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 --- The SMMOL Weblog ---
 
This is our web log where we write about anything and everything in our business
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Sunday, May 18, 2003

Ecuador-
No- I have not been there lately but I feel it is important that I as a flower grower should be interested how the industry operates in other countries. It is in my opinion also very important that the florists also knows what is going on in the industry, what can be expected, advantages and disadvantages of every supplier. so I will use this weblog every once in a while to give an account of the different countries that effect our business.
This is a summery written by the summer flowers growers of Holland that came back from a trip in Ecuador.
I have added my comments in Italics
The Dutch growers visited farms that are run by Dutch farmers in Ecuador.
-most of the flowers besides roses are grown outside, with a few crops grown in nethouses
-Methal bromite is still allowed in Ecuador (until 2015) so most flowers are grown in direct soil.
-most of the growers are around the capital city Quito, and the average size of the farms are  20 acres.
-the Hypericum (st. John's wart) grows to man-size bushes, the gypso(baby's breath) is very good quality but not better than Kenya or Israel
-overall exports were $210 million 60% to the U.S. 30%Holland and the rest to Russia and other countries.
-Almost all the flowers are sold f.o.b.(free on board). That means that the buyer pays for all the expenses of carriage,insurance,etc.So if their is a problem the buyer (wholesalers) are the ones to lose out.
Guess what the wholesalers try to do in such cases? they try and push it to the florists "we have a great sale on today 30% less for roses"
-High humidity is a big problem especially during transportation, so an effort is made to pack the flowers in the fridge.
-political friction, economic crisis, bankruptcy of banks, and virtually no credit, have had a heavy toll on the growers.There are hundreds of farms for sale at ridiculous prices but very few investors are willing to buy these farms. actually only investors that have a marketing venue are surviving in Ecuador.
-wages are app.$240 per worker per month including health insurance taxes etc. a worker takes home half of this amount.Its a 6 day a week job  7 working hours a day.
-the colors and varieties are matched to the U.S. market.
All in all it is a very tough situation, with very little optimism. Most farm owners are outsiders, all workers are native. Its a classic situation of a developing country, with very many hardships. We can sympathies with this situation and to the florist I say buy those flowers that make economic sense to you and to Ecuador-The roses
 
Eyal
 
Sun, May 18, 2003 | link

Friday, May 2, 2003

From all my Students-I am learning
Two years ago I was approached by Hanni from the Arava International Center for Agricultural Training, to teach the trainees agricultural economics.
Aicat has just finished setting up a computer classroom and  has asked me to teach computers.I find myself feverishly preparing to teach trainees from developing countries computer knowledge.
And what a challenge this is going to be.You see the students from Thailand do not speak English and guess what, I don't speak Thai.We have a translator that will be aiding me in this unbelievable challenge.
First of all we got the computers to speak Thai and English. Language can not be a barrier to Knowledge. 
Now I am working on methods in which I can explain in English and they will be able to practice in Thai. The idea is to be able to train them to feel comfortable with the computer. To be able to use a word processor and a spreadsheet. To be able to present their final work paper they have to hand in processed and printed on the computer all by themselves.
We also want them to be able to understand the extremely high value of using the Internet.To be able to use a browser, an e-mail application and a photo software. Some of these trainees have never been exposed to a computer.What a great challenge I am faced with.Then we have students from Tibet, and Myanmar, they speak English, and some of them have had some kind of experience with computers
This of course takes me back to the florist shops and my whirlwind tour in the east coast area of the U.S. I did with Leaora 3 weeks ago.
Of the 40 shops we visited almost all had computers. Only 8 were internet connected. so many of the florists we meet told us that they would log on to our site when they get home or with the aid of "my son-daughter". How different are my potential clients from my students?
For someone who believes that this form of communication is so perfect for our
business, it really is a money saver, and we can process the shipment faster which means freshness, and our clients really can see pictures of the products they will be receiving, As we post new flowers or remove products that are not available anymore a quick click by the florist shows it all. Not to mention we do not spend  time and energy to collect payments due.
So you see in many cases there is very little difference between my trainees and my potential clients.
What I will be learning from teaching my students, I will carry on to my potential customers
Funny how things work.
 
Eyal
 
Fri, May 2, 2003 | link


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