Global economy shaping the flower-producing industry
Global economy shaping the flower-producing industry
“Buy American” sounds great, but it’s not always the answer. We live in a globalized economy with relatively efficient transportation systems for both products and passengers that span the globe. Competitive advantages in costs and quality due to lower use of energy and labor, and more ideal growing conditions, are shaping the flower-growing industry.
One of the newer varieties of roses from Jan Spek Rozen in Holland is an ivory-taupe color that is increasingly popular in wedding design work.Publications by the late Jerry Robertson, from work done on his 1975 doctoral thesis at Purdue University before he became a professor in the horticultural department at Ohio State University, showed models that predicted that most rose production would move from around major population centers, to Colorado and California, and eventually outside of the United States.
Most of the few remaining rose growers in the United States are located in California and concentrating on specialty roses for direct markets. Most roses now sold in the U.S. come from either Colombia or Ecuador. The dominant producers for the European market are no longer the Dutch, but Kenyan and Ethiopian farms. Why are those four the dominant players today?
First, Ecuador and Kenya straddle the equator, and the rose-growing areas in Colombia and Ethiopia are only slightly north of the equator. In general, the closer you go to the equator, the lower the changes in average temperature. Avoiding the temperature extremes of temperate climates with higher altitudes can reduce the need to heat or cool in certain seasons. Production of roses in the U.S. requires investment in both infrastructure and some fuel source to heat, and possibly cool, the greenhouses in certain seasons. Relatively large production areas as in Mexico don’t have the same steady temperatures as Ecuador and have a large national market, keeping most of the production at home.
Second, although a number of countries are on or near the equator, only the four mentioned above have mountains that provide growing areas above 6,000 feet above sea level, essential to the longer growing cycles that are the key to having larger flower heads and in many cases, longer-lasting flowers. Some Mediterranean climates, such are part of the coast of California, are a good second choice and actually superior for low-producing specialty roses, but not for mass production of most hybrid teas. In general, the higher the altitude, the cooler the average temperature. Only Ecuador has rose-growing areas higher than 10,000 feet above sea level, with the best farms having quality unmatched in the world.
Third, production areas line up in longitude with their natural markets. The natural export markets for South American-produced roses are the United States and Canada. The natural export markets for flowers produced in East Africa are Western and Eastern Europe and points east that do not have the ideal growing conditions. Flowers cross the Atlantic from South America due to superior size demanded by certain markets. Flowers cross the Atlantic from Africa to the United States due to lower prices made possible by lower labor costs. One worker in Ecuador costs about the cost of seven workers in Kenya and 14 workers in Ethiopia.
The final deciding factor for flowers, such as roses and carnations, are the complex mix of government policies, trade agreements, freight costs, distribution systems, and a number of other factors that play into the equation.
On the other hand, specialty flower growers, and other growers of seasonal field flowers, often have an advantage by being located in the United States. Lower freight costs, production of certain annuals that can be grown in blocks, flowers with shorter vase lives, or more delicate flowers produced close to the consumption areas, often give a decided advantage to the local grower.
In addition, companies in Western Europe, or with connections to the United States, do most rose breeding. The long experience and stable economies that allow long-term investment are key to the hybridizing of new varieties. For example, Jan Spek Rozen in Boskoop in the Netherlands is in the fifth generation of family members in the business and celebrates its 125th anniversary in the rose plant and breeding business this year. Varieties like Mother of Pearl are the result of this experience and length of service to the industry.
I believe that no duties or restrictions can ever bring significant production of crops like roses or carnations back to the United States, and that nothing on the horizon can take away the advantages of certain domestic growers. It is time for us to concentrate on building the market and not fighting within the industry. We can work together for the benefit of all the industry members and, above all, our final clients — the consumers.
Dean Rule is general manager at Conectiflor in Quito, Ecuador. He can be contacted at [email protected].