Market Survey Romania and Bulgaria - The market for flowers and ornamental plants Deze marktverkenning is uitgevoerd door BDG, in opdracht van de EVD, en in samenwerking met de Nederlandse ambassade te Boekarest

EVD November 2007

Nadere informatie: EVD Landenmedewerker Roemenië Telefoon: (070) 778 8917 | e-mail: [email protected]

©november 2007. Ministerie van Economische Zaken, EVD De EVD verleent deze informatie gratis. De inhoud moet gratis beschikbaar blijven voor onze doelgroep, het Nederlandse bedrijfsleven. Niets uit deze uitgave mag worden verveelvoudigd en/of openbaar gemaakt door middel van druk, fotokopie, microfilm of op welke andere wijze ook zonder voorafgaande schriftelijke toestemming van de uitgever. Ondanks alle zorg die aan deze uitgave is besteed, kan het ministerie van Economische Zaken/EVD voor eventuele onjuistheden niet aansprakelijk gesteld worden.

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CONTENTS Page Chapter & Section A. BACKGROUND B. SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS C. FLOWERS AND ORNAMENTAL PLANTS SECTOR IN ROMANIA 1. ROMANIA COUNTRY BRIEF 2. SECTOR DESCRIPTION 2.1. Market Assessment 2.2. Factors Determining Market Size 2.3. Market Supply 2.3.1. Local Production 2.3.2. Imports 2.4. Market Access 2.5. Technical Aspects in the Market 3. LEGAL AND INSTITUTIONAL FRAMEWORK 4. REVIEW OF NATIONAL STRATEGIES. PRIORITIES AND DEVELOPMENT PLANS 5. PRACTICAL GUIDE TO MARKET ENTRY 5.1 Types of Businesses in the Floriculture Sector 5.2. Foreign Investments 5.3. Business Practices 5.4. General Considerations on Romanian Business Environment 5.4.1. Legal Framework for Founding Companies in Romania 5.4.2. Financing Programs and Sources 6.SUMMARY ON INTERVIEWS CONDUCTED FOR THE DEVELOPMENT OF THE REPORT D. FLOWERS AND ORNAMENTAL PLANTS SECTOR IN BULGARIA 1. BULGARIA COUNTRY BRIEF 2. SECTOR DESCRIPTION 2.1. Market Assessment 2.2. Factors Determining Market Size 2.3. Market Supply 2.3.1. Local Production 2.3.2. Imports 2.4. Market Access 2.5. Technical Aspects in the Market 3. LEGAL AND INSTITUTIONAL FRAMEWORK 4. REVIEW OF NATIONAL STRATEGIES. PRIORITIES AND DEVELOPMENT PLANS 5. PRACTICAL GUIDE TO MARKET ENTRY 5.1. Foreign Investments 5.2. Business Practices 5.3. General Considerations on Bulgarian Business Environment 5.3.1. Legal Framework for Founding Companies in Bulgaria 5.3.2. Financing Programs and Sources

3 5 7 8 14 14 16 16 16 19 23 28 29 35 36 36 36 39 40 41 43 53 56 57 60 60 63 64 64 66 69 74 75 79 81 81 82 83 83 85

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E JOINT SWOT ANALYSIS OF THE SECTOR IN ROMANIA AND BULGARIA F. KEY CONTACTS ROMANIA G. KEY CONTACTS BULGARIA H. REFERENCES ROMANIA I. REFERENECES BULGARIA List of Abbreviations used in Romanian Section List of Abbreviations used in Bulgarian Section

89 92 108 130 131 132 133

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A. BACKGROUND Business Development Group SRL was commissioned by the Agency for International Business and Cooperation (EVD) Netherlands to carry out a market survey study regarding the floriculture market in Romania and Bulgaria, in order to provide the Dutch companies in the field with an instrument for the evaluation of opportunities in the region, for assessing methods, instruments and costs in order to devise a successful market approach. The executor of this report based its methodology on providing valuable local information in cooperation with our Bulgarian business partners Business Centre Serdon. EVD targets as set by the Terms of Reference are to receive information on: -

the structure and organization of the sector, the institutional structure and legal framework the quality level in the sector, technical and financial aspects of the market analysis of the bottlenecks, internal and external risks as well as of the needs in the sector practical guide to market entry, including the necessary pre-conditions to start or continue business activities, as well as services that can be provided to Dutch companies entering the market

By making this information available, EVD aims to facilitate interested Dutch suppliers and flower/ornamental plants exporters a better understanding of the specifics and future potential of the Romanian and Bulgarian markets. In addition, this information is meant to ensure better market access to Dutch suppliers, by providing relevant key contacts and outlining the necessary steps to be taken. For the accurate quantification of the market, the definition of research categories was made in accordance with EU Common Customs Tariff as follows:

Customs code

Customs category

0601

Name: Bulbs, tubers, tuberous roots, corms, crowns and rhizomes Description: Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, in growth or in flower; chicory plants and roots other than roots of

Planting material

0602

Name: Other live plants (including their roots), cuttings and slips Description: Other live plants (including their roots), cuttings and slips; mushroom spawn

Pot flowers and Ornamentals

0603

Name: Cut flowers and flower buds of a kind suitable for bouquets Description: Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared.

Cut flowers

0604

Name: Foliage, branches and other parts of plants Description: Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared

Foliage

(as defined in the Customs Tariff)

Reference the report

in

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Within the definition of the terms of reference, EVD already acknowledged expectations on the scarcity of and difficult access to information about the sector, underlining the importance of field research. This recommendation was taken into account in the process of elaborating the present report, thus creating the possibility to provide insight market information that was not always transparent from statistics. Even though uniform procedures and approaches were developed for both the Romanian and Bulgarian research teams, in practice the local market sources of information reacted differently (mainly based on local specificities and willingness of major players to disclose information on the sector), influencing the structure and extent of the information provided for each country. For Romania, the main sources of information were, in order of importance: National Institute of Statistics (NIS), direct interviews in the market, Ministry of Agriculture and Rural Development (MARD), National Phytosanitary Agency and the National Trade Register (ONRC). For Bulgaria, the main source of information was the Bulgarian Customs Agency, statistical data provided by them being further elaborated based on direct interviews with major players. The report is structured in 2 main sections, corresponding to each country, including brief country presentations, sector descriptions, market assessments, guidelines of approaching the markets, available funding sources, as well as a comprehensive data base of contacts relevant for the sector in both Romania and Bulgaria.

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B. SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS Romania and Bulgaria, with a population totalizing over 30 million can be considered as one European region of great potential, in terms of consumer markets. Romania and Bulgaria’s floricultural and ornamental plants sectors reveal major similarities, in terms of historical and recent development. In both Romania and Bulgaria, the sector used to rely mainly on state-owned operations before 1990, and went through a major economic crisis as part of the general transition to market economy in the following decade. Both sectors witnessed significant growth over the past five years, and currently show positive trends, in line with the countries’ general economic development and the recent European Union (EU) accession. They offer many opportunities for future investment and development in the coming years, having good natural conditions as well as the necessary labour resources to sustain a re-boosting of local production. Both markets are dominated by imports, the majority of EU origin, with the Netherlands, Italy and Hungary competing for major market shakes, but generally with Netherlands in a leading position (holding first position for planting materials and cut flowers and an increased market share for ornamental and pot plants over the past two years). The major exception from this structure is regarding Bulgarian market for outdoor ornamental plants where local producers are estimated to hold 80% of the market share. The Netherlands also leads in terms of foreign direct investments in the sector, either by direct approach or based on financial support granted by Dutch government in the pre-accession period. Both markets are dominated at this time by low quality merchandise, but both also show a steady trend towards higher added value products over the last few years based on economic growth and increased level of awareness. In both countries, the sector faces challenges in areas such as: -

-

practical implementation and enforcement of the legal and institutional framework (already harmonized with EU legislation) lack of knowledge and interest at national level, and hence the absence of any coordinated strategy for its development. Nevertheless, it appears that this may be changing in Bulgaria, where the Ministry of Agriculture, noting the development and potential of this sector, intends to undertake a thorough study of the floricultural sector in late 2007, which hopefully will lead to more efficient enforcement of quality standards, development of a national strategy and creation of new funding opportunities. the gap between market development and demand on one side, and expertise provided by the educational and research system (access to up-to-date techniques and technologies, increased qualified workforce on all levels) on the other the highly disorganized private sector (Romania took a step forward in terms of producers/sellers associations, but the real outcome is still far from the needs), and the presence of corruption and tax evasion at different levels (players on the Romanian market were more willing to disclose the subject)

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As regards the future developments in both countries, they are directly determined by economic and social development. Along with continued growth of the construction and tourism industries, the improvements in living standards and consumer education will generate further opportunities on the floricultural market, in terms of both volumes and quality standards. The increase of high income population will refine the demand and generate the drive for a higher diversification of the offer. As regards planting material, opportunities arise from the increased demand generated by the re-boosting of local production (especially in Bulgaria), in the absence of reliable local suppliers downstream the supply channel. In the past the source for seeds and other planting materials was centralized and, during the transition period, the lack of state support drastically reduced local production in major greenhouses and research institutes. Basic species (hyacinth, tulip, lily, etc.) at good quality levels and fair prices are currently imported even by the former local producers, and they are demanded by the markets. The cut flowers and indoor pot plants market will be influenced in both countries by the rising preference of the end consumer for high added value products (species and sophisticated arrangements), by urban development and by the increase and diversification of the institutional market (HoReCa, petrol station networks, public relations and event management companies, governmental institutions, etc.). On the other hand, as gift is foreseen to remain the major purchase motivation, cut flowers will always face the competition of other possible alternatives. As regards the ornamentals business, opportunities arise from the development of real estate projects. The trend goes back to building individual houses instead of big condominiums, and the high income owners lead the demand towards valuable, exotic products based on aesthetic motivation, even if the adjustment to local climate is not guaranteed. In Romania, another opportunity is generated by environmental projects attempting the restoration of green areas in major cities, conducted either by governmental or local authorities, or initiated by private entities (such as major oil companies or powerful non-governmental organizations). Sector needs as identified by direct interviews with major players and authorities from both markets are also similar referring to: - development and implementation of specific strategies for the sector at national levels; - access to updated technology to improve competitiveness of the local businesses in the sector (with the exception of those few companies involved in joint ventures with foreign companies majority are affected by the use of extremely outdated technology and equipment and lack of financial resources to invest in expensive new technology); - reinforcing quality standards in terms of their effective application as well as increased awareness of the population; the large quantity of low-quality products available on the market (which are nevertheless overpriced for what they are) is driving down prices and profitability for producers attempting to maintain high quality standards; - a sustainable public-private communication and partnership as in both countries the lack of expertise and resources on authority side combined with the lack of cooperation between private players result in the impossibility of bringing technical and commercial progress to the sector; - an easier access to financing opportunities especially the EU funds; while eligibility would allow access of local producers to the various programs and financing schemes in reality most entrepreneurs, even those managing the largest companies in the sector, do not have sufficient experience to successfully apply for and implement projects through these programs. Interviewees in both countries complained that they found the EU funding process overwhelming and confusing. - a better connection of education and research fields with floricultural production and trade; even specialized courses of floriculture and landscaping are available in Agricultural Universities on both markets there is a lack of well educated workforce. 7

In terms of market approach and business promotion, similar practices and local funding possibilities are present in both countries, with a certain specificity determined by cultural differences as further detailed in the report. Common business practices used by the Dutch flower sector are also valid in Romania and Bulgaria: - finding a trade partner is done via trade fairs & events, recommendations and the internet - contracts in writing are not a common practice, with the exception of big landscaping projects where contracts are imposed by big customers (real estate developers) - the commercial terms used for imports/exports are in accordance with INCOTERMS - payment in advance is the most commonly used method - the communication flow is less prompt, constant and reliable than it would be expected in Dutch culture To sum up the considerations above, we can conclude that the sector offers clear potential for Dutch companies interested in expanding their business, and that unitary strategy can be developed for approaching both countries. Investments in local production seem to offer good advantages in the future.

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C. FLOWERS AND ORNAMENTAL PLANTS SECTOR IN ROMANIA

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1. ROMANIA COUNTRY BRIEF Romania is situated in SE Europe, just north of the Balkan Peninsula. With an area of 238,391 square kilometres (91,780 square miles), Romania is the second largest country in Central and Eastern Europe. Romania’s population stands at about 21.6 million, according to the latest statistical information (July 2006). Ethnic Romanians make up about 89% of the population. The main minority groups are Hungarians (7%), followed by a large community of Rroma, and smaller numbers of Germans, Russians, and Serbs. More than half of the population (55%) lives in urban areas. The population of Romania is predominantly Christian of different denominations: Orthodox (87%), Roman Catholic (4.7%), Reformed (3.2%), Greek Catholic (1%), and Pentecostal (1.5 %). Romania also has small Jewish and Muslim communities. The country borders on Ukraine and the Republic of Moldova to the north and northeast, on Bulgaria to the south, on Serbia to the southwest, and on Hungary to the northwest. The Black Sea coast is its eastern border. The River Danube runs along Romania's southern border for 1,075 km, and eventually forms the Danube Delta before flowing into the Black Sea. The territory of Romania is subdivided into 41 counties (“judete”) plus Bucharest. These are the administrative units of local government. Bucharest and its surrounding area form a unitary district with county status. Romania has a varied landscape and large areas of the country are mountainous (Carpathian Mountains). It has a variety of natural resources, including oil, natural gas, coal, iron ore, non-ferrous ore (copper, lead, and zinc), gold and silver ore, sulphur, and salt. The climate is temperate-continental with hot summers, long cold winters, and short springs and autumns. The average temperature in summer is 23° Celsius, although on some days it may exceed 40° C. In winter the weather is usually frosty, with considerable snowfall, an average temperature of -3° C and an occasional drop below -25° C. Romania is a republic and a parliamentary democracy, and its President (currently Traian Basescu) is elected for five-year terms (since 2004). The official language of the country is Romanian. The language uses the Latin alphabet and is part of the Romance language family. In some parts of Transylvania, Hungarian is spoken alongside Romanian, while in other parts of Transylvania and in Western Romania German is also spoken. In addition, many Romanians speak English and / or French, and business is often conducted in one of these two languages. Romania's transition, started in 1990 was more difficult than that of the other CEE countries in many respects. By the late 1980s, Romania’s economy was on the verge of collapse after 40 years of rigid central planning that emphasized self-reliance, an excessive focus on heavy industry, and large, inefficient infrastructure projects. In an attempt to minimize the social costs of transition and often to placate vested interests, the Romanian government initially hesitated to impose tight fiscal constraints and to privatize large loss-making enterprises. In the late 1990s, attempts to impose macroeconomic stability without full structural support led to negative economic growth and to a doubling of the poverty rate, from 20% in 1996 to 41% in 1999.

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Recent economic performance Since 2000, the government has implemented macroeconomic policies which are supportive of growth. A disciplined fiscal policy, which complemented a tight monetary policy and was augmented by strong advances in structural reforms, led to improved financial discipline in the enterprise sector and has placed public finances and the financial system on much firmer footing. In addition, inflation and interest rates declined steadily, the fiscal deficit was brought under control, foreign exchange reserves increased to historic highs, and external debt was held to comfortable levels. Export growth remained vigorous, fuelled by private investment and the initial competitive depreciation of the lei currency. The competitiveness of the enterprise sector was boosted by productivity gains. These improvements resulted in robust GDP growth for five consecutive years. In 2006, according to the National Institute of Statistics, GDP growth was recorded at 7.7%, one of the highest rates in Europe. Unemployment in Romania was at 4.5% in April 2007, and the inflation target reached 6.1% at the end of 2006. The economy is predominantly based on services, which account for 55% of GDP, even though industry and agriculture also have significant contributions, making up 35% and 10% of GDP, respectively. Additionally, 32% of the Romanian population is employed in agriculture and primary processing, one of the highest rates in Europe. The economic sectors that have experienced the highest growth in recent years are real estate (largest investments in CEE, directed at residential complexes and industrial parks), logistics & distribution, food retail (24% growth in 2006 and expected to reach 10 billion EUR in 2007), constructions and outsourcing (accounted for 30% of al CEE outsourcing operations in 2006, mainly textiles, metal processing, IT). Foreign direct investment (FDI) stood at around EUR 5.2 billion, similar to the level registered in 2004, according to preliminary data from the National Bank of Romania. The large privatizations that took place in 2005 (e.g. the sale of two major electricity distribution companies: Electrica Oltenia and Electrica Moldova to Ceske Energeticke Zavody (CEZ), and E.ON AG), the introduction of the new Fiscal Code and also the country’s EU accession process, positively influenced the level of FDI. Moreover, FDI is expected to increase further as a result of Romania’s EU membership, obtained on 1 January 2007. Romania is now a visible and attractive destination for international investors as a result of better sovereign ratings and improved access to international funding. In September 2005, Standard & Poor’s raised Romania’s long-term foreign currency rating to investment grade at BBB– (‘BBB minus’) with a stable outlook. At the end of 2005, Fitch affirmed the country’s long-term foreign currency at BBB– (‘BBB minus’). Also, the US financial rating agency Moody’s upgraded the Romanian government long-term and short-term foreign and local currency ratings to Baa3 in October 2006.

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Table RO1: Romania Macroeconomic Data MU

2000

2001

2002

2003

2004

2005

20061

GROWTH AND ASSOCIATED FACTORS GDP growth

%

2.1

5.7

5

4.9

8.3

4.1

7.7

Industrial output growth %

7.1

8.4

6

3.1

4.3

2.5

6.9

Final consumption

%

1.4

6.3

2.4

6.9

10.2

8.5

11.5

Gross Fixed Formation

%

5.5

10.1

8.2

9.2

10.1

13

16.1

Capital

TRADE AND INVESTMENT Exports FOB

EUR mill

11273 12722 14675 15614 18935 22255 25850

Imports FOB

EUR mill

13140 16045 17427 19569 24258 30061 37609

Trade balance

EUR mill

-1867 -3323

-2752 -3995

-5323

-7806

-11759

1147

1212

5183

5213

9082

-5098

-6883

-9973

Foreign investments

direct EUR mill

1294

1946

Current account deficit

EUR mill

-1494 -2488

-1623 -3060

FDI stock

EUR mill

6966

8656

8516

10072 15040 21885 31130

CPI (year end)

%

40.7

30.3

17.8

14.1

9.3

8.6

4.9

CPI (average)

%

45.7

34.5

22.5

15.3

11.9

9.0

-

Employment

Thou. pers

4623

4619

4568

4591

4420

4704

4575

Unemployment

Thou. pers

1007

827

827

659

558

523

461

Unemployment Rate

%

10.5

8.8

8.4

7.4

6.3

5.9

5.2

RON/USD (average)

-

2.169 2.9061 3.3055 3.3200 3.2637 2.9137 2.8090 3

RON/EUR (average)

-

1.995 2.6027 3.1255 3.7556 4.0532 3.6234 3.5245 6

INFLATION

EMPLOYMENT

EXCHANGE RATE

Future Economic Trends Relevant For the Floriculture Sector

1

Current exchange rate is of 3.32RON for 1 EUR

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The experts of the Ministry of Public Finances (MFP) anticipate that Romania’s economy will continue the positive growth rate over the next four years, and most of the macro-economic parameters will improve or enhance. Based on the MFP report addressing the macro-economic situation for 2007 – 2010, Romania’s Gross Domestic Product (GDP) will continue to post a growth rate of more than 5%, but its trend is expected to be a downward one. Thus, from an economic growth of 6.4% expected for 2008, the GDP growth rate would decrease to 5.6% in 2010. According to MFP, GDP growth in 2007 will be backed mainly by the favourable evolution of services and constructions. For the time period 2008 – 2010, average GDP growth will be 5.9%, against the background of improved internal and external economic competitiveness, which will result in a high export pace, in production better matching demand and in reducing the share of the current account deficit within GDP. Regarding the evolution of the inflation rate, authorities expect it to gradually decrease over the interval 2007 – 2010, going down from 4.5% in 2007 to 2.5%in 2010. The NBR expects the exchange rate to have a disinflation impact on domestic prices in 2007, and anticipates a more favourable trend in fuel prices, which should help to offset the upward impact of increased food prices. However, the relaxation of fiscal policy in 2007, together with wage pressures, drought effects, increases in administered prices, and higher excise duties on tobacco and alcoholic drinks, will work in the opposite direction. Any adverse exogenous factors, such as increases in world energy prices (as forecasted), or a poor harvest, would jeopardize the NBR’s inflation target for 2007. Inflation is expected to rise again in the final months of 2007, resulting in an annual average inflation rate of 4% and a year-end rate of 4.3%. Average inflation may rise slightly during 2008, but is forecast to decline to 4% by December 2008. It is also expected that domestic consumption will grow much faster in 2007, as a result of a massive inflow of EU development funds and FDI. There may be strong inflationary pressures and an increase in imports (which would increase the trade deficit) if the supply demand gap is not narrowed. Exchange rates The national currency, the RON, has appreciated sharply against both the Euro and the US dollar since the start of 2007. The currency is being driven up by large, speculative foreign inflows that are attracted by relatively high interest rates, the full liberalization of the capital account, the move away from exchange-rate targeting to inflation control, and a generally positive view of Romania’s prospects – factors which are expected to persist for the foreseeable future. The average real effective exchange rate increased by a cumulative 25.5% against a trade-weighted basket of currencies in 2005-06. A further significant appreciation is expected in 2007 and, with it, increased lobbying at the central bank by exporters to intervene so as to prevent an overly rapid appreciation of the RON. There is also a risk of a sudden reversal of sentiment, should Romania’s political crisis worsen, or, in the event of an external shock, putting downward pressure on the RON. Interest rates NBR operated four consecutive cuts of the key interest rate, from 8.5% to 7% maintaining the current interest rate level is natural since inflation is set to be 4.7%by year-end, and the national currency, the main ally in the fight with prices is inauspicious. The liberalization of the provision of financial services will mean lower interest rates in the long run.

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Constructions & Real Estate The accession to the EU gave an additional boost to the local market, being expected that, after 2007, Romania will become the most dynamic construction market within the European market. Transactions in the real estate sector increased 60% year-on-year in the first nine months of 2007, while total Romanian construction market is estimated to reach over EUR 10 Billion at end of the year. This is following a trend of growth of 15-30 % per year in last 3-4 years. The most dynamic segment has been the residential, with 84% yearly increase followed by infrastructure segment (with an increase of 65%) and non-residential, including retail and industrial (varies between 45 and 65 % increase, depending on sources). Deals involving finished buildings or ongoing projects amounted to 800 million EUR in the first 9 months of 2007, with Austrian, Israeli and British investors as main market players. Large companies such as Immoeast, Europolis, Globe Trade Centre (GTC), Cefin, Teesland, Trigranit, and Sonae Sierra were involved in deals relating to the most important office, retail and industrial buildings recently developed in Romania. Most office projects delivered in 2006 had been pre-leased in 2005, and the trend continued in 2006 when over 73% of the year’s demand was for office projects to be delivered in 2007 and 2008. This phenomenon can be explained by the extremely low vacancy rate in the market, which is encouraging potential tenants to consider their future office requirements a long time ahead of the actual need to move. Lease agreements for space in existing projects in prime locations have been signed at an average rate of EUR 18.6 per sqm per month and for EUR 15.2 in secondary locations. Better rent levels have been obtained for pre-lease agreements, mainly because developers generally have to achieve a certain level of pre-leased space in order to secure financing for construction works to begin. As a result, pre-lease agreements were signed during 2006 at an average of EUR 15.6 in prime areas, and EUR 13.7 in secondary locations. Services are charged at cost and were estimated at approximately EUR 3-3.5 per sqm per month in 2006. The relatively large number of projects announced for 2007 and 2008 will cause an increase in the vacancy rate, as well as a slight decrease in rents, though this will be mainly for the pre-lease contracts. Existing, and centrally located projects, will maintain, and possible even increase their rent levels. Retail Sector The commercial market in Romania directly impacts on the overall real estate market. The commercial activities went through a complete transformation over the last decade, from street corner shops to large hypermarkets and specialized retail shops. Modern retail ended 2006 weighing more than a quarter of the Romanian retail, with hypermarkets and discount shops being the segments with the greatest forward flow, the former category doubling its market share while the latter growing at a 1 to 4% rate. Latest statistics show that the turnover for the retail sector rose by 25% in October (2007), based mainly on the rising access of the population to consumer goods, via credit and latest figures estimate a consolidated retail turnover of more than EUR 1 billion at the end of 2007.

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If the main conclusions for 2006 were the development of modern retail and changing shopping habits due to increased income, 2007 marks the beginning of a period which will outline several strong trends: • intensifying intra-communitary trade which will attract sharper competition in FMCG • the development of traditional retail, • accelerating retail expansion in medium and small towns. 1.1.1.1 Romania continues to be attractive to retailers, not so much for the expansion of food retailers. 1.1.1.2 Existing retailers will continue to consolidate their positions by aggressive expansion and customer loyalty programmes. Especially new producers and suppliers are important for the development. 1.1.1.3 1.1.1.4 Due to the fast increase of retail industry, Romania's commerce will manage to catch up with that of Hungary, The Czech Republic or Poland. It needs to be mentioned however that development rate will be faster than that of other Central and Eastern European countries. In 2006, the average rent for Bucharest’s existing shopping centres was between EUR 25-28 per sqm per month, which is a fall of almost 9% comparing to the previous year. As new projects are potentially going to hit the market, owners of existing centres have been trying to improve their concepts and tenant mix and to enforce their position on the market by attracting new international brands. These new arrivals have in fact started to pay lower rents than local retailers, in this way decreasing average rents. The average rent for shopping centres outside Bucharest is around EUR 18-25, though well managed developments with good concepts and good anchor tenants can achieve closer to EUR 22-25. Poorer concepts can only generate average rents of around EUR 16. Service charges in shopping centres vary between EUR 6 and EUR 11 per sqm per month, and are usually calculated based on an open book system. Given the excess demand for high street space, landlords continue to enjoy a privileged position, receiving many offers for one listing, and having the opportunity of choosing from several potential tenants. In such cases, more and more often in Bucharest, the battle for retail space leads to tenders. At the close of the proceedings, the landlord usually obtains rents higher than his asking price. Given the anticipation of important new deliveries in 2008 - 2009, and the arrival of a tenants’ market, it is likely that contracts will be signed at lower rents than current levels. Depending on the quality of the centre, the fall could be by as much as 10% to 25%. Well conceived projects in good locations will be able to achieve slightly higher rents than others. Competition will also allow retailers to impose their criteria when negotiating. One typical request is that the centre to be managed by a professional firm. Such management gives the retailer greater reassurance that the mall will function well after opening. Furthermore a professional management company will probably control better a mall’s operating costs, so that the service charges will be lower. Warehouses The final statistics for the year show that in 2006 the Romanian industrial market saw similar levels of supply and demand as in 2005. The trend for demand is upwards, as most companies are opting to relocate their warehouses to the newly delivered industrial projects. The most requested technical specifications for warehousing space are flexible and easily divisible space, a minimum floor to ceiling height of 9 m, loading docks, and modern fire and security systems.

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A large proportion of the 123,500 sqm of demand came in the form of pre-lease contracts. As a result, most new supply has found itself leased on arrival – though 2007 should see a very healthy amount of new supply once again. With 61,300 sqm of new space delivered, the total stock of quality industrial facilities reached approximately 260,000 sqm by the end of 2006. With strong demand largely pre-empting the arrival of new space on to the market, the vacancy rate in the market for modern warehousing space in Romania is very close to zero percent. The slight downwards trend for rents was maintained in 2006, especially in the second half of the year when the delivery of many projects had been expected. Lease agreements for over 10,000 sqm of warehouse space were signed for about EUR 4.00-4.25 per sqm, while the rent for smaller spaces (under 3,000 sqm) was usually between EUR 4.80 and 5.00. It must be noted that on top of the rent, an additional fee of between EUR 0.40 and EUR 0.70 per sqm is paid by tenants for service charges. If all the projects that have been announced are actually delivered during 2007, the total level of stock in the market will be doubling during one year. Rents should continue to edge downwards under the influence of the flood of new space onto the market. Land market In 2006, demand for development sites continued to be bigger than supply which obviously led to price growth. The land supply for development sites came mostly from former industrial factories that are encouraged by the local authorities to move their activity outside the city. Estimations for 2007 show land prices will continue to grow, but at a slower pace, the developers maintaining their interest in large sites suitable for big scale projects. Market is also becoming less with an increased number of end-users to conclude transactions. As an example the total land area sold in Bucharest in 2006 (considering only the large transactions – over 10,000 sqm) was somewhere around 500,000 sqm. This includes only plots of land located inside the city limits purchased for immediate development purposes and not for speculative investment. Demand came mainly from residential developers looking to secure locations for their future projects. The total supply of land coming from old industrial properties inside the city might be a few thousand hectares, out of which less than 50% has been sold (or is in the process of being sold) in order to bring to the market new real estate development projects. Prices grew slowly, but constantly, throughout the years. At the end of 2006 the land prices increased with 30-40% compared to the beginning of the year, with variations depending on the different areas of the city. For large transactions, of over 6 ha, the medium price was situated between EUR 400 and 500 per sqm. Same as last year, land prices will continue to increase in 2007 with an estimated average of 20% to 40% but could go even to 100% for the currently undeveloped parts of the city.

Tourism Tourism is one of the most dynamic and fastest developing sectors in Romania. Domestic and international tourism generates about 4% of GDP and 0.8 million jobs. Following commerce, tourism is the second largest component of the services sector. In 2006 Romania registered 20 million overnight stays by international tourists, 4% higher than in the previous year and an all-time record.

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Two-thirds of all major trade fairs from Central Europe are held in Romania, and each year they attract 2 to 3 million business travellers, about 20% of whom are foreigners. The four most important trade fairs in the region take place in Bucharest, Cluj-Napoca, Iaşi, Timişoara, generating considerable tourist in-flows. According to travel agencies TUI AG and Thomas Cook, 17 of the 100 best hotels of the world are located in Romania. Over the years, Romania has emerged as a popular tourist destination for many Europeans, often competing with Greece, Italy and Spain. Romania destinations such as Constanta and Mamaia (sometimes called the Romanian Riviera) have become very popular among European tourists. Romania has a highly developed tourism infrastructure, making it a good market for tourism-related equipment, services and flowers and ornamentals.

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2. SECTOR DESCRIPTION 2.1 Market assessment

This chapter presents results of our business survey of the floriculture and ornamental plants in Romania. The main research constraint was the fact that statistic data concerning floriculture is quite scarce, determined on one side by the non-unitary reporting for various categories of economic activities (from company registration to consumption indicators and customs categories) and on the other side by the lack of transparency for the field from both authorities and major players. Statistical data used to base following considerations was sourced from NIS, Romanian Trade Register and MARD. The extremely restricted data from official sources have been compiled with results of direct interviews based on a detailed questionnaire, in the attempt to create as much as possible an accurate picture of market demand, of specifics of businesses that currently meet market needs, and of expected market evolution in the near future. Correlation of information from several sources was sometimes necessary based on the high diversity of sources used for this report, and in order to keep the accuracy of the information and provide the client with clear comments and interpretations. Market Size In the absence of coherent and complete statistical information on volumes, the following assumptions were used to evaluate the Romanian market size (values), based on interviews with MARD representative and major players on the market:

Table RO2: Romanian Market Coverage Category

Import

Local production

%out of total Planting material

95

5

Cut flowers

90

10

Foliage

97

3

Pot flowers and ornamentals

80

20

18

Planting materials market (bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant, growing or in bloom) is evaluated at about 1 million EUR in 2005, and almost 2 million EUR in 2006. The volume increase in the same period is of only about 5%, which proves that high quality products are demanded by the market. Interviewed producers confirmed using higher quality imported material, because they have learned that planting material has an important contribution to lessening the risk of diseases during production, and to improving the quality of the end product. The predictions of MARD representatives and interviewed importers state that the market for planting material is on an ascendant trend, due to increasing areas for production and increasing quality standards of local producers. Statistical figures that quantify the worth of cut flowers and foliage market in Romania are the most difficult to estimate, due to missing or incomplete registration of market movements. MARD is working with a quantitative estimation of 1.4 billion pieces cut flowers sold in 2006, out of which 90% are imported. Based on available statistical information, the cut flower market can be evaluated at 12 million EUR in 2006 (on a positive trend from the 8 million EUR in 2005). The difficulty for this category arises from the statement made by the majority of interviewed players and officials that about 80% of the market for cut flower is in fact not accounted by either import or trade statistics in 2005 and 2006. The figure is expected to decrease in 2007 due to the application of EU Common Customs Tariff & EU customs regulations, but it still remains at a high level. By compiling these data the actual value of the Romanian market for cut flowers can be evaluated at over 14.3 million EUR in 2005 and 21.5 million EUR in 2006. This results in an estimated average per capita consumption of cut flowers per annum, in Romania, of 1.00 EUR, (far lower than The Netherlands’ average 55 EUR). According to MARD, the yearly growth trend between 2005 and 2006 is expected to continue, even if at a lower level of 30%, in the next 5 years, due to supply diversification that will include high value added products. The difference in per capita indicators between Romania and the Netherlands show good market potential, but cannot be entirely considered a market opportunity, because, on one side, the low price merchandise will still be predominant and, on the other side, buying motivation will not change (based on tradition, own use is not a major reason to purchase flowers and consumer behaviour is not expected to change drastically). As regards data on product groups, direct interviews revealed that most of the street sales are for carnations, gerbera and chrysanthemum, in mono-bunches, while the flower shops sell a wider product range in more sophisticated arrangements. The foliage market is also on a positive trend, with an even more accelerated rate-of-rise as cut flowers. As local production essentially consists of various weeds, plants and branches cropped at random, it is not at all recorded by statistics. Based on imports and estimations of interviewed traders, the total value of the foliage market can be appreciated at 1.3 million EUR in 2005 and 2.1 million EUR in 2006. The foliage market will continue to grow and diversify, in order to meet the demand for higher value products. Available data on the market for indoor and outdoor ornamentals are also restricted by the lack of recordings of local production. Based on import statistics and evaluations of local production by MARD we can estimate the market at about 18 million EUR in 2005 and almost 28 million EUR in 2006, also on a positive trend, determined by the explosion of real estate and HoReCa projects. Ornamentals and indoor pot plants are sold exclusively in shops, and the main product groups are dracaena, indoor palm varieties, ficus species and yucca.

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Table RO3: Market size Flowers and Ornamentals Market Size 2005

Market Size 2006

Yearly Growth

Thousand EUR

Thousand EUR

%

Planting Material

1019

1991

95

Cut flowers

14338

21569

50

Foliage

1337

2144

60

Pot flowers and ornamentals

18107

27865

52

Based on the data listed above, we can conclude that the market in Romania is on a positive trend of development, following general economic growth and offering good opportunities for market players. No statistical information is available on market segmentation, but the general perception based on interviews is: -

flowers and plants are mostly bought by men aged between 18-50

-

indoor plants are mostly bought by companies

-

outdoor ornamentals are purchased by high income population and within real estate projects.

2.2 Factors Determining Market Size The flower sector in Romania is highly fragmented, disorganized and characterized by lack of coherent strategies and it was severely affected by the transition from old, traditional mechanisms to modern instruments and structures. At the same time, even when unitary legislation is applicable, there are major differences in the organization of the sector between the capital city, Bucharest and the rest of the country. In the absence of coherent strategies for the sector, market size for all researched categories is strongly influenced by economic growth, resulting in the increase of purchase power, as well as by the level of education and access to up-to-date information.

Cut flowers While before 1989 cut flower purchase was still highly based on an aesthetic motivation, in the first years after 1990 sales were negatively influenced in terms of both quality and value by changes in the structure and priorities of household expenditures. The positive trend restarted in 1993-1994, along with the stabilization of economic life and the boom of real estate and HoReCa businesses. In general, cut flowers sales in Romania are influenced by social events (such as primary school opening on September 15 or ending on June 15), Christian traditions such as baptism, wedding, funeral, name-day (quite important in Romania in general, and especially for celebrated saints such as St John on January 7, St George on April 23, St Mary on August 15, St. Michael and Gabriel on November 8, or for Palm Sunday, when all people with names connected with flowers are celebrated), international holidays (such as Valentine’s day or Women Day on March 8) and national traditions (such as Spring arrival day “Martisor” on March 1). 20

Sales also have a strong regional component in terms of volume and structure. Urban areas have a much higher potential, Bucharest being by far the city with the best buying potential, due to a higher level of average income per capita, an active economic life and a higher level of education. Purchase power is the leading factor for the rest of the country, therefore larger volumes are sold in unorganized or peasants markets than in flower shops. The market for pot plants has continuously grown over the last 3 years, with sales structure influenced seasonally in terms of varieties: early spring - hyacinths, narcissuses; late spring/early summer – petunias, geranium, other pot plants suitable for balconies/terraces; Christmas – Poinsettia, etc. Traditionally, the presence of pot plants in households is highly valued by average Romanian consumers, but mass sales are influenced by income, limited habitat, the lack of information on varieties and value-for-money aspects. Urban and infrastructure development re-boosted the market of ornamentals which remains concentrated around big cities and tourist areas. 2.3 Market Supply

2.3.1 Local production In 1989, Romania cultivated flowers on 269 ha of greenhouse surface and 277 ha of open field. Statistical records, however, only account for state owned operations, no data being available on small private producers, even if they were also present on the market. Romania relied at the time on strong research activity in the field, developing and adjusting varieties and production technologies for all cultivated species. Romania was also an exporter of cut flowers (10.41 million exported, out of a total production of 153.4 million, in 1989), mainly from the country’s major producer, Codlea Greenhouses, located in the centre of Romania. The structure of cultivated breeds was not very diverse, the majority being held by carnations, gerbera, freesia and chrysanthemum species in greenhouses, and tulips, gladiolus and chrysanthemum in open fields. After 1990, the sector was severely affected by the collapse of the centralized communist system and all the social and economic changes associated with it. Evolution of cultivated areas after 1990, including data on the evolution of the private sector is presented in the chart bellow: Evolution of cultivated areas (hectares) 400 350 300 250 200 150

Greenhouses

100

Open field

50

1990

Figure 1

2000

Private

State ow ned

Total

Private

Total

State ow ned

Private

Total

State ow ned

0

2006

21

Agricultural land was highly fragmented due to the reinstatement of private property. Former state owned greenhouses were privatized, but this did not result in investments for technical and technological upgrading, but more in the utilisation of land as a real estate asset. At the same time, private initiative in building new greenhouses was weak, due to limited financial resources and support. MARD statistics for 2006 show that 220 ha of field areas have been used to produce flowers, resulting in a production of 88,553,000 pieces, and that 407,900 square meters of greenhouse areas have yielded 26,991 t of flowers. Based on field registrations, most producers are concentrated in the Eastern part of Romania, a large part being operational in both production and sales, with a significant part of cultivation taking place in open fields. The only positive trend registered by statistics is the increase of the total private area cultivated with flowers from 81 ha in 1990 to 220 ha in 2006. There is higher diversity in open fields, with chrysanthemum leading, while in greenhouses the majority of surfaces are cultivated with carnations (67%), followed by chrysanthemum, roses and gerbera. Other species that are mostly cultivated locally are calliastephus, dahlia, garden roses, tulips, gladiolus, narcissus, hyacinths, tuberose, peony, chrysanthemum, calendula, antirrhinum, aster, and zinnia. According to official statistics provided by regional offices of MARD, as well as interviewed producers, the majority of cut and pot flowers producers in Romania activate on small cultivation areas, averaging between 0.2 and maximum 1 ha, generally as family business and based on investments made from their own resources. End-products are sold mostly on the local market, and the revenues they generate revenues are not large enough to sustain growth or investment in upgrading the technical level (high-performance equipment or irrigation systems). The EU funded pre-accession program for agriculture (SAPARD) had one subsection within measure 3.1 referring to horticulture, including support for greenhouses construction. Since the term horticulture refers to both flower and vegetable production, there are no separate recordings on floriculture. Even if SAPARD had a specific allocation of 1.5% of available funds for floriculture projects, recordings of horticulture projects (73 approved applications, with a total allocated value of 3.09 million Euro) and greenhouse projects (46 approved applications, with a total allocated value of 5.96 million Euro) did not specify how many referred, in fact, to the development of floriculture production. As regards ornamental arboriculture in Romania, it was not as well represented as floriculture. All large city halls had nurseries in their administration, cumulating the largest area of ornamental nurseries. Figures from 1981 show almost 900ha of ornamental nurseries in the custody of city halls and up to 1432 ha of ornamental nurseries within research institutes, schools, universities, ministries and forestry institutions. Around 1980, a large quantity of planting material was imported from the Netherlands to Romania, it was distributed and multiplied in mother nurseries, and they helped increase and diversification of local production. After 1980, a tempestuous urbanization campaign was initiated, resulting in a speedy use of available planting materials and surpassing the rhythm of replanting and rebreeding. Without a coherent strategy to replace the used material and to control its quality, in 1990 the available assortments and quantities in state owned nurseries were drastically reduced.

