Rising labor costs are reshaping Colombia's flower sector in 2026. Two main factors are simultaneously affecting the industry: the exchange rate remains at 2021 levels, while labor costs continue to rise. A significant increase in the minimum wage has pushed production costs up across the board, and with labor accounting for around half of total costs, growers have little room to absorb the impact.
© La Gaitana Farms
La Gaitana Farms expects flower prices to increase across the market, as growers adjust to higher structural costs throughout the industry. According to Diego Vargas, labor accounts for roughly half of total production costs, making price adjustments unavoidable.
"Traditionally, the minimum wage is set by consensus among industry representatives, labor unions, and government officials. When an agreement is not reached, the government sets the wage by decree. This was the case for 2026, and the increase over the 2025 level was 23.7%. With an inflation rate of 5.1%, the wage increase is out of proportion," Diego explains.
The minimum wage has reached US$480 per month this January, and social benefits represent an additional 60% in costs. "The hourly rate is now around US$4.50, which is extremely high for a developing economy."
Diego points to sharply rising labor costs as a key issue. "The government determined a 23.7% increase in the minimum wage," he says. "In the flower business, labor represents around 50% of total costs."
Despite these pressures, La Gaitana Farms remains on solid footing. With more than 42 years in the market, the company has grown from four hectares of carnations to nearly 42 hectares, supported by a diversified product range and a balanced export portfolio. While the United States remains its largest destination, Europe—particularly Poland—has become a key growth market, where La Gaitana is now the leading carnation exporter.
Commercially, 2025 delivered strong results for the company, with sales up around 12%, driven in part by increased European imports following reduced local production.
Strong presence in Europe
While most Colombian flower exports traditionally go to the United States, La Gaitana Farms has developed a more balanced export portfolio. "About 80% of Colombian flower exports go to the United States, but for us it is around 55% to the United States and 45% to other countries, especially Europe," Diego says.
Valentine's Day underway
La Gaitana Farms is currently in the middle of the Valentine's Day peak. "We are already in the peak of Valentine's Day," Diego says. "We started shipping sea containers last week to the United States."
Sea freight has become increasingly important. "Before, companies were not confident because of transit times, but now they know that if you maintain the cold chain during transit, the flowers will perform well," he explains. "Carnations and spray carnations are among the strongest flowers in the sector, so they work well for sea freight."
Color trends and product development
When it comes to trends, Diego sees consistency rather than drastic change. "For me, the trend is almost the same every year. The main colors will always be red, white, and pink," he says.
La Gaitana Farms continues to test new products in small volumes. "Every year we introduce new products and new varieties," he says. "This year, we are trying out trachelium and statice. We start with small volumes, and depending on the reaction from clients, we expand production."
Focus on future growth
Looking ahead, the company's core focus remains unchanged. "Our goal is to continue being one of the best carnation growers in Colombia," Diego says. "That is part of our DNA."
This includes ongoing investments and expansion. "In 2024, we acquired more land to enable production expansion," he says. "The idea is to fulfill more orders and keep growing."
Despite the pressures facing the sector, Diego remains confident. "This year will bring many challenges for the industry, such as labor costs and logistics," he concludes. "We've faced difficult cycles before. Our experience and long-term partnerships give us confidence in the future."
For more information:
La Gaitana Farms
[email protected]
www.lagaitanafarms.com
