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Ukraine flower market survived three huge challenges

The Ukrainian market for cut flowers is US$250 million. About 150 million cut flowers are sold annually in the country. However, these are the maximum market indicators that are typical for a favorable economic situation. For the last 8 years, this is a rarity for Ukraine. In 2014, due to the war with Russia, flower sales decreased by 58 percent. By 2018, the market recovered 40 percent of its previous volumes. But already in 2020, there was a new decline. The COVID-19 epidemic has been more devastating than the war. The largest market participants reported that flower sales decreased “several times.” Because of this, part of the flower plantations was liquidated. And some companies went bankrupt. The impact of COVID-19 on the market has not been studied. The epidemic didn’t end when Russia attacked Ukraine. This cut flower sales by 40 percent. Statistical reporting has been disrupted because of the war. However, it is clear that the situation is very bad. Market volumes are less than US$100 million per year. Perhaps this value is only a few tens of millions of dollars. Importers of flowers to Ukraine report the closure of enterprises due to the reduction of the Ukrainian flower market.

In the current situation, few types of businesses can be successful. Perhaps the most optimal is the cultivation and/or sale of roses. Rose is the most popular flower in Ukraine. This flower provides almost half of all sales. More than 60 million roses are sold annually in Ukraine. If a businessman grows a rose in Ukraine and sells it in bulk on the domestic market, then the income is 15-30 percent. A businessman who grows roses and sells these flowers at retail earns 85-100 percent. If a flower shop owner resells roses, the income is about 70 percent. Businessmen who import roses and sell them in their retail stores make the most profit. This business scheme gives a profit of 200 percent.

Read more at arr.news

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