22

Statistics after 1990 still do not provide specific data for the sector, and the indicators are often general, referring to the overall agricultural sector. However, more information on the private sector is registered officially, including its growth. The lack of interest from authorities for public area landscaping had a negative influence on the status of nurseries and caused the migration of the work force to other sectors. Without financing possibilities, an important number of ornamental nurseries within research institutes and the education system stopped their activity completely. Nurseries remained in the custody of local authorities and were severely affected by major losses of mother plants and by the aging of planting material. The interest for ornamentals re-started to grow after 1994 -1995 due to the development of private real estate projects. Few small nurseries set up at that time concentrated on shrubby plants, fast growing but in a poor assortment. Important investment in ornamental nurseries started only few years ago. Since 2003, more and more nurseries have been set up, most of them being 100% foreign investment or a partnership with foreign investors, with their production mainly destined for export (classic outsourcing format, where production conditions of the main business are replicated in Romania by making use of lower labor costs). As a result, the only relevant exports of the sector are of (outdoor) ornamentals that accounted for 663,000 EUR in 2006 and 677,000 EUR in 2007. Based on information provided by the Romanian Trade Register, in 2005 there were 2415 private businesses registered in ‘production of vegetables and other horticultural products, including greenhouse production’. However, as the category also includes vegetables producers, there is no clear indicator on how many of these producers are actually involved in flowers and ornamentals. The 2006 records of the Regional Agricultural Directorates account for 678 economic entities with identified activities in floriculture and ornamentals, in rural areas. A producers’ Top 10 was provided by the Romanian Trade Register, based on 2005 turnovers, but information is not fully relevant, due to the lack of separation between flower producers and vegetable producers within the specific registration category for this activity (“Cultivation of vegetable, horticultural varieties and greenhouse products”). Based on direct interviews on the market, the following companies were identified as relevant local players for the analyzed sector: - for cut flowers: Flora Sercom (Turnu Severin), Roel Koers (Lehliu, Calarasi), Sere Codlea (Brasov) and Sere Vitan (Bucharest) (the last two ended their activity in 2007) - for ornamentals: Combiantie Mauritz Nursery (Dutch- Romanian joint venture in Sibiu), CMB Vivai (Italian owner in Targoviste), ICAS Bucharest (Research Institute for Forestation), nursery MURES in Arad (former Romanian-Austrian joint venture), SemperFlorens (Romanian family business, Bucharest). Contact information for the top 10 producers as well as above mentioned companies are presented in the Key Contacts Chapter.

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2.3.2 Imports

Planting material According to registered data and responses of interviewed companies, the assessment is that about 95% of dormant planting material used in Romania (seeds, bulbs, tubercles, etc) is imported. In terms of volume, the imports of dormant planting material only increased by 5% between 2005 and 2006, but in terms of value the growth is much higher, proving the orientation of the market towards higher quality products. Data provided by official statistics show a significant increase of imports value from 687,000 EUR in 2005 to over 1.4 million EUR in 2006. The figures for the first 4 months of 2007 are almost equivalent to imports in 2005 (673,000 EUR). Planting material in vegetation is accounted as a separate customs category that includes orchids. Comparing import figures from 2005 and 2006, a significant growth of 300% in both volume and value can be noticed. The further evolution of this category in the first part of 2007 shows an even stronger trend towards high value products. The Netherlands dominated the imports of dormant planting material up to 2006, but in first four months of 2007 the first position was shared with Hungary (due to a very active cross border trade activity in the Western part of Romania). As regards the volume and value of other imported planting material in vegetation, Italy has the leading position in 2005 and 2006, followed by the Netherlands. Table RO4: Romanian Imports of Planting Material Planting Material Imports Value per % 2005 2005 2006 in dormant vegetation dormant Country Netherlands 97.98 20.91 94.41 Italy 0.01 66.25 0.25 Hungary 0.94 0.00 4.08 Germany 0.09 0.00 0.00 Belgium 0.98 0.00 1.26 Spain 0.00 12.83 0.00 Others* 0.00 0.00 0.00 *Mexico, Austria, China

Countries 2006 in vegetation 19.06 71.38 1.07 0.00 0.41 6.8 1.28

In the first part of 2007, the Netherlands accounted for almost 70% of the imports of planting material in vegetation, but due to the seasonality of imports we cannot foresee this reflecting in a change of hierarchy by the end of the year.

24

Tulip bulbs were the preferred varieties of dormant planting material for import in 2005, with 65% of total imports, followed by hyacinth with 14%. In 2006, tulips kept the first place but with almost the same weight as the category ‘others’, which in the first part of 2007 took the lead with 78% of the imports. Even though statistics do not offer an actual breakdown for the ‘others’ category, this change was evaluated by major players (through direct interviews) as an indicator of diversification and market aperture towards new varieties of plants. Cut Flowers and Foliage According to MARD official statements, 90% of cut flowers consumption is covered by imports. Table RO5: Romanian Imports of cut flowers Year

2005

CUT FLOWERS IMPORTS Total Netherlands Turkey Italy Hungary Thailand

Quantity (tones) 5690 2904 2110 305 177 103

Value (thousand EUR) 7170 4579 1808 230 120 292

2006 Quantity (thousand tones) 6750 3635 1713 689 296 110

Value (thousand EUR) 10785 8127 1023 624 392 273

As presented in the table above, total cut flowers imports as registered by NIS were of about 5,700 tons, with a value of 2 million EUR in 2005, and 6,800 tons with a value of 10.8 million EUR in 2006. As revealed by interviewed companies, the import data registered for 2005 and 2006 need to be analyzed by also taking into consideration the high level of tax evasion, determined by high import taxes. From January 1st 2007, many import companies started to declare their activity more accurately, but there is still an important part of the market that is not accounted (most prominently manifested in the Cosbuc market, in Bucharest). In terms of both quantity and value, the Netherlands was the major source of imports of cut flowers in Romania for 2005 and 2006 with over 50% of the imports followed by Turkey, Italy, Hungary and Thailand. Even if statistic numbers are low, in both years there is a steady presence of countries such as Kenya, Columbia or Ecuador for exotic flowers. Imports of Cut Flowers (%) 80 70

The Netherlands

60 50

Hungary

40

Italy

30

Turkey

20

Thailand

10 0

Quantity Value 2005 2005

Quantity 2006

Value 2006

Figure 2 25

The preferred imported varieties are, according to statistics and interviewed companies, roses and carnations, followed by chrysanthemum, orchids and gladiolus. Roses come almost in proportion of 100% from the Netherlands (95% out of total import volume in 2005, respectively 94% in 2006) and some from Hungary and Italy. According to information from direct interviews, most of the imports are of open field production. Carnations are imported mainly from Turkey (88% out of the total volume in 2005 and 65% in 2006). Turkish carnations are also from open field production and of second class quality. In both 2005 and 2006, Italy was the second relevant supplier of the market for carnations, but with a much lower presence (over 6 % out of the total volume in 2005, respectively 13% in 2006). Carnations from Italy also come from open field production and are not of first quality. Other suppliers with more than 1% out of the total volume are The Netherlands (3% in 2005 and 7 % in 2006), Hungary (2% in 2005 and 7% in 2006), respectively Greece (in 2006 with 8% out of the total volume). Chrysanthemums, the third variety in terms of imported volume are mainly imported from the Netherlands. In 2005, the market was supplied in proportion of 97% from the Netherlands, followed by Italy with 2%. In 2006, the suppliers maintain their positions: the Netherlands in first place with 96%, followed by Italy with 3% out of the total imported volume. Orchids are supplied in a high percentage – 81% 2005, respectively 73% in 2006 - from Thailand, followed by the Netherlands with an average of 20%, and by Italy with less than 5%. For the first semester of 2007, the registered data have the same order - Thailand, followed by the Netherlands and Italy. Interviewed companies estimate the imports for orchids from Thailand will also be at a high level this year, as the import price is very low and, in spite of the import tax, the final price is still convenient. Gladiolus, a variety which is sold mainly in the summer time is imported, same as the carnations, mainly from Turkey and Italy, from open field production. In 2005 and 2006, the two countries shared the first and second position; in 2005, Turkey was in first place with 86% out of the total volume, followed by Italy with 8%; in 2006 there was a reverse of the situation, leaving Italy in first place with 62% volume, while Turkey remained second with 20%. The Netherlands had, in both years about the same percent in terms of imported volume: 6% in 2005, 6% in 2006. In 2006, Hungary appeared in the importing top ten, with 12% of total import volume. Foliage imports amounted to around 1 million EUR in 2005, respectively 1.7 million EUR in 2006. Denmark is first in terms of volume, followed by the Netherlands with about 20% for each year. In terms of value, the Netherlands is in the lead with almost 40%, twice as much as Denmark. For the first semester of 2007, the Netherlands held the first position both in terms of volume and value (Denmark supplies mostly winter foliage, including Christmas branches, therefore it is not registered with imports in the first semester of 2007). Other import countries outside the EU, such as India, China, the Philippines, Thailand, Israel and Turkey account for an average of 20% in 2007, due to acceptable prices of origin which are convenient for import, regardless of the custom tax to be paid.

26

Imports of Cut Flowers from The Netherlands (volume - tonnes; value - EUR thousands) 4500 4000 3500 3000

Roses

2500

Carnations

2000

Orchids

1500 1000

Chrysanthemums

500 0 Volum e Value 2005 Volum e Value 2006 2005 2006

Figure 3

Ornamentals As regards the import of ornamentals plants, it is not possible to have a very clear picture of the imported quantity for indoor & outdoor plants, due to the custom code. The customs category 0602 also includes fruit trees and mushrooms hymenia but, according to ministry representatives, the largest part of imported volume is actually represented by ornamentals. Table RO6: Romanian Imports of Ornamentals 2005 Value Quantity (thousand (tones) EUR) Total 18544 14486 Hungary 12503 3379 Netherlands 2541 3889 Italy 2319 5055 Belgium 390 288 Poland 331 554 Germany 187 129 Denmark 123 58 Moldavia 30 21 France 71 699 Austria 16 308

2006 Quantity (tones) 28369 20082 3767 3099 543 348 245 90 40 83 23

Value (thousand EUR) 22292 5525 9202 5407 219 299 526 94 31 560 360

27

The ornamentals market is growing, and this is also confirmed by the volume of imported ornamentals, which was about 52 % higher in 2006 than in 2005. Estimates of interviewed companies and of MARD representative are that the growing trend will remain stable in 2007. The top ten countries in 2005 and 2006 were the same, with a slightly changed order. According to registered data for the first semester of 2007, this order is not expected to change significantly. Hungary is first in terms of imported volume, both in 2005 and 2006, with a percentage of 67% and 71%, respectively. In 2005, Hungary was followed by Italy with 14% and the Netherlands with 13% in terms of imported volume but, in terms of value, the order is reversed – the Netherlands is on the first position with 35% out of the total imported value, followed by Italy and Hungary. In 2006, Italy and the Netherlands changed position as regards imported quantity – 13% belonging to the Netherlands and 11% to Italy, but as regards the imported value, the Netherlands maintained the first position with 41% out of total imported value. Imports of Ornamental Plants (%) 80 70 60 50

The Netherlands

40

Hungary

30 20

Italy

10

Poland

0

Quantity Value 2005 Quantity Value 2006 2005 2006

Figure 4 The only delimitation that can be made within this customs category to reflect indoor ornamental plants is under subcategory 06029059 “Flowering indoor plants, except cacti” for which imports are also dominated by the Netherlands, as presented in the table bellow: Table RO7: Romanian Imports of Flowering Indoor Plants 2005 Value Quantity (thousand ( tones) Euro) Total 895 1955 Netherlands 761 1807 Italy 50 71 Hungary 78 66

2006 Quantity (tonnes) 1359 1226 33 62

Value (thousand Euro) 3417 3113 90 127

28

Most popular varieties of indoor flowering plants are, according to the season: pelargonium, petunia, cyclamen (in spring), gardenia, begonia species towards autumn and euphorbia around Christmas time.

2.4 Market Access

Import Regulations Based on EU legislation, there are no customs taxes for imports coming from the EU, just standard inspection at the border. Main documents needed in customs are the invoice, packing list and transport document (CMR). The phyto-sanitary passport (or certificate in case of non-EU origin) is requested for pot plants and ornamentals, no matter the origin.

Product requirements Romanian legislation in the field is completely harmonized with EU legislation and standards, including liability for damaged products. Even if there are requirements for marking and labelling in Romanian, the common practice for imported pot plants and ornamentals is to use foreign packaging as available at the import source.

Market channels specifics, logistics & distribution The flower sector in Romania is highly fragmented at the moment, disorganized and characterized by a lack of coherence, due to the unavoidable transition of this sector from old traditional mechanisms to modern instruments and structures. At the same time, even if unitary legislation is applicable, there are major differences in the organization of the sector between the capital city, Bucharest, and the rest of the country. Based on National Trade Register records, there are 878 companies registered as having commercial activities in the flower and ornamentals sector, all over the country. As the category cumulates traders of flowers and ornamentals, it is not possible to quantify trade done by one channel or the other.

The majority of cut flowers importers also function as wholesalers, or they even dispatch merchandise through their own retail outlets. In large, medium and small cities, with the exception of Bucharest, importers deliver directly to flower shops (regular outlets with display and deposit facilities) and open markets (either organized peasant markets or traditional selling points at street corners). In Bucharest, trading is done via the Cosbuc market that functions as wholesale market. In the last two years, there has been a steady trend of development of sales via the internet, addressed to the private and institutional market, which offer high value bouquets and flower arrangements, based on direct connection with an importer.

29

Bucharest In Bucharest, the street commerce is the major channel for cut flowers distribution, with 700 sales displays on street corners, as evaluated by the Florist Association (FA). Since the beginning of the 20th century, including during the communist regime, the Rroma street trade has been accepted by the authorities and allowed to continue as the main channel of flower supply. This is carried out by the gypsy clan “boldeni” (name coming from a small village nearby Bucharest) that pass on the trade from a generation to generation. They are used to sell quite primitively, on street corners, in improvised displays, using bargaining techniques and without any income registration. They represent a community strongly linked to each other through commercial relations; family ties, ethnicity and traditions, as well as by the daily struggle to make a living – consequently, is hard to make them share information. Immediately after 1989, based on their “no border” mentality, they were the first to step in the Netherlands looking for trade opportunities. This generated a real monopoly concentrated around Cosbuc Market, situated in centre Bucharest, and considered to be the oldest flower market in Romania. Flower imports were carried out exclusively by 3-4 firms that had agreements with the Rroma wholesalers. Business in the market goes 24 hours around the clock, trucks arrive in the night and the biggest part of the merchandise is distributed directly to flower shops and street merchants. A part of the merchandise is kept on display in the market and, lately, a few wholesalers have set up some conditioned areas on site, none at EU standards. As the cost of the imports through Cosbuc market was highly underrated (the quantities and prices declared in customs were lower than in reality), the wholesale price resulted as being very low, forcing all flower shops (even flower shop chains) and street merchants to procure the merchandise exclusively from them. This continued until 2-3 years ago when, due to the natural development of the market (increase and diversification of demand), to the authorities attempt to control the market and trade, and to joint interventions with border police, customs and fiscal authorities, other importers were able to enter the market. Staring with 2007, in the absence of taxes for the majority of imports, flower trade is also becoming more and more official but the black market still exists and affects an open access. Companies that struggled to stay present on market for a longer period (Holland Flower Trading, Iris) or more recent operations, also with Dutch involvement (Trias, Flora Holland) have been importing for either their own use and retail network, or based on confirmed orders. The primitive monopoly now follows the market development, and the dominant family (led by a forceful lady known as “Bambina”) is the one to initiate the formation of a Florists Association, managed by Bambina’s son. The association formed by wholesalers in Piata Cosbuc and by street merchants struggles to have a voice in front of local authorities, and to keep the flower trade in the old traditional format. As regards the institutionalization of accountancy it is impossible to have an adequate financial disclosure as long as very few flower merchants use a cash register (none of the street sellers and only few of the shops). Many of them are not registered with the Trade Register as flower sellers (not at all or with the correct activity) and all are more or less dependant on black market imports (out of all importing firms, only 2-3 issue invoices with an approximately accurate value - the rest do not issue invoices, or they issue undervalued invoices). The appropriate legislation exists, but the enforcement is compromised by a high resistance of the market. The reluctance to use cash registers and issue sales receipts is explained by the fact that, with full registration, profits would appear much higher than in reality, consequently being subject to higher taxation.

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A reparatory measure in the absence of authorized cash-registers and of a fixed price of the product was taken in the form of taxing street florists, based on annual income norms, determined by the local financial administration, according to the area they operate in. For example, in sector 1 (covering the central part of Bucharest) 3 zones were established - Zone “0” (Piata Universitatii, Piata Amzei up to Piata 1 Mai) yearly tax is 14300 RON (about 4500EUR at 3.2RON/EUR exchange rate), Zone “1” (from Piata 1 Mai towards Chitila) at13700 RON (4300 EUR) and Zone “2” (Chitila - Piata 16 Februarie) at 12700 RON (about 4000EUR). As regards the modernization and standardization of the outlets, the mayors of several districts of Bucharest, together with Bucharest City Hall attempted to modernize the street trade network by imposing official accounting of street activity and the standardization of street outlets. The plan is to replace traditional flower displays with modern, standardized, air-conditioned kiosks. The delay in tendering for the supply of adequate urban furniture, synchronized with the interdiction to sell flowers in improvised locations between October and March (applied in Bucharest’s sector 3) generated the first conflict between FA and the local authorities. The association signed a Protocol with City Hall Bucharest, considered the basis of a plan to modernize the flower street sales network. However, with the exception of sector 2 that officially accepted it, the rest of district mayors see this as an acceptance of a monopoly. Also, in the absence of a legal norm, the Protocol is not actually enforceable. Bucharest City Hall finally organized a tender for flower kiosks at the beginning of September, but official results were not made public at the time of drafting this report. Unofficially, the Protocol is used by FA to justify its authority and to force other street merchants to join the association (market insights revealed unofficially that florists are told that only registered members are allowed to sell legally on Bucharest streets and even a registration fee of 1000 EUR is set). FA also promotes the idea of a Bucharest Flower Auction to be set up on the premises of the existing Cosbuc Market. They developed a basic architectural plan for the possible building, but no feasibility study was made and there are no financial sources to support the actual development. Another important channel for cut flowers and also for seasonal pot flowers distribution is the open (peasant) market. Bucharest has about 57 such outlets, where sales generally consist of simple bunches, with a restricted number of varieties made directly by local producers. Hypermarkets and supermarkets with quite an active presence in the Bucharest market do not usually sell cut flowers or flower arrangements, due to the high risk of physical depreciation of the merchandise. One supermarket that attempted to sell bouquets is Cora (Louis Delhaize group), but they stopped sales due to lack of interest from end-consumers. Hypermarkets generally import ornamentals or indoor varieties directly, due to the lower costs and higher diversity potential, which cannot be covered by existing possibilities on the market. Another limitation of collaborating with importers is the array of hypermarket policy specifics (i.e. suppliers must take back damaged or unsold plants at the end of the season), conditions that most importers are reluctant to accept. Cris Style Impex, one of the first companies to import plants in the early ’90s is one importer that accepted collaboration with hypermarkets (including Metro, who is famous for imposing the toughest conditions on suppliers). They also have to take back damaged products, but potential losses are acceptable due to their high import volumes.

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Other Regions of Romania

Other regions of Romania, especially the Centre and Western Regions have different flower market characteristics. Street trade is not as widespread or developed as in Bucharest; most cut flowers are sold in flower shops and directly from local producers.

The proximity to Western Europe has facilitated and quickened the start up of flower importing firms, orientated towards Hungary. Initial and limited cross border trade was developed in the last years to determine an increased interest from the Hungarian professional associations. Hungarian traders are a permanent presence at regional exhibitions and events, and they represent real competition for Dutch imports (proximity for comparable quality).

A part of the re-sellers of imported flowers, that sell their merchandise on the open market in Bucharest are also active in Eastern and Southern Romania. They all procure their merchandise directly from Piata Cosbuc or via wholesalers from Piata Cosbuc, and they are also connected with FA (FA claims to also have members in those regions and further plans to expand).

Retail Chains Chains of flower shops are present in Bucharest and, at a smaller scale, in Cluj-Napoca. In Bucharest, there are two private companies that opened more than 1 outlet and are well known among city inhabitants: Iris Flower Shop with 11 outlets and Tria’s Flowers Shop with 7 outlets. Both of the companies were interviewed on plans for future development and both of them confirmed they have plans to franchise the concept outside Bucharest, where an own shop would be hard to control. In Cluj, the company Comgaby Moln, the representative of Interflora in Romania has registered the brand name ‘Magnolia’ and has set-up two flower shops in Cluj and one in Tg-Mures, as well as a garden centre in Apahida (near Cluj-Napoca). All 3 companies above have good connection to the Netherlands, they import directly a complete range of cut flowers, pot flowers, pot plants and foliage, and all their shops have a modern appearance. ‘Codlea’ flower shops, still a ‘brand” name with significance among the older consumer groups are the retail network of the former SC Sere Codlea SA, the largest supplier of green house cut flowers and pot plants before 1990. The greenhouses were privatized in 2000, but, unfortunately, without a good plan for restructuring. The same strategy was used for the shop network and, over the last 17 years, it was drastically reduced (the space was used for better commercial opportunities). A few remaining shops used to sell a very limited range of floricultural products, based on Codlea’s limited production, often in combination with other products (such as vegetables), in order to value the location. Part of Codlea greenhouses (including the shop network) was sold at the end of last year and future investments plans of the new owners are not disclosed, but estimations are they will make more use of the real estate value than the production potential.

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Online trade

Sales via internet are on a positive trend in Romania. Some flower shops started to use the internet as a complementary distribution channel for flower arrangements, but there are also many online sites that sell flowers or flower arrangements as complements to other purchased gifts (www.elegantgift.ro). During direct interviews, they reported good profits and plans to expand nationally. There is already competition between several websites such as www.floriinro.ro (also franchised locally in Constanta, Craiova, Iasi, Timisoara, etc), www.floriromania.ro, www.e-flori.ro, www.florarie.ro, www.floridelux.ro. The main success factors are a good connection with wholesalers, good logistic conditions, good control systems and a strong message in communication and approach.

Besides flower shops, there are also many websites connected with do-it-yourself gardening (www.gradinaonline.ro, www.e-gardini.ro, www.gradinamea.ro, etc) and landscaping (www.romanticgarden.ro, www.dreamgardens.ro), including websites specialized on varieties (www.cactus.ro, www.bonsai.ro). Pot plants used for indoor decoration are sold either directly to a retail client (such as flower shops, some of the hypermarkets, online outlets, etc.) or in own shops/garden centres which have the facilities to preserve them (greenhouses). Seasonal pot flowering plants – as petunia, pelargonium, etc- are also sold mainly on the open market and garden centres, but also in flower shops and less in hypermarkets.

Outdoor ornamentals are mostly sold directly in own garden centres or nurseries of landscaping companies, or they are delivered directly to the client’s site within landscaping projects. Real estate development and economic growth drives both demand and supply, bringing together a balanced number of suppliers and consumers in the same area – this lessens the importance of distributor networks and makes own stores sufficient for distribution. With few exceptions, most importers offer landscape services and, therefore, use quite a large quantity of the imported products for their own consumption. There are also landscape gardening companies which do not import themselves and procure the ornamentals from the market- local importers or local producers.

Quality and price considerations At the moment, all researched categories can be found on the Romanian market in a comprehensive choice in terms of quality levels, but the average to low qualities are predominant. Interview respondents stated that the quality of the merchandise is mostly of a low level, especially for cut flowers imported from Turkey, but also from Italy or Hungary, mainly because the average end-consumer is not willing to pay high prices.

Another reason not to import high quality flowers is the high potential of physical losses that requires the availability of financial resources. Expensive flowers represent a liability, so low quality; cheap flowers (that will not represent a significant loss in case the shipment is compromised) are preferred.

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Before 1st January 2007, importing high quality/expensive flowers was also not encouraged by high tax and to long waiting time at customs queues. Importers that procure cut & pot flowers from Holland stated also working with smaller companies and buying low quality, low price flowers makes imports more accessible to the average Romanian wholesalers/retailers, as big Dutch companies are inflexible in terms of price and payment conditions. Companies with Dutch partners or 100%Dutch owned have better relationships with Dutch exporters and afford to import a better quality product that, along with using for own activity, they also distribute through the street/open market retailers, addressing customers with higher income. Companies importing items for flower arrangements mainly address the institutional market and high income consumers at the moment. They prefer higher quality flowers, as their end product must also have a high quality level (appearance, shelf life). Based on import data supplied by NIS, the average import price of cut flowers increased from 0.06 EUR per piece in 2005 to 0.08 EUR in 2006. On the market, the retail price also varies, according to season: 0.8 - 1.5 EUR per piece for carnations, 2.5-3 EUR for roses, 10 - 12 EUR for orchids. Cut flowers, pot flowers and indoor pot plants from local production are generally of lower quality than imports. One reason for this is that the local (small) producers only dispatch on the open market, addressing low income population. Another reason is that they can not afford to pay good quality planting/breeding material, meaning that the end-product quality is low and irregular. Even in situations when they make efforts to use good quality breeding material, production conditions have a big impact on the end result (especially for flowers produced in the open field, where the climate has a major influence, and also in the absence of reliable irrigation systems). Retail prices for local production are 0.3 - .0.5 EUR for common species such as carnation, tulips and hyacinth. As regards imported ornamentals, the quality varies according to two factors - country of origin and lack of education and control on the local market. Lower quality products on the market are supplied by Hungary and Poland, while higher quality, wider varieties are supplied from Italy and the Netherlands. The high demand and limited knowledge on the market encourage some companies to import and trade, at high prices, ornamentals that developed circular roots at the container base which, according to regular standards, should be classified as losses. However, in the last 2 years, the large landscaping projects determined an increase in demand for large, good quality plants that can be only sourced from countries with traditional production, such as Italy and the Netherlands. Local production originating from high quality breeding material and from varieties adapted to the country climate are comparable with Hungarian quality but, in some cases, the production price exceeds imports price due to the high cost of utilities and manual labour, and in the absence of a good mechanization level. Indoor pot plants are generally imported, as local production was reduced dramatically along with the collapse of local greenhouses. Being mainly addressed to and paid by the companies and people with higher income, they are of good quality. Indoor plants produced locally are available in small quantities, low quality and restricted variety (due to the high price of energy used in running greenhouses, it is preferable to produce vegetables and cut flowers, as they are more profitable).

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2.5 Technical Aspects of the Market As flowers and ornamentals production in Romania is quite low, the access to up-to-date techniques and technologies is also difficult, mainly on financial grounds. One major project (1258 sqm) for flower cultivation was identified in Halchiu, in Brasov County. It was developed based on financing provided by the SAPARD program, in partnership with a Dutch supplier of greenhouse structure – the company Rovero Systems. Other Dutch suppliers of greenhouses (such as Kees Greeve, Kubo Tuinporject, Zwirs-Knijnenburg Kassenbouw, Debets Schalke) are attempting to develop projects in the Romanian market, but due to low financing possibilities and existing French, German, Italian and Israeli competition, they can not grow to a relevant level. Research activities are reduced to 25% of the level they had reached before 1990, and even the existing research institutes do not have the force to maintain a good production level within their current organization. Agricultural Universities existing in Bucharest, Timisoara, Cluj, Iasi and Craiova are taking the lead based on various EU programs made available for them, with the aim of granting access to knowledge and techniques. However the interviews with professors also involved in commercial activities revealed a large gap between research in schools and transfer of results to actual production facilities. As regards tools and equipment for gardening, China was in the first place in 2005, with almost 74% of total imported volume, followed by Germany with 7% and Italy 6%. In 2006, China kept its leading position with 66% out of the total imported volume, followed by the Russian Federation, Poland and Germany. In the market there is a wide range of hand tools for gardening, in terms of both quality and assortment (spades, shovels, hoes, rakes, scissors, pruners, trimmers). Top brands as Gardena, Felco, Huskvarna, Wolf, Fiskars are already known among the specialists, and to home users in large cities and surroundings. However, because price is a limitative factor, the market absorbs a lot of lower quality, no brand name products, mainly of Chinese origin. As regards small machinery for gardening and irrigation, the offer is also quite wide for amateur use, as in this sector local production completes the range of imported equipment. As regards professional services, they are supplied by top brands such as Huskvarna, Gardena, and Solo, but in a limited range of products. The landscape gardening companies dealing with large projects and in need of specialized equipment (for example ditch digger equipment or hole digger equipment) generally have to procure it through their own efforts from the EU market (‘one-time purchase”). The main reasons why professional and specialized equipment for landscape gardening and nurseries is not too developed in the market are: - large projects that require strong technical support are related to public areas. Due to the lack of transparency in tendering, the winners are a restricted number of companies that do not invest in modern landscape gardening equipment and generally look for second hand choices. - the interest for landscape gardening started to grow only recently, and the lack of financial power limits the access to modern equipment The very few state owned nurseries still active rely on old machinery. New local nurseries do not have the financial power to access modern technologies or specialized equipment. Consequently, in the market, there are very few specialized, up-to-date tools, equipment and accessories for professional use. Foreign investors are setting the standards by equipping their nurseries, from the start, with proper techniques based on expertise, experience and financial power.

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3. LEGAL AND INSTITUTIONAL FRAMEWORK The legal system in Romania is based on the Constitution of 1991 (updated in 2003). Legal acts are of 2 categories: 1) primary legislation: laws and so-called urgent ordinances (i.e., temporary laws passed by the Government for immediate implementation, but not submitted to the debates and approval of Parliament; they are transformed later into ordinary laws, after being submitted to and discussed in Parliament); 2) secondary legislation in the form of government decisions, ministerial orders and instructions, which are legally binding. Government decisions are approved by the Cabinet of Ministers and are applicable to all ministries and governmental institutions. Ministerial orders can be issued by one or more ministers, and are mandatory. The so called ‘methodological norms’ are issued to give further guidance on specific implementation of laws, government decisions and ministerial orders. Current Legislation in Force

Existing legislation for the sector is overall harmonized with EU legislation, due to a sustained effort during the pre-accession period. However, the law system in Romania is developed in such a way that a law is quite often amended once in force, based on practical consequences. The amendments are also generated by the further adjustments of EU legislation.

Relevant laws applicable in the sector are:

Law no. 266 / 2002 – regarding the production, processing, control, certification, trade and registration of varieties for flowers and ornamental plants (transposing Council Directive no. 2358/1971/CE regarding the organization of the common market for seeds and breeding material for ornamental plants). Law 266/2002 was amended by: •

Minister Order no. 327/25.07.2002 - establishing the persons mandated to control and to apply the penalties regarding the production, processing, certification and trading of seeds and breeding ornamental material

•

Minister Order no. 1268/ 30.11.2005 -

this order further integrates, in Romanian legislation, Commission directives no. 93/49/CEE, 93/63/CEE, 1999/66/CE, 1999/68/CE, last amended by the Council Directive no. 2003/61/EC

-

establishes the technical and health safety conditions of the breeding material, as well as the obligations of the breeding material suppliers

-

establishes the conditions of trade and labelling of breeding material in the EU market, and also the commercialization of breeding material produced outside the EU, including quality control measures and procedures

-

the order does not apply to the material intended for export in countries other than EU members, under the condition that it is produced and identified in isolated conditions

-

the order does not apply to the material intended for a propose other than ornamental, according to the regulation system of Law 266

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2. Law no. 305/2003 – regarding the organization of the flowers and ornamental plants market according to EU principles (transposing Council Directive 234/1968 CEE) -

regulates the production and trade of flowers and ornamental plants

-

encourages initiatives of professional and inter-professional organizations

- establishes quality standards and prescribes measures to be taken to foster competition and trade

Law 305/2003 was amended by: •

Minister Order no. 520/11.08.2003 regarding the implementation of quality standards, calibrations and conditioning for ornamental plants an floriculture products (based on EU standards 315/316)

•

Minister Order no. 255/16.04.2004 establishing commercialization of flowers and ornamental plants

the

quality

control

procedures

for

the

-

the quality control of flowers and ornamental plants traded in the domestic market is performed by specialized inspectors, accredited by MARD

-

the inspectors must examine the products from the point of view of quality, calibration, marking and packaging norms, stipulated in order 520/2003,

-

inspectors are also responsible for the registration of producers of flowers and ornamental plants, as well as for controlling the authorization and accreditation of the producers and traders of flowers and ornamental plants

3. G.O. 136/2000 (approved by Law 214/2001) – transposing the Commission Directive 2000/29/CE – regarding pest control and quarantine measures in Romania. In 2003, the Ordinance was further amended by G.D. 1619 / 2003 – mainly to reinforce laboratory controls, to further define the phytosanitary passport and the pest categories non-existing in or relevant for Romania. G.D. 1619 was again amended this year by the G.D. 563/2007 to incorporate last modifications of the EU Directive 4. Law 240/ 2004- transposes Commission Directive 85/374/EEC on the liability for defective products, imposing on Romanian producers/importers the same strict liability for harm caused by defective products as EU legislation, also applicable to cut flowers and foliage sector.

Legislation aspects connected with land acquisition Investment in land is possible for foreign entities indirectly, by establishing a Romanian company. Foreign citizens of EU member states shall be permitted to acquire land directly after 5 years from the accession of Romania to the European Union. This restriction is not applicable to buildings and the right to use the land (through lease or concession agreements).

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Endorsement by a public notary is compulsory for a land transaction to become valid. Validity of transfer of ownership title against third parties (including mortgages) is to be ensured by the registration of such title with the National Agency for Cadastre and Land Registration (subordinated to the Ministry of Administration and Interior and is represented in the territory by 42 offices of cadastre and land registration and the National Centre of Geodesy, Cartography and Photogrammetry). Concession of land and buildings may be performed on the basis of public tender. Through the concession contract, one party – the owner – transfers to the other party – the administrator – for an efficient administration, for a term of maximum 50 years, in exchange for a royalty, a land for construction or a construction. Public tenders for the concession of state owned lands and constructions are organized by the administrator under the guidance and coordination of the relevant Ministries and with the support of the local county council. In the case of private land, the concession for construction must stipulate a minimum period of 25 years, but 49 years is recommended (for definitive constructions with long term exploitation). The concession contract is regulated by Law No. 219/1998 regarding concession regime, as amended by Law No. 528/2004. According to the provisions of this law, the object of concession contracts may include: public activities and services of national and local interest, other remunerated services, assets under public or private property. Granting a service or a public good in concession is performed in compliance with the principles of transparency, equal treatment for all bidders, non-discrimination, proportionality and free competition. The maximum concession term is 49 years. Law No. 219 indicates the goods and services that may be subject to concession. The concession may be granted using specific methods that ensure the transparency and the fair competition among the participants. The procedure most frequently used is public tender, which may be: open or open with pre-selection procedure. The public private partnership is a new concept in Romanian legislation, a contract having as object the execution, or both the design and the execution of one or several construction works, corresponding to the requirements of the contracting authority. In exchange for the works performed, the contracting party, in its capacity of grantee, shall receive the right to exploit the result of the works, either in full or in part, for a determined duration. Public-private partnership contracts raised interest and have so far been used in Romania only with respect to large scale projects where expertise of strategic partners was required. Public procurement All procurement launched by public institutions is subject to specific “public procurement regulations”, which are applicable both to acquisition of products and services. Romania aligned its public acquisition legislation with European Union regulations, through the adoption of Government Emergency Ordinance 34/2006 concerning the award of procurement agreements and of concession agreements for public works and services, effective as of June 30, 2006, updating earlier legislation. The new law merges EU 2004 Directives 17 and 18 into a sole act. The unitary law facilitates participation of all players to the public acquisition process. Based upon the relevant EU Directives, the new law emphasizes the importance of the pre-evaluation stage of a public contract, the types of products to be procured and the possibility to anticipate any possible increase or decrease in their value. Once the price is determined, no further changes may be made and both parties (the contracting authority and the winning bidder) are bound to it.

