UFG Sets the Record Straight on Supply Agreements

United Flower Growers' Managing Director Bruce O'Brien recently posted a response on-line to clarify the situation under the recently announced supply agreements between United Flower Auctions Stakeholders and UFG, given the 'considerable mis-information' in the market place. His response as follows seeks to reassure growers that the best interests of the wider New Zealand Cut Flower Industry remain the primary concern of the organisation:

Says O'Brien in a memo of 15th June 2013: "With our company’s recent announcement regarding the activation of Supply Agreements with our UFA shareholders, there unfortunately appears to be some misconceptions and misinformation being circulated."

"United Flower Growers Limited (UFG), is a company that is owned under a 50/50 partnership between shareholders of United Flower Auction Ltd (UFA), and Market Gardeners Ltd."

"The UFA shareholders have decided to commit their full support to their company in which they have substantial financial interest and have done so, by generally agreeing to commit to long-term (24 month) supply agreements, which then gives UFG the confidence of their committed supply, enabling the company to forge ahead in creating improved opportunities for all within the New Zealand Flower Industry."

"These 'agreements' are between, and involve UFA shareholders only and are not planned to be offered under general basis otherwise. This is because both UFA shareholders and UFG as a company are strongly of the opinion that all growers should be free to offer their product for sale wherever they wish. We do NOT intend to tie any other growers to supply agreements."

"We would therefore highly recommend that any grower makes most careful and very cautious consideration before committing to any form of supply agreement with anyone if offered, and that they keep their supply options open. You should be free to sell your flowers and foliages where you wish. UFG further wishes to advise, that despite rumours and other misinformation, we certainly do not propose to “lock in supply” with growers throughout New Zealand, by either demanding they sign such agreements to provide any “exclusive supply” or to in any way deny them of the opportunity to offer their product for sale by any means."

"We will also certainly not refuse to assist with the marketing and sale of product from growers who have not supposedly “signed supply agreements” with us , and this too is considered incomprehensible and absolutely ridiculous in light of the fact that we are a grower-owned company that has only ever operated under the premise of fully supporting the NZ Flower Industry."

"In light of this communication, and with highlight to the recent developments our company has most successfully undertaken, we would urge any recipient to this email who may have questions, concerns or comments, to contact the writer."

"We are looking forward to a brighter and more successful future for the NZ flower marketplace and will certainly be doing all we can to assist in helping NZ flower growers to actually make money from growing and selling their flowers."

Bruce O'Brien

Managing Director - United Flower Growers Limited

PO Box 5238, Wellesley Street, AUCKLAND 1041

Phone: (09) 573 2300 - DDI: (09) 573 2309 - Mob: 0212 854 705 - Fax (09) 573 2310

Email:[email protected]