How to mitigate the potential risks of deglobalisation and ensure continued success

Shane Wang recently participated in the Jungle Talks Pro Manager Mastercourse Floriculture and was a Young International Grower of the Year 2023 candidate. He started as a researcher at the Agricultural Biotechnology Research Center in Academia Sinica and later worked as a crop specialist in the Department of Agricultural Protection at BASF. Shane currently serves as the crop protection and automation manager at Royal Base Corporation in Chinese Taipei, a leading Phalaenopsis breeder, propagator, and producer.

“In the post-pandemic world, the ornamental horticulture industry will likely face several challenges due to geopolitical instability, inflation and soaring energy costs, supply chain disruption, and trade disputes.

These challenges could impact the industry’s ability to operate efficiently and meet consumer demands. In response, there has been a growing trend towards reducing reliance on global supply chains for different stages of production and logistics. This trend is driven by factors such as national security concerns and the need for greater supply chain resilience.

In anticipation of future deglobalisation, growers must proactively adopt measures to mitigate risks and remain competitive. One such step is diversifying the supply chain to reduce dependence on a single source. Investment in local manufacturing and adopting sustainable practices to reduce carbon footprints are other measures that could help prepare for a more localised industry.

While deglobalisation may result in reduced availability of certain flower varieties in specific regions or countries, it could also lead to higher labour costs and a lack of suitable land for cultivation. Furthermore, a shift towards local production could disrupt the existing international flower supply chain.

This disruption could cause supply shortages or higher prices for certain flower types, particularly in regions where local production is not feasible due to climatic or other factors. Therefore, the question of how to balance the movement of the production chain still needs to be solved for growers.

Overall, the trend towards deglobalisation presents both challenges and opportunities for growers in the flower industry. To ensure continued success, growers must diversify their product and supply chain, invest in local manufacturing, and adopt sustainable practices. By doing so, they can prepare for the future and remain competitive in a changing industry landscape.”

This article was first published in the July 2023 edition of FloraCulture International.