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However, the new procurement procedure has also some new stipulations: negotiated procedures with prior publication of a contract notice, negotiated procedure without prior publication of a contract notice, request for tender, design contests and, respectively, the competitive dialogue instead of former competitive negotiation. Future Legislation

Based on investigated sources, there is no official forecast of upcoming legislation for the sector at the time of drafting this report. However, further legal developments can be expected, based on further adjustments of the European legislation or on developments of the sector at national level.

Legislation Implementation Romania has also transposed the EU-harmonized legislation in the floricultural sector, so the legal framework is established. The difficulties are connected with mechanisms for its implementation, in terms of both concept and actual enforcement. MARD, as the governmental body responsible with implementing legislation stated during our direct interviews that there is great difficulty in implementing legislation and monitoring the activity of economic agents in the cut flowers and ornamental plants sector, mainly because many producers/distributors/traders are still not properly registered, while the personnel resources on authorities side is extremely limited. Legislation Enforcement

Mechanisms

Implementation mechanisms are focused on tax evasion and pest control, and are seen by MARD officials as a major bottle neck in spite of the relevant legislation being in force. Even if the law system enables full control in terms of application, in practice it is extremely difficult to find the appropriate instruments and expertise for each and every part of the market chain.

Current State Based on direct interviews conducted during the research, it was clear that, on one side, the sector is not of priority for authorities, who focus their limited (human and financial) resources towards other (more sensitive) agricultural sectors. On the other side, the sector itself (based on past traditions and already strong clusters) is not interested in re-structuring from the inside, as long as the current state-of-affairs brings fiscal benefits on an individual basis.

However, Romania’s accession to the EU, along with the country’s constant macroeconomic growth has already generated fundamental transformations that are expected to have a growing impact on the floricultural sector.

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Local programs for urban modernization, no import taxes for EU merchandise or the formation of professional associations will not automatically solve the problem of inadequate legislative mechanisms, but they will gradually create the possibility to bring the activity more into light, thus facilitating authorities a better control on law application.

Challenges Main challenges are: -

the lack of interest and resources on the part of both national and local authorities, that makes it impossible to develop an integrated development strategy for the sector

-

the resistance of traditional market structures that facilitates tax evasion

-

the low purchasing power and lack of education of both suppliers and consumers, which maintain a low quality supply on the market

Availability of Levies, Fines, Subsidies for Enforcement According to enforced legislation, the phytosanitary inspectors are entitled to apply fines in case of plants being imported, exported or transported without complete and correct documents (especially the phytosanitary passport) or without being on the accredited list. Also, fines are applicable when control inspectors are obstructed in performing their activity. In practical terms, however, the application of such fines is quite random. Two key documents guide the development of agriculture in Romania: the National Rural Development Programme 2007-2013 (PNDR) and the National Strategy Plan For Rural Development 2007-2013. The European financial support is managed by: MARD via 2 implementation agencies: 1. The Payment and Intervention Agency for Agriculture (APIA) which manages mainly the funds Romania receives from the European Agricultural Guarantee Fund (such as direct payments per hectare); 2. The Payment Agency for Rural Development and Fisheries (APDRP) which manages the funds from the European Agricultural Fund for Rural Development (more investment funds) Institutions responsible for developing, implementing, and enforcing legislation and licensing

National Governmental Bodies

Ministry of Agriculture and Rural Development (MARD) is the competent authority with responsibilities in the agriculture field, which initiates legislation to be approved by the Parliament and is directly responsible for implementation mechanisms once the laws are promulgated by the President.

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Ministry of Development, Public Works and Housing is the governmental authority responsible for national and regional territorial planning, as well as social and economic development. The Ministry of Development is the authority implementing the Regional Operational Programme (ROP), one of the Operational Programs which became active in Romania in 2007, involving 8 Romanian regions. With a budget of over 4 billion EUR for the period 2007-2013 (representing almost a fifth of the EU funds allocated to Romania), ROP supports local and regional initiatives in the following areas: urban development, health, education, transport infrastructure, business and tourism. Ministry of Environment and Sustainable Development (MESD) is the Management Authority for SOP Environment. Environment priorities for 2007-2013 are found again in the 6 priority axes of the Sectorial Operational Programme for Environment Infrastructure (SOP Environment). The projects from domains established by the 6 axes will be financed from European Fund for Regional Development (EFRD) and the Cohesion Fund. The 6 investment priority axes of SOP Environment are the following: expanding and modernizing water and waste water systems, developing waste product integrated management systems, and rehabilitating contaminated sites, improving city central-heating systems in selected priority areas, implementing proper nature protection management systems, developing proper infrastructure for preventing dangerous natural phenomena in the most risk-prone areas. Local authorities within MESD are the Regional Agencies for Environment Protection. Committees for Agriculture, Forestry, Food Industry within Romanian Parliament have as main task the examination of bills, legislative proposals and amendments, with a view to elaborate the reports or advisory opinions regarding the respective bill or legislative proposal, as well as to inquire on the activity carried out by the Government or by the public administration. Their area of responsibilities cover the development of programmes in the field of agriculture, horticulture, animal husbandry, fishery, forestry, hunting fund; specific problems of privatization in agriculture; free initiative, forms of ownership, of association, of crediting, of leasing; the careful management of the land resources; the activity of the companies and autonomous régies, with state or mixed capital in agriculture, forestry, food industry services for agriculture, land reclamation, food industry and forestry. State Institute for Variety Testing and Registration (SIVTR), established on the basis of Law No.57/1997 as a public institute subordinated to MARD. Its activity consists of the technical examination of plant varieties and their registration in the Register of Varieties, published in the Official Catalogue of Varieties and Hybrids Crop Plants. The institute oversees 25 regional centres that conduct the technical examination and registration. National Inspection for Seeds Quality (NISQ), within MARD, is the official regulatory body responsible for the certification of seeds and propagation material in Romania. The control, certification of identity and quality of seeds, the registration, supervision, monitoring and accreditation of economic operators supplying seeds, through all the phases of production, processing and marketing, are carried out by the National Inspection for the Quality of Seeds, according to technical rules and norms and to international regulations in force. National Fitosanitary Agency within MARD – is the regulating authority for plant protection, phytosanitary quarantine and phytosanitary use products. It coordinates and controls the practical application of legislation regarding plant protection –G.D. 1619/2004 and G.D. 563/2007. It coordinates, from a technical point of view, the activity of the following: •

Central Laboratory for Phytosanitary Quarantine

•

Regional Phytosanitary Units

•

Research Institute for Plant Protection Bucharest

•

Central Laboratory for Pesticide Residues Control in Plants and Vegetative Products 41

The National Authority for Consumer Protection (NACP) Æ coordinates and implements the strategy and policy of the Romanian Government with regard to the enforcement of Consumer Protection in the country, preventing and fighting practices which prejudice consumers' life, health, safety or economic interests, and estimates the efficiency of the market surveillance system for provided products and services. NACP monitors and evaluates the activity of economic agents and, if necessary, imposes sanctions, both financial and legal.

Regional Institutions

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42 Regional Agricultural Directorates, subordinated to MARD, are the regional institutions (corresponding to each county in Romania, and Bucharest) responsible with monitoring agricultural and horticultural producers, if and when these economic agents register accordingly.

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25 territorial bureaus of SIVTR are the regional institutions that perform the technical examination of the varieties which apply for the registration in the Register of Varieties published in the Official Catalogue of Varieties and Hybrid Crop Plants in Romania.

-

territorial inspectorates for the quality of seeds and breeding materials, subordinated to NISQ, perform the field examination of seeds and breeding materials according to central NISQ procedures and Government legislation.

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8 Regional Payment Centres (CRPDRP) and 42 paying offices (OJPDRP) corresponding to each administrative county within Paying Agency for Rural Development and Fisheries (APDRP)

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8 Regional Development Centres, subordinated to the Ministry of Development, Public Works and Housing (the implementing units of ROP at regional level) 8 subsidiaries of the National Agency for Environmental Protection- ANPM (the implementation agency for legislation regarding the environment protection strategic planning in the field)

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Local Institutions

City Halls are the local institutions that enforce legislation in accordance with the specifics of their municipalities, and that grant authorizations for business start-up & construction. They have the permission to particularize the national directives for market evaluation and optimization, according to the needs and opportunities of the municipal cut flowers and ornamental plants market. Local bureaus of the NAPC are the institutions that inspect economic agents and ensure that the quality of the cut flowers and/or ornamental plants meets the standards deemed appropriate for consumer safety and satisfaction. Professional Associations

Based on the overall government strategy to encourage the development of professional association at EU standards, a Product Council for Flower and Ornamental Plants was set up within the MARD coordination, starting with July 2005. The Council had regular meetings of producers and traders to discuss current legislation, needed improvements and future adjustments according to EU regulations in the horticultural field, with the main purpose to pave the way for future association on professional grounds.

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After 1 January 2007, once the council officially ceased to function procedures were initiated for setting up of 2 associations both of them based in Bucharest but aiming national coverage: -

Association of Flowers and Ornamentals Producers, set up by Sere Flori Anita PF

-

Association of Ornamentals Producers and Landscape Gardening Entrepreneurs initiated by Semper Florens SRL

At the moment of drafting this report both associations were in process of juridical registration and both declared 11-15 paying members. The process of attracting new members is quite slow due, on one side, to the difficulty of reaching producers (poor registration data at local level) and the lack of interest for associating at producer level on the other side (people unwilling to disclose data about their activity and not trusting the advantages of joining a professional body). In parallel with these, in October 2006, a group of street sellers in control of the Cosbuc Flower market set up the Florists’ Association (FA) as a professional association of Bucharest street florists. The president of the association declares that the association has about 600 paying members (wholesalers and individual street sellers of cut flowers mainly from Rroma ethnicity) and expanded also to South Romania (Craiova, Ramnicu Valcea), East (Iasi) and Centre (Sibiu). However there are no confirmed records on the actual size and territoriality. FA is quite active and visible in relationship with Bucharest authorities but is not acknowledged at governmental level.

4. REVIEW OF NATIONAL STRATEGIES, PRIORITIES AND DEVELOPMENT PLANS Based on the direct interview with MARD representatives, it was made clear that the field is not a priority of the governmental authorities and there are no special strategies or priorities defined for the sector. However there is a general statement within the National Rural Development Plan 2007-2013 for the increase of competitiveness of the floriculture sector, both in quality and diversity, to encourage producers and traders to associate in professional organizations and support diversification of the offer by stimulating imports from EU (especially seeds for multiplication in local greenhouses). As regards market policies they will be focused on implementation of the aquis comunitaire by adopting EU quality standards for flower trade as well as adjusting legislation to allow financing of initiatives for the stimulation of consumption of floricultural products (such as fairs, exhibitions, commercial events). It is expected once the professional associations in the sector will become more powerful to also co-finance such initiatives. MARD plans also to encourage the setting of up an inter-professional association, though no significant progress is expected in the near future. An interesting opportunity for ornamental plants suppliers is to be involved in environmental projects that target landscape and environmental improvement. The policy framework for these projects is provided by the Romanian Environmental Strategy 2004 – 2010 issued by the Ministry of Environment and Sustainable Development. The strategy outlines governmental support of initiatives that improve or protect the environment. The policy paper endorses the promotion of environment management in Romania, as well as the transposition and implementation of the acquis communitaire in the environmental protection sector, in order to bring national requirements in line with European quality standards.

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Some of the paper’s main objectives are the definition of environmental priority areas for public investments, the encouragement of partnerships and the environmental protection and conservation based on the above listed objectives and taking into account the major degradation of green areas within local communities, the Romanian Government initiated in June 2007, the National Program for Environmental Quality Improvement. The program is meant to increase the surface of green areas within localities, up to a level comparable with European standards, through the development and modernization of existing green areas, as well as through the set-up of new parks, squares and straight-ways. The program was allocated a budget of about 60 million RON (approx. 18 million EUR) for 2007, to be used in projects co-financed in partnership with local authorities. Additional information on this program can be found at www.afm.ro.

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5. PRACTICAL GUIDE TO MARKET ENTRY 5.1 Types of Businesses in the Floriculture Sector Based on conducted interviews and local market experience, limited liability companies (SRLs) are the most popular vehicles for business in Romania because of their simple administrative requirements, greater flexibility compared to other types of companies and low capital requirement. All researched investments in the floricultural sector, no matter if local or joint ventures were created in the format of the SRLs. Joint stock companies (SAs) can be an attractive option for investors planning to list their companies on the stock exchange, but so far it is not used by the sector in Romania. Even if feasibility studies based on market research are advisable to position the product and define marketing strategies, most of the investments analyzed for the sector were not initiated on this basis. Most of them are based on expertise, experience and family connections on the market, as well as obvious low development levels that can facilitate success even when based on limited resources. In the last 2 years competition increased and consequently business became more structured. The business is developed either based on commercial partnerships (for import and distribution), production partnerships (development of greenhouses and nurseries) and direct investments (mainly for import and trading and only recently production). Irrespective of the format or extent of the investment the existence of a reliable local partner is essential for every day development of the business and adjustments to the market evolution. In order to develop trading activities, legal and natural persons may associate and establish commercial companies. Commercial companies with the head office in Romania are legal Romanian persons 5.2 Foreign Investment

In the absence of a track record with MARD or the Romanian Agency for Foreign Investment (ARIS), due to the relatively low value of investments in the sector and investor reluctance to disclose information, relevant statistics on actual size and value of the foreign investment in the field are not available. By direct research and access to various market information sources we identified several relevant operations described below:

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Fresh Flowers SRL Dutch Investment – 2007 Lehliu Gara (Calarasi) Contact: Roel Koers 1ha greenhouse under development

Started by renting a land plot in ‘Sere Vitan’ greenhouse, for producing mainly tulips and gladiolus, they transferred production this year to Lehliu where a greenhouse was built Ecohorticultura-Bucharest Dutch Investment t- under PSOM5/RM/1/92 – “Romanian garden on Dutch soil” (ending date 2009) Project Applicant/ partner Twentheplant B.V., Hengelo; Romanian Recipient: Ecohorticultura SRL Contact: Valentin Neaga- manager Garden centre established close to Bucharest (Balotesti) planning to expand by renting additional land plot; 3000 square meters in the proximity of the garden centre. The partners in this project aim to professionalize the supply of garden plants in Romania (existing nurseries and product marketing). To achieve this, Ecohorticultura will require equipment and training. The Ecohorticultura management will receive support to continue their development. The partners will form a joint venture to establish a garden centre and gardening services operation, as a way of implementing the planned developments and of structuring the business. The personnel in the joint venture will be trained in garden plant production, gardening and landscaping services, use of equipment, marketing, sales and management. Unigarden Bucharest Dutch investment under PSOM5/RM/1/93- “Joint venture for production, distribution, domestic sales and export of flower bulbs, flower seeds and perennial plants” Project Applicant/partner: Garden Vision International B.V, Voorgout; Romanian partner: Unisem The aim of the project was to produce high quality planting material Pepiniera Mauritz Dutch –Romanian partnership with Combinatie Mauritz company in Opheusden, 2003- Sibiu Contact: Rosca Onitu-partner 5 ha nursery in Ocna Sibiului planted with trees for urban use and fruit trees Importing from mother company in The Netherlands but also producer of dendrology material (ornamental trees and bushes), mainly for the Romanian market. Main customers are private landscaping companies, town halls (street alignment, parks) as well as private clients. Combinatie Maurits is the only Dutch investment that also goes across border to Bulgaria.

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Sahin & Compania 100% Dutch investment (Mr. Kees Sahin) 2004- Bucharest Contact: Luminita Hatisi Importer of flower seeds and tulip bulbs from the Netherlands Products for professional and home use. They own a plantation in open field for demonstration purpose only. Sales from headquarter or by mail in general on wholesale basis. They evaluate good business potential especially from institutional market. They attempt to approach retail, but the end-user is not educated enough to absorb Dutch quality and diversity. Gardener Dutch Investment – 2004 - Osorhei (Bihor county) Contact: Noemi Orlovszki Importer and distributor of outdoor plants and landscaping products from the Netherlands and Hungary Sales for retail outlets but also for own projects as provider of landscape gardening services. Main shareholders are two Dutch companies also connected with Hungary managed by a family. They have a garden centre in Osorhei (near Oradea, Western border of Romania) and 3 franchised outlets in Western Romania- Zalau, Salonta and Alba Iulia (plans for 6 more). The main constraint for development is the availability of educated work force (in 2006 they used NMCP support in organizing landscape architecture workshops for their own staff but also other interested parties). CMB Vivai Italian investment - 2003- 2004 - Targoviste (Dambovita County) Adrian Nechita- Manager Contact: Alexandra Negroiu 12 ha open field near Targoviste and 14 ha open field near Contesti (Dambovita) and 4 ha greenhouse (took over former state owned greenhouse refurbished so far only 2ha on which they prepare plants for field production) Producer of 450,000 pieces of ornamental plants/year, on average. Production not adjusted to local conditions but aimed for export (80% export –Turkey, Italy, Spain) to traditional customers (outsourcing based on large plots available and low cost labour) Before 2007, the main constraints were the import-export formalities (especially import of planting materials). After 1st January 2007 still some difficulties with export authorization to Turkey (phytosanitary certificate needed) and theft of plants from locations (regular species known within local community such as Thuya, Magnolia).

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Pepiniera Mures Austrian investment at origin - 1997- Sinicolau Mare (Timis) Contact: Ioan Tabarta - Owner 30 ha in total but only 12 ha in production near commune Vladimirescu (Timis) Production in open field partially irrigated. Ornamental plants sold only in Romania, mainly to landscape gardening companies. Start-up in cooperation with an Austrian partner that withdrew after 2005, now in discussion with a Hungarian company for future partnership. Sahin & Compania Tria’s Amway Belgian investment – 1998 - Bucharest Contact: Traian Saplacan 3000 square meters green house in Bucharest –mainly for seasonal pot flower and acclimatization of pot plants and shop network with 11 outlets in Bucharest 95% of activity is direct import of cut flowers, pot plants, and pot flowers from Aalsmeer. Already established a network of distributors for South Romania. The main clients are 100% private companies and direct customers including wholesales also in Bucharest based on confirmed orders for (known network of) flower shops or flower arrangements companies. Plans to franchise the brand in other cities around the country. Holland Flower Trading Dutch investment -2001-Bucharest Contact: Otto Bouman 100% private investment, one flower shop in Bucharest with main activity - flower arrangements Before 1st January 2007 was buying from an importer (Stinjenel company in Brasov) now is a direct importer. The main clients are private companies, HoReCa and direct clients but also wholesale based on confirmed order from (known network of) flower shop, or flower arrangements companies. Flora Holland Dutch investment – 2006- Bucharest Contact: Mariana Matei Import cut flowers and pot plants warehouses –Bucharest and Iasi The Romanian owner lived for 30 years in the Netherlands and has direct (family) connection in Aalsmeer. Established a warehouse and an office 22km outside Bucharest, to be able to serve clients in the city but diminished the contact with Cosbuc market. Clients 100 % private companies, mainly flower shops and flower arrangements, but no street florists.

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Romstal Garden Romanian-Italian joint venture 2000 - Bucharest Contact: Dudu George Importer, company within Romstal group – (one of the biggest Romanian market players for thermo-hydrosanitary installations as well as ceramics and electrical equipment) Gardening materials and tools complementary to installations and home decoration departments in the Romstal Group. Direct Importer of a wide range of planting material, pot plants, ornamentals and tools from Italy, the Netherlands and Germany. Main clients are private companies and direct customers within own projects.

5.3 Business Practices

Selecting a suitable partner The most important sources for initiating a partnership according to the local approach are recommendations and direct relations/ research. People usually rely on information provided by other business partners or obtained by direct efforts either visiting the interesting countries of via internet. The general experience based on this approach is not always successful and interviewed parties indicated they would need more support in accessing reliable sources of information to substantiate their research. Another main alternative specified by all interviewed traders or producers is to participate to different exhibitions and events organized for the sector around the year, even if Romania is missing for the time being, a specialized comprehensive and professional flower exhibition similar with other West European countries. For the ornamental, seeds importers/producers, pot plants/flowers, the most well know is the international exhibition ‘Indagra’ where one of the themes is “flower/plants, seeds and gardening”. However due to the high rental fees in the fair not too many floricultural companies can participate. Comparison of participant lists from the last 3 years shows little variation in names and numbers. Also majority of the Romanian participants is from Bucharest, with the exception of seeds traders. The main reasons given by the interviewed companies are the conditions offered by the organizer as well as difficult access due to location. Cut flowers producers/importers do not have a tradition to participate to Indagra and so far there was no initiative to organize a specialized exhibition for cut flowers arrangements within Indagra (as, for example, at ‘Hortus Hungaricus’ in Budapest). In Bucharest, there are also other smaller exhibitions than Indagra where still the participants exhibit mainly ornamentals and pot flowers (in the last 3 years in Herastrau Park). Another well known exhibition is ‘Simfonia Lalelor’ (Tulips Symphony) with a long tradition, organized by the city hall of Pitesti, Arges county. Here the participants expose mainly ornamentals, pot flowers for balconies & terraces and flowers for urban area decoration. Flower shops from Pitesti and sometimes also from other cities, participate too with flower arrangements.

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In the country, exhibitions with an agriculture-horticulture theme are organized all around the year, attracting producers/importers/traders based locally or from surrounding areas. With a few exceptions, the participation to exhibitions in different cities in the country is limited regionally due to lack of good infrastructure. Cut flowers & wholesalers from the Florist Association organized last year for first time a flower exhibition on May 27, in the Park Plumbuita (Bucharest) and consequently declared that day as “the florist day”. The location will be changed every year but it will always be a park (this year in Flower Park, Pantelimon Bucharest). Up to now, the main participants were the members of the Florist Association and a few local producers. Other importers/traders from Bucharest, not members of the Florist Association did not participate and they are not willing to participate in this event. Another alternative is advertising. The choice of specialized magazines is quite narrow, but articles on garden plants, garden landscaping, garden decoration, pot flowers, pot plants, etc are printed regularly in magazines specialised in home decoration. Some other magazines targeting women readers publish also articles about flowers/ornamentals but in general adverts are not placed in this type of magazines. Landscape gardening companies place adverts regularly in ‘Gradina mea de vis’ (My dream garden) and other magazines. There is more advertising online about landscape gardening, flower bouquets and flowers arrangements than in printed magazines. Most of the general sites with information about gardening, plant care, house and garden decoration, weddings, offer publicity banners. For the moment, more adverts placed individually online – as paid links on Google – are about flowers/flowers bouquets, but the ones about landscape gardening are growing together with the market. Landscape gardening companies and gardening suppliers place in general their advert or link on the websites of online shops for gardening, house and garden decoration and on websites which offers advice/guidance/information about planting, plants, gardening. As the market is growing, there are more and more sites about plants and gardening advice. In August, another site was launched which the editor claims to be the only weekly gardening magazine online – Hortipedia - as it is going to be updated weekly. Street adverts were for the first time used in Bucharest by two large companies - Romstal Garden and Cris Style Impex - but street adverts placed on the main street were noticed also in the country, especially in the central area where there is more competition. Another advertising method, although not frequently encountered, is to sponsor with ornamentals/flowers /flower arrangements different events as concerts, sportive shows, exhibitions, etc. Also, not very often encountered is the method by which companies making flower arrangements leave a leaflet in the publicity holders existing in the lobbies of hotels and pubs. Contractual practices Deals in the sector when done on the local market are generally not based on written contracts but more on deal on the spot “cash-on-delivery” .The exception is for landscaping projects where contracts are imposed by customers (mainly real estate developers).

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As regards import contracts, they follow the rules and standards of common the European practices but also here the personal relationship with the trading partner is often decisive in establishing and maintaining a partnership. Usual cross culture disparities between the Netherlands and Romania are eased by a somewhat similar entrepreneurial approach in developing business for this specific sector. Local entrepreneurs in the field tent to have a direct, non-sophisticated approach. 5.4 General Considerations on the Romanian Business Environment According to World Bank statistics, Romania made significant steps forward in the ease of doing business in the last 5 years along with the processes for EU accession and integration. The number of steps entrepreneurs can expect to go through to launch a business, the time it takes on average, and the cost and minimum capital required are lower than the values for the region. At the same time investor protection (such as transparency of transactions and liability for self-dealing) and trading across border indicators (such as number of documents, time required and cost of formalities for import-export) are demonstrating that the country is able to provide a better and safer environment for the international business. Romania made also important progress regarding corporate taxation. Starting already with 2005, most tax incentives ceased, a standard corporate income tax rate of 16% was established based on quarterly reporting and payment. Micro-companies (turnover less than 100,000 EUR per annum) will still pay 2% as income tax on revenue in 2007, 2.5% in 2008 and 3% in 2009. Tax on dividends is 10% (or 0% under certain conditions) for resident legal persons and 16% on dividends paid to individuals. The fiscal year is the calendar year for all entities or the period of the year during which the entity existed if it was set up or ceased to exist during the year. As regards indirect taxation, the standard Value Added Tax (VAT) rate in Romania is 19% and new VAT treatment is in force for EU trade. The revenue threshold for VAT registration has been lowered from RON 200,000 (around EUR 57,000) to the RON equivalent of EUR 35,000 and a new calculation method for this threshold is introduced (i.e. revenues derived from the operations not entitling to deduction) more companies being required to register for VAT purposes (including all banks and insurance companies). Other indirect taxes applicable are Environmental Fund Contributions (contributions for packaging, tyres, air-pollutant emissions or waste management obligations) and Excise duties. As an EU member, Romania applies the EU Common Customs Tariff and EU customs regulations as well as all EU free trade agreements concluded with third countries: - No customs formalities are applied for goods with community status (goods produced in the EU or goods released for free circulation in the EU) - Compensatory interest is due for the Inward Processing and Temporary Admission regime of goods released for free circulation in the EU

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5.4.1 Legal Framework for Founding Companies in Romania The establishment, functioning, dissolution, merger, division and liquidation of commercial companies in Romania are regulated by Law No. 31/1990, several times amended by subsequent laws, decrees and government decisions, last time in 2006 (Law 441). Currently, the majority of companies registered in Romania, whether domestic or foreign-owned, are limited liability companies. A limited liability company is known as a SRL (Societate cu raspundere limitata) and is formed by a limited number of partners (not more than 50). It is based on the constitutive documents. The registered capital of a limited liability company cannot be less than 200 RON (equivalent of 60 EUR). The registered share capital of a limited liability company is normally divided into social parts/shares with a registered value of not less than 10 RON (equivalent of 0.3 EUR). Shares cannot be freely traded, making limited liability companies similar to what are known as private companies in other legal systems. Shares of these companies cannot be pledged as collateral for loans. Decisions are made by majority vote in the General Meeting of the Shareholders (1 share = 1 vote). Decisions involving changes in the constitutive documents must be agreed by all shareholders if these documents do not state otherwise. One or more Directors/Managers are appointed in the constitutive documents or by the General Meeting and are put in charge of the management of the company. Limited liability companies may also be formed by a sole associate. Joint Stock Companies are limited liability corporations with a registered capital of minimum 25,000 EUR, equivalent RON, and with at least two shareholders. When an SA is established, at least 30% of the share capital, or 100% in respect of contributions in kind, must be immediately contributed upon formation of the company and all registered share capital must be fully paid up within twelve months of formation. Shares could be nominative shares or bearer shares and can be freely traded or pledged. A joint stock company may be set up privately or by public subscription. Joint-stock companies and limited liability companies are set through a company contract and a statute, which might be concluded as a sole document called Articles of Incorporation. The Articles of Incorporation shall be signed by all associates or in case of public subscription, by the founders and will be concluded in authentic form. The signatories of the articles of incorporation are considered the founders. Within 15 days from the date of authentication of the Articles of Incorporation, the founders or the administrators of the company or an attorney-in-fact of theirs will request the incorporation of the company in the Commercial Register in the area where the head office of the company will be located. Law no 359/2004 provides the simplification of formalities regarding the registration in the trade register of natural persons, family associations and legal persons, their fiscal registration and authorization for functioning. Through this law, significant progress was made, with special focus on simplifying administrative procedures at the start up and development of the business. In this respect, the registration period for starting-up companies decreased from 20 days (according to the former legislative framework) to 3 days from the day the request has been submitted (the trade register office issues the registration certificate containing the unique registration code). Moreover, the authorization for functioning is granted based on the statement by own will (self responsibility statement) of the entrepreneur, which states that the legal conditions for functioning are known and complied with.

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The benefit quota, which will be paid to each associate, represents the dividend. Dividends will be paid to the associates’ proportional with their participation to the paid social capital. Administrators may perform all necessary activities in order to fulfil the activity of the company, except for the restrictions stipulated by the articles of incorporation. Administrators are jointly liable to the company for: •

the existence of the payments made by the associates;

•

the legality of the paid dividends;

•

the existence of the registers requested by the law and their correct keeping;

•

the fulfilment of the general assembly’s decisions;

•

the strict fulfilment of the dispositions of the law and Articles of Incorporation;

Any document, letter or publication issued by the company must indicate the name, legal form, and head office, recording number in the Trade Register and the fiscal code. A foreign company can also do business in Romania through a subsidiary, agency or a branch. While a subsidiary has legal personality and is considered a Romanian entity, the branch is just an extension of the parent company and therefore has no legal personality and no independence. Agencies are established and operate in accordance with the provisions of Decree Law No. 122/1990, are authorized by Ministry of Foreign Affairs and can undertake on behalf of the parent companies only transactions and activities which are consistent to its authorized field of activity. Law No. 105/1992 on the Regulation of the Private International Law Relationship adopts the accepted international practice by which a branch is governed by the national law of its parents company. Legally, the branch has no separate status from the foreign company itself. It is merely carrying on business in Romania. The foreign company will be liable to the employees and creditors of the branch for the actions of, and debts contracted by, its managers and agents on behalf of the branch. On the contrary, according to the Law No. 31/1990, a Romanian subsidiary of a foreign company is a Romanian legal person and, consequently, it is subject to Romanian laws. It is liable, on its own behalf, for the actions performed. Subsidiaries and branches can carry out only the activities for which the parent company is authorized. In practice, subsidiaries are commissioned following the same steps as the registration of companies, i.e. notarizing the statutes, and registering the subsidiary with the National Trade Register Office. Assuming the branch is recognized legally, it must then be registered with the local office of the National Trade Register Office. The set up of a subsidiary must comply with the minimum capital requirements under the Romanian Company Law, as stated at page 46 within the present report.

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5.4.2 Financing Programs and Sources for Business Development European Agricultural Fund for Rural Development (EAFRD) (http://www.mapam.ro/pages/dezvoltare_rurala/NRDP_english_version.pdf) General information For Romania, the total structural funds package for 2007-2013 amounts 19.7billion EUR, under three components: the European Fund for Regional Development (EFRD ; focusing on regional development, environment, competitiveness, technical assistance, inter-regional cooperation within the EU), the Social European Fund (SEF, under which projects related to human resources development and administrative capacity strengthening are eligible) and the Cohesion Fund (CF, addressing environmental protection and infrastructure). In addition to structural funds, Council Regulation 1290/2005 regarding the financing of the common agricultural policy created the legal framework for the two funds dedicated to agriculture: EAGF (European Agricultural Guarantee Fund) aiming to finance Pillar I measures (market policies) of the CAP and EAFRD (European Agricultural Fund for Rural Development) for financing rural development programs within Pillar II of the CAP. EAFRD contributes to the promotion of sustainable rural development in the EU, complementing the market and income support policies implemented within the common agricultural policy, the cohesion policy and the fishery common policy. The budgetary allocation for Romania under these two types of assistance totals €12.3 billion for the period 2007-2013. This funding is to cover direct payments to farmers (of about €5 billion) and, respectively, investment projects in agriculture and rural development (totalling €7.3 billion). Romania opted for the Single Area Payment Scheme (SAPS) for the first three years of membership, after which it may switch to Single Farm Payment (if the Integrated Administration and Control System – IACS – is improving so that to administer the single payment scheme – SPS). The minimum eligible farm size was set up at 1 ha, while the minimum eligible plot is 0.3 ha. Full cross-compliance rules should apply at the end of the three years, regardless of whether SAPS or the Single Farm Payment is applied from then on. SAPS provides farmers with a uniform per hectare lump sum, payable once a year, regardless the crops planted and regardless whether cultivated or not (under the sole condition of maintaining the soil in proper agronomic condition). At the end of 2007, based on the number of eligible applicants, the Ministry of Agriculture estimated that this will be roughly EUR 50/ha (without top-ups). EAFRD is an instrument that complements the national, regional and local measures and should be compatible with the economic and social cohesion objectives and with those of the Instrument for Community Aid in the fishery sector, and with the measures financed by the European Agricultural Guarantee Fund.

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In the Romanian terminology, the agriculture sector contains: (source: NRDP) ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ

Field crops (cereals, oilseed, protein crops, root crops) Horticulture (garden vegetables, flowers and ornamentals, mushrooms) Wine (vineyards and grapes) Permanent crops ( fruit) Animal breeding - mainly for dairy Animal breeding – mainly for non-dairy, grazing Intensive animal breeding (pigs and poultry) Mixed livestock

Eligible applicants: - Juridical persons/ Family Associations - Professional associations, producer groups, cooperatives - Small and medium enterprises registered on the Romanian territory According to the existing legislation, foreign citizens are also eligible for applying to EAFRD. The flower sector is eligible for the flowing axes: Axis 1: Improving the competitiveness of the agricultural and forestry sectors A. Measures aimed at promoting knowledge and improving human potential A.1. Vocational training, information actions and diffusion of knowledge Specific objectives - To acquire information and knowledge that will enhance the sustainable management of both agricultural and forestry land, will improve management quality at farm level, restructuring and modernization of the processing sectors and in commercializing agricultural and forestry products, and of the social conversions thus contributing to the improvement of living conditions and decrease of unemployment in rural areas. Scope and actions: 1. Vocational training, information and diffusion of knowledge programs: - Long term vocational training programs to improve and perfect the knowledge (developed at national or regional level): for the improvement of management in agricultural, forestry and food sectors, for introducing new technologies and innovations, dissemination of the research results, organic farming etc. This type of long term vocational training will include courses with a minimum duration of 200 hours of theoretical and practical classes. -

Short term vocational training programs to improve the technical and vocational competencies in the integration context of agri-food and forestry sectors, of knowledge and complying with the cross-compliance conditions (developed at county and local level) This type of short term vocational training programs will include courses with a minimum duration of 40 hours of theoretical and practical classes.

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2. Information and diffusion of knowledge regarding the support schemes of CAP, the implementation methods of rural development measures specific to each county. The activities provided within this measure are collective, not individual. Beneficiaries: • Adult people involved in the agricultural, forestry (including forest owners) sectors and agri-food industry. • The providers of the vocational training activities, as well as of the actions for information and diffusion of knowledge are public authorities, including the MARD, or private authorities which are active in the field of vocational training for adult people and/or the field of information and diffusion of knowledge and that were selected according to the selection procedure presented in the measure’s Guide of procedures. Description of the operations: • Diversification of activities in agricultural holdings, improvement of production quality, hygiene and food safety, setting up conditions to ensure animal welfare and plant health, safety at work, use of fertilizers in agriculture in compliance with the European Union standards; • Business improvement and encouragement; • Technical training (new informational technologies, introducing innovations, dissemination of results of research and of sustainable management of human resources etc); • Sustainable management of farming and forestry lands; • Developing innovative approaches in the agro-food chain; • Assuming the requirements regarding the cross-compliance conditions and the application of production methods compatible with preserving and improving the landscape and with environment protection • It will support the transport of farmers to different fairs, exhibitions, successful projects, thematic meetings, events that can contribute to informing farmers related to, for example, the new technologies applied in different sectors, or exchange of experience actions Coverage of support: • Costs related to preparation and development of different vocational training actions: ƒ Fees for trainers, ƒ Daily allowances for trainees, ƒ Transport expenditures, ƒ Teaching materials and consumables. ƒ Other expenditures related to the development of vocational training actions. • Costs related to different types of information and diffusion of knowledge actions: ƒ Transport expenditures, ƒ Daily allowances for the participants, ƒ Information materials, ƒ Other expenditures related to the development of information and diffusion of knowledge actions. Applicants: • Public entities ƒ Educational entities: high-schools, colleges, professional schools and universities in the field of agriculture, forestry or food ƒ Research institutions in the field of agriculture, forestry or food • Private entities – legal entities that have proficiency in agricultural, forestry or food sector according to the objectives of the measure.

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Financing: Total costs: 119,019,347 EUR Public costs: 119,019,347 EUR, of which 95,215,478 EUR is EFARD contribution. A.2. Support to young farmers for setting up new farms Specific objectives: Increasing incomes of the holdings managed by young farmers practicing a sustainable agriculture through better management. Operational objectives: Restructuring agriculture holdings through workforce reinvigoration and structural adjustment of agriculture to the European model. Scope and actions: The activities undertaken within this measure aim at: ƒ Improving the management of the agricultural holding; ƒ Developing the overall performances of the agricultural holding; ƒ Adjusting the production to the market demands; ƒ Complying with the Community standards, in particular those referring to cross-compliance, labor protection, environment protection and sanitary-veterinary requirements. The provisions of this measure will be implemented on the entire Romanian territory. Beneficiaries: ƒ under 40 yrs, who are setting up for the first time on an agricultural holding as head of the holding, ƒ possessing or making a commitment to acquire relevant vocational skills in rapport with the activity they are about to develop, ƒ submit a business plan for the farming activities. In compliance with article 13 (1) of Regulation (EC) no. 1974/2006, the young farmer who is granted support for setting up, may benefit of a grace period which can not exceed 36 months from the date of applying for support, in order to meet the conditions related to achieving the vocational skills specified in the business plan. Amount of support: The support for the setting up of young farmers will be granted as a premium provided that the agricultural holding taken over or to be set up is registered in the Agricultural Holding Register and has a minimum size as follows: a) 20 ha for field crops (cereals and technical plants); b) 4 ha for: pomiculture, horticulture and floriculture; c) 1 ha of agricultural land and minimum 40 bee families for one apiary.

