The president of the Colombian Association of Flower Exporters, Asocolflores, Augusto Solano, announced that as a result of the pandemic that the world is currently facing, the country's flower exporters have had to deal with the cancellation of more than 50% of the sales scheduled for the remainder of the first half of 2020.
"Until last week, flower export activities were only partially affected in markets such as Korea, Japan and Italy; however, on March 16, orders from many other countries, including the United States, which accounts for 80% of the sector’s total sales, were cancelled, generating great concern among flower growers," said the union leader.
The Asocolflores spokesperson recalled that on average, exports in the first five months of the year represent over 60% of annual sales, which last year generated almost US$ 1.5 billion. According to the union, Mother's Day is approaching; a date as important as Valentine's Day in the export calendar for this product, and there is uncertainty about how things will pan out.
"We have some serious difficulties to overcome. The jobs of 140,000 men and women in the country depend on our sectorial and trade union efforts and our strategic direction. We are judiciously trying to manage cash flows in the face of the evident reduction in sales. This includes holding important conversations with the Government to seek formulas to mitigate the crisis. In this sector, our clients make payments in 30 or 60 days, which is why even a good part of the Valentine's Day sales have not been received yet," said the union leader.
According to Solano, even if sales are reduced, regardless of how much or little, the crop must be kept in perfect condition and the next sales have to be scheduled. This is why the main challenges ahead for the national flower industry, given the economic consequences for the country of the coronavirus pandemic, are:
- Protecting the health of all workers
- Facing the drastic decrease in cash flow due to the drop in sales
- Maintaining the crops
- Protecting the job of 140,000 people
- To have the necessary logistics to be able to export, if there is a market for the products.
- Recovery of portfolio
In view of the delicate situation faced by the country’s flower growing sector, it is important to bear in mind that this activity has two essential characteristics: firstly, over 95% of its production is intended for export; secondly, it is very labor intensive, and labor costs represent over 50% of all operating costs; a situation that generates a great demand for cash flow, as wages cannot be deferred.
Lastly, the president of Asocolflores once again supported the declaration of the state of economic emergency and pointed out that flower companies have been complying with all the guidelines of the Ministry of Health and the territorial entities, and have even gone further by creating additional protocols to mitigate the impact of the coronavirus.
"We are convinced that by working together, we will overcome this difficult situation and manage to minimize the social and economic impact on our country. The contribution of flower growers and the joint work with other sectors and the National Government will allow Colombia and its inhabitants to continue on the path to growth," said the union spokesperson.
Source: asocolflores.org
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