The United Flower Growers Co-operative Association is a grower-owned and operated co-op established primarily to market the floral products grown by its members. Founded in 1963 by a small group of Canadian and European growers, the Co-op has become the primary merchandiser of floral products in British Columbia. The one-hectare facility is located in Burnaby and is the largest of its kind in North America. The Co-op is managed under the guidance of an elected Board of Directors and currently employs 30 full-time staff. There are approximately 100 member growers of the Co-op and about 50 growers and wholesalers classified as guest shippers.

United Flower Growers conducts Dutch-style auctions four or five times weekly depending on the time of year. On a typical auction day, growers bring their crops to the auction on specially designed display carts. Within the climate-controlled warehouse, hundreds of carts are lined up in numbered rows. The first row to be auctioned is randomly chosen by an impartial lottery system.

Potted plants and cut flowers are sold simultaneously in the same auction gallery. Each floral cart is exhibited beneath the computer-controlled clocks for viewing by the customers assembled in the gallery. The grower's number, a product description, and the number of lots available is displayed on message boards beneath the clocks. As the sale of product begins, the hand of the clock starts at the highest estimated market price and falls until a purchase is made by one of the customers. A Dutch-style clock auction is an auction in reverse. The first customer to stop the clock using an electronic keypad on each assigned desk will purchase the product on display. Purchasers have the option of selecting the number of lots they wish to acquire. The customer may buy the minimum amount required during each transaction or purchase everything currently displayed on the clock. As the auction progresses, warehouse staff consolidate individual purchases into single shipments. Customers make their own transportation arrangements.

Prices vary daily depending upon season, supply and demand. Selling is speculative. There are no assured prices, although growers have the option of removing their product from the clock if prices fall below an acceptable level. To ensure a high standard of quality, the Co-operative's inspectors check flowers and foliage for damage, dehydration, or other imperfections. Substandard crops are downgraded or rejected. Customers are encouraged to personally inspect all products before the auction. During a typical day's auction, the computer records some 2,500 transactions involving about 10,000 floral units with an rage value of $17 per cash-and-carry basis. Business is conducted on an established credit or a cash-and-carry basis.

By bringing diverse buyers and sellers together at the auction, growers can specialize in a select range of crops rather than attempting to fill the different needs of every customer. Growers also have collective access to those customers, saving time and money normally spent on merchandising their crops elsewhere. Growers also profit from group advertising and other promotions. For retailers and wholesalers the auction offers the chance to buy at a one stop floral centre. The auction provides the opportunity to purchase the exact assortment required for small or medium size outlets as well as orders for very large single-item lots from mass merchandisers.

Source: United Flower Growers Co-operative Association home page (http://www.ufgca.com)