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Financing: Total costs: 317,384,926 EUR Public costs: 317,384,926 EUR, of which: ƒ National public contribution - 20% ƒ EARDF contribution - 80% B. Measures aimed at restructuring and developing physical potential and promoting innovation B.1. Modernization of agricultural holdings Specific objectives: ƒ Introduction and development of new technologies and procedures, production diversification, including the organic production, as well as in obtaining and using renewable energy; ƒ Adaptation of holdings to the new Community standards; ƒ Adjustment of profile, level and quality of the obtained production within the farm to market requirements; ƒ Income increasing of the supported holdings; ƒ Supporting the members of producer groups or of other associative structures with the view encouraging of association phenomenon Operational objectives: Promoting the investments in agricultural holdings, both in the vegetal and animal sectors, for instance the building up and/or the modernization of agricultural buildings as part of the holding, the acquisition of new equipment and machines and the setting-up of orchards and vineyards. Scope and actions: The flower sector is eligible for this measure as part of the agriculture sector but it does not represent a financing priority of this measure. Applications coming from legal entities association, cooperatives, producer groups, settled- up according to the legislation in force have a larger success rate. Beneficiaries: Authorized natural persons, authorized family associations and legal entities with agricultural activity, structured according to the legislation in force, except the subsistence holdings. Relevant investments: ƒ Construction and/or modernization of greenhouses, including heating systems and irrigation installations, utilities complying with environment conditions; ƒ Construction and/or modernization of buildings used for the agricultural production at farm level, including those used for the environment protection; Financing: The financial allocation of the measures for the period 2007-2013 is: Total costs: 1,318,156,777 EUR Public expenditure: 674,442,968 EUR, of which: ƒ National public contribution - 20% ƒ EARDF contribution - 80%.

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B.2. Improving and developing the infrastructure related to the development and adaptation of agriculture and forestry Specific objectives: ƒ to improve the access to agricultural and forestry holdings ƒ to support the economic and production activities by the development of a basic infrastructure ƒ to better the agricultural and forestry infrastructure complying with the Community standards ƒ to improve the environment quality and to diminish the pollution sources. Operational objectives: ƒ to build and modernize the agricultural and forestry infrastructure ƒ to support the activity related to land consolidation. Scope and actions: The support granted by this measure shall contribute to: ƒ sustainable agricultural and forestry land management by means of supporting the investments in agricultural and forest infrastructure; ƒ improving the water resources management, reducing the water costs by metering and saving the water used for irrigation; ƒ decreasing the risk factors of erosion, water excess and humidity; ƒ consolidation of agricultural and forestry land with the purpose of setting up viable agricultural holdings. Operations: Under this measure, support shall be granted for: ƒ infrastructure for access roads to agricultural and forest holdings; ƒ management of water resources; ƒ electricity supply; ƒ torrential correction within forest and agricultural area; ƒ agricultural and forestry land consolidation Beneficiaries: ƒ Associations, legal person of public utility of the agricultural and forest land owners/holders, established in accordance with the legislation in force; ƒ Local councils and their associations; ƒ Administrators of the infrastructure for irrigation, drainage, fight against soil erosion and protection against water excess and humidity; ƒ Administrators of the state forest area; ƒ Forests private owners/holders and their associations.

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Relevant eligible investments: ƒ Management of water resources: ƒ water supply networks, including the water source – building and/or modernization, including works for protecting pumping stations; ƒ sewerage network - building and/or modernization; ƒ irrigation systems – building and/or modernization including works for protecting the pumping and metering stations; ƒ drainage works – building and /or modernization ƒ works for combating soil erosion – building and/ or modernization ƒ works for protecting against floods (only for the smallest water courses - streams) building and/ or modernization ƒ Electricity supply - building and/or modernization ƒ Agricultural and forestry land consolidation: ƒ technical and juridical actions regarding agricultural and forestry land consolidation ƒ Works related to the land improvement generating a better use of the land. Financing Total costs: 634,769,853 EUR Public expenditure: 634,769,853 EUR Non-refundable public support consists in: ƒ National public contribution - 20% ƒ EARDF contribution - 80%. C. Transitional measures for Romania (and Bulgaria) C.1. Supporting semi-subsistence agricultural holdings Specific objectives: The encouragement of a significant number of semi-subsistence farms to enter the market. Operational objectives: The encouragement of the restructuring of semi-subsistence farms for a better use of human resources and of production factors, through: ƒ The stimulation of the entrepreneurial spirit; ƒ The diversification of activities and incomes Scope and actions: The support granted through this measure has the purpose of facilitating the restructuring and transformation of the semi-subsistence farms in market oriented holdings, by a sustainable use of the production factors, the improvement of management by diversification of agricultural production, as well as by the introduction of performance technologies adapted to the local conditions. Definition of the semi-subsistence farm: Semi-subsistence farms represent the holding which produces, in particular, for self-consumption and also markets a part of its output. The economical size unit of semisubsistence farms may fluctuate between 2-8 ESU. In order to become viable, the semi-subsistence farm could also practice non-agricultural activities generating incomes. ESU represents the unit for evaluation the economic size of the agricultural holding, determined on the basis of the total standard gross margin of the holding (Commission Decision no. 85/377/EEC). The value of 1 ESU is 1,200 EUR. Amount of support: The support granted by this measure is 1,500 EUR/year/semi-subsistence farm.

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Duration of support: The support is granted for a period of maximum 5 years for the applications approved before the 31st of December 2013. Financing: The financial allocation of the measures for the period 2007-2013 is: Total costs: 595,096,737 EUR Public expenditure: 595,096,737 EUR Non-refundable public support consists in: ƒ National public contribution - 20% ƒ EARDF contribution - 80%. C.2. Setting up of producer groups Specific objectives: Increasing the number of semi-subsistence farms having penetrated the market consequently to the producer groups association. Operational objectives: Increasing the number of producer groups supported for the setting up and the administrative operation and the increasing the incomes by improvement of technical and management capacity of the members. Scope and actions The scope of this measure is to facilitate the setting up and administrative operation of producer groups recognized in accordance with the provisions of the national legislation in force, which will lead to: ƒ Adapting the production to the market requirements; ƒ Jointly placing products on the market, including preparation for sale, centralization of sales and supplying bulk buyers; ƒ Growth in added value of the common output and a better economic management of resources and results; ƒ Establishing common rules on production information, with particular regard to the quantity, quality and type of offer, focusing on products obtained in adequate quantities for processing industry and marketing network. Sectors concerned: Support is granted for producer groups recognized in accordance with the national legislation in force, for products which belong to the following sectors: horticulture, agriculture, forestry and animal breeding. Financing: The financial allocation of the measures for the period 2007-2013 is: Total costs: 198,365,579 EUR Public expenditure: 198,365,579 EUR Non-refundable public support consists in: ƒ National public contribution - 20% ƒ EARDF contribution - 80%.

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List of current state aid measures in agriculture and forestry sectors (source: NRDP) Medicinal and aromatic herbs, flowers –- Financing schemes 1 Sustaining the production of medicinal and aromatic herbs accomplished in the quality conditions established under contract. 2. Sustaining the programs for the takeover of certain plants from the spontaneous flora in crop. 3 Sustaining conditioning programs, intermediary and finite processing of medicinal and aromatic herbs presented for use, inclusively in pre-dosed forms: teas, capsules, tablets, tinctures, extracts, syrups, solutions, ointments, as well as the obtaining of volatile oils. 4 Support for the production of flowers, dendrological and ornamental plants in fields, protected or arranged spaces. 5 Sustaining of the accomplishment of the price monitoring system: import prices, prices practiced on the representative markets and on the domestic market compatible with the Community system. Seeds and seeding material – Financing scheme 1 Subsidize the production of potato seed and seeding material for tree growing and vineyards – officially certified. Plant protection – Financing scheme 1. Financing from the State budget of plant protection actions of national interest.

Bank Loans/Credit Schemes A significant number of Romanian banks provide lower interest loans and credits for agriculture in order to support the national objective of developing an efficient and competitive agricultural sector on the European market. There are no special financial schemes for the flower sector in Romania but the producers from this sector are eligible for these financial subsidies as part of the agriculture sector. ROMANIAN DEVELOPMENT BANK - GROUPE SOCIETE GENERALE Credit For Financing Crops Beneficiaries: individual agricultural producers, agricultural family associations, agricultural commercial companies Eligible activities: financing the exploitation, maintenance and harvest of crops Conditions: • Minimum value – 7400 EUR • Maximum 80% of the incurred expenses • Personal contribution may consist in seeds, work or money • There is no application deadline • Duration: 3 – 12 months

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Contacts: BRD Sogelease IFN S.A. B-dul Ion Mihalache nr. 1-7, sector 1, Bucharest Tel: 0040 21 301 41 00; Fax: 0040 21/301 41 04 Web: www.brd.ro For agriculture credits: Tel. 021.302.61.61 Email: credit_agricol_"county name"@brd.ro CASA DE ECONOMII SI CONSEMNATIUNI – CEC 1. Bank Warrantee Letter Objectives of the program: • The elimination of the risk of not fulfilling the contractual obligations • Ensures the business flow between partners in safe conditions • Ease the credit application procedures • Advantageous interest for deposits in case of collateral cash warrantee Eligible applicants: national and multinational companies, commercial companies with state, private or foreign capital, commercial companies from the agriculture sector Eligible Activities: warrantee for participating to auctions, for returning the cash advance, payment to suppliers, for customs taxes. Conditions: • The credit period and the value of the credit are established based on the client’s agreement and according to the warrantee contract. • A periodical renewal clause may be included in the contract • There is no application deadline 2. Credit for SMEs from European Union Sources Objectives of the program: The funds coming from EU and ERDB may be used to finance any credit scheme offered by CEC Eligible applicants: small and medium enterprises, juridical persons, family associations or other entities founded according to the existing law Eligible activities: credit for different investment projects, working capital for production, new projects, modernizing or expanding the existent business

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Conditions: • Crediting Period: o Short term – 1 – 12 months for working capital and investments o Medium term – 1 – 4 years for investments • The value of credit; o micro credits: maximum 30.000 EUR – for SMEs with maximum 10 employees o small credits – maximum 125 000 EUR – for companies with maximum 100 employees • There is no application deadline Contacts: Casa de Economii si Consemnatiuni Calea Victoriei nr. 11-13 Sector 3 Bucharest Tel: 0040 21 3111119 0040 21 2025000 0040 21 3123465 Fax: 0040 21 3125425 Email: [email protected] Web: www.cec.ro

B.C. CARPATICA S.A. Credit For Agriculture Eligible applicants: juridical persons; family associations or other juridical units who own the necessary technique for producing agricultural products Eligible activities: financing the necessary activities for an efficient and competitive production Conditions: ƒ Financing scheme: ƒ Current activity credit – up to 36 months ƒ Investment credit – up to 95% from the total necessary funds, for a period no longer than 120 months ƒ Benefits: ƒ a credit bonus up to 30% for the current activity credits reimbursed in due time ƒ the current activity credit may be granted in revolving system or based on a reimbursement graphic ƒ large variety of eligible activities ƒ There is no application deadline Contacts: BANCA COMERCIALA CARPATICA SA - SEDIU CENTRAL Sibiu, Str. Autogarii Nr.1, Romania Telefon: 0040 269 233.985; Fax: 0040 269 233.371 Swift: CARPRO22 E-mail: [email protected] Web: www.carpatica.ro

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INTEGRA ASSOCIATION ROMANIA Rural Plus Credit Eligible applicants: persons from rural area who would like to develop a business in agriculture sector or in other sectors; persons from urban areas who develop a business in the agriculture sector Eligible activities: acquisition of agricultural tools, animals, seeds, raw materials, fertilizers Conditions: ƒ The value of the micro credit may be in between 3 000 – 9 000 EUR ƒ The currency of the credit – RON ƒ The annual interest – 12 % ƒ Warrantees – mortgage (buildings, fields) ƒ The warrantee must cover 140% form the cumulated value of the principal and the interest for the credits granted for a period up to 12 months or 170% for the credit granted for a period over 12 month ƒ There is no application deadline Contacts: Sediul central Integra Romania Republicii, nr. 28/A 10025 Oradea, Romania Tel/Fax: 0040 259 415.023; 0040 359 410.852 E-mail: [email protected] www.integraromania.ro

UNITED NATIONS DEVELOPMENT PROGRAM RURAL DEVELOPMENT CREDIT Eligible applicants: for any agricultural producer or commercial company Eligible activities: acquisition of seeds, fertilizers, phyto-sanitary products, gas and payments for agricultural works, acquisition of tracks, agricultural tools, equipments, new technologies, materials and equipments for irrigations etc. Value of credit: between 10 000 – 150 000 EUR Contacts: Centrul de Informare ONU pentru România Bulevardul Primaverii nr 48A, sector 1, Bucuresti, cod 011975, Romania Tel: 0040 21 201 78 79 Fax:0040 21 201 78 80 E-mail: [email protected] Web: www.onuinfo.ro

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PROCREDIT BANK ROMANIA FARMERS CREDIT Eligible applicants: any agricultural producer and commercial company Eligible activities: acquisition of seeds, fertilizers, animals, tools and agricultural machines Conditions: ƒ Credit value – up to 12 000 EUR ƒ Reimbursement period – up to 48 months ƒ Irregular payment – higher rates after the harvest or equal monthly rates ƒ Flexible warrantees ƒ There is no application deadline www.procreditbank.ro ROMANIAN COMMERCIAL BANK Agriculture Credit Eligible applicants: any agricultural producer and commercial company Eligible activities - establishment, maintenance and harvest of the crops and for pest control Conditions: ƒ The credit volume is determined based on the necessary technologies and the current expenses ƒ Currency - RON for a maximum 12 months period ƒ The credits may be warranted by the Rural Credit Warrantee Fund ƒ a credit bonus up to 30% for the credits reimbursed in due time Land Credit Credit for financing the land acquisition destined for agriculture (including for greenhouses and barren grounds which could be organized for agriculture) Conditions: ƒ currency – national or foreign currency ƒ period – short, medium, long term ƒ maximum value – 85%from the total value of the investment ƒ There is no application deadline Contacts: Banca Comerciala Romana 5, Regina Elisabeta Blvd., Sector 5, Bucharest Tel/fax: 0040 21 312 47 05; 0040 21 312 16 78; 0040 21 312 14 63 E-mail: [email protected]. Web: www.bcr.ro

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6. SUMMARY ON INTERVIEWS CONDUCTED FOR THE DEVELOPMENT OF THE REPORT Dutch investments

Main data sourced from interviews (conducted either directly by phone or by e-mail) is processed within the report. The list of interviewed Dutch companies is provided as an Appendix to the report.

It is important to underline that Dutch businesses were the first to be started in Romania after 1990, in all floriculture sectors: breeding material, flowers, pot plants/ and ornamentals. Dutch experience has been highly influential in the sector’s evolution over the last 15 years. Dutch planting material is mainly imported in Romania, with no propagation projects/ investments being identified at this stage. Also, most importers are not only specialized in floriculture: interviewed Dutch companies (Semplant Romhol and Holland Farming Romania) also import vegetable seeds and gardening accessories (the one exception is Sahin, focused exclusively on floriculture). All Dutch companies importing breeding material for floriculture consider the market to be a growing one. More local producers realize that quality breeding material will ensure the health of the crops and the quality of the end product, permitting them to strengthen their market position. One issue mentioned by all respondents is the need to keep an accessible price for is limiting the offer (quality and variety) for most of the small local producers. Up to this year, there was no specific financial support for the floricultural sector, and access to the previous EU financing program (SAPARD) was quite restricted. However, the availability of EU structural funds creates new opportunities for rural development, and companies are prepared to bring to the market the wide range of products available in The Netherlands. As regards pot plants, the respondents stated this sector is also growing. The main factors stimulating growth are economic development, increasing concern to provide a pleasant work environment in companies and the development of the HoReCa sector. A problem which all respondents have encountered is the missing knowledge about plants and plants needs. For Dutch traders of cut flowers, one major limitation is considered to be the black market and the corruption that sustains it, present at various local levels. Respondents consider that this issue will not be solved without combined efforts of local authorities to implement EU standards, or without international cooperation in knowledge transfer. The cut flowers market is also a growing one, but growth potential is mostly reserved for high added value, more sophisticated products, such as bouquets and flower arrangements. The purchase motivation is not expected to change, but economic growth will further generate a higher percentage of consumers with high income, who will prefer to pay for such products. The HoReCa sector is developing, requiring flowers and flower arrangements in all its activities. Fresh Flowers (Roels Koers) and Unigarden project, identified as relevant for Dutch cut flowers production in Romania were reluctant to offer details on their own experience with development and high competition.

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Dutch companies that import ornamental plants, and generally offer also landscape gardening services, mentioned the major constraints in developing local production are: the lack of qualified work force and the migration of the work force, the lack of interest on the part of authorities for maintenance and development of public green areas, the corruption and the lack of transparency in tendering as well as the concentration of the market in and around large cities. Romanian Players Extensive interviews were conducted with a wide selection of officials, importers, traders (including street commerce), representatives of associations and professors. Due to specifics of the sector the majority of respondents only accepted to discuss “off the record”, especially the importers-traders of cut flowers, not only in Bucharest but also the ones in the country. As regards cut flowers, all parties (authorities, importers and traders) admitted, on one hand the existence of the black market, event they also revealed clear trend of its diminishing after 1st January 2007. On the other hand, all parties consider this to be a growing market, in direct connection with the increase of consumer purchase power. At the moment, imported flowers are not accessible to a large segment of consumers that pay for imported flowers only when there are no other types available in the open market. Economic growth will also be an influential growth factor, as companies that offer flower arrangements prefer quality. Local production is also on a positive track, especially the one in open field or plastic tunnels. The cultivation of flowers is still mostly a family business, but growers have started to use better quality planting material and even to diversify productions - for example, they cultivate Lisianthus, a variety which was not common for Romanian production before. In spite of huge competition from imported flowers and the black market, all interviewed flowers producers, foreigner or local say that there is room in the market for local production, and not only in the open market but also in flower shops and flower arrangements companies. Importers and traders of indoor pot plants, with or without flowers say that it is also a growing market, and that it is largely influenced by economic growth and real estate development (companies and residential locations are the major clients for this segment of the market). As regards outdoor ornamentals, all parties say it is a growing market and with an important growth potential. Development of residential locations around and within big cities and in tourist areas, boost the size of the ornamental market. Real estate projects, a market in full development, are for the moment the main consumers of ornamentals. However, even if slowly, public projects are also starting to influence the ornamentals market. Forced by EU policy and by civic organizations, authorities have begun to approach the issue of public green areas, and possible public projects are a huge market for ornamentals. Campaigns of private companies (like the Petrom project, "Parks for the future") are also a promising opportunity for business. The growing market stimulates both imports and local production, but local producers do not have enough financial power to set up modern nurseries. However, large areas with good quality soil, in the vicinity of important cities attract foreign investors. The conclusion of discussions with all parties (cut flowers, indoor plants and ornamentals importers, traders, producers) was that the growing trend will be maintained for the next 10 years, more for outdoor ornamentals than cut flowers. Even if authorities have done almost nothing for this sector, the market started to organize itself and is going in the right direction.

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Interviews with public authorities, MARD and the Phytosanitary Service provided a good amount of useful information, revealed that the interest for the flower and ornamental sectors is there but also that the lack of organization in the territory and the lack of personnel discourage central efforts to have a clear picture of the market. Retail chains of interest The interviewed supermarkets and hypermarkets are Bricostore, Cora, Selgros (Brasov), Metro. According to Mrs. Andreea Balanescu from the garden department of Bricostore, reasons to import directly are lower costs in comparison to procurement from local importers/producers, and the fact that local production is not developed enough to accommodate the needs of the hypermarket (cannot provide constant quantities and constant quality). The main source of imports of indoor pot plants and pot flowers is the Netherlands, and for outdoor ornamentals Italy and Netherlands. According to Mrs. Balanescu, the ornamentals market is growing quickly due to the real estate sector development- for Bricostore, sale volumes for ornamentals doubled every year, in the last 3 years. The majority of Bricostore clients are endconsumers within the DIY concept, and not landscape companies. Cora Romania (part of Delhaize Group), a hypermarket mainly addressing the middle class population, is also importing directly. According to Mrs. Andreea Mihalache, imports are exclusively from the Netherlands, and they also consider direct import is more efficient (both cost and logistics), than working with a local importer. As of 1 January 2007, import formalities are simplified, and it is now even easier to import directly. As in other countries, Cora ran trials on sales of ready-made flower bouquets, in the first outlet opened in Romania: sales revealed a very low interest from the consumer, which they evaluated as being motivated by traditional consumer behaviour (bouquets are purchased only for special occasions and not for home decoration). As a result, management decided to stop this activity in Romania, and there are no plans to restart in the near future. Cash & Carry hypermarkets as Metro and Selgros do not import their ornamentals directly. Indoor pot plants are permanently present within the assortment, while outdoor ornamentals are considered seasonal. General policy is for the supplier to take back all damaged product or the unsold products at the end of the season, and also to offer maintenance of plants while in the shop. Within this set of rules, there are not many importers able or willing to collaborate (basically, each use only one on a continuous basis). Mrs. Elena Wolff of the garden department in Selgros Brasov considers Romania a growing market for both indoor and outdoor ornamentals, but with big differences in development from region to region. Western Romania and the seaside area (Constanta) have a more accelerated growth rhythm, compared to Southern and Eastern Romania. Mrs. Wolff also considers that real estate development is a major factor of influence, along with the aesthetic education development of the population.

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Landscaping projects Petrom, the largest oil and gas company in Romania and member of OMV group initiated at the beginning of 2007, within their Corporate Social Responsibility policy, a project called “Parks of the future” (part of their larger program “Respect for the future”), aiming rehabilitation of existing parks (especially old or historical parks neglected for long period). Within the project, in 3 cities - Bucharest, Pitesti and Moinesti – 5 parks will be redesigned for the community and brought to European standards. On September 26, 2007 the project had the official kick-off in Moinesti, Bacau and will be implemented by the company Greenshop (Bucharest). As regards future plans to introduce flower bouquets for sales in petrol stations of the group, Ms. Raluca Zamfirescu, press officer at Petrom, declared that, for the moment, the company is focused on results of this project, but as the Romanian market is very dynamic they do not exclude this possibility as future development. Greenshop, the company that won the bid for project enforcement, and that is also an ornamentals importer with the experience of 3 flower shops in malls do not see petrol stations as possible future outlets. Mr. Petrache considers, based on his experience with the flower shops in malls that consumers are not used to paying for flowers in locations other than flower shops, the market, etc. He also feels that flowers need to be stored at a certain temperature, meaning that a petrol station could only sustain flower trade as a seasonal activity.

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D. FLOWERS AND ORNAMENTAL PLANTS SECTOR IN BULGARIA

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1. BULGARIA COUNTRY BRIEF Bulgaria lies in the heart of the Balkan Peninsula and spreads over a territory of 111,001.9 square kilometres. Bulgaria’s population stands at about 7,7milion with a population density of 69.3/sqm. Main minority groups are Turk 8.5% Gypsy 2.6% Macedonian 2.5% Armenian 0.3% Russian 0.2% The population of Bulgaria is predominant Christian Orthodox (85%), also Muslims have an important presence (8.5%) followed by smaller numbers of Rromas, Macedonians, Armenians and Russians. The country borders on Romania to the North across Danube river, Greece, Turkey, the Republic of Serbia & Montenegro, The Republic of Macedonia and Black sea to the East. The capital city Sofia (1,2milion people) is situated in the Western part of the country, at the foot of the Vitosha mountain, the plain is 550m above sea level. Other major centres are Plovdiv, Varna, Bourgas, Ruse, Stara Zagora and Pleven. The official language is Bulgarian and uses Cyrillic alphabet. Bulgaria has been a free, liberal democratic state since 1990, with a transition period of roughly 7 years marked by quick political turnover. Bulgaria’s parliamentary democracy is currently headed by a broad multiparty centrist-to-leftist coalition. The main parties in the Bulgarian parliament are the Bulgarian Socialist Party, the “Simeon the Second” National Movement, the National Rights and Freedoms Movement (the party representing largely the Muslim minority in Bulgaria), and the Union of Democratic Forces. Parliament, presidential and local government elections are due every 4 years. Bulgarian president (currently Georgi Parvanov) is elected by direct vote for a period of five years. Since January 1st 2007 Bulgaria is a member of EU. The confidence of the international community in the soundness of Bulgaria as a partner is also evident through its membership in supranational organizations: the WTO, the UN, and NATO, among others. Recent economic performance The Bulgarian economy has been growing in a steady manner, with an average gross domestic product (GDP) growth rate for the last five years standing at 5.7%. The GDP growth for the year 2006 was 6.1 %. The trend is to slow down a bit over the next 10 years eventually stabilizing at around 5% annually. The national currency – the Bulgarian lev (BGN) has been pegged to the EUR since 19992. The inflation is kept low: the average for 2006 being 6.5 %. Bulgaria is one of the few countries in the region running a budget surplus.

2

EUR 1 = BGN 1.95583 – official exchange rate of the Bulgarian National Bank 72

Table BG1: Macroeconomic indicators 2004 2005 Real GDP growth (%) 6.6 6.2 Inflation rate (%) 4 6.5 Budget surplus/GDP (%) 1.7 3.1 Base interest rate (%) 2.61 2.04 Labor productivity growth (%) 2.4 4.1 GED/GDP ratio (%) 64 69 Source: Bulgarian National Bank, Invest Bulgaria Agency, EIU

2006 6.1 6.5 3.6 2.69 2.0 78

Foreign Direct Investment has been growing on aggregate for the past 10 years. FDI inflow volume stood at USD 5.2 billion for 2006. For the period 1992 – 2006 Bulgaria has attracted a total of 19 billion USD. The biggest investments came from Austria (17%), The Netherlands (11%), Greece (10%), UK (8%) and Germany (7%). Bulgaria has attracted investor interest mainly due to its low operational costs, the existence of a currency board limiting exposure to exchange rate risks, the favourable business environment (10% corporate tax), the lack of restrictions on capital flows, the good supply of human capital, and its beneficial geographical position. Like other new EU-member states, Bulgaria runs a negative trade balance which for the first months of the year 2007 has reached 9.2 million EUR, with imports growing 4 times more than the exports. Nevertheless, for 2007, a sustainable real growth in Bulgaria’s exports is anticipated, accompanied by slowing imports growth. The continuing upward trends in output and exports of major Bulgarian industries and stable growth of domestic demand will be the main drivers of these developments. Bulgaria’s competitiveness on international markets will further improve due to favourable trends in industries unit labor costs. Bulgaria has a very competitive education system, with education levels of the population among the highest in Europe. Only 18.6% of the population has qualifications at lower secondary level or lower, with app. 26% holding a higher education diploma. English language skills are studied by around 70% of the students. Bulgaria is quite competitive compared to the countries in the region in terms of labor costs in general and salary levels. Although the social insurance contribution paid by the employer are slightly higher than the average level for the EU (33%), the salary levels are lower than that in Romania and are the lowest in the EU. More information about the average salaries by region can be found further in this guide. Future Economic Trends Relevant For Floriculture Sector Expectations for accelerated rates of general economic growth throughout 2007 are based on the good results of the first quarter of the year. This becomes also evident from the conjuncture indicators showing retention of the record high levels of the general business climate indicator in the economy.

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GDP Growth in Bulgaria, 2004 – 2007

Bg to EU 25 GDP growth comparison 7

EU25

Bulgaria

6 5 4 `

3 2 1 0

Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007

Figure 5 Source: National Statistic Institute, Eurostat In June 2007 the general business climate indicator in the economy3 still was about 30 percentage points above its long-term value and almost 20 percentage points higher than in June 2006. These record levels of business climate are being maintained, and in the largest sectors (industry and services) an increase is even observed. In 2006, employment increases at a twice higher pace against the previous year. Over one year (from the third quarter of 2005 till the third quarter of 2006) the labour force in the Bulgarian economy increased by 100,000 people. This means that the economy has managed to generate jobs for people who for some time have been off the labour market. Consumer confidence is significantly improved compared to weaker changes in previous observations (for April 2007 this indicator is by almost 8 points above the last January value). Expectations of urban households prevail however rural households also have positive opinions. These positive economic indicators imply that the Bulgarian population has more disposable income to be spent in “luxury” and decorative sectors such as floriculture.

3

Source: Economic Situation, NSI Business Surveys, June 2007 74

Construction and Real Estate The major construction boom that Bulgaria has witnessed over the past five years has largely contributed to the growth of the floricultural market, especially indoor and outdoor ornamental plants used to landscape new residential and commercial properties. In the beginning of 2007 construction recovered its accelerated rate of growth. The real growth of value added in the construction sector in the first quarter was 15.5 per cent, again much higher than the economy as a whole. A high level of investment is observable again in the construction sector in 2007. Fixed assets acquisitions costs in the first quarter of 2007 are almost double the ones for the same period of 2006. Construction still attracts an increasing share of foreign direct investments to Bulgaria. In the first nine months of 2006 investments in construction and real estate stood at over EUR 1.2 b. Industrial production of building materials enjoys stronger foreign investors’ interest dictated by the high demand in the construction industry. Thus, the construction sector continues to be one of the main drivers of total economic growth. Tourism The growth of Bulgaria’s tourism industry, especially along the Black Sea coast and in mountain resorts, has also contributed to the growing demand for floricultural products. Many key industry players pointed to hotels and resorts complexes as being among their largest and most important clients. In 2006, tourism development continued at a good pace, but with more moderate dynamics compared to previous years. In the period January – October 2006, revenues from international tourism were up 4.2 per cent against the same period of the previous year, to 1.8 b. It has to be noted, however, that in the first ten months of 2005 revenues were up 9% for the same period of 2004, which confirms a slow-down of growth in tourism.

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2. SECTOR DESCRIPTION 2.1 Market Assessment Investigation conducted by the research team on same grounds as for Romania revealed that public organizations such as the Chamber of Commerce and Industry, Ministry of Agriculture and Food Supply and National Statistics Institute possess essentially no relevant information regarding the size of the floricultural and ornamental plants market in Bulgaria. Market Size Basic statistical information was provided by the Bulgarian Customs Agency concerning import and export volumes and values in 2005, 2006 and January-March 2007. Similarly with Romania, in the absence of relevant information on production capacities and structure from the Ministry of Agriculture or any other local business association, statistical information was further correlated with information obtained from direct interviews conducted based on same questionnaire. According with above mentioned sources Bulgarian market is covered as follows: Table BG2: Bulgarian market coverage Category

Import

Local production

%out of total Planting material

90

10

Cut flowers

90

10

Indoor & outdoor Ornamentals

75

25

Bulgarian market for planting material is significantly dominated by imports – over 90% according to estimates based on increased demand for higher quality inputs to safeguard the quality of the end product. A major difference on Bulgarian market is given by rose roots produced locally and exported to Germany, Greece, Spain, and Russia. According to key players’ rose roots are the only planting materials that Bulgaria exports, estimations being that about 85% of the total production of rose roots are exported and balance being used by the local market.

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Table BG3: Bulgarian Market for Planting Material 2005 PLANTING MATERIAL Import Domestic Production (excl. roses roots) Domestic production of rose roots -out of which exported Total Market Size

Volume

2006 Volume

tones 425.4

Value thousand EUR 620.4

tones 533.3

Value thousand EUR 900.4

21.2

31

28

45

77.7

222

233

495.4

67.5

193

198

430.8

456.8

680.4

596.3

1010

By compiling the available data the market size for planting material estimated to almost 700 thousand EUR in 2005 increased spectacularly to over 1 million EUR in 2006. Interviewed parties evaluated the trend will be kept at similar levels in the following years when also the somewhat limited offer currently available on the market is expected to diversify. According to interviews with key players, the most commonly sold planting materials on the Bulgarian market include the following: Seeds: Aster, Chrysanthemum, Dianthus, Ipomoea, Marigold, Petunia, Poppy, Sunflower, Sunplant, and Viola. Spring bulbs such as: Allium, Amaryllis, Anemone, Begonia, Gypsophila, Calla, Canna, Dahlia, Gladiolus, Gloxinia, Lilium, Paeony, Freesia, and Hemerocallis. Autumn bulbs: Crocus, Hyacinths, Tulip, and Narcissus. Saplings: Acer, Albicia, Buxus, Cedrus, Chamaecyparis, Evonimus, Juca, Juniperus, Ligustrum, Magnolia and Thuja. The market for cut flowers in Bulgaria is also strongly dominated by imports – approximately 90% according to key players’ estimates. Demand has been experiencing steady growth, having more to do with increasing customer purchasing power, and less with changes in consumer behaviour (cut flowers are still purchased mainly as gifts for holidays and celebrations). Based on customs information and conducted interviews, the value of the cut flowers market in Bulgaria for 2007 can be expected to reach approximately 4 million EUR, an increase from the estimated 2.4 million EUR in 2005 and 3.6 million EUR in 2006.

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All interviewed players stated in Bulgaria there is also a high level unregistered imports as well as sales but unlike in Romania could not provide a clear estimation. Consequently stated levels should be treated within this limitation including the impossibility to evaluate an accurate per capita consumption. Table BG4: Bulgarian Market of Cut Flowers 2005 Volume Value CUT FLOWERS

tones

Import

2006 Volume tones

Value

1371

thousands EUR 2171

1647

thousands EUR 3324

Domestic production

137

217

165

332

Total Market Size

1485

2370

1798

3628

Data on number of pieces of cut flowers sold per year is not collected by any Bulgarian institution. However by compiling customs statistics on imports and estimations provided by interviewed parties regarding main sources that cover demand, cut flowers market can be approximated at about 1500 tones in 2005 growing to almost 1800 tonnes in 2006. The stable growth throughout the last 10 years is expected this trend to continue, with an average 7% yearly growth in the coming 5 years. Popular cut flower varieties present on Bulgarian market include: Rose, Tulip, Lilia, Orchids, Chrysanthemum, Anthurium, Daffodils, Freesia, Gerber, Gladioli and Strelicia. As regards the foliage local production is not fully accounted therefore market size estimation is not possible. Customs statistics reveal increasing levels for both imports and exports including According to customs statistics and industry experts, Bulgarian market for ornamental plants has been expanding rapidly over the past few years, following the boom in construction and tourism sectors that fostered an increased demand for outdoor landscaping as well as interior decoration. Based on interviews conducted situation on the market is somewhat different than in Romania. Major difference is presence of local production which is accounting for 75% of the market while the balance is covered by imports of lower quality merchandise.

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Table BG5: Bulgarian Market for indoor and Outdoor Ornamentals 2005 2006 Indoor and Volume Value Volume Outdoor tonnes thousand tonnes Ornamentals EUR Total Import 3611 10095 5283 0602 Relevant for 2889 3028 4227 indoor and outdoor ornamentals Local 8666 9085 12680 Production (75% of the market) Total Market Size 11554 12114 16906

Value thousand EUR 14694 4408

13225

17633

The market for outdoor ornamental plants has shown significant development through the last few years. Domestic production holds a significant share of the market; according to key players’ estimates, domestic production accounts for approximately 80% of the whole market. The estimated market growth for 2007 is 15%. There are many garden centres that are situated throughout the country. The major players are concentrated around the big towns areas. Companies in that sector that can be pointed out are Introdukcia, Home Garden, Bulland, Burgascviat Baev, Bourgascvet Tanev. For now the products available completely satisfy the market needs. A major threat that was pointed out during interviews is the lack of qualified working force and expertise in the sector. Players prefer to import roots materials and grow the plants in Bulgaria. Thus the plants get used to the local geographic conditions making them less vulnerable to diseases and thus more sustainable. Outdoor ornamental plants tend to be sold at nurseries directly to landscaping and construction companies, as well as at large home improvement chain stores, individuals. Popular outdoor ornamental varieties in Bulgaria include: Acer, Berberis, Buxus, Cyparis, Deutzia, Erica, Forsythia, Euonymus, Hybiscus, Jasminum, Laurocerassus, Ligustrum, Lonicera, Picea, Potentilla, Prunus, Spiraea, Tilia, Thuja, Viburnum, Viburnum, Yucca, and Weigela The Bulgarian market for indoor ornamental plants is small, but showing relatively stable growth, the large expansion in this market between 2005 and 2006 in large part can be attributed to the opening of the Flora Garden Centre, Bulgaria's first modern garden centre, which rapidly has become one of Bulgaria's major importers and distributors of indoor ornamental plants. Indoor plants tend to be sold at garden centres and small flower shops. Other companies operating in the sector that could be pointed out are Royal Flora, L-2, Plantava, Tilia, Mimoza, Bourgascvet Tanev, Bourgacvet Baev.

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Popular indoor ornamental varieties are: Agerathum, Anthurium, Anthyrinium, Begonia, Coleus, Dracaena, Ficus Benjamin, Impatiens, Lobelia, Gazania, Petunia, and Verbena. The table bellow is reviewing market size evolution in 2005 and 2005 in Bulgaria for all analysed categories Table BG6: Market Size Bulgaria Market Size 2005 Tonnes

Market Size 2005 Thousand EUR

Market Size 2006 Tonnes

Market Size 2006 Thousand EUR

Yearly Growth % Tonnes

Yearly Growth % Thousand EUR

Planting Material

457

680

596

1010

25%

45%

Cut flowers

1485

2370

1799

3628

21%

53%

Indoor and Outdoor ornamentals

11554

12114

16906

17633

46%

45%

2.2 Factors Determining Market Size Factors determining market size for the floricultural sector are closely tied to Bulgaria’s general economic indicators. While the economic crisis of the 1990s dealt a severe blow to the floricultural sector (since flowers and decorative plants were considered a “luxury”), in recent years the growing economic stability, improving living standards, and the construction and tourism boom have created a growing demand for floricultural products. Industry insiders repeatedly confirmed that market demand for floricultural products (especially ornamental plants) was heavily driven by expansion in the construction and tourism sectors. Traditions Same as in Romania, cut flowers sales in Bulgaria are mostly influenced by social events (back-to-school on September 15, school-end on June 15, etc.), Christian traditions (baptism, wedding, funeral, name-day , etc), international days (Valentine’s day or Women’s Day on March 8) and national traditions (such as Spring arrival day “Baba Marta” on March 1, The Cyrillic Alphabet Day on May 24, etc).

