
Flowers from South America
With
price, demand and the dollar all down, South America’s
growers look to new markets to remain strong.
by Shelley Urban |
Colombian flower
grower Ernesto Vélez, who also serves as chairman of the
board of directors of the Association of Colombian Flower
Exporters, Asocolflores, and Ignacio Pérez,
executive president of Expoflores, the Ecuadorean
Flower Growers and Exporters Association, both agree that
worldwide economic conditions have lowered demand for their
fresh-cut flowers and forced lower prices, especially in the
United States. At the same time, the dollar has lost value,
which, especially for Colombian growers, has meant less local
currency to pay expenses. Here’s how the members of these
organizations are working to survive—and why it matters to the
American floral industry.
fewer flowers on the market
According to Mr. Vélez, in recent years, 85 percent of
Colombia’s fresh-cut flowers were exported to the United States.
Today, that number is down and, he adds, “Over the 35 or 40
years that we’ve been supplying the U.S. market, we’ve always
seen growth, but the last two years, for the first time, there
were decreases in both volume and value of exports. From January
to May 2009, compared to the same period of 2008, both volume
and value are down about 4.5 percent.”
In an e-mail interview, Mr. Pérez shared that Ecuador is
experiencing a more dramatic drop in demand. “Since 2007,
exports to the U.S.A. have decreased.” He explains that,
compared to Valentine’s Day 2007, exports for the 2009 holiday
were off by approximately 42 percent.
What
this means for America:
While Mr.
Vélez concedes that farm operation reductions or closures are
“painful for the growers and workers,” he also points out that
fewer flowers on the market “might be good for the industry as a
whole because it means that excess supplies are reduced.”
reaching beyond our borders
To
compensate for lower demand from the U.S., growers in both
Ecuador and Colombia are, according to Mr. Vélez, “taking some
of the oversupply to other markets.” Confirms Mr. Pérez:
“Seeking new markets around the world is one of our main
challenges for the next few years.” For now, he adds, “We have
to have more presence in flower exhibitions around the world;
our main objective is to have a permanent presence.”
Some of their most sought-after markets include Russia,
which Mr. Vélez says has been growing substantially over the
last four years or so; Japan; and countries in western Europe,
especially the United Kingdom. He also notes that other South
American countries are potential markets as well, such as
Brazil, where flower consumption is strong, but seasonal
conditions prevent year-round production—of which Colombian
growers are capable.
What
this means for America:
Even if
more of their flowers are currently being shipped to other parts
of the world, keeping farmers growing in South America ensures
that their crops will still be available in the U.S. as demand
warrants.
tax-free trading
Currently,
both Ecuador and Colombia are able to trade duty-free with the
United States under the Andean Trade Preference Act (ATPA),
which continues to be extended short-term and is valid, for now,
through Dec. 31, 2009. Both countries seek permanent trade
agreements, which will ensure that fresh-cut flowers (and other
goods) can flow freely into the United States.
“Working to ensure [multiple extensions] is costly for
Asocolflores. We visit Washington and meet with Congress and
staffers and, ideally, we’d like to have free access to the
American market for a long period of time. Our argument,”
explains Mr. Vélez, “is that it is a win-win proposition. For
example, every $1 that a Colombian grower receives [for product]
generates $9 in markups, from Miami on, that stay in the
American economy.”
What
this means for America:
South
American flowers account for a large portion of the U.S. floral
market, and the money generated by those products supports
America’s importers, wholesalers and retailers. Steady supplies
at attractive prices keep consumers interested, further
enhancing their value.
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developing a country’s image |
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by Jairo Cadavid
The Swiss have developed an image with their banks,
their watch-making and their chocolates. Germans are
recognized for their cutting-edge automobile technology, and
the French are recognized for their wines, fashion and
perfumes. Likewise, Colombia Land of Flowers® is a brand
intended to develop an image for Colombia. The brand was
conceived and geared toward positioning our country, within
the worldwide flower chain and especially in consumers’
minds, as one that offers a wide variety of
excellent
quality flowers that are also grown under appropriate social
and environmental standards.
Internationally, the first steps were aimed at
reinforcing brand use to identify Colombian pavilions at
major flower shows and exhibitions in the U.S.A., Russia,
England, Germany, Japan, Korea, Sweden, France and Hungary
among other markets. The brand was also included in all
Colombian floriculture promotional pieces and ad campaigns,
including those items displayed when representatives from
the Association of Colombian Flower Exporters, Asocolflores,
have distributed free flowers in major cities around the
world.

The brand will be a hallmark because its use will be
authorized on sleeves and boxes solely to those Asocolflores-member
companies that comply with quality standards and/or those
that collectively approach a potential market. In addition,
nationally, the brand has been promoted to develop a sense
of belonging within the Colombian population toward a sector
that generates jobs and well-being for almost 1 million
citizens.
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This year’s edition of the biennial
international cut flower trade fair will be held in Bogotá,
Colombia, at Corferias, the city’s international business
and exhibition center, from Sept. 30 to Oct. 2, 2009.
Proflora organizers anticipate that the show, now in its
10th production, will host 1,500 buyers from 40 countries
and more than 400 exhibitors, who will offer their fresh
flowers as well as goods and services related to the floral
trade.
Highlights of Proflora 2009 include “new varieties”
competitions and awards for exhibit design and decoration.
New to the show this year is a “Business Matchmaking” forum
to encourage one-on-one communication between exhibitors and
buyers. For more information about Proflora 2009 and to
register for the event, go to
www.proflora.org.co.
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Reach Shelley Urban at surban@superfloralretailing.com or (800) 355-8086. |