The Ecuadorean Rose Industry

The Ecuadorean Rose Industry

Ecuador has a comparative advantage when it comes to the production of roses. In the last 20 years they have built a rose industry from nothing to a dynamic rose industry generating over $240 million in sales and supporting tens of thousands of jobs. Blessed with rich natural resources such as fertile soil from the volcano, an equatorial location, and high altitude make for ideal growing conditions allowing roses to flourish almost year-round. Ecuador also has many workers that help cut roses and 20 foot-high canopies of plastic sheeting that protects the rose bushes. This rich farmland produces roses with huge heads and unique vibrant colors, including 10 different reds, from bleeding heart to crimson to a rosy lover’s blush.

Since most Ecuadorean roses are sold in the United States or Europe, people who benefit from the importation of Ecuadorean roses are the retail stores (flower shops, grocery stores and high end stores) that sell the roses. The retail stores have the benefit of an all year-round supply of quality roses that consumers in the United States want to buy. In addition to a year-round supply, consumers now have the option to purchase beautiful roses that were not being offered before. Because of the high demand for the roses and the revenue this trade generates the Ecuadorean government benefits as well.

According to Hill, (2013), “Rose farms generate $240 million in sales and support tens of thousands of job” (p. 317). Additionally, the population in Cayambe has increased in the last 10 years from 10,000 to 70,000 because of the success of the rose industry. The revenues and taxes from the industry have helped pave roads, build schools, and construct irrigation systems. Employees from the rose industry earn $210 a month, which is the average wage in Ecuador but exceeds the countries $120 a month minimum wage.

The workers and the government