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Regional component Sales have also somewhat of a regional component in Bulgaria. Urban areas, especially Sofia and larger cities such as Varna, Burgas and Plovdiv, have larger sales of cut flowers due to higher level of average income per capita, most active economic life and higher level of education. While every big city in Bulgaria has a wholesale flower exchange market where often illegally produced, low-quality goods are sold, retail flower stores nevertheless are able to compete with illegal street sellers by offering more aesthetically pleasing and varied products. Outdoor ornamental plants are regionally the most in demand where the housing and construction boom has taken place, i.e. in Sofia, as well as in tourist resorts along the Black Sea coast and Mountain ski resorts. The market for indoor ornamental plants has only recently begun to develop, given that previously most indoor plants were home-grown from cuttings.

2.3 Market Supply 2.3.1 Local Production Although Bulgaria historically has a strong tradition in agriculture and especially in floriculture in certain regions of the country, local production in the floricultural sector is currently rather low. During the communist era (which ended in 1989), a fair number of government-run nurseries and greenhouses existed; however, the transitional period to a free-market economy and the accompanying economic crises of the 1990s were disastrous for the sector and by 1993 very few Bulgarian producers remained, and those that did had very outdated equipment, making them highly uncompetitive. This is resulted in a great loss of expertise and know-how in the domestic sector. While the sector has grown some over the past five years, the lack of governmental interests and strategies, the lack of financing opportunities, the lack of up-to-date knowledge and the relatively small size of the market have inhibited the domestic production. Nearly all key industry players interviewed stated that given the lack of modern production technology here in Bulgaria, it is almost always cheaper to import than to produce floricultural products. Another problem facing domestic producers is the rising cost of land in Bulgaria combined with their inexperience in securing financing. Most nurseries in Bulgaria are quite small by international standards; for example, a 5 km2 nursery is considered large by Bulgarian standards. However, existing producers often find it difficult to expand their production, in part due to their lack of familiarity with how to access financing. It should also be noted that most local producers are also importers and distributors of foreign products as well.

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Main Market Players Most industry insiders agreed that the main market players in the floricultural sector in Bulgaria are stable group of established companies that have all been active on the market for a fair number of years. There are no well-defined leaders or monopolies within the sector; however, two recently established DutchBulgarian joint ventures, Bulland and Flora Garden Centre, have quickly become important new players normally in production, but also in import and trade. Planting Materials There are few Bulgarian producers of planting materials; however, they combine their production activities with importing and distribution. The primary company active in producing planting materials is Bulrose Trade in Pavlikeni and Ivesto Company and Odexim in Pazardzhik Cut Flowers The supply of cut flowers in Bulgaria is dominated by imports; local producers make up at best 10% of the market share. Main Bulgarian producers of cut flowers that can be pointed out are Bulrose Trade and Iris Day. Ornamental Plants Local producers are more competitive in the sector of ornamental plants, accounting for approximately 50% of the market share for indoor ornamental plants and 80% of the market share of outdoor ornamental plants according to industry insiders. Such producers typically purchase seeds, bulbs and seedlings from foreign suppliers of planting materials and then grow the plants locally so that they can adapt to Bulgarian conditions. Leading producers are: For indoor plants o Flora Garden, Girex-Petrova & Co, L2 and Plantava Ltd in Sofia o Garden Centre Mimoza and ALD Parkove I Gradini in Varna o Burgastsvet_90-Tanev EOOD, Burgastsvet-Baev Ltd in Burgas

For outdoor plants o Bojilovy, Florex Ltd., Home Garden TT Ltd., L2 in Sofia o Bulland Trade in Bratanica, Pazardzhik o Burgastsvet_90-Tanev EOOD, Burgastsvet-Baev Ltd in Burgas o Ekzotika Ltd -in Byala Cherkva, Veliko Turnovo o Introdukcia SD in Stara Zagora o Fidus in Pavlikeni Market Characteristics Given the relatively small size of the Bulgarian market for floricultural products and ornamental plants, as well as the small size of the country, there are no significant regional variations in terms of how the market is supplied. Of course, demand for such products is larger in urban areas, as well as the areas of the country with more tourism development (i.e. the Black Sea and the mountain resorts).

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Current Geographical Concentration The production of floricultural products in Bulgaria is concentrated in a number of areas: 1) North Central Bulgaria, around the town of Pavlikeni, which has a historical tradition of floriculture, as well as around Veliko Turnovo 2) Around the capital city of Sofia, supplying the major markets there (hotels, restaurants, resorts, residential and commercial complexes, government institutions, etc) 3) The South Central region of the country near the cities of Plovdiv, Pazardzhik, and Stara Zagora, which is region with a strong agricultural tradition and good climates; 4) The Black Sea region, especially around the cities of Varna and Burgas, in order to supply major tourism and urban markets in the region.

Figure 6

2.3.2 Imports Planting Material The Netherlands held a significant share in the import market for planting material in 2005 and 2006 in terms of value and volume. In terms of volume, the import share varies from 42% (178 tones) in 2005 to 40% (213 tones) in 2006. In terms of value, the import share of the Dutch import varies from 73% to 69% reaching 455 thousand EUR in 2005 respectively 605 thousand EUR in 2006. The total import volume growth in 2006 is almost 30% compared with 2005.

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Other import countries for planting material include Israel, Italy, Turkey, Greece, and Poland, representing approximately 54% for 2005 and 2006. Table BG7: Geographical orientation of Planting Material Imports 2005 2006 Value Volume Volume thousand tones tones EUR Total 425.4 620.4 533.3 Netherlands Great Britain, Greece, Israel, Italy, Poland, Turkey, France Belgium, Spain, Italy, Poland, Romania, USA, Turkey, France, Israel

178.1

455

247.3

165

Value thousand EUR 900.4

213

619

319

281.4

The preferred imported planting varieties according to interviewed companies and information provided by the Bulgarian Customs Agencies are tulips, hyacinths, orchids and gladiolus. In 2006 The Netherlands still keeps a dominant role although there is a slight decrease in the import of tulips (reaching 90% of the market share), and narcissi (reaching 87% of the market share). Cut Flowers Table BG8: Imports of Cut Flowers Volume tones 2005 2006

1371 1647

Value thousands EUR 2171 3324

The import of cut flowers in Bulgaria reached 1315 tones and 2million EUR in 2005. More than half of the import volume is from The Netherlands (54%) with Turkey (30%) following in the hierarchy. In terms of value, these two countries hold the leading positions as well, with 56% and 21% shares of import value, respectively. An increase in the import of cut flowers can be noted in 2006, when the total volume reached 1647 tones and over 3.3 million EUR. The leading countries in terms of import volume are The Netherlands (47%), Turkey (36%) and Ecuador (10%). In terms of value, the leading countries are the same holding value share of The Netherlands (62%), Turkey (17%), and Ecuador (10%).

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The preferred imported cut flower varieties are according to interviewed companies and information provided by the Bulgarian Customs Agencies: roses, carnations and chrysanthemums followed by orchids and gladiolus. For more info regarding the preferred cut flowers on the market, please see part Market Size, Cut Flowers. Roses Major countries exporting roses to Bulgaria are: The Netherlands, Ecuador, and South Africa. The import volumes per country were The Netherlands (58%), Ecuador (18%) and South Africa (8%) in 2005. The volume of import in 2006 per country is characterized by an increase in import from Ecuador, which reached 33%. The import volume from The Netherlands is still dominant, with approximately 55% import volume share. Other countries of import that should be mentioned are Columbia, Greece, Turkey and Israel. Carnations The import of carnations is strongly dominated by Turkey, which accounts for approximately 92% out of the total volume in 2005 and 94% in 2006. According to key players, this production is of second-class quality. Other countries of import that should be pointed out are The Netherlands, Greece and Israel. Chrysanthemums Chrysanthemums, the third most preferred import variety, come mainly from The Netherlands, which accounted for approximately 95% of the imported volume in 2005 and 2006. Other countries that could be pointed out are Greece and Turkey, with each country holding between 1 – 3 % of the imported volume in 2005 and 2006. Orchids The import of orchids from The Netherlands was 51% and 54% in 2005 and 2006 respectively, followed by Thailand with approximately 49% import share in 2005 and 45% in 2006. Gladiolus The key feature of gladiolus import is that it is entirely dominated by two countries that hold approximately 100% of the imported volume in 2005 and 2006: Turkey and The Netherlands. Table BG9: Cut Flower Imports from The Netherlands 2005 Value Volume thousand tones EUR Total 741.0 1224.0 Roses 243.4 432.0

2006

786.0 255.4

Value thousand EUR 2080.0 852.0

Volume tones

Carnations

1.8

3.0

14.5

8.0

Orchids

8.4

52.0

9.4

109.0

Chrysanthemum

206.4

254.0

286.4

554.0

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According to interviewed companies and information provided by the Bulgarian Customs Agencies, the preferred imported cut flower varieties are roses, carnations and chrysanthemums, followed by orchids and gladiolus. The main roses exporters to Bulgaria are: The Netherlands, Ecuador, and South Africa. The import volumes per country were The Netherlands (58%), Ecuador (18%) and South Africa (8%) in 2005. The volume of import in 2006 per country is characterized by an increase in import from Ecuador, which reached 33%. The import volume from Holland is still dominant, with approximately 55% import volume share. Other countries of import are Columbia, Greece, Turkey and Israel. The import of carnations is strongly dominated by Turkey, which accounted for approximately 92% of the total volume in 2005 and 94% in 2006. According to key players, this production is of second-class quality. Other countries of import are The Netherelands, Greece and Israel. Chrysanthemums, the third most preferred import variety, come mainly from The Netherlands, which accounted for approximately 95% of the imported volume in 2005 and 2006. Other countries of import are Greece and Turkey, with each country accounting for 1 – 3 % of the imported volume in 2005 and 2006. The import of orchids from The Netherlands was 51% and 54% in 2005 and 2006 respectively, followed by Thailand with approximately 49% import share in 2005 and 45% in 2006. The key feature of gladiolus import is that it is entirely dominated by two countries that hold approximately 100% of the imported volume in 2005 and 2006: Turkey and The Ntehrelands. Imports of Cut Flowers from The Netherlands (volume - tonnes; value - EUR thousands) 900 800 700 600

Roses

500

Carnations

400

Orchids

300

Chrysanthemums

200 100 0

Volume 2005

Value 2005

Volume 2006

Value 2006

Figure 7

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Ornamental Plants For Bulgaria imports under customs category 0602 as generally considered for this report are not entirely relevant as almost 70% of import values are in fact of “Trees, shrubs & bushes, grafted/not, of kinds which bear edible fruit/nuts” (060220) and Un-rooted cuttings & slips (060210) and only 30% are accounted under subcategories relevant for ornamentals market. The Bulgarian market is characterised by a high demand for low added value products based on limited purchase power and lack of knowledge. Quantitatively, ornamentals represent 79% of live plants imports, but it terms of value they only account for 30%. The limited size of the market does not encourage investments in high-quality products. Import of Indoor and Outdoor Ornamentals in Bulgaria (volume - tonnes; value - EUR) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

Quantity 2005

Value 2005

Quantity 2006

Value 2006

Figure 8 Imports of ornamental plants can be evaluated at almost 3000 tones and 3 million EUR in 2005 with market shared between Hungary, Poland, The Netherlands, Serbia and Germany. The growth of imports in 2006 is significant, especially in terms of value, reaching 4.4 million EUR. Hungary continues to play a dominant role in terms of value. The Netherlands accounts for over 50% of the volume imported but only 39% of the value reflecting similar phenomenon as in Romania: the domination of low price-lower quality merchandise. In Bulgaria Hungary and The Netherlands are the main countries of origin for imported outdoor ornamentals while Italy is the main country of origin for indoor ornamental plants. The Netherlands’ market position is very strong in the sub-sectors of planting materials and cut flowers. The Dutch market share of outdoor ornamental plants has increased both in terms of volume and value, but no single importing country has been able to corner a dominant share in this sub-sector in Bulgaria. In the subsector indoor ornamental plants, Dutch imports have not been able to challenge Italy’s overwhelmingly dominant position in this subsector. The same situation is observed regarding the outdoor ornamental plants production where the local production takes the leading part as well as the import from Hungary. Even not at their highest quality level Dutch floricultural and ornamental plant products of all kinds generally enjoy a reputation of good quality in Bulgaria. The positive trend present in all categories of floricultural sector it is expected by major players to continue in the next 2 years with estimated 10% yearly growth for cut flowers and planting material and 20% for indoor and outdoor ornamentals.

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2.4 Market Access Import Regulations The import regulations for ornamentals from the EU are liberal. Imported floricultural and ornamental plant products from non-EU countries are subject to customs duties that are in accordance with EU standards. In terms of inspections, since Bulgaria’s accession to the EU, import regulations on plant products have become more strictly enforced; however, industry insiders noted that in practice there is still room for improved regulation. Plant passports are required for products originating in EU countries, while plant passports and certificates from the country of origin are required for imports from non-EU countries. According to Ordinance 1 on Phytosanitary Control, certain types of plant products must be inspected immediately upon their arrival in Bulgaria, more information on procedures and law applicability can be found on National Service for Plant Protection website: www.nsrz.government.bg Product Requirements There are no specific product requirements related to the sector. While Bulgarian product standards have in theory than harmonized with the EU product standards, this system has very little impact on the Bulgarian market since there is no clear mechanism for enforcement. Market channels specifics, logistics & distribution The supply-chain process and distribution channels within the floricultural and ornamental plants sector in Bulgaria is extremely complex and disorganized. There is no clear division of roles within the supply chain; for example, a local producer usually also imports and is also responsible for the distribution of his stock to a wide variety of customers, including small retail stores, landscapers, hotels, etc. As the Chart in Appendix I shows, while three general levels in the supply chain can be differentiated (producers/importers; middlemen (wholesalers, hypermarkets, traders, etc; and end consumers), the relationships between them are very complex, and there are not clearly dominant or obvious trade channels for reaching end consumers. Instead, the logistics are distributed between a wide variety of smaller and not well coordinated channels. Importing Importers primarily import cut flowers and planting material, as well as ornamental indoor and outdoor plants. Typically, major Bulgarian importers work with foreign wholesalers/exporters (for example in Holland) who have databases of currently available stock and prices; the local Bulgarian companies collect orders, which are then sent to their partners abroad, who offer a price for the requested goods. Once the price is confirmed, the products are then transported by refrigerated trucks or by airplane (in the case of Ecuador). From Holland, the products travel about 48 hours by truck; transport of a single truckload costs about 4 000 EUR from Holland to Bulgaria. There are Bulgarian logistical companies that offer such transport services; however, Bulgarian importers who rely on quality products prefer foreign logistical companies.

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Importers are located mostly in the big cities and most of them use conditioned warehouses located around the country in which they store imported products (primarily cut flowers). There are also smaller companies that import to supply specific customers’ needs.

Domestic Production The producers in Bulgaria are mostly of outdoor and indoor ornamental plants. There are some producers of cut flowers – roses in the Pavlikeni region. Many of the major producers in Bulgaria also deal with import and trade. The bigger producers have the capacity to deliver the products directly to their customers; they are contracted primarily by landscaping companies that represent hotels, business parks and residential complexes, as well as directly by representatives of hotels, restaurants, individuals. Internal Distribution Most of the largest importers and traders have their own stores in Bulgaria, where they resell the imported products. The largest producers/importers supply the largest clients, including hotels, restaurants, embassies, businesses, garden centres, landscape companies and large hypermarket chain stores, as well as professional landscaping firms. These large producers/importers usually sell a wide variety of products, including cut flowers, ornamental indoor and outdoor plants, and planting materials. They also distribute to retail shops using their own distribution systems. Landscapers typically buy directly from producers/importers/ traders. Most of the big importers own their own fleet of trucks and deliver directly to their customers around the country. For example TILIA, ROYAL FLORA, PLANTAVA, FLORA GARDEN CENTER, IVESTO, BOURGAS CVET TANEV, RAZCWET and BOURGASCVET BAEV and the other big importers each have an organized distribution network of small trucks that covers most of Bulgaria. The big importers supply the large hypermarket chains such as METRO, Mr. Bricolage and Praktiker. According to interview information, these hypermarket chains do not have an exclusive contract with just one delivery company, but instead deal with different companies to purchase different plants types and species. Insider information indicates that Flora Garden Centre supplies METRO and Mr. Bricolage. Plantava, Razcvet, Ivesto supply Mr. Bricolage as well. There are also non-importing distribution companies and small shop representatives that buy directly from the importers. These distributors and small shop representatives supply flower shops that are outside the bigger towns. Most boutique shops are supplied directly by the big importers. However, a small number of boutique shops arrange their import by themselves, for example “Buket” in Sofia. Nearly every large city in Bulgaria has a peasant market where wholesalers for cut flowers, indoor plants and seeds are present among the ones selling vegetables. The “Dimitar Petkov” market in Sofia is the largest in the country being renowned for gathering a wide number of local producers and importers.

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According to local producers, these markets are very representative for the general situation of the Bulgarian sector: completely chaotic and unregulated, resembling an Oriental bazaar, at these markets swarms of importers, traders and local producers (many of whom are not legally registered) sell predominantly low-quality products straight out of their trucks or at makeshift stands to clients, who are primarily small retail shops. Small shops within the big and small towns often buy from local producers (including individual producers) at such markets. Many representatives on those wholesale markets do not work with invoices and the value and volume of their sales and production are impossible to follow. Smaller trade fairs also provide nurseries with the opportunity to sell off back stock of indoor plants. Retail The retail sector for cut flowers and indoor ornamental plants is made up of a large number of small companies. Individual consumers primarily buy from these small retail stores. There are a number of wellknown local chains, including Feite, Bouquet, and Tzvetna Magia. However, representatives from the sector say that it is extremely hard to create a big floral retail chain with shops covering the whole country, because it is extremely difficult to track and estimate the quantities sold. Sales of outdoor ornamental plants to individual consumers are less frequent; typically customers are landscaping and construction companies. Retail of outdoor ornamental plants to individual end-users typically takes place the garden centres and at large hypermarket chains. Quality and price considerations Same as in Romania market is dominated by average to low qualities based on a demand strongly influenced by price. Cut flowers According to industry experts, the flowers on the Bulgarian market tend to be of lower quality in comparison to Dutch standards. Domestically produced flowers especially cannot compete with imported products in terms a quality. The well-established local companies try to maintain a good level of quality, but unfortunately they do not have the technology to compete with foreign importers. The Dutch-Bulgarian partnerships produce the highest quality local products on the market. The pricing of cut flowers tend to be high given that most flowers are imported. Also, the exceptional amount of waste drives up the pricing; for example, if the typical margin of waste is 30% for cut flowers, in Bulgaria this margin can reach nearly 80% due to poor planning, poor distribution and transportation problems.

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According to local wholesalers and retailers, wholesalers typically mark up imported flowers 25-50%, while end-sellers add an almost 100% mark-up to cover costs of waste. Few indication of retail price levels in the table bellow: Category/ Product

Tulip Freesia Gladiolus Gerber Rose Orchids Anthurium

Average price per piece (EUR) 0.60 0.80 0.80 1.20 1.50 2.00 3.50

Also, the seasonality of domestic production affects pricing and quality. Local Bulgarian products mainly enter the market in spring and summer and are cheaper than imported goods of lower quality. During the autumn and winter, imported flowers dominate the market, which are more expensive but tend to be of a higher quality; 70% of total imports for the year occur between November 1 and March 31. Certain cut-flower retailers, especially those in major urban areas, also complained that the “grey economy” of cut flowers, i.e. bouquets of home-grown and wildflowers sold on street corners by unregistered sellers, have taken much of their business by offering very low-quality and very low price flowers. Also many of the many unregistered sellers present in the peasant offer extremely low-quality products. While the main participants in such markets often tend to be Romani, they do not appear to be organized to any significant extent, but instead are typically small, local producers who directly sell their own products on local wholesale exchanges. Ornamental Plants Since the Bulgarian climate is very conducive for growing outdoor plants, they tend to be of good quality and can compete with imports in terms of quality, while offering cheaper prices. Another specific characteristic of Bulgarian market is the high level of exports of under customs category 0602 (almost 3 times higher than Romania) out of which 92% relevant for ornamental market (out of which almost 50% is of roses). The situation in terms of pricing and quality of indoor ornamental plants is similar to that of cut flowers; local production tends to be cheaper but of a lower quality than imports. Retailers also complained that there was not a large market for such plants among private consumers, who generally tend to prefer grow their own indoor plants at home, rather than purchasing them.

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Following table is giving an indication of retail prices currently available on the Bulgarian market for some of the most common ornamental plants: Category/ Product Thuja

Size/Quantity 20 cm 40 cm 100/125 cm 125/150 cm

Rose Buxus Yucca Juniperus Prunus laurocerasus Cupressus Acer negundo Ligustrum (roots) Cedrus atlantica Cedrus deodara Cedrus atlantica Euonymus

4 l pot 6 l pot 12 l pot 8 l pot 30/40 cm 100/125 cm 175/200 cm 120-150 cm 40/60 cm 60 cm 100/150 cm 150/200 cm 200/250 cm 60-80 cm 80-100 cm 100-120 cm 1.5 co 3 l pot 100/ 180 cm 3 l co 10 l pot

Begonia Antirinum Petunia Begonia Benjamin Verbena Gazania Impatience

40 cm 40 cm

Price range (Euro) 1.00 2.00 1.20 3.25 8.00 12.50 13.00 18.00 1.10 1.50 1.80 3.00 4.00 11.00 2.00 2.40 4.00 4.50 6.00 9.00 12.50 22.50 25.00 6.50 1.50 2.50 5.00 3.50 5.00 0.40 0.50 0.60 1.50 2.00 9.00 1.75 6.00 0.18 0.21 0.18 0.13 0.18 0.9 0.6 0.48 0.25

2.00 7.50 6.00 13.00 1.00 1.75 1.75

2.00

0.30 0.30 0.6 2.25 1 0.8 0.5

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Payment Methods Most Bulgarian importers reported that foreign suppliers normally demand 100% payment in advance; less frequently, foreign suppliers offer payment conditions of 50% in advance and 50% final payment after the production is received. When distributing to wholesalers and large hypermarket chains within Bulgaria, most importers reported that these purchasers pay in instalments over several months. Assessment of local market barriers Industry experts noted that the lack of generally accepted product standards sometimes results in low quality products being priced and marketed as if they were of higher quality. The lack of regulation of the illegal domestic production has a tendency to drive down prices. The fragmentation of the wholesaling and distribution channels among many small players may make it difficult for foreign importers to find appropriate distribution channels. The general lack of knowledge and information about the sector on the part of the Ministry of Agriculture, including its Phytosanitary inspection unit, could make market access difficult for new foreign players used to more well regulated and organized markets. High land prices often make it difficult for local players to expand their production capacity; however, joint ventures with foreign firms (especially Dutch companies) are one way for Bulgarian producers to expand their production. Please check for more details on land purchase under “Practical guide to market entry” chapter.

2.5 Technical Aspects of the Market Current Technology Technology used for floriculture in Bulgaria is on a very low level in most cases. Since this sector has only really been developing in Bulgaria since 2002, most production is hand labour – there is very little automation. Also, Bulgarian producers tend to focus on outdoor plants, which do not require much equipment. While local producers recognize the need for quality equipment, many lack the funding to acquire new equipment to replace outdated machinery. Older equipment is often of Russian origin, while newer equipment is imported from Western European countries such as Holland, Italy, Germany, etc. The German company Gardena that produces equipment and tools has an official distributor in Bulgaria, Denex. All equipment and parts are imported, but there are a number of Bulgarian firms (such as Visser Opora) that assemble greenhouse and nursery equipment.

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There are very few modern equipped floricultural greenhouses in Bulgaria; those that do exist have been created recently by foreign joint ventures (such as the Flora Garden Centre in Sofia and Bulland Trade in Pazardzhik). The Bulgarian firm Introduktsia also is equipped with a modern greenhouse. The price of a 10 hectare greenhouse is about 1 500 000 EUR according to one industry representative. Most of the greenhouses use water heating systems. The most commonly used fuel sources are solid fuels; only a few use electric power. Gas-heating is more infrequent. Potential Future Technological Developments Depending on the availability of financing, most producers expressed a desire to upgrade outdated technology with cutting-edge hydro-culture technology.

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3. LEGAL AND INSTITUTIONAL FRAMEWORK Interviews with governmental officials and key players in the sector indicate that the legal and institutional framework governing the floricultural sector and Bulgaria is not very well developed, while the enforcement of existing legislation tends to be rather uneven. Similarly, in Bulgaria governmental efforts and funding for the environment and public works tend to be focused on more urgent and fundamental problems (such as water treatment and pollution control) related to Bulgaria’s infrastructure, rather than on the greening and landscaping of public areas. The Bulgarian system has two categories of legal acts: “legal normative acts” and “sub-legal normative acts.” The former category includes the Constitution, legal codices and laws passed by Parliament, while the latter includes regulations, decrees, instructions and guidelines from the Cabinet of Ministers, a particular minister or other authorities with jurisdiction over specialized spheres. Current Legislation in force Current legislation governing the floricultural sector in Bulgaria is listed below. Most legislation concerns planting materials: •

The Law on Sowing and Planting Materials

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Plant Protection Act 1997

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Ordinance No.1 for Phytosanitary Control 27.05.1998, in force since 01.01.2007

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Ordinance No. 16 of 2004 for the Standards of Seeds and Planting Materials

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Ordinance No. 38 for the Fight Against Carnation Leaf-Rollers

• Ordinance No. 70 for the Implementation of Requirements for Labels Used by Producers of Planting Materials for Decorative Plants, in force since 01.01.2007 • Ordinance No. 75 for the Definition of Conditions and the List of Requirements for the Healthy State of Planting Materials for Decorative Plants 05.2006, in force since 13.03.2007 • Ordinance No. 80 for the Production and Trade of Planting Materials for Decorative Plants, Made between Member States of the EU 06.2006, in force since 13.02.2007 Standardization According to the Law on National Standardization from 2005, the Bulgarian Institute for Standardization is the executive standardization body in Bulgaria. It develops, accepts and distributes standards (including ISO, IEC, CEN, CENELEC, BDS), which have been harmonized with EU standards. Furthermore, the Institute maintains a database of standardization documents and provides training courses on standards. The Standardization Institute also maintains a rich and up-to-date database of standards on various sorts of plants, their derivatives and all associated products. Interested companies can browse through available standards at the Institute to select the relevant standard before purchasing them.

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The organization that grants certificates in the field of agricultural products and services is the Executive Agency for Certification and Testing. The Agency is independent in relation to manufacturers and customers and carries out its services independently or with the support of subcontractors. The procedure of certification involves five steps: application, planning, assessment of the application, report and eventually – inspection and maintaining of the certificate (if granted). While such a system of standards for floricultural products and ornamental plants exists in theory, in practice such standards have almost no real significance in the Bulgarian market, since most purchases tend to be driven by price rather than quality. Most producers are not acquainted with the standards and not interested in spending the time and money to become certified, since most domestic production is for domestic consumption and Bulgarian consumers tend to prefer lower-priced, lower-quality products. Similarly, the quality standard of imported products is of little importance to the Bulgarian consumer, thus importers pay more attention to price than to quality standards. However, this may change with the start of the EU-funded Development of the Rural Areas in 2008, which will offer subsidies for investments for compliance with EU standards. Future Legislation Our governmental and industry sources were not aware of any pending legislation that would affect the floricultural sector. Legislation Implementation EU-harmonized legislation affecting the floricultural sector in Bulgaria has been implemented; however, as in many other sectors, its practical acceptance and enforcement is somewhat irregular. Ordinance No. 1 for Phytosanitary Control has been harmonized with Directive 2029-EC, Directive 94/3/EO of 21.01.1994 and Directive 93/51/EEO of 24.VI.1993. While these changes have been implemented at the level of the legal codex, many of the key industry players from private companies when interviewed questioned the competence of the Phytosanitary Control’s inspections, noting that while the sector has been growing and many new types of plants have been recently introduced, many of the inspectors have not kept pace with market developments and instead rely on outdated, pre-EU knowledge and procedures. Legislation Enforcement Mechanisms Ordinance No. 1 for Phytosanitary Control gives inspectors the power to institute “phytosanitary measures,” including legal acts, recommendations or official procedures, aimed at preventing the introduction or the spread of harmful organisms, including the quarantine and if necessary destruction of infected plants and plant materials. Phytosanitary control can be regular or selective when there is data proving that the phytosanitary requirements are not observed.

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Current State As noted above, while new EU-harmonized legislation has been implemented, many industry insiders indicated that sufficient knowledge and experience of new requirements on the part of inspectors hindered the effective enforcements of these new laws. Challenges Despite the fact that the Bulgarian consumers’ purchasing power, while still low by European standards, has been increasing in recent years, purchase decisions are still primarily governed by price rather than quality, which leads to the penetration of low-quality merchandise on the market and the existence of a certain amount of illegal production (especially in the cut flowers sub-sector).

Availability of Levies, Fines, Subsidies for Enforcement Ordinance No. 1 for Phytosanitary Control, while not ruling out legal action, does not specify particular sanctions beside quarantine and destruction of infected goods. Interviews with industry insiders indicated that the implementation of sanctions above and beyond quarantine and destruction of materials is extremely rare. Institutions Responsible for Developing, Implementing, and Enforcing Legislation and Licensing National Governmental Bodies Ministry of Agriculture and Food Supply is the national institution technically responsible for the floricultural sector; however, in actuality the sector is not a priority for the Ministry, and thus they had very little information or knowledge about the current state of the sector, preferring to allocate their administrative and financial resources to more “basic” sectors such as grain production and animal husbandry. In a personal interview with a representative of the Plant Growing Sector in the Directorate of Agricultural Development in the Ministry of Agriculture, it was openly admitted that the Bulgarian Ministry of Agriculture does not consider this sector a priority at all and hence has essentially no current information on its size, production capacity or structure and has little motivation to develop funding or subsidy programs for what is seen as a “luxury” sector. The Ministry showed little interest in or knowledge about applicable standards within the sector and their enforcement. However, this may currently change, as the representative indicated that the Ministry is preparing to undertake research on the sector in late 2007. The State Fund for Agriculture is a governmental institution offering financial support for growers through subsidies and preferential credit lines. The main priorities of the policy of State Fund for Agriculture are financial support and encouragement of investment activity by growers through 8 investment programs. There are number of different types of financial subsidies for agricultural production: • Subsidies to fully or partially cover the interest on bank credits • The possibility for targeted credits • Export subsidies • Guarantees on loans from financial institutions

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The State Fund for Agriculture was the governmental institution that managed the process and activities for the SAPARD Programme. Now the Fund is responsible for the Development of Rural Areas 2007-2013 National Programme. The Paying Agency for Rural development Funds is the institution within the Ministry of Agriculture responsible for implementing the Common Agriculture Policy, as well as paying out funds allocated under the Rural Development Program and the Operative Fisheries and Aquaculture program. The Paying Agency is responsible for guaranteeing that the payments made from both funds are correctly implemented according to the rules of the European Union. The Paying Agency is also in charge of making direct payments to agricultural producers and payment of export subsidies. Preparations for the creation of the Bulgarian Payment Agency began in 2004 under the PHARE program under the auspices of the Dutch Paying Agency. National Service for Plant Protection (Phytosanitary Control Department) is one of the two governmental institutions that exercise direct control over the sector part of the Ministry of Agriculture and Food Supply. The department of Phytosanitary Control exercises control over the production, import and export of plants (including flowers and decorative plants) into and out of Bulgaria. Their main activities include conducting inspections of plant import and exports at Bulgaria's non-EU border checkpoints and conducting periodic inspections of producers and distributors within the country. Ordinance No. 1 for Phytosanitary Control gives inspectors the power to institute “phytosanitary measures,” including legal acts, recommendations or official procedures, aimed at preventing the introduction or the spread of harmful organisms, including the quarantine and if necessary destruction of infected plants and plant materials. Phytosanitary control can be regular or selective when there is data proving that the phytosanitary requirements are not observed. Agency for Variety Testing, Registration and Seed Inspection is responsible for the control of all seeds and planting materials entering Bulgaria. Interviews with agency representatives indicate that products coming from EU countries are not tested in Bulgaria; instead, they need only show documents and certifications proving that they have met EU production standards in their country of origin. For products originating in non-EU countries, agency inspectors demand that all documents and certifications about the products’ quality standards be presented; samples of the products also may be taken and tested. However, representatives from the agency reported that while floricultural products fall under their authority, their main priority is the inspection and control of seeds for food products such as grains. National Revenue Agency (NRA) Businesses in the floricultural and ornamental plants sector, like all other businesses in Bulgaria, are subject to fiscal control by the National Revenue Agency (NRA), which performs audits to control tax evasion. However, interviews with more than 30 key players in this sector indicated that it does not come under particular scrutiny or pressure from the NRA, as it is a relatively small sector within the Bulgarian economy and does not have the same problems with rampant black-market activity and tax evasion as do certain other sectors of the Bulgarian economy, which are more of a priority for the NRA.

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Licensing and Consumer Protection There are no particular licensing requirements for businesses in the floricultural and ornamental plants sphere. There are also no specific regulations for the sector regarding consumer protection. All products are subject to the provisions of the Policy for Consumer Protection (coherent with the EU Policy) – which entails conditions for refunds and guarantees of goods, price announcement, labelling of goods etc. The implementation is controlled by the Commission for Customer Protection, which protects customers from risks of damage to their health or property. The Commission is currently focused on mobile purchase of goods, toy products, and pharmacy products and is not focused on developing policies in any agricultural sectors. Regional Institutions The Ministry of Agriculture has regional offices in the main cities of all 27 administrative districts in Bulgaria, including: Blagoevgrad, Burgas, Varna, Veliko Tarnovo, Vidin, Vratza, Gabrovo, Dobrich, Kardjali, Kyustendil, Lovech, Montana, Pazardjik, Pleven, Pernik, Plovdiv, Razgrad, Ruse, Silistra, Sliven, Smolyan, Sofia, Stara Zagora, Targovishte, Haskovo, Shumen and Yambol. The regional offices in the city municipality have exactly the same structure and functions as the Ministry itself, including all directorates and agencies. Unfortunately, this means that the regional offices also have the same priorities as the national Ministry, thus the regional offices also have little interest in or information about the floricultural and ornamental plants sector. The National Service for Plant Protection has 14 Regional Service for Plant Protection (RSPP) offices throughout Bulgaria. All producers, importers and distributors of plants and plant materials are required to register with the local RSPP responsible for inspections and control. Local Institutions There are no local institutions exercising control over the floriculture sector at the municipal level. Professional Associations There is no professional association within the sector; a number of key players in the private sector reported that a few years ago an attempt was made to form such an association. However, disagreements between potential members made the organizational process extremely difficult and in the end no association was formed. Also, many private sector representatives did not see the point of spending the time and effort to create such an association, given the almost total lack of interest in the sector and cooperation on the part of governmental ministries.

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4. REVIEW OF NATIONAL STRATEGIES, PRIORITIES AND DEVELOPMENT PLANS National Government Programs The National Program for Development of the Rural Areas will start financing agriculture program after the completion of the SAPARD program in November. It is a joint program of the Ministry of Agriculture and Food Supply and the European Commission and is called “National Program for Development of Rural Areas” 2007 – 2013. After consultations with the program experts it was pointed out that project in the floriculture sector could be financed through Axis 1, Priority 1.2.1 of the program. It aims at increasing the competitiveness of the agriculture, food and forestry sectors and focuses on modernization of technology, investments for compliance with EU standards, structural adjustments in farming structures and improvement of human capital potential. Potential applicants must be companies registered in Bulgaria (but may be foreign-owned). As mentioned in Section I, the Directorate for Real Sector Financing within the Ministry of Finance works to implement the Common Agricultural Policy of the EU through the State Fund Agriculture. There are three programs to this fund: 1. Agricultural machinery: aid for the purchase of new/old machinery; 2. Cattle-breeding/rearing: construction/repair of agricultural buildings; purchase of machinery for cattle breeding; purchase of animals etc; 3. Planting: purchase of plants and greenhouses The planting program specifically names the construction of greenhouses as possible projects eligible for financing. The Ministry of Labor and Social Policy administers the “Beautiful Bulgaria Fund,” which supports (among many other types of projects) municipal projects of up to 200,000 BGN each to restore green areas and parks. Prior to Bulgaria's accession to the EU, the UNDP co-funded this initiative; however, since 2007 all funding for this program has come directly out of the Ministry's budget, which is led to its considerable curtailment. Ministry officials declined to estimate the amount of funding available in the coming year, as it depends heavily on the budget of the Ministry, which has yet to be approved. The Bulgarian Ministry of the Environment and Waters has no national-level program or funding for the development of green areas/landscaping within cities; their financial and administrative resources are primarily directed at water treatment and pollution control. Their only program related to floriculture and landscaping is the ministry’s “Clean Environment Program,” which gives a small number of micro-grants annually (totalling no more than 2,000 -3,000 BGN or 1,000-1,500 EUR altogether) to non-governmental organizations for the greening of schools and public places. The Ministry of Regional Development and Public Works is the authority managing the EU structural funds in the field of regional development. This management is carried out by executive agencies within the Ministry for each specific Program (such as PHARE, ISPA, INTERREG, etc.). The Ministry periodically issues calls for proposals for every new project that is being financed. Interviews with Ministry officials indicate that at the present time there are no projects connected with renovation or building new green areas and city parks. One of the focuses of ISPA is ecology; however, in Bulgaria its main target is financing projects concerning waste water treatment and limiting air pollution.

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In principle, the Ministry considers the landscaping of municipal space is a very low priority given the more pressing infrastructural problems Bulgaria is facing and does not foresee major expenditures for such landscaping projects in the near future. Nevertheless, many green areas and parks have been renovated recently. In Sofia, as well as in other larger cities, most of these projects were financed by private companies (especially banks, oil companies and large international corporations) as a form of corporate sponsorship. Finally, although not directly targeted at the floricultural and ornamental plants sector, the Bulgarian Energy Efficiency Fund (BgEEF) also represents a potential funding source for investors in the sector. Administering more than 10m USD in funds from the World Bank, the Bulgarian Government and the Government of Austria, BgEEF provides technical assistance to Bulgarian enterprises, municipalities and private individuals in developing energy efficiency investment projects and then assists their financing, cofinancing or plays the role of guarantor in front of other financing institutions. For energy efficiency projects the fund will provide loans from USD 19,000 to USD 1.9 million and/or it will submit partial guarantees up to USD 500,000. Efficient energy saving and deployment of saving technologies are required in order the projects to be approved by the fund. It is also required the project value to range from BGN 30 thousand to BGN 3 m, and the investment to be returned up to five years. Loan interests for small companies are 6 to 9% and 4 to 7% for corporations. Self-financing should cover 25%. Certain greenhouse projects, especially those with heat cogeneration aspects, may be eligible for funding from BgEEF. Local Government Programs (central and municipal budgets) Desk research on all 27 major municipal regions in Bulgaria has revealed that due to extremely limited funding, local authorities in Bulgaria are unable to provide financing for projects related to the development of the floricultural sector or to restoring green areas and parks. Municipal funds were primarily directed at social services, waste management and water treatment.

