Grower organizations join forces for flower power

Grower organizations join forces for flower industry

A new joint venture company established by produce wholesaler, Market Gardeners Limited (trading as MG Marketing – MG), and flower wholesaler and auction company, United Flower Auction Limited (UFA), will begin trading as United Flower Growers Limited (UFG) on 1 May 2010.

UFA Board Chairman, Keith Goodall says the move sees two significant grower organisations joining forces to enhance the distribution of flowers for both growers and buyers, regionally and nationally, throughout New Zealand.

“Both companies are majority owned by New Zealand growers,” says Mr Goodall. “Our commitment is and always has been, to protect and preserve the interests of key stakeholders in New Zealand’s flower industry. The new company in which MG and UFA are equal partners will enhance this commitment in what is a volatile and constantly changing environment.”

MG’s Chief Executive Tom Treacy agrees, noting that the new company provides opportunities for consolidation and growth in the national flower market. “There are clear advantages in merging our respective operations in terms of the logistical efficiencies and business synergies available,” Mr Treacy says. “This move will support a joint commitment to delivering top value and service at auction and to the wholesale trade.”

UFG is likely to manage around 40% of New Zealand’s domestic flower market. It combines the auction and trading operations of Auckland-based UFA with the flower operations of MG located in Wellington, Nelson, Dunedin and Invercargill.

Managing Director of UFA, Bruce O’Brien says that bringing the flower industry reputation and expertise of UFA and the multi-market wholesale experience of MG together, creates exciting possibilities for both companies and for the trade.

“For growers, UFG will be able to provide more efficient and effective distribution channels and better information on product, quality and price throughout the country. Flower buyers will be able to operate much more effectively locally and regionally as well because they will be better supported by an organisation with a national spread, a broader range of flowers and a commitment to having the best flowers at the best price for retailers and flower buyers wherever they are in New Zealand.”

ENDS

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