Why is it so hard to find half decent orchid species?
I can buy awarded or awardable 6'' blooming sized cattleyas for $20 - $40. Growers mericlone thousands of them and are able to sell them for only a tad more than a grocery store phal.
Are there technical difficulties with mericloning species or is there some type of cartel behavior occurring?
To explain in short the economics of orchids, as I am part of the people who work with industrial nurseries:
- The profit is calculated as a percentage of the final sales. A Phalaenopsis that is sold 2.7 eur wholesale by some thousands has a profit of 0.05 0.1, sometimes 0.2 eur. They can sell it more expensive wholesale sometimes, when there is demand, at 3-3.4 eur. Some months, the plants are blooming and there are no customers, in that case the price goes below 1eur, and it is a loss.
- At the end of the year the mega nurseries calculate the total spent, the total turnover, and check the profit. It does not mean that all the plants are sold with a profit. by very far.
- The reason for those low prices is that there is a huge volume guaranteed, lots of end customers. Same for Cattleya, Vanda and Cymbidium, depending on the geographic area concerned...
- Either big companies with a lot of workers can afford to grow the plants very cheaply and calculate a profit on the total turnover like that. Or nurseries that are jobless and need to 'enter money', even if it is a breakeven or loss, in the hope to find, one day, a product that makes them earn a decent amount.
- For species or rare orchids, let's say Paphiopedilum wentworthianum to take an example, it is not possible to produce plants and accept 1 eur profit per plant as an example after 2-3-4 years of work from flower to adult blooming size seedlings. Because the total market for it would be maybe 200 adult plants worldwide not more. Earning 200 eur for 200 plants is not profitable at all, and by far. It does not cover even the expenses of caring of the motherplant, or buying it.
- If we talk in square meters, the 200 wentworthianum would take 3 square meters of greenhouse for 2-3 years. If the profit on these is 200 eur, it means about 70 eur/square meter on 3 years, or 25 eur profit/square meter per year. In that case, growing pansies or philodendron is vastly more profitable on the same area.
- Next door there can be a batch of tonsum x sanderianum, which when they bloom, are so ugly, that the grower lost the production. In that case, that's a couple thousands euros of losses. Or failed mericlones, or bad quality plants/deformed.
- Some people will say that well, sell cheap what is good, and don't make much profit. The losses, this type of customer does not want to hear about them. In terms of accounting, the batch of ugly ducks that cannot be sold has to be accounted, and its losses spread on other varieties that are sold, after all...
- Many species and hybrids have a very limited market worldwide, couple hundreds to maybe a thousands plants, mightily, then the market for that variety is saturated and no one buys anymore.
- Such a small profit per variety does not allow to store money in case of problems, canceled orders, energy costs increase, etc... so it is not acceptable for most plant species, only for the mass pot-plant varieties. Alternately every month in the greenhouse in our countries costs money per pot. In Thailand as an example, the plants are outside, if they are not sold this time, next time will be fine. The worker's costs as well are cheaper, and the regulations for pesticides, nonexistent.
- When we have to use biological controls, registered pesticides, etc... in Europe or the US, in many countries, they can shove up Temik or liquid Furadan once every 6 months, killing all insects and mites... That reduces the cost dramatically.
- People who grow orchids for a living need to earn more than a toilet cleaner, that's why for many species and varieties, there is a minimal price for it.
Recently there was a huge war on Facebook about 40eur Phalaenopsis vs. the Lidl ones at 4.9 eur. The 40 eur have 3 spikes, minimum 10 flowers per spike of 11+cm, a bit cascade style. The people did not understand that it needs a bit more effort, and a 20 cm pot blocks more space on a bench, for much longer, than the supermarket Phalaenopsis... As well, huge Phalaenopsis, even at 5 eur, would not be a thing, as there is a limited market for these...
So no, the prices are not going to crash at pot plant price for 99% of the species and hybrids...