The Ecuadorean Rose Industry
Ecuador has about 460 rose farms located in a region where there is favorable condition for rose production. The comparative advantage in production of roses is based on the fact that despite the country having a combination of intense sunlight, fertile volcanic soil and high altitude which is also favorable to other kind of crops and agricultural production, Ecuador has decided to concentrate more on the production of roses with this endowment since it is the crop that they are efficient in production compared to others for a better return through export. The weather conditions are favorable throughout the year thus sustainability.
The Ecuadorean roses are selling with premium prices in United States and Europe due to its variety and standard. These roses are efficiently produced in Ecuador thus having a lower price compared to ones produced in US and Europe. The consumers are also benefiting from the competitive prices offered due to the efficiency in production and the variety produced. These importers are reaping more profits than the Ecuadorean exporters since they source the roses with a lower price. The exporters back in Ecuador are faced with environmental challenges to encounter and solve in order for the roses to reach the foreign markets stated above thus losing. The losers include workers in the rose farms back in Ecuador since it is reported that they fumigate the roses without proper gears for the job thus causing health problems and thus spending more on health management and treatment which has a multiplier effect on the general country health expenditure to its citizens. Other losers are the European and US flower producers whose market for the roses is shrinking since they do not have the comparative advantage in production efficiency compared to Ecuador.
I think the benefits of the revenue from the sales of the roses are good and helpful to the improvement of the lives of the exporting country but on the other hand the production effects to the environment is wanting since that has a negative effect to the health of the society. It is imperative that these aspects should be balanced so that one sector should not hurt the other which in turn erodes the benefits. On the job market the benefit of sustaining tens of thousands of jobs should be complemented with better working conditions as good health of the workers will make them more efficient.
The rose export industry in Ecuador has benefited the country to a level that it has been able to increase the general income in the industry and thus more income for the workers in that industry and improved living standards.