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5. PRACTICAL GUIDE TO MARKET ENTRY 5.1 Foreign Investment It is extremely difficult to gauge the current level of foreign investment in the floricultural sector, since no official governmental institution tracks this information. However, given that the sector is a very low priority for the Ministry of Agriculture and that there is no national-level strategy to attract investment; it is assumed that the level of foreign investment is quite low compared to other sectors. The Dutch PSOM program has invested nearly 2 million EUR in Bulgarian floriculture over the past three years. Interviews with industry experts indicated that within the last two years Greek and Turkish investors expressed interest in the Bulgarian floriculture sector and began preliminary investigations; however, the potential volume of such investments was not known. A project that is still in process sponsored by the EVD program is building a greenhouse by CKS-P and their Dutch partner Borissov Holding presented by Bulcvet in Bulgaria, around Pazardzhik. The greenhouse will be built up on 75 decares and the main production will represent cut flowers. One large future foreign investment in the sector is expected in November 2007. The municipality of Pazardzhik has announced that it will sell by closed auction 80 decares of land near the village of Rosen for the establishment of a floricultural greenhouse complex. One potential investor has promised to secure 14 million EUR of Dutch investments for the development of the complex, to be invested over a three-year period. The success of the Bulland Trade Dutch-Bulgarian joint venture in the Pazardzhik Region was cited as a major motivation for the municipal council to put up more local land for sale to foreign investors in the floricultural sector. Dutch Experience on the Market Interviews were conducted with management representatives from the major Dutch-Bulgarian joint ventures. Summaries of interviews are provided below: Flora Garden Centre: Flora Garden Centre was created in 2004 as a joint venture between the Bulgarian company Interflora Ltd, and the Dutch firms Peters Planten Export B.V. and Hein Mekelenkamp to establish a modern, westernstyle garden centre in Sofia. This 615,000 EUR project was financed in part by the PSOM Partnering with Emerging Markets Program offered by the Agency for International Business and Cooperation (EVD), part of the Dutch Ministry of Economic Affairs. The Bulgarian partner, Interflora, was founded in 1992 and focuses primarily on the production and sale of indoor ornamental plants. A Dutch company, KUBO Tuinbouwprojecten BV was contracted to construct the greenhouses for the garden centre. The Dutch partner firms trained Bulgarian employees in management, marketing, promotion and after sales; an implemented management information system; and provided Dutch know-how to local Bulgarian partners. The Dutch company Petersplantenexport BV works on the exchange at Aalsmeer, The Netherlands, where it fills Interflora’s orders with Dutch products, increasing their export volume. Hein Mekelenkamp Hydrokultur oversees the hydro-culture production, planting and maintenance of the garden centre.

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Interviews with Flora Garden Centre management indicated that they generally had a positive experience on the Bulgarian market; in only a few short years they have become the market leader for indoor ornamental plants, and they foresee continued expansion of their business. However, the management pointed out the lack of legal and regulatory structures in Bulgaria as a problem, as well as difficulty in accessing EU financing programs, given the Bulgarian government's lack of interest in the floricultural sector. The lack of a properly trained workforce with specialized knowledge in floriculture was also noted as a problem. Bulland Trade Bulland Trade is a joint venture between three Bulgarian companies (Gardenia, Alvers, and Kui) and two Dutch partners (van der Bosch and Mauritz, both nurseries for outdoor ornamental plants) created in 2005 to establish a large nursery primarily for outdoor ornamental plants in the Pazardzhik Region of Bulgaria. This 900,000 EUR project was financed in part by the PSOM Partnering with Emerging Markets Program offered by the Agency for International Business and Cooperation (EVD), part of the Dutch Ministry of Economic Affairs. Having begun production in 2006, Bulland Trade has already established itself as one of the market leaders for outdoor ornamental plants in Bulgaria. The current nursery measures 35 decares, including two decares of gas-warmed greenhouses, and expects to offer 300,000 plants on the Bulgarian market in 2007. Their projected target is to have a turnover of 373,000 EUR by the end of 2008. They also import and sell products imported from their Dutch partners; the ratio of locally produced to imported products is approximately 80/20 in favour of local products. Interviews with Bulland Trade management revealed that while they have found themselves able to compete on the Bulgarian market and foresee further growth in their business, certain problems have been encountered. For example, since they offer high-quality plants according to Dutch standards, their prices often seem too high to the Bulgarian consumer, for whom price rather than quality is the primary motivating factor. They frequently find themselves being undersold by competitors offering very limited ranges of lowquality products. Like Flora Garden Centre, Bulland Trade representatives complained that the lack of governmental interest and oversight of the sector inhibits its development; also, the lack of coordination between the private sector and universities and other research institutions in Bulgaria is also a problem, since Bulgarian producers do not have anyone knowledgeable to turn to when faced with new plant diseases or other problems. In fact, in such situations their Dutch partners act as consultants, as they are much more informed than Bulgarian government officials in such matters. The lack of a well-educated workforce in the sector was also noted. Leia Balkan This joint venture between the Dutch firm Rosaco and the Bulgarian firm Brit (located in the north-western town of Pleven) recently received 388,000 EUR of financing from the Dutch PSOM program to create a new facility the sorting, grading, packing and sales of rootstocks for roses. The best quality rootstocks would be returned to Holland, while third quality would be sold on the Bulgarian market. Interviews with company management said that they had completed renovations of a building sorting, packing and distribution, equipped with modern cooling facilities. They reported that their internal market share was very limited, but improving, having increased commercial production and sales (3 million rootstocks delivered to Rosaco and half a million sold within the region). However, they noted the lack of financing for the sector as a major problem for its growth and development.

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5.2 Business Practices Selecting a suitable partner A foreign entity looking for a partner on the Bulgarian market has a number of options. Our interviews with key players in the flower and ornamental plants sector in Bulgaria indicate that the most common arrangement between Dutch and Bulgarian companies is set up a joint venture or agent/distributor relationship in which a Bulgarian importer/wholesaler purchases directly from a Dutch wholesaler and then acts as a distributor to retailers within Bulgaria. Below the advantages and disadvantages of various types of market entry options are discussed: Agent/Representative/Distributor: Foreign exporters, especially small and medium size enterprises, will most likely choose to enter the Bulgarian market through an agent (a company or individual who sells the exporters product on a commission basis) or distributor (a company that purchases products from the exporter for resale). There are a number of Bulgarian firms that act as agents, representatives and distributors for foreign importers in the floricultural and ornamental plants sector (see Appendices A-E for details and contact information); the best method of locating an appropriate and legitimate agent or distributor in Bulgaria is to contact a Business Support Organization that provides business matchmaking. Direct sales: Direct marketing to individual consumers is relatively new to Bulgaria. There are few Bulgarian mail-order catalogues. Home demonstrations are not popular and have generated little success. However, Avon and the Swedish company Oriflame report success in the direct sale of cosmetics. Limitations to expansion of telemarketing are poor telephone service in rural areas (not everyone has a telephone) and unreliable mail deliveries. In the flower and ornamental plant sector, direct sales are primarily restricted to situations in which landscaping companies purchase outdoor ornamental plants directly from local producers; most other sales in the sector are through retailers, importers or other middle men. Licensing: Since Bulgarian companies do not have ready access to good financing, it might be difficult for a foreign company to find a Bulgarian company able to invest large sums to acquire a production license or new manufacturing capability for a new product. However, enterprises with existing and suitable manufacturing capacity and good markets might be eager to take on the manufacturing of such products. This might be a good market strategy for a foreign company with high labor costs and product prices that are too high for Bulgarian customers. Joint Venture: Joint ventures between Bulgarian and Dutch companies such as Bulland Trade and Flora Garden Centre have proven a very successful way for Dutch producers to enter the Bulgarian flower and ornamental plants market. No government involvement or approval is necessary for joint ventures with private companies in Bulgaria. After completion of negotiations, the entity must be registered with the relevant court provided that the joint venture company assumes the legal form of a commercial company. Franchising: Unknown in Bulgaria in 1989, franchising has spread to nearly a dozen industry sectors in Bulgaria, primarily fast food chains and well-known European clothing brands. There are no franchises to date in the flower or ornamental plants sector. The best opportunities are in the big cities (Sofia, Varna, Plovdiv, and Burgas) where the population has a relatively high level of disposable income. The primary challenge in establishing franchises is obtaining sites. In urban areas, especially Sofia, it is sometimes difficult to locate and lease properties at an affordable cost. Despite franchising being a new concept for the Bulgarian business community, the Bulgarian legal system accommodates franchise agreements. 104

Laws on labor relations are clearly spelled out, leases can be freely negotiated, and laws protect trademarks, patents and copyrights. In addition, there is a Bulgarian Franchise Association. 5.3 General Considerations on the Bulgarian Business Environment Bulgaria was ranked among the top ten developing countries in the world by the most recent World Bank beginning of October, 2007. The ranking was based on 10 indicators of business regulation that track the time and cost to meet government requirements in business start-up, operation, trade, taxation, and closure. They would not reflect such areas as macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions, or crime rates. Reformers made it simpler to start a business, strengthened property rights, enhanced investor protections, increased access to credit, eased tax burdens, and expedited trade while reducing costs. 5.3.1 Legal Framework for Founding Companies in Bulgaria Bulgarian Commercial law allows for the following types of business organizations: • an unlimited (general) partnership; • a limited partnership; • a private limited company; • a public limited company (joint stock company); • a public limited partnership; • a sole trader; • a joint venture; • a branch; • a holding; • a co-operation; • a representative office. The most appropriate types of companies for foreign entities carrying out business in Bulgaria are Joint Stock Company or a private Limited Liability Company. All of these have to be entered into the commercial register kept with the relevant district court. Registration of a Joint-Stock Company Authority: District Court Only the relevant managing body of the company can request registration in the Commercial register. Preliminary preparation for the registration procedure: 1. Reservation of company name and obtaining a certificate for uniqueness of the company name 2. Holding a Constitutive Meeting, where the memorandum of association is accepted and the managing bodies are voted. At the meeting all shares of the JSC capital should be subscribed. 3. Founders Contributions, which must be made by the founders-in money or non-cash.

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Necessary documents for Registration in the Commercial Register: 1. Application signed by all members of the managing body 2. Memorandum of association, accepted on the constitutive meeting 3. Minutes of the constitutive meeting, drawn in compliance with the terms and conditions of art.232 and subsequent from Commercial Law 4. List of the persons, subscribing shares upon the incorporation (founders) attested by the managing body 5. Bank document for pecuniary contributions, installed by the subscribers 6. Written consent with a notary certified signature of the contributor of a non-cash contribution 7. Notary certified signature specimens of the persons, who shall represent the company 8. Founders’ declarations (if natural persons) stating that they are not declared insolvent and court certificates for the founders-legal persons are not declared insolvent 9. Declarations of the members of the managing authorities that they agree to become members of the relevant authority 10. Experts’ statement duly admitted by the district court if non-cash contributions are made 11. For founder-legal person-registration judgment, certificate for actual status, managing body resolution for participation in the joint-stock company and an express notary certified power of attorney of the person who represents the legal person at the constitutive meeting 12. Receipt for paid state taxes 13. Receipt for paid fee for publishing in the State Gazette Fees Fees Reservation of company name and obtaining a certificate for uniqueness of the company name: BGN 200; For JSC registration - BGN 400; For registration of banking or insurance JSC - BGN 1,500; For registration of JSC branch - BGN 200; Minimum capital for establishing JSC - BGN 50,000; For publication in the State Gazette - BGN 25 Timeframe: Approximately two weeks

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Registration of Limited Liability Company Authority: District Court The LLC (OOD in Bulgarian) is founded or owned by one or more persons, including foreign natural or legal persons. The minimum authorized and procedure capital is BGN 5,000. Procedure for Forming a Limited Liability Company 1. Reservation of the name of the company and issuance of a certificate for uniqueness of the name – BGN 100; 2. Composing articles of association or founding a deed for a single-member LTD; 3. Formation of company’s share capital (at least BGN 5,000) 4. Issuance of bank deed certifying that at least 70 % of the registered capital has been paid; 5. Appointment of managing body; 6. Registration in the commercial register of the relevant district court by the appointed manager who possesses representative power – BGN 120; 7. Issuance of a permit from the competent body for performing specific commercial activity before entry into the commercial register (e.g. investment broker); 8. Completion of the establishment: court decision for entry into the commercial register; 9. Publication of the registration into the state gazette – BGN 25; 10. Creation of a company seal: The company must present the court decision for registration. No requirements as to the text of the seal. 11. Registration at the respective territorial division of the Registry Agency (issuance of a BULSTAT number) within 7 days after the establishment of the company – BGN 60; two sets of copies of the following documents must be presented personally by the company manager or a person authorized through a notary certified power of attorney: court decision for registration, Articles of Incorporation (or Company Agreement). A copy of the passport of the manager may also be requested. A certificate for registration valid for 1 month is issued. Within 1 month a plastic card evidencing the registration is issued. The registration agency provides one set of copies of the above documents to the National Revenue Agency, responsible for public revenue, including tax collection. 12. Register for VAT. The company may register for VAT if its taxable turnover for the last consecutive 12 months exceeds BGN 25, 000 (as of 1 April 2006). The company is obliged to register for VAT purposes if its turnover for the consecutive 12 months exceeds BGN 50, 000. The company may irrespective of its taxable turnover register for VAT purposes if the registered capital is at least BGN 500,000 and is effectively paid in. Such registration of the company on this ground is possible only once and may be kept for a period of 3 years.

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Necessary documents for registration of LLC in the Commercial Register: 1. Application for registration 2. Memorandum of association 3. Constituent meeting minutes 4. Notary certified consent with specimen of signature for each of the managers 5. Declaration in compliance with art. 142 CA (Commercial Act) 6. Bank document of capital deposited 7. Company name uniqueness certificate 8. Certificate for actual status of a shareholder-legal person 9. Decision of the managing body of a shareholder-legal person 10. Receipt for paid state taxes 11. Receipt for paid state tax for publishing in the State Gazette Fees: Registration - BGN 120; Duplicate of court decision - BGN 1.5 and BGN 1 per page; Reservation of the name of the company and issuance of a certificate for uniqueness of the name – BGN 100. Minimum capital for establishing LLC - BGN 5,000; 4. Publication in the State Gazette - BGN 25 Timeframe: Approximately 1-2 weeks 5.3.2 Financing Programs and Sources for Business Development Bulgarian Governmental Support for Market Entry The Bulgarian government has created the Invest Bulgaria Agency to assist potential foreign companies interested in entering the Bulgarian market; however, most of their assistance is directed at high-level investment projects valued at 5 million EUR or above. Market entry projects of a smaller scope are best handled by local consultancies and private legal advisors (see the following section). Investment incentives are available to companies registered in Bulgaria, regardless owner’s nationality. The Investment Encouragement Law sets forth preferential treatment measures for investments meeting the following criteria: 1. The investment to be in acquisition of fixed assets with the purpose of creating new or enlarging, or modernizing existing production of goods and/or services; 2. New jobs to be created; 3. The investment project to be implemented within 3 years. The measures are differentiated according to the class of investment. There are three classes, depending on the investment project value. The value thresholds are stipulated in the Rules on the Enforcement of the Investment Encouragement Law as follows: • • •

1st class – investment over BGN 70 million (EUR 36 million); 2nd class – investment from BGN 40 to 70 million (EUR 20-36 million); 3rd class – investment from BGN 10 to 40 million (EUR 5-20 million).

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For all investment classes, central and regional government authorities, as well as municipal authorities provide faster administrative services (issue of licenses, permits, etc.) to investors i.e. within 1/3 shorter periods than the usually needed. They also provide large-scale investors with economic analysis and sector information materials, information about potential partners in the country, and advice regarding all administrative procedures concerning the implementation of the investment project. Purchasing Land Non-resident natural persons and legal entities may acquire rights of ownership in land under the terms of a ratified international agreement, whereas natural persons may also acquire title to land through legal succession. In particular, citizens and legal entities of EU Member States or of Member States under the European Economic Space Agreement may acquire right of ownership over land in accordance with the requirements laid down in law in compliance with the Bulgarian Accession Treaty to the EU: -

Natural persons, non-resident of the Republic of Bulgaria, shall be entitled to acquire title to urbanized real estate sites for second residential place five years from the accession of Bulgaria to the EU, namely after 1 January 2012;

-

Legal entities are entitled to acquire and own urbanized sites in Bulgaria;

-

Natural persons and legal entities shall be entitled to acquire agricultural and forest lands seven years from the accession of Bulgaria to the EU, namely after 1 January 2013;

However, foreign natural persons and legal entities may become the sole, majority or minority owner of a locally registered company. Such a company is in no way restricted in acquiring and transferring title to land or buildings/facilities or rights to use or develop real estate. The underlying rationale is that the constitutional and other legal restrictions apply only to foreign persons, whereas a local subsidiary of a foreign person is not, regardless of its shareholding. As a consequence, no special authorization is needed for a local company owned by foreigners to engage in any real estate transactions. Under Bulgarian property law “registration” is an act of a competent judicial body whereby certain circumstances are recorded with the Real Estate Registry and the documents evidencing such circumstances are filed in special books. The registration system concerning real estates is composed of 107 Real Estate Registries representing local divisions of the National Registry Agency. The venues of such Real Estate Registries coincide with the venues of the Bulgarian trial courts (the Regional Courts). Registrations are effectuated in this specific Real Estate Registry in the venue of which the concerned real estate is located Business and Legal Consultancy Many local Bulgarian business and legal consultancies exist that specialize in market entry services for foreign clients. They typically offer a wide array of market research/analysis and business matchmaking services to assist foreign clients in evaluating the potential for their products and services on the Bulgarian market and in identifying the best potential local partners. A foreign company’s local embassy can help them contact Bulgarian consulting firms; alternatively, many local consultancies can be contacted easily via the Internet.

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Similarly, local consultancies can also assist with the legal registration of a partnership with in Bulgaria. The service is typically cost between EUR 700-1000, depending on the complexity of the documentation involved. Promotion and Advertising Most industry insiders said that the best media channel for the floricultural sector in Bulgaria is advertisement in specialized magazines; while almost a dozen such magazines and newspapers exist in Bulgaria, the most widely distributed and well-respected are EXTERIOR and Gradinata (“The Garden”). Most Bulgarian producers, importers and distributors in the floricultural sector regularly advertise in these two publications. While some companies advertise also on the radio, cable television or on agriculturally themed television programs, these promotional channels are much less effective and hence less popular for businesses in this sector than printed media. (Please see Appendix F for full list of relevant media outlets.) Trade fairs represent another major promotional channel for the floricultural sector, especially the weeklong Flora Burgas International Exhibit that takes place every spring and fall. Now in its 25th year, Flora Burgas features domestic and local producers and traders of cut flowers, ornamental plants, and planting materials, as well as new technologies and products for floriculture; in the last few years, there have been about 80 participants in each event and over 1 million visitors. Many international companies have taken part, mainly from Holland, Italy, Greece, Turkey, etc. The organizer of the event is the Burgas municipality. The Flora Trade Fair is held twice a year in the National Palace of Culture in Sofia at the beginning of March and the end of September. It is organized by Bulgarreklama Agency (www.bulgarreklama.com). The participants in the last event were over 60 companies in the field of plant growing and gardening. The focus of the exhibition includes the following sub sectors: cut flowers, ornamental indoor and outdoor plants, planting material. The event’s primary focus is home and garden decoration. The Plovdiv Flower Fair is held twice per year at the Plovdiv International Fairgrounds in March (Flower Spring) and October (Flower Autumn) (http://www.fair.bg). Both events include companies from the following sectors: ornamental indoor and outdoor plants, cut flowers, planting materials, landscaping and equipment. However, there are some differences in their primary focus. The Flower Spring fair focuses mainly on ornamental outdoor plants, green house equipment, landscaping, as well as equipment. In 2006, there were 67 participants from 8 different countries and in 2007 39 companies from 9 countries at the Spring fair. The Flower Autumn fair focuses mainly on ornamental plants, green house equipment, as well as planting materials. The AGRA International Agriculture Exhibition is held at the end of February at the Plovdiv International Fairground. The focus of the event covers a wide range of companies in the field of agriculture. The flowers and ornamental plants sector is well represented. There are also some companies in the field of planting material. (Please see the appendix for a full list of relevant trade fairs and exhibitions.)

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Bank Loans/Credit Schemes A significant number of Bulgarian banking institutions provide special loans for agricultural purposes, or so called “agro loans”. The main lenders are United Bulgarian Bank, Raiffeisen and Procredit Bank. Common credit lines are financing of projects approved by State Fund Agriculture or the SAPARD program for the purchase of machinery and for Investment and Working Loans. Five banks, including Raiffeisen and United Bulgarian Bank, offer loans for projects approved by Fund Zemedelie and Sapard. The terms are identical – amounts are over 100 000 BGN, and interest rates vary from 7 to 9 percent. Loans periods can be up to 48 months or 15 years for purchase of agricultural machinery or land, respectively. It must be pointed out that lenders require purchasing machinery from specific dealers – such as Fermer 2000, Megatron and others. Another common credit line is the purchase of agricultural machinery or lasting assets. The borrower can apply for up to 90 % of the price and in the common limit of the loan amount is 120000EUR. Interest rates differ, but the average value is 8.5 %. Finally, some banks offer investment and working capital loans. Packages have a great variety – for amounts from 15 000 to unlimited loans and periods from one to ten years, depending on the purpose of the loan. Some banks, such as ProCredit Bank, require a minimum of one year of operating history in order to grant a loan. Other credit schemes tailored to agricultural production include: Nachala Cooperation offers credits in the following fields: agricultural production, agro tourism, construction and purchasing new equipment. The amount of the credits vary from 600 to 40 000 BGN. The average interest per year is 16% and the effective interest is 9%. The loans are offered for a period between 6 and 36 months. A mortgage is an option for collateral. Hebros Bank offers credits for agricultural producers. The program is named “Perspectives”. It finances activities in the field of agricultural production. The financing amount is between 5000 and 250 000 BGN for a period of up to 17 months. The interest is between 8 and 13% according to the certain conditions. Procredit Bank offers credits in the field of agriculture. Possible activities for financing are purchasing of land, planting material, specialized equipment, construction of installations, etc. The maximum amount of financing is up to 50 000 BGN for a period of up to 5 year. Collateral: vehicles, specialized equipment, guarantee, real estate, etc. First Investment Bank offers credits for agricultural producers. The amount varies between 1000 and 20 000 BGN for up to 5 years. The interest per year is 5,96%. Possible collateral includes mortgage, guarantee, deposit of equipment, etc.

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Leasing Programs A good number of financial institutions in Bulgaria offer leasing of agricultural machinery. Different leasing products allow for the lease both of new and of used machinery/equipment of all kinds. The most popular lease parameters are for amounts of over 10,000 EUR, with a down payment of at least 20%. Lease terms are for up to 5 years for new and 2 years for used machinery, with an average annual interest rate of 55.5%. Lessers (the major ones being Kuhn Lease, Union Leasing and DSK) require insurance of the property.

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E. JOINT SWOT ANALYSIS OF THE SECTOR IN ROMANIA AND BULGARIA PRODUCTION

STRENGTHS In Romania and Bulgaria ƒ Good natural conditions for production: soil and climate ƒ Large utilisable areas ƒ Lower labour costs (compared to EU average) ƒ Traditions in agriculture and floriculture In Bulgaria: o Due to lower operational costs, production is significantly higher than in Romania, especially in the outdoor ornamentals sector (here, local production supplies 80% of the market). o The genetic fund of plants is also richer in Bulgaria, due to increased interest in production o The geographic concentration of production (Northern and South Central regions of Bulgaria) facilitates cooperation and resource sharing OPPORTUNITIES In Romania and Bulgaria ƒ The recent accession to the EU will - stimulate competition - force local producers to adapt to new quality standards - diversify the range of products through the removal of trade barriers - alleviate disparities through financial assistance (via structural and cohesion funding) ƒ Financing opportunities through European Funds as well as advantageous credit programs for agriculture offered by private institutions ƒ Export to neighbouring countries and the EU

WEAKNESSES In Romania and Bulgaria ƒ Low competitiveness (yields, productivity, quality) and market orientation ƒ Producers are small and disparate, unable to invest in modernization ƒ Lack of adequate technical, management, marketing and vocational skills/expertise ƒ Underdeveloped rural infrastructure and supporting institutions ƒ High dependence on government support ƒ No widely accepted production standards ƒ Small production areas: the geographic and agricultural potential is not being fully used ƒ No communication between research institutes and the market ƒ Lack of unified strategy within the sector

THREATS In Romania and Bulgaria ƒ Backyard production will continue to supply the market based on price advantage ƒ Estimated low rate of absorption of EU funds, based on difficulty to access information and comply with the requested own contributions ƒ Labour force migration ƒ Growing price of land and labour ƒ Growing competition from imports ƒ Climate changes

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LEGAL FRAMEWORK

STRENGTHS In Romania and Bulgaria

WEAKNESSES In Romania and Bulgaria

ƒ Applicable legislation is in line with EU requirements and derived from EU directives

ƒ Repeated amendments and alterations of existing legislation (due to its prior inefficiency) ƒ Difficulty in implementing legislation and monitoring the activity of economic agents (very little government control) ƒ Many economic agents are still not properly registered ƒ Authorities have limited interest, resources and knowledge for the development of an integrated strategy in the sector ƒ The resistance of traditional structures that facilitates tax evasion

OPPORTUNITIES In Romania and Bulgaria

THREATS In Romania and Bulgaria

ƒ The recent EU accession has put pressure on authorities to reform legislation (development and enforcement) in all economic sectors ƒ Governmental programs and strategies for rural development and environmental rehabilitation

ƒ The sector itself is not interested in restructuring from the inside (the current situation brings fiscal benefits) ƒ Organizing the sector is not a priority for authorities

In Romania o The formation of professional associations will ensure additional support for authorities in regulating the sector

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TRADE

STRENGTHS In Romania and Bulgaria ƒ Stable economies with positive development trends ƒ Significant market growth potential based on increase of purchase power and development of retail, real estate and tourism sectors ƒ ƒ Proximity to export markets

WEAKNESSES In Romania and Bulgaria ƒ The market is still unstable and volatile (easily influenced by trends and internal pressure), fragmented and disorganized ƒ Lack of transparency on the side of both authorities and market players ƒ Non-unitary statistical registrations and low financial disclosure for various categories of economic activities (company registration, consumption, supply, customs categories) ƒ Low consumption levels based on reduced purchase power, lack of education and traditional motivation ƒ The low quality of products drives down prices and profitability ƒ Few specialized educational programmes ƒ Scarce qualified workforce working in the field ƒ Sales concentrated in and around large cities ƒ Lack of coherent strategies ƒ Few available logistics services ƒ The existence of black market

OPPORTUNITIES In Romania and Bulgaria

THREATS In Romania and Bulgaria

ƒ Currently there is no single market leader (room for competitive new players) ƒ General economic growth increases purchase power ƒ The continuous growth of sectors that require floricultural input (constructions, real estate, tourism) ƒ Increase and diversification of demand in the institutional market (HoReCa, public relations and event management, government institutions) ƒ The absence of reliable local suppliers will increase the demand for imports ƒ Market entry is facilitated by the government ƒ Logistics and distribution providers will have to comply with EU standards ƒ Increasing support for local programs of urban modernization from public authorities as well as private sector which will require the input of the floricultural sector (landscaping, ornamentals, etc.)

ƒ High financial and operational costs of making the transition from traditional to modern market mechanisms and structures ƒ The preference for direct imports discourages distributors from entering the market ƒ Low consumer interest in hyper-/supermarket purchases of cut flowers ƒ Importers prefer cheap merchandise that will not incur high loses if compromised ƒ Most large importers do not act as distributors (imported products are used for their own activity, such as landscaping)

In Bulgaria: High VAT of 20% for floricultural products

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F. KEY CONTACTS ROMANIA General Royal Netherlands Embassy in Romania Office of the Attaché for Agriculture, Nature and Food Quality Aleea Alexandru 20, 011823, Bucharest T: +40-21-2315657 F: +40-21-2316373 Agr. office e-mail: [email protected]

European Commission Delegation in Romania Str. Jules Michelet nr. 18-20, sector 1, Bucharest T: 0040 21 203 54 00 F: 0040 21 212 88 08 [email protected] www.infoeuropa.ro

Romanian Presidency Cotroceni Palace, Bd. Bucharest, Romania T: 0040 21 410 05 81 F: 0040 21 410 38 58 www.presidency.ro

Government of Romania Pia a Victoriei nr. 1, Bucharest T: 0040 21 314 34 00 T: 0040 21 230 36 60 www.guv.ro

Geniului

nr.

1,

National Bank of Romania 25 Lipscani Str. Sector 3, Bucharest T: 0040 21 312 43 75 F: 0040 21 314 97 52 [email protected] www.bnro.ro

Ministries Ministry of Agriculture and Rural Development B-dul Carol I, nr. 24, sector 3, 020921, oficiul postal 37, Bucharest T: 004 021 3072424; 004 021 3072446 004 021 3078588 F: 004 021 3078685 [email protected] www.maap.ro Ministry of Environment and Sustainable Development Bld. Libertatii, nr. 12, Sector 5, Bucharest T: 0040 21 3163874 [email protected] www.mmediu.ro

Ministry of Development, Public Works and Housing Str. Apolodor, nr. 17, Latura Nord, sector 5, Bucharest T: 0040 372 111409 F: 0040 371 111441 [email protected] www.mdlpl.ro Ministry of Public Finance Str. Apolodor nr.17, sector 5, Bucharest, Romania T: 0040 21 410 34 00 F: 0040 21 312 25 09 www.mfinante.ro [email protected] 116

Other Relevant Institutions Paying and Intervention Agency in Agriculture, Food Industry and Rural Development (APIA) Bulevardul Carol I nr. 17, sector 2, Bucharest T: 0040 21 305 48 02 F: 0040 21.305.48.03 e-mail: [email protected] www.apia.org.ro

Paying Agency for Rural Development and Fisheries (APDRP) Str. Stirbei Voda, nr. 43, sector 1, Bucharest T: 0040 021 - 402.27.50 F: 021 - 315.67.79 [email protected] www.apdrp.ro

Administration of the Environmental Fund Splaiul Independenţei nr. 294, Corp A, Sector 6 Bucureşti T: 0040 21 3170287 F: 0040 21 3170289 [email protected] www.afm.ro The State Institute for Variety Testing and Registration (SIVTR) Bld. Marasti, nr. 16, Sector 1, Bucharest T: 0040 21 3184380 F: 0040 21 3177442 [email protected] www.istis.ro The National Authority for Consumer Protection (NACP) Str. Georges Clemenceau, nr. 5, Sector 1, Bucharest T: 0040 21 3111862 F: 0040 21 3135026 [email protected] www.anpc.ro National Trade Register Office Bld. Octavian Goga, nr. 2, Sector 3, Bucharest T: 0040 21 3160804 F: 0040 21 3160803 [email protected] www.onrc.ro National Customs Authority Str. Matei Milo, nr. 13, Bucharest T: 0040 21 3155858 F: 0040 21 3138251 www.customs.ro

Competition Council Piata Presei Libere, nr. 1, Corp D1, Sector 1, Bucharest T: 0040 21 3373608 F: 0040 21 3373643 [email protected] www.consiliulconcurentei.ro The National Inspection for Seeds Quality (NISQ) Bld. Carol I, nr. 24, Sector 3, Bucharest T: 0040 21 3072428 F: 0040 21 3078663 [email protected] [email protected] National Institute of Statistics 16 Libertatii Bvd., Sector 5 Bucharest T: 0040 21 318 18 71 F: 0040 21 312 48 75 [email protected] www.insse.ro National Agency for Small and Medium Sized Enterprises and Cooperatives Str. Poteras, nr. 11, Sector 4, Bucharest T: 0040 21 3352620 F: 0040 21 3362632 [email protected] www.mimmc.ro Authority for State Assets Recovery Str. Cpt. Alex Serbanescu, nr. 50, Sector 1, Bucharest T: 0040 21 3036122 F: 0040 21 3036465 [email protected] www.avas.gov.ro

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Agency for Governamental Strategies Palatul VICTORIA, Piata Victoriei nr. 1, Sector 1, Bucharest T:0040 21318.03.50; F:0040 21318.03.51 [email protected] www.publicinfo.ro

National Agency for Rroma people Splaiul Independentei, no. 202, floor 8, Bucharest T: 0040 21 3113048 F: 0040 21 3113047 [email protected] www.anr.gov.ro

Commission for Agriculture, Forestry, Food Industry and Related Services of the Romanian Parliament Palatul Parlamentului, str. Izvor, nr. 2-4, sect.5, Bucharest T: 0040 21 4021115 F: 0040 21 3140907 [email protected] www.cdep.ro

Romanian Agency for Foreign Investment (ARIS) Bld. Primaverii, nr. 22, Sector 2, Bucharest T: 0040 21 2339103 F: 0040 21 2339104 [email protected] www.arisinvest.ro

National Agency of Cadastre and Land Registration No. 202A Splaiul Independentei, 1st floor, sector 6, Bucharest

State Domain Agency Str. Stirbei Voda, nr. 43, Sector 1, Bucharest T: 0040 21 312 4623 F: 0040 21 3101455 www.domeniilestatului.ro

T:0040 21 317.31.62 F: 0040 21 316.52.24 [email protected] www.ancpi.ro

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Professional Associations Asociatia Producatorilor de Flori si Plante Ornamentale (Association of Flowers and Ornamentals Producers) President- Mr. Harry Vasilescu Str. Ferme 'L" 3, Otopeni T/F: 0040 21 3503827 Mobile: 0040 722 783220 [email protected]

Asociatia Florarilor (Florist's Association) President - Mr. Florin Georgescu Str. Colentina -Pasaj Obor, Sector 2, Bucharest T: 0040 721 197229 F: 0040 21 2411759 [email protected]

Asociatia Producatorilor de Plante Ornamentale si Antreprenorilor de Arhitectura Peisagera'Dendros' (Association of Ornamentals Producers and Landscape Gardening Entrepreneurs) President:Mr. Stanica Florin Calea Grivitei 401, bl. P. et. 6. ap. 28, sector 1, Bucharest T 0040 722 641795 F 0040 21 668 72 30 [email protected] Agricultural Universities University of Agricultural Sciences and Veterinary Medicine Timisoara Calea Aradului nr. 119, Timisoara T: 0040 256 494023 F: 0040 256 200296 [email protected] www.usab-tm.ro University of Agricultural Sciences and Veterinary Medicine Iasi Aleea Mihai Sadoveanu, nr. 3, Iasi 700490 T: 0040 232 274933 F: 0040 232 260650 [email protected] www.univagro-iasi.ro University of Agricultural Sciences and Veterinary Medicine Bucharest Bld. Marasesti, nr. 59, Sector 1, Bucharest 01164 T: 0040 21 3180466 F: 0040 21 3180466 www.agro-bucuresti.ro

University of Agricultural Studies and Veterinary Medicine Cluj Str. Calea Manastur, nr. 3-5, Cluj-Napoca T: 0040 264 596384 F: 0040 264 593792 [email protected] www.usamvcluj.ro University of Craiova, Faculty of Agriculture Str. Libertatii, nr. 19, Craiova T: 0040 251 418475 F: 0040 251 418475 [email protected] www.ucv.ro

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Research Institutes Forest Research and Administration Institute (ICAS) Sos. Stefanesti, nr. 128, Sector 2, Bucharest 077190 T: 0040 21 2406095 F: 0040 21 2406845 [email protected] www.icas.ro

Vegetable and Flower Cultures Research Centre – Vidra Vidra 077185 T: 0040 21 3612094 F: 0040 21 3612094 [email protected]

Top 10 Import and Retail Companies (National Trade Register Office statistics based on turnover 2005) Hustiu Iasmin SNC Calea Moldovei, nr. 144, Bacau T: 0040 234 529088 F: 0040 234 529088

Cut and pot flowers

Stanjenel SRL Str. 13 Decembrie, nr. 123, Bl. 123, ap. 104, Brasov T: 0040 268 331102 F: 0040 268 331102 [email protected] www.stanjenel.ro Cut and pot flowers

Alstroemeria SRL Str. Varful cu Dor, nr. 26, Constranta T: 0040 241 673266 F: 0040 241 673277 www.alstroemeria.ro Cut and pot flowers

Mersan Serv Com SRL Str. Fabricii, nr. 91, Campina, Prahova n/a

Mary Lysa Flora Impex SRL Calea Ferentari, nr. 72, Bl. 10A, ap. 17, et. P, Sector 5, Bucharest T: 0040 21 7764405 Cut and pot flowers

Deco Flora Prexim SRL Str. Dionisie Lupu, nr. 46, Sector Bucharest T: 0040 21 2109576 F: 0040 21 2109576 [email protected] www.decoflora.ro Ornamentals and indoor pot plants

1,

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Semperflorens SRL Calea Grivitei, nr. 401, Bl. P, Sc. A, ap. 1, Sector 1, Bucharest T: 0040 21 6671795 F: 0040 21 6687230 [email protected] www.semperflorens.ro Ornamentals and gardening accesories

Sembol International SRL Str.Popa Nicolae; nr.12; bl.; sc.1ap.17 Bucharest Cut and pot flowers

Aldirom Import SRL Bld. Theodor Pallady, nr. 7, Bl. G3BIS, Sc. A, et. 1, ap.1, Sector 3, Bucharest T: 0040 722 552493 F: 0040 21 3455131 [email protected] Cut and pot flowers

Planet Flowers SRL Str. Sebastian, nr. 88, Sector 5, Bucharest T: 0040 21 4243165 Cut and pot flowers

Top 10 Producers (National Trade Register Office statistics based on turnover 2005) Romtransilvan Funghi Impex SRL Str. Clujului, nr. 251, ap. 2, Oradea, Bihor T: 0040 259 412749 F: 0040 259 479944

