Global chain : Roses

« THE ROSE (diapo 1) Introduction (diapo 2) (Diapo 3) Every year, the same tradition repeats itself.

On Valentine’s Day, lovers exchange roses as a symbol of their affection.

On February 14th, roses accounted for 63% of the flowers purchased by the French people making them an essential part of the flower market.

However, most of these roses come from a global value chain A global value chain is a system where the production process is divided across different countries.

Companies specialize in specific tasks rather than producing the entire product. (Diapo 4) In this presentation, we will first see the global value chain of roses, focusing on their production, transportation, and final markets.

Then, we will discuss the advantages and limitations of this system, considering its impact on our society. (Diapo 5) I - Global value chain of the product (Conception, manufacturing, marketing-sales) Conception manufacturing/marketing sales) (Diapo 6) We can find different types of roses from ten different exporting countries, each with its own characteristics.

Ecuadorian roses are considered high-quality premium roses, while Kenyan and Ethiopian roses are more commonly found in supermarkets, as they are much cheaper but of lower quality.

Colombian roses are also of good quality but are almost exclusively exported to the United States.

(Diapo 7) Some roses also come from the Netherlands, and China is beginning to enter the market.

However, since roses do not grow in winter in Europe, imports are essential.

Most cut roses sold in Europe and the United States originate from these countries, which have ideal climate conditions that allow continuous production throughout the year, ensuring a steady supply of roses to global markets (Diapo 8) In East Africa, Kenya is the largest exporter of roses to Europe, supplying 50% of the roses that pass through the Netherlands.

The main production areas are Lake Naivasha in Kenya, where 40% of the roses sold in France come from, and Lake Ziway in Ethiopia, which is home to the world’s largest rose farm (Afriflora Sher), covering 650 hectares and producing 1.2 billion roses per year.

The flower industry in Kenya employs around 90,000 people. (Diapo 9) Colombia is the main supplier of roses to the United States in South America, exporting 4 billion dollars worth of flowers each year.

In the 1990s, the U.S.

government supported the Colombian rose industry to reduce drug trafficking, which led to a 95% drop in U.S.

rose production between 2009 and 2015.

In Ecuador, rose growers earn about $400 per month, while in Kenya, they earn only €100 per month. (Diapo 10) The transportation and distribution of roses are highly efficient to maintain their freshness.

After 15 weeks of growth, the roses are cut, cooled to 4°C, and transported in refrigerated trucks.

Most roses are then shipped by cargo planes.

Before Valentine’s Day, 5 to 6 planes leave Kenya every night, each carrying up to 120 tons of flowers to Amsterdam.

In the United States, 30 daily flights transport 15,000 tons of roses from Colombia to Miami in the three weeks before Valentine's Day. The Netherlands plays a central role in the global flower trade.

The Royal Flora Holland market in Aalsmeer, also known as the “Wall Street of Flowers”, is the largest flower auction in the world.

50% of the world’s flower trade passes through Amsterdam, and from there, the roses are distributed across Europe, mainly to Germany, the UK, and France. (Diapo 11) The flower industry is a major global business, generating $34 billion per year.

In France, people spend around €30 million on cut flowers for Valentine’s Day, mostly on imported roses.

In Kenya, horticulture is the third-largest industry after tea and tourism, generating $709 million in 2019. (Diapo 12)II.

Advantages/ Limits (Diapo 13) Avantages (Economics) (Diapo 14) This globalization comes with its good and bad side.

On the good.... »