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GMAC Smartlease 24 months, 1st pymt., ref. sec. dep. equal to 1st pymt. rounded to nearest S25 increment, new plates or transier Tee,
administration fee due on delivery. State & Lux. tax additional. Mileage limitation of 24,000 miles. 150/mile excess charge over limitation.
Lessee has option to purchase at lease end for pre determined price. To get total pymt., multiply pymt. by no. of months.
If traveling west on 1-696, exit Hoover, follow Service Drive to RINKE.
If traveling east on 1-696, exit Van Dyke; take to second bridge past Van Dyke over expressway to RINKE.
68
WILTING page 67
Traditionally, the largest mar-
armed with cheap labor, low pro-
duction costs and good climates, ket is Holland, followed by Ger-
joined the fray. The worldwide many, Britain, France, the (=\
market was overwhelmed by cut United States and Scandinavia.
Growers are now targeting the
flowers.
Flower producers everywhere Far East and Eastern European
around the globe are feeling the countries such as the Ukraine,
squeeze, especially since China Hungary and Budapest in a bid
and India are now also joining in, to find more customers.
So far, however, the Far East
but in Israel, where farmers re-
ceive no subsidies from the gov- has not proved a great success.
"We have a project to develop
eminent and where production
costs are high, the new compe- our niche in Japan but it's a poor
tition spells trouble. "Forty per- sort ofjob," says Haaze. "It's hard c'\
cent of costs are labor. In Israel to do business. They smile and
we pay around $30 a day to la- you think they mean yes, but
borers, elsewhere they cost just they mean no. They also have a
$2 a day," says Mr. Frank. "We clever system of protectionism.
"Government officers find a
can't compete on that level."
Arieh Peles, marketing man- few insects when the flowers ar-
ager of Carmel Flowers at Agrex- rive and then the shipment has
co, dismisses this argument, to be fumigated. That takes 72
however. "Competition is the nor- hours during which time the
mal situation," he says. "It's here flowers lose value. We pay the
to stay and Israel can deal with cost."
Exports to Hong Kong, Singa-
it. You can't do anything about it
pore
and Taiwan are also limit-
except fight it."
Other problems facing Israel's ed.
Eastern Europe, on the other
flower industry are high inflation
hand,
seems a much brighter op-
and a strong shekel.
"This is affecting farmers bad- pion. Gideon Bickel, owner of
ly," says Mr. Peles. "It's their Bickel Flowers, realized the mar-
biggest problem. Exporters to Eu- ket potential over two years ago
rope are paid in European cur- and began targeting it. The move
rency which is doing badly, but is now paying off and the CIS is
they pay expenses in dollars and a fast-growing market.
"This market has developed
shekels. The combination of these
rapidly
in the last three years,"
elements means farmers are los-
ing about 25 percent of their nor- says Mr. Haaze. "Until 10 years
ago it was closed to foreign trade.
mal income."
`The exchange rate is local en- Since then it's undergone a rev-
emy No. 1," agrees Mr. Haaze. olution. It's the same sort of mar-
"Next comes inflation. I can't ask ket as Europe. The people there
for greater prices in London be- love the product and are con-
cause I come from a country with nected to it through religion. We
believe the Eastern bloc will be-
high inflation."
Zvi Alon, deputy director-gen- come the second Europe."
But Israel is not alone in
eral for foreign trade at the Min-
istry of Agriculture, admits that scrambling for new markets, and
these two elements are harming the industry must find other
business. "The industry is in mar- ways to stand out. Mr. Haaze be-
velous shape, it's working quite lieves this is through quality and
positively in a difficult market, service. "I can't sell garbage," he
but the low European currency says. "Quality and service are
really cuts into farmers' profits, key."
While most Israeli farmers say
and this is why they are com-
plaining. This is a decision by the their produce is of a much high- 7:
government. If the exchange rate er standard than most competi-
had been better, the economic re- tors, Mr. Haaze concedes that
suits for farmers would have even here, things look dim. "I
been different." used to have an advantage, but
Another area where farmers today I can't say that my winter
have been hit is in government quality is better than that of
grants. When the Netanyahu Africa or Ecuador," he says. 'The
government was elected, a deci- European consumer can have
sion was made to severely slash good qoplity flowers from all over
investment grants to farmers. the world. Ecuador is the best
"Many farmers who invest con- place to produce flowers in the
tinuously in new varieties are world because it has fresh water,
now finding themselves in severe good air, volcanic soil and cheap
financial difficulties," says Mr. Indians.
"What I'm offering is better
Alon.
Though many are campaign- growers. The average knowledge
ing for a change in government or skill of Israeli growers is ex-
policy, there are no indications tremely good. It's this that gives
that change is imminent. me my market position."
"We treat flower growing as an
Instead, the flower industry
must initiate a number of new industry," says Mr. Peles.
At present, Israel also has an-c,
strategies to try to cope with the
dual handicaps of competition other advantage over the new 1
growers: logistics. During the
and local problems.
One way is to find alternative
WILTING page 70
markets.