International Bus

In: Business and Management

Submitted By mai1122
Words 714
Pages 3
Case
Ecuadorean Rose Industry
It is 6.20am February 7 in the Ecuadorean town of Cayambe, and Maria Pacheco has just been dropped off for work by the company bus. She pulls on thick rubber gloves, wraps an apron over her white, traditional embroidered dress, and grabs her clippers, ready for another long day. Another time of the year, Maria would work until 2pm, but it is a week before Valentine’s Day, and Maria along with her 84 co-workers at the farm are likely to be busy until 5pm. By then Maria will have cut more than 1,000 rose stems
A few days later, after they have been refrigerated and shipped via aircraft, the roses Maria cut will be selling for premium prices in stores from New York to London. Ecuadorean roses are quickly becoming the Rolls-Royce of roses. They have huge heads and usually vibrant colors, including 10 different reds.
Most of Ecuador’s 460 or so rose farms are located in the Cayambe and Cotopraxi regions, 10,000 feet up in the Andes about an hour’s drive from the capital, Quito. The rose bushes are planted in huge flat fields at the foot of snowcapped volcanos that rise more than 20,000 feet. The bushes are protected by 20-foot-high canopies of plastic sheeting. The combination of intense sunlight, volcanic soil, an equatorial location and high altitude makes for ideal growing conditions, allowing roses to flower almost all year round. Ecuador apparently has a comparative advantage in the production of roses.
Ecuador’s rose industry started about 20 years ago and has been expanding rapidly since. Ecuador is now the world’s fourth largest producer of roses. Roses are the nation’s fifth largest export, with customers all over the world. Rose farms generate $240 million in sales and support tens of thousands of jobs.
In Cayambe the population has increased in 10 years from 10,000 to 70,000 primarily as a result of the rose industry. The…...

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