OFG Study
The programs, management, marketing focus and history of Ontario Flower Growers Co-op Ltd.
1. Programs
OFG's mission is to connect flower growers with wholesale and retail customers, providing buyers a venue to purchase cut flowers and potted plants from local farmers and around the world. The products are delivered daily. There is a quality assurance process, checked against a quality standard that has been developed for each and every product. There is a mandatory post harvest program to ensure all products are treated with best possible care, such as clean pails, temperature controlled facilities, and passing the water standard for pH and sugar content.
There is a supply management program to ensure the best quality and consistent cut flower supply. OFG promotes itself on meeting customer demands in Quality, Selection, Freshness and
Value. OFG sources roses from Equador, carnations from Columbia, tropicals from Costa Rica, callas from New Zealand, protea from Australia, greens from California, pin cushions from
South Africa, orchids from Thailand, leucadendron from Chile.
1.1.
The Auction
The Auction, started in 1972 with OFG's founding, involved conducting an action in warehouse -type building several times a week. The Auction featured a “Dutch Clock” bidding system. Under this system, the grower proposed an initial selling price and then the price dropped until a buyer bought the item. The Auction was attractive because it gave both growers and buyers an opportunity to exchange the product at market-determined prices.
The grower was protected from an unduly low price by “buying back” the item. This involved bidding on the item and only paying the selling commission for doing so. Two clocks are used to sell product (one for cut flowers and one for potted plants) at an average rate of one lot every two seconds.
The Ontario grown products sold on the auction are delivered farm fresh to OFG the evening before or the morning of the auction
1. Programs
OFG's mission is to connect flower growers with wholesale and retail customers, providing buyers a venue to purchase cut flowers and potted plants from local farmers and around the world. The products are delivered daily. There is a quality assurance process, checked against a quality standard that has been developed for each and every product. There is a mandatory post harvest program to ensure all products are treated with best possible care, such as clean pails, temperature controlled facilities, and passing the water standard for pH and sugar content.
There is a supply management program to ensure the best quality and consistent cut flower supply. OFG promotes itself on meeting customer demands in Quality, Selection, Freshness and
Value. OFG sources roses from Equador, carnations from Columbia, tropicals from Costa Rica, callas from New Zealand, protea from Australia, greens from California, pin cushions from
South Africa, orchids from Thailand, leucadendron from Chile.
1.1.
The Auction
The Auction, started in 1972 with OFG's founding, involved conducting an action in warehouse -type building several times a week. The Auction featured a “Dutch Clock” bidding system. Under this system, the grower proposed an initial selling price and then the price dropped until a buyer bought the item. The Auction was attractive because it gave both growers and buyers an opportunity to exchange the product at market-determined prices.
The grower was protected from an unduly low price by “buying back” the item. This involved bidding on the item and only paying the selling commission for doing so. Two clocks are used to sell product (one for cut flowers and one for potted plants) at an average rate of one lot every two seconds.
The Ontario grown products sold on the auction are delivered farm fresh to OFG the evening before or the morning of the auction