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The Perfect Storm

Was this August really a May (Not wanting to sound like a broken record) As Sonny and Cher once said “The Beat goes on” Guess the wizard’s age based on his beard color and that quote!




July and August were far better than anything we have seen in many years. After speaking with many importers, growers, retailers, and wholesalers most are reporting the unusual occurrence of a profitable July. 2021 is on pace for and extremely profitable year with very high demand in all sectors. Items are selling better than ever. Sold out on certain items is the new normal in all industries not just the Floral industry. It is not unusual to see importers without color roses or spray roses available for the open market! I spoke to a wholesaler who told me he has not been able to find a box of white carnations on the open market for the last three weeks. Imagine looking for 3000 quicksand in this market. Weather and factors like large bouquet manufactures buying more farms is not helping availability. Strong foreign markets are also contributing to current conditions. (Yes, even in August when all of Europe goes on vacation, who knew) Growers and manufacturers are suffering from labor shortages worldwide. One thing that a lot of experts have missed is what is happening with existing labor. People have been asked to work more days and hours than ever. Most are tired and this is showing in productivity levels which are lower than normal.(especially in a labor intensive business like the flower business) In late May 2021 China announced: China Says It Will Allow Couples to Have 3 Children, Up From 2 “The labor pool is shrinking, and the population is graying, threatening the industrial strategy that China has used for decades to emerge from poverty to become an economic powerhouse.” Worldwide demand for logistics and product have contributed greatly to the current conditions. This market could hold through 2022 or longer if the current conditions around the world continue. Logistics prices and demand are through the roof and could get worse. Air, Ocean, and ground transport will continue to challenge the world. Ocean container prices have soared to almost an average of 4x or more than last year. Our economy seems strong, and demand is high. Clients are becoming better everyday with understanding the word substitution. Christmas will present even more challenges as logistics become even more challenging and expensive and supply from the northwest suffers the from the results of the heatwaves they had earlier this summer. Fall color product is being requested earlier than ever and should challenge availability on items that can not be planted or cropped for this season.(example roses and spray roses) Covid’s Delta variant is presenting a wave 4 for the virus. Some companies have returned to work at home orders. It also changes the way people travel. Some vacation plans are being cancelled and people are staying home. This increases demand locally as we saw in May 2020 when people increased their need to send flowers as well as have more flowers at home. Keep Selling!! If you have anything you would like to discuss with the Wizard Please click on our Calendly and we would be happy to chat! Thanks, The Wizard



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