Ecuador fears Valentine's flower war

Ecuador's flower exporters have warned that talk of war against Iraq will hit one of the country's key foreign currency earners ahead of the St Valentine's day.

The US is the main market for Ecuadorean flowers and buys a third of the country's yearly production ahead of 14 February.

Unfortunately, prices have fallen

Hernan Chiriboga
Expoflores

But the uncertainty about a war has already dampened consumer spending.

"Americans aren't spending as they normally do, due to the possibility of war," said Hernan Chiriboga, president of Ecuador's flower exporters association Expoflores, according to Reuters.

"The first thing they stop spending on are non-essential goods."

Ecuador's flower industry, its third largest after oil and bananas, is valued at about $300m a year, according to Expoflores.

Lower prices

While demand for Ecuadorean flowers has not fallen, prices have.

Roses account for 73% of flower exports and are expected to sell for between 40 and 55 US cents each compared with 45 to 60 cents last year.

But 440,730 boxes of flowers are due to be shipped to the US between 28 January and 10 February, compared with 429,980 last year.

Pruning business

Ecuador's flower industry suffered a big setback last November when a volcanic eruption wiped out most of its harvest of summer flowers being grown for Valentine's Day.

Luckily the main crop of roses, which are grown under covers, mostly survived.

Competition is also increasing, with neighbouring Colombia which has lower shipping costs and sells flowers for about 20% less.

Also in May 2001, the 10-year old Andean Trade Preference Pact lapsed which assured preferential duties on flowers and other agricultural goods to Andean nations to encourage farmers not to cultivate or traffic drugs.