Johannesburg — SOUTH African floriculture exports have held their ground despite the rand's strong appreciation.

Floriculture exports dipped only 3,9% to R269m last year from the R279m of 2002, which was a record year for the industry.

Exports include cut flowers, bulbs, foliage and plants.

The South African Flower Export Council suggested that this performance was "satisfactory" against the backdrop of the 30% difference in the average rand-dollar exchange rate during the past two years.

Export council chairman Dirk de Bruin said the kilogram volume of cut flower exports, representing half of all floriculture exports from SA, grew 4% and bulb volumes climbed 24% last year, compared with 2002.

But foliage and plant exports dropped 15% and 33% respectively. Although in value terms the decline was far less severe, with foliage exports rising 1% in value.

In another positive development, De Bruin said floriculture export destinations continued to diversify last year.

"Although the European Union (EU) still absorbs about 60% of our exports, there is a steady growth in exports to non-EU countries."

An example is the Middle East where South African exports rose from 1% of all exports in 1995 to over 5% last year. SA was also starting to make inroads into the former eastern Europe countries.

Representatives of the Dubai Flower Village a large new hub for exports to the rest of the world would meet with South African flower growers during the Gardenex show in Johannesburg next week to develop South African exports to the Middle East.

The flower council attributed the sustained growth to farmers' efforts in maintaining markets captured during the 2002 boom.

In addition, foreign buyers introduced to South African floriculture products in 2002 continued to source flowers from the country despite higher prices. This illustrated their satisfaction with the products, said the council.

Also, South African floriculture exporters were pooling cargo to achieve high-volume exports, lowering air freight rates that represent the highest-cost export item.

The floriculture industry had recorded sustainable growth in domestic and export sales during the past few years.

"Flower exports rose quickly from 1995 to 1999 and then experienced a consolidation phase until 2001," said De Bruin.

Flower exports boomed from R182m in 2001 to R279m in 2002, mainly because of the weak rand during much of that period.

Multiflora emerged as the largest exporter in the industry, exporting about 70% of all SA's flower exports via the Multiflora Flower Market.

The company's exports almost doubled in the past nine years to R193m last year.

Roses, the most popular flower in the domestic market, accounted for 22% of Multiflora's revenues.

Carnations contributed 7% to revenue and chrysanthemums and lilies each generated 17%.