Passiflora SRL Str. Rampeni, nr. 6, Oradea, Bihor T: 0040 359 405890

Wild mushrooms – harvest and processing

Vegetable production

Milud Impex SRL Ansamblul de Bunuri Zona Nord, Almaj, Dolj T: 0040 251 315862 F: 0040 251 315882

Regia Autonoma de Administrare a Domeniului Public si a Fondului Locativ RA Craiova Str. Mihai Viteazul, nr. 20, Craiova, Dolj T: 0040 251 411214 F: 0040 251 414205

Vegetable production

State Company for Public Domain Administration – Ornamentals and Landscape gardening of public area

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Eco Wald SRL Str. Oras Bumbesti Jiu, nr. 392, Curtisoara, Gorj T: 0040 253 464546 F: 0040 253 464547 [email protected] www.ecowald.ro

Bosco Amico SRL Str. Progresului, nr. 35, Hateg, Hunedoara T: 0040 254 770471 F: 0040 254 770471 Wild mushrooms – harvest and processing

Wild mushrooms – harvest and processing Leader International SA Soseaua Bucuresti – Targoviste, nr. 20, Mogosoaia, Ilfov T: 0040 21 3504283 F: 0040 21 3504285 [email protected]

Flora Sercom SA Str. Calea Timisoarei, nr. 179, Drobeta Turnu Severin 220235, Mehedinti T: 0040 722 512132 F: 0040 252 313488 [email protected] www.florasercom.ro

Vegetables and fruits production processing Leoser SA Intr. Serelor, nr. 2, Sector 4, Bucharest T: 0040 723 423224 F: 0040 21 3321285 [email protected] www.leoser.ro

Ornamentals and flower production and landscape gardening of public area Berser SA Str. Drumul Binelui, nr. 6, Sector 4, Bucharest T: 0040 21 4610138 F: 0040 21 4610138

Vegetable and flower in greenhouse

and

Vegetable and flower in greenhouse

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Specialised Magazines and Periodicals Casa si Gradina Str. Buzesti, nr. 85, Sector 1, Bucharest T: 0040 31 2258700 F: 0040 31 2258715 [email protected] www.femeia.ro/casa-si-gradina/

Misiunea Casa Sos. Panduri, nr. 25, Sector 5, Bucharest T: 0040 21 4110029 F: 0040 21 4110329 [email protected] www.misiuneacasa.ro

Casa Mea Piata Presei Libere, nr. 1, cop A3, et. 1, Sectro 1, Bucharest T: 0040 21 2223134 F: 0040 21 2223149 [email protected] www.hiparion.com

1001 Case Bld. Mircea Eliade, nr. 18, Etaj 3, Sector 1, Bucharest 012015 T: 0040 31 1021435 F: 0040 31 1021437 [email protected] www.1001case.ro

Casa Lux Casa de vacanta Str. Ciprian Porumbescu, nr. 10, Sector 1, Bucharest 010652 T: 0040 21 3145410 F: 0040 21 3145410 [email protected] www.casalux.ro

Hortipedia- on line magazin Str. Campul cu Narcise, nr. 58, Sector 2, Bucharest 022956 T: 0040 21 2410366 F: 0040 21 2410366 [email protected] www.hortipedia.ro

Practic Idei pentru casa si gradina Str. Ciprian Porumbescu, nr. 10, Sector 1, Bucharest 010652 T: 0040 21 3170311 F: 0040 21 3170113 [email protected] www.practic-idei.ro Gradina mea de vis Str. Ion Campineanu, nr. 11, et. 3, Sector 1, Bucharest 01031 T: 0040 21 3122012 F: 0040 21 3113587 [email protected] www.burda.ro

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Fairs and Exhibitions – Romania

Name and coverage Agraria (International)

Place and Month Cluj-Napoca (May)

Profile

Organizer

Agricultural and Horticultural, Husbandry Products

Agrifood

Brasov (April)

Agriculture, Horticulture, food industry

Agroexpo

Deva (March)

Agricultural and Horticultural Products

Agrotex

Craiova (May)

Agricultural and Horticultural Products

Ambianta

Ploiesti (May)

Outside/inside decorations

house

Casa Ta (Your Home)

Timisoara (September)

Outside/inside decorations

house

Expo Transilvania Str. Aurel Vlaicu f.n., Cluj-Napoca 400690 T: 0040 264 419074 F: 0040 264 419043 [email protected] www.expo-transilvania.ro Polo Expo Str. Fagarasului, nr. 44, Ghimbav 507075, Brasov T: 0040 268 258207 F: 0040 268 258622 [email protected] www.poloexpo.ro Chamber of Commerce Deva 1 Decembrie St., nr. 23, Deva, Hunedoara T: 0040 254 212924 F: 0040 254 218973 [email protected] www.ccihd.recep.ro Expo Oltenia Chamber of Commerce and Industry Dolj 21 Brestei, Craiova T: 0040 251 412652 F: 0040 251 412652 [email protected] www.ccidj.ro Casa de Cultura a Sindicatelor Bld. Republicii, nr. 65, Ploiesti, Prahova T: 0040 244 126579 Chamber of Commerce Timisoara Victoriei Square, nr. 3, Timisoara 300030, Timis T: 0040 256 220526 F: 0040 256 228709 [email protected] www.cciat.ro

124

Sibiu (September)

Conform

Outside/inside decorations

house

2

Exposib International Travel

Str. Telefoanelor nr. Sibiu T: 0040 269 217893 F:0040 269 217004 [email protected] www.exposib.ro

Suceava (September)

Outside/inside decorations

Expo Flores

Constanta (September)

Flowers and ornamentals, landscape gardening

Florex

Cluj-Napoca (October)

Flowers and ornamentals, landscape gardening

Gardenia

Arad (April)

Tools and equipment for landscape gardening, flower exhibition

Expo Ambient

Casa

house

1,

Chamber of Commerce Suceava Str. Universitatii, nr. 15-17, Suceava T: 0040 230 521506 F: 0040 230520099 [email protected] www.ccisv.ro Chamber of Commerce Constanta Bld. Lapusneanu, nr. 185A, Constanta T: 0040 241 619761 F: 0040 241 619454 [email protected] www.ccina.ro Expo Transilvania Str. Aurel Vlaicu f.n., Cluj-Napoca 400690 T: 0040 264 419074 F: 0040 264 419043 [email protected] www.expo-transilvania.ro Expo Arad Cl. Aurel Vlaicu FN, Arad T: 0040 257 216520 F: 0040 257 216521 [email protected] www.expoarad.ro

125

Florist Day

Bucharest (May-June)

Cut flowers, pot flowers

Flori la malul Dunarii (Flowers by the Danube River)

Galati (June)

Flowers and ornamentals, landscape gardening

Herastrau Park

Bucharest (May)

Flowers and ornamentals, landscape gardening

Indagra (International)

Bucharest (November)

Agriculture, Husbandry, Horticulture

Primavara Floricola (Floricultural Spring)

Cluj-Napoca (May)

Flowers and ornamentals, landscape gardening

Roadele Toamnei (Autumn Fruits)

Craiova (October)

Agricultural and Horticultural Products

City Hall Sector 2 & Florists’ Association Str. Chiristigiilor nr. 11-13, Bucharest T: 0040 21 2096000 F: 0040 21 2096282 [email protected] www.ps2.ro Botanic Garden Galati Str. Domneasca 91 T: 0040 236 411898 F: 0040 236 414475 [email protected] www.cmsngl.ro City Hall Sector 1 Bld. Banu Manta, nr. 7-9, Bucharest T: 0040 21 3191013 F: 0040 21 3191006 [email protected] www.primariasector1.ro Romexpo Bld. Marasti, nr. 66-67, Bucharest 011465 T: 0040 21 2025705 F: 0040 21 2077070 [email protected] www.romexpo.org

Expo Transilvania Str. Aurel Vlaicu f.n., Cluj-Napoca 400690 T: 0040 264 419074 F: 0040 264 419043 [email protected] www.expo-transilvania.ro Expo Oltenia Chamber of Commerce and Industry Dolj 21 Brestei, Craiova T: 0040 251 412652 F: 0040 251 412652 [email protected] www.ccidj.ro

126

Salonul National de Agricultura (National Exhibition for Agriculture)

Iasi (May)

Agricultural and Horticultural, Husbandry Products

Simfonia Lalelelor (Tulips Simphony)

Pitesti (April)

Flowers and ornamentals, landscape gardening

Spring Expo

Oradea (March-April)

Building materials, outside/inside house decorations

Timagroalim

Timisoara (June)

Agricultural and Horticultural Products

Chamber of Commerce Bld. Carol I, nr. 27, Dealul Copou, Iasi 700507 T: 0040 232 268001 F: 0040 232 214530 [email protected] www.cciasi.ro City Hall Pitesti Str. Victoriei, nr. 24, Pitesti 110017, Arges T: 0040 248 220088 F: 0040 248 212166 [email protected] www.primariapitesti.ro Varadinum Expo Str. Roman Ciorogariu, nr. 24, Oradea 410017, Bihor T: 0040 359 401438 F: 0040 259 401961 [email protected] www.varadinum.ro USAMV Calea Aradului nr. 119, Timisoara T: 0040 256 494023 F: 0040 256 200296 [email protected] www.usab-tm.ro

127

List of Interviewed Companies Horticultural Dutch Companies registered in Romania Gardener SRL 195/A Principala St. Osorhei, Bihor T: 0040 259 313427 F: 0040 259 313429 [email protected] www.gardener.ro

Holland Farming RO SRL 10 Intr. Aviator Caranda, Bl.L1st Floor, Ap. 5 Sector 6, Bucharest 061521 T: 0040 21 4102165 F: 0040 21 4100889 [email protected] www.hollandfarming.ro

Ornamentals and gardening accesories Holland Flower Trading 29 A Stefan cel Mare Drive, Bucharest 020127 T: 0040 21 2100664 F: 0040 21 2122818 [email protected] www.hollandflower.ro

Vegetable and flowers seeds and gardening accesories Kolster Quality flor-plants SRL 27 Mihai-Viteazul St., Ocna Mures 515700, Alba T: 0040 749 256789 F: 0040 258 873843 [email protected]; [email protected] www.eplant.ro

bulbs,

Cut flowers and indoor pot plants; flower arrangments Lacor Trade 226 Odorhei St., Osorhei 417360, Bihor T: 0040 259 313427 F: 0040 259 313427 [email protected] www.lac.ro

Ornamentals and landscape gardening services

Aquatic plants and aquatic accesories Semplant Romhol SRL 18 C Brancoveanu Bld., Bl. B7, Ground Floor, Ap. 91/97, Sector 4, Bucharest 041434 T: 0040 21 4603349 F: 0040 21 4603088 [email protected]

Professional flower seeds and bulbs The Gardening Company 59 Lt. av. Marcel Andreescu, 3rd Floor, Ap. 4, Sector 1, Bucharest 011646 T: 0040 21 4054817 F: 0040 31 4054818 [email protected] www.t-r-e-s-g.com

Vegetable and flower seeds and bulbs, gardening accesories Fresh Flowers SRL Sos. Vitan-Barzesti 5-7, Bucharest T: 0040 722 484365 [email protected]

Landscape gardening

Sahin Str. Agricultori, nr. 93, Bucharest T: 0040 21 3277070 F: 0040 21 3277073 [email protected] www.sahin.ro

128

Other Interviewed Parties Adri Prodcom Calea 13 Septembrie, nr. 71, Bl. 69, ap. 9, Bucharest T: 0040 723 271138 F: 0040 21 3401840 www.adrisem.ro

Agrosel Str. Laminorului FN, Campia Turzii 405100, Cluj T: 0040 264 365096 F: 0040 264 365157 [email protected] www.agrosel.ro

Vegetable and flower seeds and bulbs, gardening accesories

Vegetable and flower seeds

Amia International Str. Emil Racovita, nr. 13, Pipera, Ilfov T: 0040 21 4908296 F: 0040 21 4908299 [email protected] www.zappmobile.ro

Anita Art Market Dorobanti T: 0040 744 500236

Cut flowers and flower arrangments Vegetable and flower seeds Biota 235 Gheorghe Doja St., Tg. Mures, Mures T: 0040 723 991891 F: 0040 265 230661 [email protected]

Casa Verde Sos. Unirii, Balotesti, Ilfov T: 0040 721 427336 [email protected] www.casaverde.ro

Ornamentals

Landscape gardening services

Concolor Str. Bogdan Voda, nr. 219A, Sighetul-Marmatiei, Maramures T: 0040 740 135913 [email protected] www.concolor.ro

Cris Garden Plaza Sos. Bucuresti-Ploiesti, km. 15, Bucharest T: 0040 21 2360466 F: 0040 21 2360871 [email protected] www.crisgarden.ro

Ornamentals Ornamentals, indoor pot plants, gardening accesories

129

Cristina Iatan Prodcom Str. 1 Decembrie 1918, Dragomiresti Deal, Ilfov T: 0040 721 215649 F: 0040 21 6372518 [email protected] www.petale.ro

Dacardi Impex Calea Santandrei nr. 48, Oradea 410238, Bihor T: 0040 259 465206 F: 0040 259 465206 [email protected] www.piatadeflori.ro

Flower shop and online shop

Ornamentals, cut and pot flowers

Darvasi Eduard Timisoara T: 0040 749 105993 [email protected]

Decoflora Str. Dionisie Lupu, Bucharest T: 0040 21 2122549 F: 0040 21 2109576 [email protected] www.decoflora.ro

Cut flowers producer

nr.

46,

Ornamentals and indoor gardening accesories Eco Horticultura Bld. Timisoara, nr. 89, Bucharest T: 0040 744 370290 F: 0040 21 6665335 [email protected] www.eco-horticultura.ro

Sector

pot

1,

plants,

Ene Lucian Stoenesti, Giurgiu T: 0040 744 638356 Ornamentals producer

Ornamentals and landscape gardening Eutectic Prod Str. Matei Corvin, nr. 167, Oradea 410140, Bihor T: 0040 359 806815 F: 0040 259 465455 [email protected] www.eutectic.ro

Flora Holland Balotesti, Ilfov T: 0040 21 35000745 F: 0040 21 35000747 [email protected] www.flora-holland.pa.ro

Ornamentals and landscape gardening

Cut flowers

130

Flora International Sos. Afumati, nr. 13, Tronson D, Office 22, Voluntari, Ilfov T: 0040 31 4052422 F: 0040 31 4052421 [email protected] www.florainternational.ro

Floraline Str. Pacurari, nr. 42, Iasi T: 0040 740 160478 F: 0040 232 262243 www.floraline.ro Cut flowers

Cut flowers Floraria Iris Str. Baratiei, nr. 34, Bucharest T: 0040 21 3144210 F: 0040 21 3127738 [email protected] www.florariairis.ro

Florists’ Association Str. Colentina, Sector 2, Bucharest T: 0040 721 197229 F: 0040 21 2411759 [email protected] www.asociatiaflorarilor.ro

Cut flowers and flower arrangments, indoor pot plants Flower Shop ‘Codlea’ Bld. Ferdinand, Bucharest T: 0040 21 2520027 Cut flowers, indoor pot plants

GMB Vivai Str. Laminorului, nr. 8, Targoviste 130089, Dambovita T: 0040 245 220780 F: 0040 245 220780 [email protected] www.vivaipiante.org Oranmentals nursery

Hollandia Green CP 118, OP 44, Bucharest T: 0040 21 4570505 F: 0040 21 4570507 [email protected] www.hollandiagreen.ro

Hortigala Str. Jokai Mor, nr. 18A, Sf. Gheorghe, Covasna T: 0040 740 509326 [email protected]

Indoor pot plants

Ornamentals and garden roses

131

Forest Research and Administration Institute (ICAS) Sos. Stefanesti, nr. 128, Sector 2, Bucharest 077190 T: 0040 21 2406095 F: 0040 21 2406845 [email protected] www.icas.ro

Kalmia Reghin, Mures T: 0040 265 511799 F: 0040 265 511800 [email protected] www.gradina-casa.ro Ornamentals and gardening accesories

Nursery Kemo Pharma Str. Principala, nr. 1042B, Sangeorgiu de Mures, Mures T: 0040 265 318945 F: 0040 265 318945 [email protected] www.odu.ro Garden center, landscape gardening Madalina Mocanu Str. Panait Istrati, nr. 7, Bucharest T: 0040 721 952120 [email protected] www.madalinamocanu.ro Flower arrangments

Town Hall Adunatii Copaceni Copaceni, Jud. Ilfov T: 0040 727 892757 F: 0040 21 4687174 Producers of cut and pot flowers

Liana Flowers Prod Str. Eforie, nr. 8, Sector 5, Bucharest T: 0040 21 3141606 F: 0040 21 2303272 Cut flowers

Magnolia Piata Stefan cel Mare, nr. 5, Cluj-Napoca 400192, Cluj T: 0040 264 592830 F: 0040 264 592831 [email protected] www.magnolia.ro Cut flowers, flower arrangements, indoor pot plants Monjardin Services Bld. Dacia, nr. 72, Oradea, Bihor T: 0040 259 463341 F: 0040 259 463341 [email protected] www.monjardin.ro Cut flowers and flower arrangments

Nely Comercial Flowers SRL Domenii Market, Sector 1, Bucharest T: 0040 740 566815 www.floraria-nely.ro

Pepiniera Mures Comuna Vladimirescu, Timis T: 0040 744 617936 F: 0040 256 370344

Cut and pot flowers, flower arrangements, ornamentals

Nursery

132

Romstal Garden Sos. Vitan, 11A, Sector 4, Bucharest T: 0040 721 270207 F: 0040 21 3320901 [email protected] www.romstal-garden.ro

Sem-Luca Str. Iancu Vacarescu, nr. 39, Timisoara, Timis T: 0040 744 860805 F: 0040 256 202517 [email protected] www.sem-luca.ro

Ornamentals and indoor pot plants, vegetable and flowers seeds, gardening accessories

Vegetables, flowers, technical plants, seeds and bulbs

Semperflorens Calea Grivitei, nr. 404, Bl. P, Sc. A, Ap. 2, Sector 1, Bucharest T: 0040 21 6671795 F: 0040 21 2226858 [email protected] www.semperflorens.ro

Serele de Flori Anita Str. Fermei, nr. L3, Otopeni 075100, Ilfov T: 0040 722 783220 F: 0040 21 350827 [email protected] www.sereleflorianita.ro

Producer&Importer-ornamentals; gardening accesories Tria’s Amway Bld. Timisoraa, nr. 106, Bucharest T: 0040 751 136410 [email protected] www.trias.ro

Producer of cut and pot flowers Viscol Ion Pitesti T: 0040 744 496611

Cut and pot flowers, indoor pot plants WKW Invest Str. Laterala, nr. 82, Codlea 505100, Brasov T: 0040 728 907588 [email protected] www.eralgroup.ro

Producer of Ornamentals Yurta-Prod Bld. Brasovului, Sacele 505600, Brasov T: 0040 268 273039 F: 0040 268 273039 [email protected]

Consultancy for Dutch flowers exporters

Ornamentals and garden roses

133

Floriengross Piata Sudului, Centrul de Afaceri Mici si Mijlocii, Room 35, Bucharest Contact person: Raluca Nitu T: 0040 721 985057 F: 0040 31 8054205 [email protected] www.floriengross.com Cut and pot flowers, indoor pot plants

Azteka Gardens Calugareni village, no 231, Giurgiu T: 0040 722 535938

Profiflora Liviu Rebreanu 81, Arad T: 0040 257 250887 F: 0040 357 421061

Unigarden Sos. Nicolae Titulescu 51-59, Bucuresti T/F: 3108053

Pot flowers and ornamentals producer

PSOM project- PSOM5/RM/1/93

Roplant Calea Fagarasului 47, Brasov T: 0040 268 412736 F: 0040 268 470662 [email protected] www.roplant.ro

Green Shop Sos. Pipera-Tunari 38 D, Pipera, Ilfov T: 0040 744 670044 F: 0040 21 2315883 [email protected] www.greenshop.ro

Distributor of pot plants and pot flowers Fresh Flowers SRL Sos. Vitan-Barzesti 5-7, Bucharest T: 0040 722 484365 [email protected]

Piata Cosbuc (Flower market) Bd. George Cosbuc 124 Sector 5 Bucharest, T: 0040 213359640

Buxus and pot flowers producer

Other Interviewed Parties Selgros Cash&Carry Romania 231 Calea Bucuresti, Brasov T: 0040 268 307363 F: 0040 268 307210 [email protected] www.selgros.ro

Romania Hipermarche (Cora) Lipscani 102, sector 3, Bucharest T: 0040 21 3000770 [email protected] www.cora.ro

Bricostore Romania SA Calea Giulesti 1-3, sector 6, Bucharest T: 0040 21 4044111 F: 0040 21 4044110 [email protected] www.bricostore.ro

Petrom SA Calea Dorobantilor 239, Sector 1, Bucharest T: 0040 21 4060040 F: 0040 21 4060420 [email protected] www.petrom.ro

134

G. KEY CONTACTS BULGARIA Public Organizations Ministry of Agriculure and Forestry (Directorate of Agricultural Development) 55 Hristo Botev Blvd., Sofia,Bulgaria T: 00359 2 985 11 315 [email protected] www.mzgar.government.bg National Service for Plant Protection (Phytosanitary Control Department) T: 00359 2 91 73 732 [email protected] www.nsrz.government.bg

Ministry of Agriculure and Forestry (Directorate of Rural areas Development) 55 Hristo Botev Blvd.,Sofia,Bulgaria T: 00359 2 985 11 336 [email protected] www.mzgar.government.bg

Non Government Organizations Union Of the Landscape Architects Bulgaria, Sofia City 1756, No10, "Kliment Ohridski" Blv. University of Forestry - Department of Landscape Architecture T: 00359 2 91907 F: 00359 2 8470644 [email protected] www.ula-bg.org Academic Institutions Agro Bio Institute Kostinbrod,Bulgaria T: 00359 2 963 54 11 www.abi.bg

Regionalen centar za nauchno-prilojno obslujvane po cvetarstvo I zemedelie Negovan ,Sofia,Bulgaria T: 00359 2 936 60 44

National Center for Agrarian Sciences of Bulgaria Souhodolska Str. 30,Sofia T: 00359 2 292 94 81 F: 00359 2 211 905 [email protected]

Institute of Floriculture, Sofia / National Center for Agrarian Sciences of Bulgaria / Bulgaria Negovan ,Sofia T: 00359 2 394 639 F: 00359 2 394 816

135

Natinal Academy of sciences/ Botanical institute Academic Bonchev Str., Bl. 23 ,Sofia,Bulgaria T: 00359 2 718 259 F: 00359 2 719 032 [email protected] www.bio.bas.bg/botany

Agrarian Institute Stara Zagora Stara Zagora T: 00359 42 606 991 F: 00359 42 607 048 [email protected];[email protected]

Agrarian Institute Karnobat 1 Industrialna Str. ,Karnobat T: 00359 559 2731 F: 00359 559 5847 [email protected]

Association of the bulgarian greenhouse production 12 Dobrotich Str. Plovdiv T: 00359 32 96 81 58 F: 00359 32 96 81 58 www.bapop.org

producers

of

Association of the Bulgarian Agricultural Producers 46A Rayko Aleksiev Str. ,Sofia T: 00359 2 873 29 11 [email protected]

Universities Agrarian University 12 Mendeleev Str. Plovdiv T: 00359 32 654 200 F: 00359 32 633 157 [email protected] www.au-plovdiv.bg

University of Forestry 10 Kliment Ohridski Blvd.,Sofia T: 00359 2 9 19 07 F: 00359 2 862 28 30 www.ltu.bg

Specialised Magazines and Periodicals Magazines EXTERIOR 25 Buzludja Str..Sofia T: 00359 2 950 0401 F: 00359 2 954 8653 [email protected] Magazine for garden decoration

Gradinata 1799 Post box 17,Sofia T:00359 2 975 2024 [email protected] Magazine for garden decoration

136

Landshftna arhitektura 29 Kutlovica Str ,Sofia T: 00359 2 94 33 215 F: 00359 2 94 33 215 Landscape architecture

Landshaften dizain 7 Yantra Str. Sofia T: 00359 2 843 70 07 F: 00359 2 843 70 07 [email protected] www.gradina-design.com Landshaft design

Home & Garden 25 Yantra Str.,Sofia T: 00359 2 944 12 48 F: 00359 2 944 12 48 Home and garden decoration

Newspapers Gradinar 113A Tzarigradsko shose Blvd.,Sofia T00359 2 975 20 43 [email protected] www.pres.bg

Moite tzvetya Orlandovtzi, 21 Lokarska Str.,Sofia Tel: 00359 888810905 Fax. 00359 2 822 78 46 [email protected]

Gardening Top Garden 100 Tintyava Str.,Sofia T: 00359 898357776 F: 00359 2 8191101 [email protected] Gardening

Gardening Hobby farmer 47 Tzarigradsko shose Blvd.,Sofia T: 00359 2 942 22 40 F: 00359 2 942 28 49 [email protected] Gardening

Vestnik za gradinata Sofia T: 00359 2 975 20 24 [email protected]

Moyata Gradina 47A Tzarigradsko shose Blvd.,Sofia T: 00359 898317383 F: 00359 943 36 55 [email protected] Gardening

Gardening Zelen Raj 113 Tzarigradsko shose Blvd.,Sofia T: 00359 2 975 20 46 [email protected] www.pres.bg Gardening

137

Fairs and Exhibitions Flora Spring National Palace of Culture, Sofia www.ndk.bg (middle March)

Flowers Festival Culture Centre, Albena

Flower Spring (March) Flower Autumn (October) International fair- 37 Osvoboditel Blvd. Plovdiv T: 00359 32 90 3600 F: 00359 32 90 2432 [email protected] www.fair.bg

Agra (February)

Tzar

T: 00359 2 985 11 336

Boris

III

Flora Burgas Burgas Organizer: Burgas municipality Т: 00359 56 84 18 78. Contact: Ms. Stoya Ivanova Flora (March) Inter expo center- 147 Tsarigradsko shosse Blvd.,Sofia T: 00359 2 9655 281 [email protected] www.bulgarreklama.com

International fair- 37 Osvoboditel Blvd.Plovdiv T: 00359 32 90 36 00 F.00359 32 90 24 32 [email protected] www.fair.bg

Tzar

Boris

III

Floriada Varna T: 00359 52 666000 Activities: Fair/Exhibition

138

Importers, Traders of Equipment Alvers 28, Sreburna Str. Sofia, Bulgaria T: 00359 2 8624062; F: 00359 2 8624138 [email protected] www.alvres-bg.com 2.1

Activities:Garden equipment

Aquamat 2000 48 Han Omurtag Str. Sofia, T: 00359 2 9430000; F: +359 2 9887365 [email protected] www.aquamat2000.com Activities: Garden technical equipment

technical

Aqua system Ltd. 20 Borislav,Str. Plovdiv Tel: 00359 32 651503 Fax: 00359 2 9501355 [email protected] www.aqua-sys.hit.bg Activities:Aqua systems

Avtotrade Ltd. 62, Chataldja Str. Sofia, Bulgaria Tel: 00359 2 9433241 Fax: 00359 2 8468280 [email protected] www.way-industry.sk Activities:Garden technical equipment

139

Bayk ET 13 Momina cheshma Str., office 706, Sofia, Tel: 00359 2 9731486; 9735660 Fax: 00359 2 9731486 [email protected] Activities: Flowers/Decorative plants equipment

2.2

Denex LTD/Gardena 2, Lui Ayer Str. Sofia Tel: 00359 2 8591048; 9581821,7; 9588139 Fax: 00359 2 8582107 [email protected] www.denex-bg.com www.gardena.com Activities:Garden technical equipment

Richel

Bourgas Tel.: (+359 878)889666 Fax.: (+359)56895294 e-mail: [email protected] Producers, Distributors, Importers, Retailers of Planting Material Agro Export Import LTD Varna T/F: 00359 52 609587 [email protected] www.agro-export.net Actvities: Importer (bulbs) from Litva and Belarus.

Niko Garden 219, Aleksander Stramboliiski, Sofia T: 00359 2 9200489, Nikolai Todorov; 00359 897 818018, Dora Balkanska 00359 897 818020 F: 00359 2 8512442 [email protected] www.totex.net Actvities: Official importer (grass mixtrures) of CARNEAU, France.

SGP-2001 Ltd. Lozenetz compl.Zvunika 8 str.,et.1,ap.4,Sofia T:00359 898) 507777 F:00359 48 969603 [email protected] www.sgp2001.com Actvities: Distributor (flower bulbs and seeds).

Gradina Kalina Todorova LTD Victory P.M. 112 Tzar Samuil Str.,1554 Sofia T: 00359 888 915488 F: 00359 2 9314169 [email protected] www.gradina.hit.bg Actvities: Trader and Importer (flower and vegatable seeds from America and Italy) IV 99-Ivanka Koleva mladost 2 Estate,bl. 207,entr.1,ap. 30,1799 Sofia T 00359 887 424973 F: 00359 2 9753975, 00359 2 755719 [email protected] Importer (seeds and flower bulbs) for lay out of balconies, terraces and gardens.

Petrov 43 DM Drin 31 str.,(next to the Koop market) Varna T: 00359 52 224563, F:00359 888 635631 [email protected] Actvities: Distributor (flower bulbs and seeds).

140

Bulrose Trade ET Pavlikeni T: 00359 610 52814 F: 00359 610 52814 Contact Person: Hristov/Galya Stoyanova Actvities: Producer of Rose roots,Trader

Burgastsvet-Baev Ltd 16, Bogoridi Str.,Burgas T :00359 56 841690 F:00359 56 827782 [email protected] http://www.burgascvet.com/ Contact Person: Mitko Baev Actvities: Trader (perenial ornamental plants; seeds, bulbs). Grassing. Planting. Landscaping.

CKS-P/Bultzvet Plovdiv T: 00359 887 302 300, F: 00359 357 2245 Contact Person: Cvetan Pukov Actvities: Trader (planting materials).

Fidus - Stefanovi i Sie p.o.box. 64 Pavlikeni T: 00359 610 52803 F: 00359 610 52802 Contact Person: Gergana Nikolova Internet: http://www.agroborsa.com/lilifidus/ Activities: Trader ornamental palnts).and Distributor (planting material

2.3

Flora Garden centre Ltd

Sofia T: 00359 2 9738500 F: 00359 2 9751400 [email protected] www.flora-bg.net Contact Person: Alexander Alexandrov GELD EOOD Kirkov Market, Sofia T: 00359 2 9836213, F: 00359 2 9836205 [email protected] www.geldbg.com Actvities: Trader of seeds, ornamental plants. 2.4 ODEXIM Ltd. 5 Tosho Katev Str. Pavlikeni T:00359 61 33873 F:00359 62 600788 Contact Person: Ognian Denchev E-mail: [email protected] Actvities: Trader

Geasem 8 Kalina Str., Liaskovets T:00359 619 24335 F: 00359 619 24335 [email protected] www.gaiasem.com Contact Person: Georgi Ivanov Actvities: Trader and Consultant (seeds and agrochemicals). Ivesto company 33 G.Gerasimov Str., Pazardjik Bulgaria T: 00359 34 444466 F: 359 887 703382 [email protected] www.ivestoseeds.com Actvities: Trader (flowers and seeds Plantava Ltd j.k. Mladost, bl. 353, vh. D, ap. 133,Sofia T: 00359 2 9732812; F:00359 2 9732812 [email protected] www.plantava.hit.bg Contact person: Valentin Petkov Actvities: Trader and Producer.

141

Qn Agro Vinica,before the road for Kichevo,Varna T: 00359 888 688579

Razcvet Stoev ET Zora,compl., Stara Zagora T: 00359 42 690583, F:00359 887 596683 www.razcvet.com Contact person: Mr. Stoev Actvities: Trader (indoor and outdoor ornamental plants).

Victory P.M. 150 Vasil Levski Blvd., Sofia T: 00359 2 9434457; 00359 888 451713 Contact person: Mariana Victorova

VIP-3 LTD Dobri Hristov Str., block 3,Sofia tel.: 00359 2 958 77 55 [email protected] Actvities: Trader (bulbs and seeds).

М & M Trading 20 Chumerna Str.,Sofia T: 00359 2 983 47 86, Actvities: Trader (bulbs and seeds).

VISSER -Opora Ltd. Mladost 1 Compl.,bl.54, office 6-b,Sofia T:00359 2 9743405 Contact person: Tervel Nikolov Actvities: Seed-bed

Scandens G.Benkovski 16,str., Varna T: 00359 52 302184 www.scandens.hit.bg

Sekvoq-ET Suikovi Drujba1,compl.,D.Spisarevski,Str.,by Vascony,Sofia T: 00359 888 309330 Actvities: Garden center. Planting.

142

Producers, Distributors, Importers, Retailers of Cut Flowers Brit JSCo (Leia Balkan) 43, San Stefano Str., Pleven T: 00359 64 801556 F: 00359 64 801785 [email protected] www.lejabalkan.com Producer of cut flowers Burgastsvet 90-Tanev EOOD blvd. "Bogoridi" 16, Bourgas T: 00359 56 841660 F: 00359 56 841688 [email protected] www.bourgastsvet-90.com Flower shop Cereus Primorski park,str., Varna T: 00359 92 622192 F: 00359 92 622192 [email protected] www.cereus-bg.com

Buket 147 Rakovski str.,63 V.Levski blvd.,62 Patriarh Evtimii blvd., Sofia T: 00359 2 981 45 30 Flower shops

Bulrose Trade ET Pavlikeni T: 00359 610 52 814 F: 00359 610 52 814 Producer, Trader, Exporter of Cut flowers and Planting material Cvetna Magiq 99 Knqz Boris I,str., Sofia T: 00359 2 980 47 83 [email protected] www.flowersmagic.com Flower shop

Flower shop Danaila Shop "Hubcha" St. 2, Varna T: 00359 888 582555 [email protected] www.danaila.hit.bg

Decor Tzvet Garden Centres Trud Village Karlovsko Shousse St., Plovdiv T: 00359 887 213734, F: 00359 898 746968 Flower shop

Trader of dry flowers and decorations Dilas ET Dondukov St. 24, Sofia T: 00359 2 9803540 F: 00359 2 313340 [email protected]

Di-Va Ltd 10, Pimen Zografski Str., Sofia T: 00359 2 8686168 F: 00359 2 9625830 [email protected] www.divaflora.com

Flower shop Djin Djur 63 Neofit Rilski Str., Sofia Flower shop

Flower shop. Online deliveries. Fantasy Blvd. "Shipchenski Prohod" 18, Sofia T: 00359 899 688160, F: 00359 886 587602 [email protected] Flower Botique 143

Feite - Flower Shop Rakovska St. 147, Sofia T: 00359 2 9801810 F: 00359 2 9813190 [email protected] www.mcibg.com/feite

Flora Art trading Bourgas "Hr. Botev St." 35, Bourgas T: 00359 56 816489 F: 00359 56 816489 [email protected] www.dianacvet-bs.net

Flower shop Flora Commerce Ltd. 7, Khan Asparuh Str., Sofia T: 00359 2 9531682 F: 00359 2 9531682 [email protected] www.flora-com.com

Flower Shop Floresta - Total Komers Gen Kolev St. 68А, Varna T: 00359 596 85070 F: 00359 52 634585 [email protected] www.florestabg.com

Trader (Arum lilies, Chrysanthemums, Carnations, Dahlias, Roses) Flower House -Tzvetan Zlatev Market Druzba -1, Sofia T: 00359 888 518962 F: 00359 2 9791810 [email protected] www.fhousebg.com

Flower shops. Delivery. Garden Style - ЕТ Nankova Alexander Stambuliski St. 54 A, Karlovo T: 00359 888 612503 Flower Shop

Online flower shop. Delivery. Gratsia Veliko Turnovo T: 00359 887 895623 [email protected] www.flower-bg.com

Hambarov Luben Karavelov Str. 8, Dobrich T: 359 887 865446 F: 00359 58 625584 [email protected]

Flower Shop Iris Day 18 Aleko Konstantinov Str., Svishtov T: 00359 63202 587 F: 00359 63202 614 [email protected] www.ivestoseeds.com Producer of cut flowers - roses

Flower Shop Jarden-Florist "Kniaz Boris I" 120, Sofia T: 359 2 9863810 F: 359 2 9863812 [email protected] www.jarden-florist.com Online flower shop. Delivery.

144

Lotos Flowers 112, Vladimir Vazov Blvd., Sofia T: 00359 2 9450133 F: 00359 2 3450137 [email protected]

Lucky Tours ЕТ 4 Velcho Atanasov str., Sofia T: 00359 2 8437685 [email protected] Flower Shop

Trader (cut flowers from the Netherlands, South Africa, Equador; Garden plants form the Natharlands and Italy). Maria 94 LTD 46 Stoyan Mihailovski Str.,4000 Plovdiv T: 00359 32 628281 F: 00359 32 2614 Importer (artificial and dried flowers, bouquets, green plants, trees and bushes). MN - Mariana Uchikova ET Blvd. "Maria Louisa" №55, Pazardzik T: 00359 98 867290 F: 00359 34 444897 [email protected] www.mnu.hit.bg/Deinost.htm

MAX ET Simeonovo, Sofia T: 00359 888 363762 [email protected] Flower Shop NIKE 99 7 Raiko Tsonchev Str., Dobrich T: 00359 58 44215; 25282 F: 00359 58 44215 [email protected] Trader (flowers and decorative plants)

Flower Shop Orchid blvd. N. Gabrovski 12, Sofia T: 00359 2 9625442 F: 00359 2 9625442 [email protected]

Paradise Alabin St. 14, Sofia T: 00359 2 9864628 F: 00359 2 9864628 Activities: Flower Shop

Flower Shop Royal flora Ltd 27, Tsar Ivan Alexander Str., Sofia T: 00359 2 9200361 F: 00359 2 9887365 [email protected]

Sadmodiva EOOD blvd. "Slivnitsa" 79, Varna T: 00359 898 668020 F: 00359 52 640250 E-mail: [email protected]

Trader (flowers and florist supplies). Shop for flowers and presents Obelia – 2, Sofia T: 00359 2 9341521 F: 00359 2 93415 21 [email protected] www.cvetia.8m.com

Activities: Flower Shop Siana 5 Ochrid str., Varna T: 00359 52 600382 F: 00359 52 600382 [email protected] www.sijana.911.bg

Flower Shop

Flower Shop

145

SP Lulin 8 Obelsko shosse, Sofia T: 00359 2 826 32 80 [email protected] Producer and Trader

Status Ltd 83, Gueshevo Str., Business Centre Serdika, Sofia T: 00359 2 9205280; 9205751 F: 00359 2 9205736 [email protected] Trader (Carnations, Orchids, Roses, Tulips)

Stavros 91 ET Village Usoika, Dupnitza T: 00359 701 52488 F: 00359 701 52488 Flower Shop

Strelitsia Krasno Selo – market, Sofia T: 00359 2 8581321 F: 00359 2 858 13 21 [email protected] www.strelitzia-bg.com

The house of the flowers Tzar Asen St. 24, Sofia T: 00359 2 8467588 F: 00359 2 9734814 [email protected] www.houseoftheflowers.911.bg/

Flower Shop The Jungle "Odesos" St. №19, Varna T: 359 52 614683 F: 00359 52 614683 [email protected] www.jungle-bg.com

Flower Shop TILIA / ZUREL 21, Goliamo Konaksko Shose Str., Maritsa T: 00359 32 622480 F: 00359 32 622445 [email protected]

Flower Shop Tzvetika blvd. "Patriarh Evtimi" 97, Stara Zagora T: 00359 42 604107 F: 00359 42 604107 [email protected] www.tzvetika.bol.bg

Trader importer (pot plants, cut flowers and bulbs) Tzvetna Magia "Kniaz Boris I" 99, Sofia T: 00359 2 9804783 F: 00359 2 9804783 [email protected] www.flowersmagic.com Online flower shop. Delivеry. Vanina Complex Trakia, Shopping Center Arena, Plovd T: (+359 898) 545234 [email protected]

Flower Shop Tzvetomania EOOD Blvd. "Simeonovsko Shousse" 8, Sofia T: 00359 888 630613 [email protected] Flower Shop

Victory P.M. 150 Vasil Levski Blvd., Sofia T: 00359 2 9434457 Trader (cut flowers, seeds and bulbs. Landscaping.

