The rose market all over the world usually moves one hundred thousand million dollars a year; reason enough for many countries to consider this industry for investment and development. Especially speaking about countries that are close to or right in the equatorial line because of the favorable climatic conditions that this generates, as well as the flexibility of an emerging economy. Ecuador is right in the equatorial line which makes our rose unique, and therefore we have secured our position as rose exporters covering 22% of the global demand.
The Economic environment in Ecuador took a drastic adjustment when the dollar took over the country, massively devaluating the local coin out of existence. This changed the rose industry in a few ways, for example, Ecuador had to ally with any economic crisis the USA was going through, and then analyze how this affects the countries that now had to pay for roses in dollars. Dollarization also affected rose production costs meaning our prices became higher, making it particularly arduous to compete with countries such as Colombia. Clients asked for our prices to be more accessible and this was impossible to do since our production costs were ruled by the same coin, a strong dollar.
In the 80’s Ecuador started to experiment in rose growing, presenting the very first rose plantations grown in greenhouses. The boom came in the nineties, just before dollarization. Capable infrastructure was created, and the number of rose farms increased, making it a necessity for the existence of guilds such as Expo Flores (1984). Ever since this, roses have been a star product for our economy taking into account 75% of all the flowers we export yearly.
The floriculture industry has created a vast number of jobs for the Ecuadorian Economy. Having a very healthy ration of 50% male 50% female and no wage gap, this number of job openings vary according to demand, in busy times such as Valentine’s there is at least a 20% increment in the labor force.
Naturally, the number one importer of Ecuadorian rose is the United States (44%), for reasons such as logistics and the obvious fact that we share the same currency. In 2002 there was a treaty signed by both parties called ATPDEA, freeing more than 835 products from exporting tariff rates. This excluded roses but by making other products more affordable to import, having in mind that the rose demand did not lower, our floricultural industry became a cohesive organism in which products act together to promote and increase sales group. Russia comes in second when it comes to importing Ecuadorian rose (18%), and after that, the Netherlands (7%).
Florpaxi Group has been in the industry for 25 years, we have lived through all these changes and adaptations. We take great pride in what we do and what this industry has become. We are currently in preparation for the biggest festivity that exists in the world of roses, Valentine’s day. Every year we get more prepared to be able to supply the demand that the article has stated above. The pinch has been done! we are ready and excited, excited to keep this industry growing, strong, dynamic and undeniably beautiful.