The Flower Wizard’s Wand June 2022
The strike in Ecuador has been settled at least for the next 90 days!
The Wizard’s Wand is not intended to be a political voice but rather an informative and suggestive medium on the Above All Flowers/New Bloom Solutions Newsletter. However, in this issue, we can not avoid the issues the strike in Ecuador has brought to life for the flower world. Obviously, the flower sector’s losses in Ecuador are not as large as say something like the Oil industry, but nonetheless very substantial. Most flower growers have lost all or part of 18 June days of operation in what is usually a very good month. This will stress cash flow.
Prices have been very high for June for most flowers because lots of product could not make it out of Quito. The weather in Colombia has been quite rainy further exacerbating
market extremes. Freight rates and fuel surcharges are still quite high as well adding to pricing woes. High demand for certain wedding colors and varieties has been through the roof.
Even though some of the social issues have been temporarily settled for the next 90 days the problem is not over. Political issues are causing day-to-day life in Ecuador to be quite tough.
Farms will be off-cycle as plantings, spraying, and general crop maintenance has been underperformed at many farms because it was not safe for labor to come to work. We may see repercussions of this strike for many months to come.
The Flower business has been handed many issues since 2019.
Ecuador strike in October 2019
Ecuador protest October 2021
Ecuador strike (longest) June 2022
Colombia national strike 2021
Supply chain crisis
high freight rates
High oil prices
Colombian new president (results and reactions not known yet)
I am sure that I must have missed something important
Will the large flower farm consolidators start to have second thoughts about their past acquisitions as well as curtail future investments because of political and economic conditions where they currently operate?
Despite all these issues the Floral industry continues to thrive. We must all hope that flowers do not price themselves out of the market and that disposable income does not get spent on travel, food, gas, overpriced cars, and not flowers!
We need strong sales 52 weeks a year. Hopefully, everyone can get a long, and Strikes can be avoided in the future, and everyone can thrive. We all need a win-win-win!
Here are a few international publications’ articles about the settlement of the strike.