Flower Shop

146

ZP Ivelin Atanasov 3 A Chataldja Str.,app 3, Varna T: 00359 898 510196

ZP Mario Duschkov 10 Stoletov Str., Pavlikeni T: 00359 610 6468

Trader ornamental plants ЕТ "Milena Delcheva" 30 Polkovnik Bonev St., Plovdiv T: 00359 32 968676 [email protected]

Planting.

Trader (cut flowers).

147

Producers, Distributors, Importers, Retailers of Ornamental Outdoor Plants

Garden center Mimoza Primorski park Str., Varna Tel.: (+359 52) 302 590 Fax: (+359 52) 335888 Contact person: Hristo Georgiev e-mail: [email protected] www.mimozabg.com

Albicia 13-Ivelin Atanasov - Gradinski centar Viaturna Melnica 3 A Chataldja Blvd., app.3, Varna Tel: (+359 52) 305389, (+359 898) 510196

ASIS-Asen Boshikiov before road fork Boboshevo, on the left Blagoevgrad Tel: (+359 887) 564953, (+359 887) 916244

Azalia (Planting) 109 Dimitar Talev,Str. Plovdiv Tel: (+359 898) 545958 Activities: Garden center. Planting.

Bojilovy Pavlovo, Preki put 9 str. Sofia Tel: (+359 2) 8557942, (+359 898) 604333 Contact Person: Petrana Bojilova e-mail: [email protected] www.bojilovy-bg.com

Botanik P.M. Harmanliisko shousse, Haskovo Tel: (+359 38) 624741; (+359 38) 661309 Fax: (+359 38) 661309 Contact Person: Sasho Rainov e-mail: [email protected] www.botanikbg.com

Bratq Stoqnovi Vitosha,comp.,31 Georgi Zlatarski,Str. Sofia Tel: (+359 887) 859578, (+359 888) 772388 Activities: Garden center (ornamental plants)

Brezite 2005 village Rositza, to the left Pavlikeni, village Bqla Cherkva Tel: (+359 899) 876342 Activities: Garden center (ornamental plants)

148

Chinarite Horizont 1,str. Village Purvomai Tel: (+359 888) 605294, (+359 889) 715051 www.powersoft.bg/chinarite

Erika Ko West industrial zone Varna Tel: (+359 52) 509696 Fax: (+359 52) 509698 e-mail: [email protected] www.erikagardening.com Activity: Importer/Exporter

Garden center Dolni Bogrov Botevgradsko shose-Dolni Bogrov Sofia Tel: (+359 887) 631396, (+359 886) 534076

Garden center Dubnika 6,Ivaylo,Str.,app.3 Vraca Tel: (+359 888) 231067

Garden center Vidin 10 Dunavska,Str. Vidin Tel: (+359 898) 436704 www.pureportals.com

Garden Paradise 45 Georgi Jivkov,Str. Varna Tel: (+359 52) 658577, (+359 878) 492841, (+359 898) 492841 www.gardens.hit.bg

149

Golqma mogila before theroad for Rogachevo Balchik Tel.: (+359 895) 709910, (+359 887) 608690, (+359 888) 304449

Kedar Garden Center Dragalevci,compl.,2 Krairechna,Str. Sofia Tel: (+359 2) 9675017, (+359 889) 803939 Contact Person: Marina Mateva Activities: Garden center. Planting.

Licenziran razsadnik G.Benkovski 35,str. Pavlikeni Tel: (+359 610) 4720, (+359 888) 489287, (+359 889) 019278 Fax: (+359 48) 1871111272 E-mail: [email protected] Internet: www.gabriel.pavlikeni.info Activities: Garden Center

Ozelenyavane-Intertorgo Razsadnik,Pazardjishko shose 4km. Plovdiv Tel: (+359 888) 760857, (+359 888) 620692 Fax: (+359 32) 634668 E-mail: [email protected] Internet: www.ozelenyavane.business.bg

Razsadnik Gabrica Koril I Metodii 2,str. Village Gabrica Tel: (+359 895) 386243 Contact Person: Iulian Markov Internet: www.rosa85.hit.bg

Razsadnik Studen Kladenec left coast to the dam lake Studen kladenec Kurdjali Tel.: (+359 361) 64560 e-mail: [email protected] www.fidanki.hit.bg

Scandens G.Benkovski 16,str. Varna Tel: (+359 52) 302184 www.scandens.hit.bg

Sekvoq-ET Suikovi Drujba 1,compl.,D.Spisarevski,Str.,by Vascony Sofia Tel: (+359 888) 309330

SG Flowers Lozenec,compl.,Hristo Smirnenski,Blvd. Sofia Tel: (+359 887) 321433, (+359 887) 954122 Internet: www.sg-flowers.com

Agrospectar Ltd. Pochivka bus stop Varna Tel: (+359 887) 208778 E-mail: [email protected] Internet: www.agrospektar.business.bg Activities: Trader (ornamental plants and flowers)

ALD Parkove I Gradini 3 Bratia Shkorpil Str. Varna Tel.: (+359 52) 601813; (+359 885) 822918 Fax: (+359 52) 601813 Contact person: Pavlina Nikolova e-mail: [email protected] Activities: Trader (ornamental plants and flowers).

Aleksandur Suvandjiev Studen Kladenec 33 str.,bl.Ledeno EzeroA,vh.V,et.7 Tel: (+359 82) 642480 Activities:Trader (flowers)

150

Bioflora 51 A Marica Str. Plovdiv Tel: (+359 32) 954171 Fax: (+359 32) 954171 Activities: Trader and producer (flowers)

Bulgarska gradina Pavlikeni Tel: (+359 2) 9276535, (+359 888) 142276 Fax: (+ 359 2) 9276535 E-mail: [email protected] lInternet: www.gradinabg.com Activities: Trader (ornamental plants and flowers)

Burgastsvet-Baev Ltd 16, Bogoridi Str. Burgas Tel: (+359 56) 841690; 841691 Fax: (+359 56) 827782 Contact Person:Mitko Baev E-mail: [email protected] lInternet: http://www.burgascvet.com/ Activities: Trader (perennial ornamental plants; seeds and bulbs). Planting. Grassing. Landscaping.

Ecoles Ltd 27, Ivan Vazov Str. Pleven Tel.: (+359 64) 800296 Fax: (+359 64) 800296 Contact person: Rumen Papazov e-mail: [email protected] www.ekoles.com Activities: Trader (shrubs, evergreen ornamental plants)

FLOREX Ltd (Producer and Importer) 24-34 Lozenets Str., entr. B, Sofia Tel: (+359 2) 8669038 Fax: (+359 2) 8669038 E-mail: [email protected]; [email protected] www.florex-bg.com Activities: Trader, Producer and Importer

Flora-Design 180 Brezovsko shose,Golqmokonarsko shose 5km. Plovdiv Tel: (+359 888) 602449, (+359 889) 510190 Fax: (+359 32) 432801 Internet: www.floradesign.hit.bg Activities: Trader (indoor and outdoor plants)

151

Flora-Pavlikeni Pavlikeni Tel: (+359 610) 52922,5 5132, (+359 887) 824916, (+359 887) 193195 Internet: www.flora.pavlikeni.info Activities: Trader (cosmetics plants, roses)

FLOREXIM Ltd. z.k. Mladost 2, bl. 202 Sofia Activities: Trader and importer

Gradinski center Vqturna melnica 72,Prilep,str. Varna Tel.: (+359 52) 305389, (+359 898) 695581 www.miro69.business.bg Activities: Trader and Producer

Kio-Ivan Uzunov EOOD Yavorov,compl.,bl.12,A Sofia Tel: (+359 2) 9437949, (+359 886) 621191 E-mail: [email protected] www.Kyo-landscape.com Activities:Producer and trader

Kozarovi Ltd. 7 Struma,Str. Ravda Tel: (+359 554) 66777; (+359 887) 270203, (+359 887) 600288, (+359 889) 781772 E-mail: [email protected] Activities: Trader and Producer

L2-Sofia Akad.G.Bonchev 7 Sofia Tel: (+359 2) 9796713, (+359 888) 906076 Activities: Trader and Producer

Kozarovi Ltd. 7 Struma,Str. Ravda Tel: (+359 554) 66777; (+359 887) 270203, (+359 887) 600288, (+359 889) 781772 E-mail: [email protected] Activities: Trader and Producer

L2-Sofia Akad.G.Bonchev 7 Sofia Tel: (+359 2) 9796713, (+359 888) 906076 Activities: Trader and Producer

152

Lotos Flowers 112, Vladimir Vazov Blvd. Sofia Tel: (+359 2) 9450133 Fax: (+359 2) 3450137 Contact Person: Lubomir Etulgov E-mail: [email protected] Activities: Trader (cut flowers and outdoor plants). Importer from the Netherlands, South Africa, Equador; Italy

Ozelenyavane 5 Petko Karavelov Blvd. Sofia Tel: (+359 2) 9522161, 9522398 Activities: Trader (ornamental plants and flowers)

Parkstroy Ltd 3, Kotovsk Str., Ruse Tel: (+359 82) 845804; (+359 82) 845526 Fax: (+359 82) 841435 Contact Person: Gergana Nikolova E-mail: [email protected] Internet: http://www.parkstroy.com Activities: Trader (ornamental plant seedlings). Landscaping. Design (gardens and parks, recreation and sports grounds).

Qn Agro Vinica, before the road for Kichevo Varna Tel: (+359 888) 688579 Activities: Trader

Razcvet Stoev ET Zora,complex, Stara Zagora Tel: (+359 42) 690583, (+359 887) 596683 Contact Person: Stoev - 0888/995247 E-mail: www.razcvet.com Activities: Trader (indoor and outdoor ornamental plants).

SP Lulin 8 Obelsko shosse Sofia Tel: (+359 2) 826 32 80, 0899 88 97 97 Contact Person: Vladimir Angelov E-mail: [email protected] Activities: Trader and Producer

Bulkom Ltd. 37-d-8 Starogozia compl. Pleven tel.: (+359 887) 467588, (+359 887) 467599 e-mail: [email protected] www.bulkomeood.business.bg Activities: Producer (evergreen trees and flowers)

Dekorativen razsadnik Berkovica Musala 1,str. Berkovica tel.: (+359 953) 88004, (+359 899) 702523 fax: (+359 953) 88004 e-mail: [email protected] www.kastanea.hit.bg Activities: Decorative nursery

Decor Tzvet Garden Centres Trud Village Karlovsko Shousse St. Plovdiv tel.: (+359 887) 213734, (+359 898) 746968 Activities: Flower Shop

153

Ekzotika -Kosevi Ltd. Okolovrustno shose Lqskovec tel.: (+359 888) 867808, (+359 878) 867808 fax: (+359 619 23 213) e-mail: [email protected] Activities: Producer (ornamental plants)

Floresta - Total Komers Gen Kolev St. 68А Varna tel.: (+359 596) 85070, (+359 888) 602708 fax: (+359 52) 634585 e-mail: [email protected] www.florestabg.com Activities: Flower shops. Delivery

Ekzotika Ltd. 99 Bacho Kiro Str. Bqla Cherkva tel.: (+359 6134) 2511, (+359 888) 711536 www.ekzotika.dir.bg Contact person: Dani Giurgiev Activities: Production (decorative plants). Construction and maintenance (parks gardens).

and

Garden Style - ЕТ Nankova Alexander Stambuliski St. 54 A Karlovo tel.: (+359 888) 612503 Activities: Flower Shop

Girex-Petrova & Co 6, Konstantin Irechek Str., entrance A Sofia tel.: (+359 2) 9501356; (+359 888) 331052 fax: (+359 2) 9501355 e-mail: [email protected] http://www.girex-bg.com/ Contact person: Elena Vulcheva Activities: Trader and Producer

Green Garden region Pazardjishka,Buzludja 11 str. September tel.: (+359 3561) 4270 fax: (+359 888) 739138 e-mail: [email protected] www.greengarden.hit.bg Contact person: Plamen Spasov Activities: Producer (ornamental flowers)

Green Park Center Pochivka stop Varna tel.: (+359 887) 208778 fax: (+359 84) 661049 e-mail: [email protected] www.agrospektar.business.bg Activities: Green center

Greenland.bg tel.: (+359 2) 9780912 fax: (+359 2) 9789965 www.greenland.bg Contact person: Mr. Marko Kuitper Activities: Importer (pot plants from Aalsmeer)

Home Garden TT Ltd. 72, Maestro Kanev Str. Sofia tel.: (+359 2) 9556233 fax: (+359 2) 9556233 e-mail: [email protected] http://www.homegardentt.com/ Contact person: Veselka Trifonova Activities: Producer (ornamental flowers)

Introdukcia SD-Georgiev Graf Ignatiev 53,V,app.38 Stara Zagora tel.: (+359 889) 985568 fax: (+359 42) 622190 e-mail: [email protected] www.introduction.dir.bg Contact person: Dinko Georgiev Activities: Producer (ornamental shrubs)

trees

and 154

Iris day Aleko Konstantinov 18 str, village Dragomirovo,Svishtov tel.: (+359 887) 398423, (+359 631) 64079 fax: (+359 631) 64079 e-mail: [email protected] www.irisday.dir.bg Contact person: Rositza Mineva Activities: Producer

Iulian Markov 2 kiril I Metodii,Str. Gabrica tel.: (+359 895) 386243 e-mail: [email protected] www.rosa85.business.bg Activities: Producer

KoopFlora 99 Rakovska Str. Sofia tel.: (+359 2) 9266700 Activities: Producer and Exporter (flowers and ornamental plants). Grassing.

Maria 94 LTD 46 Stoyan Mihailovski Str., Plovdiv tel.: (+359 32) 628281, 632614; (+359 888) 597750 fax: (+359 32) 2614 Activities: Importer (artificial and dried flowers, bouquets, trees and bushes).

Niko Garden 219, Aleksander Stramboliiski, Sofia tel.: (+359 2) 9200489, Nikolai Todorov; (+359 897) 818018, Dora Balkanska (+359 897) 818020 fax: (+359 2) 8512442 e-mail: [email protected] www.totex.net Contact person: Nikolai Todorov, Dora Balkanska Activities: Official importer of CARNEAU, France (grass mixtrures). Gardens and grass areas.

Palm Center Asenovgradsko shose,opposite KCM Plovdiv tel.: (+359 888) 533225, (+359 888) 765732, (+359 888) 819299 e-mail: [email protected] www.polarpalm.net Activities: Producer (plants)

Tzvetomania EOOD Blvd. "Simeonovsko Shousse" 8 Sofia tel.: (+359 888) 630613, (+359 898) 665260 e-mail: [email protected] Activities: Flower Shop

ZP Mario Duschkov 10 Stoletov,Str. Pavlikeni tel.: (+359 610) 6468, (+359 887) 661178

155

Producers, Distributors, Importers, Retailers of Ornamental Indoor Plants

Garden center Mimoza Primorski park,str., Varna T: 00359 52 302 590 F: 00359 52 335888 [email protected] www.mimozabg.com Garden center Abies concolor 33 Stefan aradja Str., Pavlikeni F: 00359 610 8701 Producing ornamental plants, work with hotels

Albicia 13-Ivelin Atanasov-Gradinski 3 A,Chataldja Blvd, app.3, Varna T: 00359 52 305 389 F: 00359 898 510 196

Abies Concolor 33 Stefan Karadja str., Pavlikeni T: 00359 610 87 01 Producer (ornamental plants). Works with hotels.

Agrospectar Ltd. bus stop Pochivka, Varna T: 00359 887 208778 [email protected] www.agrospektar.business.bg Trader/Importer (ornamental plants and flowers). ALD Parkove I gradini 3 Bratia Shkorpil str., Varna T: 00359 52 601 813 F: 00359 52 601 813 [email protected]

Garden center Aleksandur Suvandjiev Studen kladenec 33,bl.Lede T: 00359 82 642 480 Trade with flowers

Azalia 109 Dimitar Talev str., Plovdiv T: 00359 898 545 958

Trader/Importer (flowers and decorative plants). Alfa flora Burgas T: 00359 56 831 306 [email protected] www.bourgas.org/alfaflora Planting. Grassing. Bioflora 51 A Marica Str., Plovdiv T: 00359 32 954171 F: 00359 32 954171

Garden center. Planting Bojilovy Pavlovo, Preki put 9 str., Sofia T: 00359 2 8557942 [email protected] www.bojilovy-bg.com

Producer and trader of flowers. Bratq Stoqnovi Vitosha,comp.,31 Georgi Zlatarski,Str., Sofia T: 00359 887 859578 Garden center (ornamental plants)

Garden center

156

Brit JSCo (Leia Balkan) 43, San Stefano Str., Pleven T: 00359 64 801556 F: 00359 64 801785 [email protected] www.lejabalkan.com Burgastsvet_90-Tanev EOOD blvd. "Bogoridi" 16, Bourgas T: 00359 56 841660 F: 00359 56 841688 [email protected] www.bourgastsvet-90.com Flower shop

Chinarite Horizont 1,str., Village Purvomai T: 00359 888 605294 F: 00359 889 715051 www.powersoft.bg/chinarite Garden Center Danaila Shop "Hubcha" St. 2, Sofia T: 00359 888 582555 [email protected] www.danaila.hit.bg dry flowers and decorations Dekorativen razsadnik Berkovica Musala 1,str., Berkovica T: 00359 953 88004 F: 00359 953 88004 [email protected] www.kastanea.hit.bg

Buket 147 Rakovski str.,63 V.Levski blvd.,62 Patriarh Evtimii blvd., Sofia T: 359 2 981 45 30 [email protected] Flower shops Burgastsvet-Baev Ltd 16, Bogoridi Str., Burgas T: 00359 56 841690 F: 00359 56 827782 [email protected] http://www.burgascvet.com/ Trader/Importer (perenial ornamental plants, seeds, bulbs).Flowering. Grassing. Landscape services. Cvetna Magiq 99 Knqz Boris I,str., Sofia T: 00359 2 980 47 83 [email protected] www.flowersmagic.com Flower shop Decor Tzvet Garden Centres Trud Village Karlovsko Shousse St., Plovdiv T: 00359 887 213734 Flower Shop

Dilas ET Dondukov St. 24, Sofia T: 00359 2 9803540 F: 00359 2 313340 [email protected] Flower Shop

Decorative nursery Dina -7 "H.D. Asenov" St. 58, Stara Zagora T: 00359 42 605129 F: 00359 888 239510 Trader

Di-Va Ltd 10, Pimen Zografski Str., Sofia T: 00359 2 8686168 F: 00359 2 9625830 [email protected] www.divaflora.com Flower shop. Online deliveries.

157

Djin Djur 63 Neofit Rilski Str., Sofia T: 00359 888 645 809 Flower shop

Ekzotika -Kosevi Ltd. Okolovrustno shouse, Lqskovec T: 00359 888 867808 F: 00359 619 23 213 [email protected] Producer (ornamental plants) Erika Ko West industrial zone, Varna T: 00359 52 509696 F: 00359 52 509698 [email protected] www.erikagardening.com

Ecoles Ltd 27, Ivan Vazov Str., Pleven T: 00359 640 800296 F: 00359 64 800296 [email protected] www.ekoles.com Trader/Importer (shrubs, perenial ornamental plants) Ekzotika Ltd. 99 Bacho Kiro Str., Bqla Cherkva T: 00359 6134 2511 F: 00359 888 711536 www.ekzotika.dir.bg Producer (decorative vegetation). Construction and maintenance of parks and gardens. Eurogreen Ltd 5248 Mihaltsi, V. Tarnovo T: 00359 6133 873 F: 00359 6133 874 [email protected] Trader (perennial/ annual ornamental plants)

Garden center, Importer/Exporter Fantasy Blvd. "Shipchenski Prohod" 18 Sofia Tel: (+359 899) 688160, (+359 886) 587602 E-mail: [email protected] Activities: Flower Botique

Feite - Flower Shop Rakovska St. 14, Sofia T: 00359 2 9801810 F: 00359 2 9813190 [email protected] www.mcibg.com/feite

Fidus - Stefanovi i Sie p.o.box. 64, Pavlikeni T: 00359 610 52803 F: 00359 610 52802 http://www.agroborsa.com/lilifidus/

Chains of flower shops Flora Art trading Bourgas "Hr. Botev St." 35, Burgas T: 00359 56 816489 F: 00359 56 816489 [email protected] www.dianacvet-bs.net

Trader and Distributor (planting material, ornamental palnts).

Flower Shop

158

Flora Commerce Ltd. 7, Khan Asparuh Str., Sofia T: 00359 2 9531682 F: 00359 2 9531682 [email protected] www.flora-com.com

Flora Garden centre Ltd Sofia T: 00359 2 9738500 F: 00359 2 9751400 [email protected] www.flora-bg.net

Trader (ornamental plants; Arum lilies, Chrysanthemums, Carnations, Dahlias, Roses) Flora-Design 180 Brezovsko shose,Golqmokonarsko shose 5km., Plovdiv T: 00359 888 602449 F: 00359 32 432801 www.floradesign.hit.bg

Garden Center (annual indoor ornamental plants, bedding plants, seedlings). Flowering. Grassing. Flora-Pavlikeni Pavlikeni T: 00359 610 52922 www.flora.pavlikeni.info

Trader/Importer (outdoor and indoor plants) Floresta - Total Komers Gen Kolev St. 68А, Varna T: 00359 596 85070 F: 00359 52 634585 [email protected] www.florestabg.com

Tradet (cosmetics plants, decorative roses)

FLOREX Ltd (Producer and Importer) 24-34 Lozenets Str., entr. B, Sofia T: 00359 2 8669038 F: 00359 2 8669038 [email protected] www.florex-bg.com

Flower shops. Delivery. FLOREXIM Ltd. z.k. Mladost 2, bl. 202, Sofia Trader and importer

Florov SP 4, Saedinenie Str., Pavlikeni T: 00359 610 4321 F: 00359 887 822203 Trader and Producer (ornamental flowers).

Trader, Producer and Importer Florimex - Garden Center TIS 71 "Cherni vruh" BoulevardАдрес: бул. "Черни връх", Sofia T: 00359 889 62 65 61 F: 00359 2 961 59 13 [email protected] www.florimex.bg Importer/Trader/ Producer Flower House -Tzvetan Zlatev Market Druzba -1 T: 00359 888 518962 F: 00359 2 9791810 [email protected] www.fhousebg.com Online flower shop. Delivery.

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Garden center Dolni Bogrov Botevgradsko shose-Dolni Bogrov, Sofia T: 00359 887 631396 F: 00359 886 534076

Garden center Dubnika 6,Ivaylo,Str.,app.3, Vraca T: 00359 888 231067 Garden center

Garden center Garden center Vidin 10 Dunavska,Str., Vidin T: 00359 898 436704

Garden Style - ЕТ Nankova Alexander Stambuliski St. 54 A, Karlovo T: 00359 888 612503

Garding center. Grassing GELD EOOD Kirkov Market, Sofia T: 00359 2 9836213 F: 00359 2 9836205 [email protected] www.geldbg.com

Flower Shop Girex-Petrova & Co 6, Konstantin Irechek Str., entrance A, Sofia T: 00359 2 9501356 F: 00359 2 9501355 [email protected] http://www.girex-bg.com/

Trader (ornamental plants and seeds) Golqma mogila before theroad for Rogachevo, Balchik T: 00359 895 709910

Trader and Producer Gradinski center Vqturna melnica 72,Prilep,str., Varna T: 00359 52 305389 F: 00359 898 695581 www.miro69.business.bg

Garden center

Gratsia Veliko Turnovo T: 00359 887 895623 [email protected] www.flower-bg.com

Trader and Producer Green Garden region Pazardjishka,Buzludja 11 str., September T: 359 3561 4270 F: 00359 888 739138 [email protected] www.greengarden.hit.bg

Flower Shop Hambarov Luben Karavelov Str. 8, Dobrich T: 00359 887 865446 F: 00359 58 625584 [email protected]

Producer (ornamental plants). Introdukcia SD-Georgiev Graf Ignatiev 53,V,app.38, Stara Zagora T: 00359 889 985568 F: 00359 42 622190 [email protected] www.introduction.dir.bg

Flower Shop Producer (decorative trees and shrubs)

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Iulian Markov 2 kiril I Metodii,Str., Gabrica T: 00359 895 386243 [email protected] www.rosa85.business.bg

Jarden-Florist "Kniaz Boris I" 120, Sofia T: 00359 2 9863810 F: 00359 2 9863812 [email protected] www.jarden-florist.com

Producer Kedar Garden Center Dragalevci,compl.,2 Krairechna,Str., Sofia T: 00359 2 9675017 F: 00359 889 803939 Garden center. Planting.

Lucky Tours ЕТ VelchoAtanasov St. 4, Sofia T: 00359 2 8437685 F: 00359 899 286352 [email protected]

Online flower shop. Delivery. Licenziran razsadnik G.Benkovski 35,str., Pavlikeni T: 00359 610 4720 F: 00359 48 1871111272 [email protected] www.gabriel.pavlikeni.info Garden Center Kio-Ivan Uzunov EOOD Yavorov,compl.,bl.12,A, Sofia T: 00359 2 9437949 F: 00359 886 621191 [email protected] www.Kyo-landscape.com

Flower Shop L2-Sofia Akad.G.Bonchev 7, Sofia T: 359 2 9796713 F: 00359 888 906076

Producer and trader KoopFlora 99 Rakovska Str., Sofia T: 00359 2 9266700

Trader and Producer

Producer and exporter (flowers and ornamental plants, indoor and outdoor grassing).

Maria 94 LTD 46 Stoyan Mihailovski Str.,4000 Plovdiv T: 00359 32 628281 F: 00359 32 2614

MAX ET Simeonovo, Sofia T: 00359 888 363762 [email protected]

Importer (artificial and dried flowers, bouquets, trees and bushes). MixFluer 49 Al,Stamboliiski Blvd., Sofia T: 00359 2 9867262 F: 00359 2 9863871 [email protected]

Flower Shop MN - Mariana Uchikova ET Blvd. "Maria Louisa" 55, Pazardzik T: 00359 98 867290 F: 00359 34 444897 [email protected] www.mnu.hit.bg/Deinost.htm

Trader (flowers) Flower Shop

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NIKE 99 7 Raiko Tsonchev Str., Dobrich T: 00359 58 44215 F: 00359 58 44215 [email protected]

Orchid blvd. N. Gabrovski 12, Sofia Te: 00359 2 9625442 F: 00359 2 9625442 [email protected]

Flowers/Decorative plants Orhidea 47 Krastina village T: 00359 5515 2340; F: 00359 888 726731

Flower Shop Ozelenyavane 5 Petko Karavelov Blvd., Sofia T: 00359 2 9522161 Trader (ornamental plants and flowers)

Trader and Producer (flowers) Paradise Alabin St. 14, Sofia T: 00359 2 9864628 F: 00359 2 9864628 Flower Shop

Parkstroy Ltd 3, Kotovsk Str., Ruse T: 00359 82 845804 F: 00359 82 841435 [email protected] http://www.parkstroy.com Trader (ornamental plant seedlings). Landscaping and design (gardens, parks, recreation and sports facilities grounds).

Planta Akad.G.Bonchev Sofia T: 359 2 9792726 F: 00359 888 214952 Greenhouse. Producer (ornamental plants). Grassing

Razcvet Stoev ET compl. Zora7, Stara Zagora T: 00359 42 690583 F: 00359 887 596683, www.razcvet.com

Plantava Ltd bl. 353, vh. D, ap. 133, Mladost Sofia T: 00359 2 9732812 F: 00359 2 9732812 [email protected] www.plantava.hit.bg Trader (annual and perennial ornamental plants; fertilisers). Flowering. Grassing. Razsadnik Gabrica Koril i Metodii 2,str., Gabrica T: 00359 895 386243 www.rosa85.hit.bg Seed-bed

Trader (indoor and outdoor ornamental plants). Razsadnik Studen Kladenec left coast to the dam lake Studen kladenec Kurdjali T: 00359 361 64560 [email protected] www.fidanki.hit.bg

Royal flora Ltd 27, Tsar Ivan Alexander Str., Sofia T: 00359 2 9200361 F: 00359 2 9887365 [email protected] Trader (cut flowers; florists supplies)

Seed-bed 162

SAMODIVA EOOD blvd. "Slivnitsa" 79, Varna T: 00359 898 668020 F: 00359 52 640250 [email protected]

Scandens G.Benkovski 16,str., Varna T: 00359 52 302184 www.scandens.hit.bg Garden Center

Flower Shop Sekvoq-ET Suikovi Drujba 1,compl.,D.Spisarevski,Str.,by Vascony, Sofia T: 00359 888 309330 Garden center. Planting. Sherita Flora Business Park Sofia Building No. 2, Sofia T: 00359 2 976 96 26 [email protected] www.sheritaflora.com Flower Shop

Siana Ochrid St. 5, Varna T: 00359 52 600382 F: 00359 52 600382 [email protected] www.sijana.911.bg Flower Shop Status Ltd 83, Gueshevo Str., Business Centre Serdika, Sofia T: 00359 2 9205280 F: 00359 2 9205736 [email protected] Trader (ornamental plants, cut flowers: carnation, orchid, rose, tulip). Strelitsia Krasno Selo – market, Sofia T: 359 2 8581321 F: 00359 2 858 13 21 [email protected] www.strelitzia-bg.com

SG Flowers Lozenec,compl.,Hristo Smirnenski,Blvd., Sofia T: 359 887 321433 www.sg-flowers.com Garden center. Planting. Shop for flowers and presents Obelia - 2 Sofia T: 00359 2 9341521 F: 00359 2 93415 21 [email protected] www.cvetia.8m.com Flower Shop SP Lulin 8 Obelsko shosse, Sofia T: 359 2 826 32 80 [email protected] Trader and Producer.

Stavros 91 ET Village Usoika, Dupnitza T: 00359 701 52488 F: 00359 701 52488 Flower Shop

Svina ET Simeonovo,compl.,7a Sv.Magdalena,Str., Sofia T: 00359 888 309775 Trader (ornamental plants). Planting

Flower Shop

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The house of the flowers Tzar Asen St. 24, Sofia T: 00359 2 8467588 F: 00359 2 9734814 [email protected] www.houseoftheflowers.911.bg/

The Jungle "Odesos" St. №19, Varna T: 00359 52 614683 F: 00359 52 614683 [email protected] www.jungle-bg.com

Flower Shop (ornamental plants). Tzvetika blvd. "Patriarh Evtimi" 97, Stara Zagora T: 00359 42 604107 F: 00359 42 604107 [email protected] www.tzvetika.bol.bg

Flower Shop Tzvetna Magia "Kniaz Boris I" 99, Sofia T: 00359 2 9804783 F: 00359 2 9804783 [email protected] www.flowersmagic.com

Flower Shop Tzvetomania EOOD Blvd. "Simeonovsko Shousse" 8, Sofia Te: 00359 888 630613 F: 00359 898 665260 [email protected]

Online flower shop. Delivery. Vanina Complex Trakia, Shopping Center Arena, Plovdiv T: 00359 898 545234 F: 00359 899 800664 [email protected]

Flower Shop Victory P.M. 150 Vasil Levski Blvd., Sofia T: 00359 2 9434457 F: 00359 888 451713

Flower Shop VISSER -Opora Ltd. Mladost 1 Compl.,bl.54, office 6-b, Sofia T: 00359 2 9743405 F: 00359 889 715605

Trader (cut flowers; seeds and bulbs). Landscaping. ZP Ivelin Atanasov 3 A Chataldja Str.,app 3, Varna T: 00359 898 510196

Seed-bed ZP Mario Duschkov 10 Stoletov,Str., Pavlikeni T: 00359 610 6468 F: 00359 887 661178

Trader (ornamental plants) Planting. ЕТ "Milena Delcheva" "Polkovnik Bonev" St. 30, Plovdiv T: 00359 32 968676 F: 00359 888 811508 [email protected] Trader (flowers).

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H. REFERENCES ROMANIA

[1] National Rural Development Plan 2007-2013, Ministry of Agriculture and Rural Development [2] European Agricultural Fund for Rural Development (EAFRD), Ministry of Agriculture and Rural Development [3] Romanian Environmental Strategy 2004 – 2010, Ministry of Environment and Sustainable Development [4] Romania’s Yearbook, National Institute of Statistics 2005, 2006 [5] Romania’s Imports and Exports of flowers and ornamentals, 2005, 2006 National Institute of Statistics Report [6] Cut Flowers and Folliage Market in The Netherlands, October 2006 CBI Market Information Database [7] United Nations Comtrade Statistics, 2005, 2006, website www.comtrade.un.org [8] Romanian Agency for Foreign Investment ARIS website www.arisinvest.ro [9] National Trade Register website www.onrc.ro [11] National Fitosanitary Agency, Ministry of Agriculture and Rural Development [12] Florin Toma, Floricultura si Gazon 2002, Cris Book Universal & Universitas Company [13] Ana Felicia Ionescu, Arboricultura Ornamentala, Editura Ceres 2002 [14] Agricultural Office of Royal Netherlands Embassy in Bucharest [15] http://www.fonduri-ue.ro [16]http://www.fonduri-structurale.ro

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I. REFERENCES BULGARIA [1]Ministry of Agriculture and Food Supply (Directorate of Agricultural Development) [2]Ministry of Agriculture and Food Supply (Directorate of Rural areas Development) [3]National Service for Plant Protection (Phytosanitary Control Department) [4]State Fund Agriculture [5]Phitosanitary Control Directorate [6]National Statistics Institute [7]Bulgarian Chamber of Commerce and Industry [8]Bulgarian Industrial Chamber [9] Bulgarian Customs Agency [10] State Agency for Tourism [11]Institute for Standardization [12]Agrarian University [13]University of Forestry [14]Association of the Bulgarian producers of greenhouse production [15]Association of the Bulgarian agricultural producers [16]Center for Economic Development [17]Institute for Market Economy [18]European Bank for Reconstruction and Development World Bank Foreign Embassies in Sofia [19]Agricultural Office of the Royal Netherlands Embassy in Sofia International organization: Eurostat Food and Agricultural Organization of UN Organization for Cooperation and Security in Europe Polish Agency for Enterprise Development International Fund for Agriculture UNDP Statistics companies: Estat

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LIST OF ABREVIATIONS ROMANIA APDRP

Payment Agency for Rural Development and Fisheries

APIA

Payment and Intervention Agency for Agriculture

ARIS CAP CEE CF CPI

Romanian Agency for Foreign Investment Common Agricultural Policy Central and Eastern Europe Cohesion Fund Consumer Price Index

CRPDRP

Regional Payment Centres for Rural Development and Fisheries

DIY EAFRD

Do-It-Yourself European Agricultural Fund for Rural Development

EAGF EFRD ESF EU EUR EVD

European Agricultural Guarantee Fund European Fund for Regional Development European Social Fund European Union Euro Agency for International Business and Cooperation Netherlands

FA FDI FEDR FMCG FOB G.D. G.O. ha HoReCa IACS

Florists Association Foreign Direct Investment European Fund for Regional Development Fast Moving Consumer Goods Free on Board (INCOTERM) Government Decision Government Ordinance Hectare Hotels Restaurants Catering (sector) Integrated Administration and Control System

IT MARD

Information technology Ministry of Agriculture and Rural Development

MESD

Ministry of Environment and Sustainable Development

MFP NACP

Ministry of Public Finances National Authority for Consumer Protection

NBR NIS NISQ NMCP

National Bank of Romania National Institute of Statistics National Inspection for Seeds Quality Netherlands Management Cooperation Programme

OJPDRP

County Payment Offices for Rural Development and Fisheries

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ONRC PNDR

National Trade Register National Rural Development Programme 2007-2013

PSOM

Netherlands Programme for Cooperation with Emerging Markets

RON ROP SAPS SIVTR

Romanian New Leu Regional Operational Programme Single Area Payment Scheme State Institute for Variety Testing and Registration

SOP SPS sqm SRL St SWOT USD VAT

SOP Single Farm Payment Square Meter Limited Liability Company Saint Strengths, Weaknesses, Opportunities and Threats United States Dollars Value Added Tax

LIST OF ABREVIATIONS BULGARIA Art BG BGN CA cm EIU EU EU 25 EUR EVD GDP GED JSC l LLC NRA NSI PSOM RSPP Sqm St USD VAT

Article Bulgaria Bulgarian Lev Commercial Act Centimeter European Union European Union, with 25 member states Euro Agency for International Business and Cooperation Netherlands Gross Domestic Product Joint Stock Company Litre Limited Liability Company National Revenue Agency Netherlands Programme for Cooperation with Emerging Markets Regional Service for Plant Protection square miles Saint United States Dollars Value Added Tax

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