For the Second ,//\\ Ro.. ;VMS\ Year in Row... Michigan's #1 Standards for Excellence Dealer CJWILLACI Additional 5500 Lease Renewal Incentive for current Cadillac Smart St.144 V8I8001 Chrome wheels, leather lumbar pkg., heated seats, safety & security pkg. Month $ 449 5 1900 down smARTL EAsE °n` Single Pam` PLUS $ 11 671 Additional 5500 Lease Renewal Incentive for current Cadillac Smart Lease, StIc# V260 1 07 Leather seats, chrome wheels, leather interior. 1900 doown Month 0 SMARTLEASE °Ile Si PLUS ngle PaYment $11 982 1 SMILE/LSE Stk# I 6476 I Leather seats, memory seats, theft deterrent system & chrome wheels. wr $1900 dow 2 Month $ S E s han P ns 344 one Single Pa Ynient $91378 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.