver-leaved stringybark (Eucalyptus cinerea), with at least another 20 species also grown.
Geraldton Wax
Geraldton wax (Chamelaucium uncinatum) is endemic to Western Australia, but is now grown in other States, including Victoria, and overseas. A number of varieties have been developed. It is Australia's leading wildflower - and has reached the top 20 plant species sold (by volume) in Europe. It has high productivity, good vase life and is most useful as a `filler' in flower arrangements and posies. The major producer of Geraldton wax is, however, Israel - Australia exports less than 10 per cent of the world production. It is also grown in California, Mexico, Brazil and southern Africa.
Ixodia Daisy
In the past production of ixodia or mountain daisy (Ixodia achilleoides) was based on wild-harvest from native stands in South Australia, but it is now cultivated there as well as in Western Australia and Victoria. Ixodia is currently mostly sold dried, but also has potential as a fresh flower. There is currently much interest in the plant in overseas markets because of its durability, appearance and suitability for drying.
Kangaroo Paw
Kangaroo paw is a significant and stable export product. It is readily identifiable in international markets as Australian - a strong selling point. The attractive blooms are also used for landscaping and pot plants. To date Australia has been the major source of new varieties, although Israel in now also producing them. There are a number of species grown, with black kangaroo paw (Macropidia fuliginosa) the most highly sought, but hybrids of the tall kangaroo paw (Anigozanthus flavidus) are the species most commonly grown. In recent years other countries have been growing them, including Zimbabwe.
Rice Flower
The rice flower, Pimelia , was harvested solely from the wild in New South Wales and Queensland until the late 1980's. It is now grown in a number of other States, including Victoria, and in the USA. It is generally sold as a `filler' flower for flower arrangements, primarily in Japan and the USA. Ninety per cent of production is exported. Cultivated plants continue to make use of the natural variety found in the wild stock, although a limited number of cultivars are mostly used.
Thryptomene
The industry is based on one species, the Grampians thryptomene (Thryptomene calycina), and is almost entirely produced near the Grampians, within its natural range. Most of the annual production of 10 million flowering stems (1998 figures) is exported - it is the largest flower export from Victoria. It is sold to the USA, Europe and to a lesser extent Asia. Limited development and use of cultivars, poor husbandry and post-harvest handling reduce potential quality, but these aspects are being addressed by the industry. A number of superior cultivars have been developed by Victoria's Institute of Horticultural Development, but are not generally available.
Industry Strengths
The combination of an increasing world population and a forecast increase in the per-capita consumption of cut flowers due to increasing urbanisation,38 indicates that there is potential for considerable growth in this sector. As consumption of all cut flowers increases, use of wildflowers is also likely to increase. A defining characteristic of the world flower trade is that, even though traditional flowers remain a mainstay of the industry, there is constant demand for new and unusual flowers for niche markets. Australia, with it vast and unique floral resources therefore has an inherent advantage over many of its competitors.
Australian-grown wildflowers are internationally accepted:
The [Flower Export] Council [of Australia] promoted Australian wildflowers at the premiere flower trade display, the Aalsmeer flower show, in Holland in November last year, and its display won a gold medal, reaping huge benefits by making international buyers aware of what is available from Australia, and particularly its quality.39
Although distance from the major world markets is generally a disadvantage, it confers one advantage - the seasonal differences between the Northern and Southern Hemispheres. Australia is able to supply northern markets during their out-of-season periods. The sheer size of Australia and its diverse climate also mean that flowers can be supplied from a number of locations and latitudes, thereby extending the supply period. In addition, the `woodiness' of many Australian native cut flowers (for example compared to `soft' exotic flowers like gerberas) allows native flowers to maintain their quality during long-distance transport. Australia's proximity to markets in South-east Asia represents another opportunity for Australian exporters, who have advantages, through lower freight costs and shorter delivery times, over competitors for these markets.
With traditional flowers dominating the domestic market, there is also potential for greater appreciation and use of Australian flowers and nursery plants in their country of origin.
Native wildflowers offer landowners a diversification opportunity, particularly of growing `commodity crop' species such Geraldton wax (Chamelaucium uncinatum) on contract, which exposes the farmer to less risk. A representative of Greening Australia noted that "the beauty of farmers getting into growing native plants - they do not have to put in a rotary dairy for $250,000".40 Others offer a contrary view, advocating that success requires a major commitment to the product - with both expertise and financial resources required.
Industry Challenges
Although Australia's location in the Southern Hemisphere provides a seasonal advantage, Australia competes for northern markets with many other producers of Australian wildflowers. Our distance from northern markets is a disadvantage in terms of freight costs and delivery times. Israel, which predominantly supplies Europe, is a key Northern Hemisphere competitor. Horticulturalists in Israel recognised the commercial potential of the Australia flora many years ago, and developed species such as wax flower for commercial use.
Israel now produces and exports greater quantities of Australian native flowers than does Australia. In 1997 Israel produced 76 million stems of wax flower and 22 million stems of kangaroo paw.41 In the same year, Australia exported only 4.9 million stems of wax flower and 0.46 million stems of kangaroo paw.42 Israel is now looking beyond European markets and targeting Asia, in direct competition with Australia.43 With its focus on high investment and technology, Israel has extended the flowering season of wildflower products and in some cases has undermined Australia's seasonal advantage. Other Northern Hemisphere competitors include California and Mexico.
In the Southern Hemisphere, increasing competition is coming from New Zealand, South Africa, Kenya, Zimbabwe, Colombia, Peru and Chile.44 Producers in developing countries in the Southern Hemisphere have similar climates and pose perhaps the greatest threat to Australia due to their lower costs of production (that is labour), particularly where they are supported by Northern Hemisphere technology and investment.45
