As we continue to experience challenges that have surfaced due to the high demand for flowers, we want to share several key factors and updates that affect pricing, availability, shipment delays, and more.
Particularly, after a big holiday such as Mother’s Day, it’s important to evaluate the production and logistical aspects that influence the flower industry and analyze what can be done in particular scenarios.
- We continue to experience product shortages.
- After a major holiday, we usually experience product shortages. Post Mother’s Day, it’s common for rose production to be low. Although the industry has still not caught up to the demand we are experiencing, our rose production should normalize by July.
- National strikes in Colombia have impacted operations.
- As many of you may be aware, Colombia is in the midst of a national crisis. Strikes have closed national highways, impeding both workers from safely getting to the farms and delaying product shipments to the airport.
- Labor and Material Costs have increased.
- Colombia’s workforce is nowhere near to returning to full capacity. This means that not only are farms still short-staffed but also other aspects such as cost of living have increased.
- Because of the difficulty in sourcing materials such as hard goods and seeds, pesticides, cartons, rubber bands, plastics, and greenhouse materials, we are seeing a cost increase.
- COVID-19 is still a factor that needs to be considered.
- Although the U.S. seems to be on the path of a successful “reopen”, many countries, including Colombia continue to struggle with the pandemic and getting people vaccinated.
- This will continue to affect our operations as the workforce everywhere is scarce due to laws that limit the number of people that can be at our facilities.
- Airfreight costs and demand are at an all-time high.
- Airfreight costs are still high.
- Airplane scarcity has created a new logistical challenge for the whole industry as we work with more airlines to secure shipments.
- Domestic Transportation also has its challenges.
- The lack of drivers, available trucks, routes, and fuel shortages have contributed to price surges and limited truck availability.
So, now that we know that these issues are taking place, what can we do?
- Continue to book your orders with plenty of time. The earlier you book, the better. This will help us get your products on time.
- Be flexible, maximize the use of all colors and flowers. We can’t stress this enough. People want all kinds of flowers, use that to your advantage and try to stay away from variety-specific requests.
- Understand that costs are higher and prices need to be adjusted accordingly.
- Let’s continue to work together to create more meaningful partnerships and relationships. Our Grown to Last promise is to continue to take care of you and help you however we can.
Ultimately, we’re here to continue helping you share the power of flowers with your customers. A little understanding goes a long way and we believe that if there is transparency, open and honest conversations, and trust we can overcome these challenges together.
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