The first two days of my recent trip to Ecuador were spent touring four of the most progressive flower farms. Three of those were located in the Cayambe area, roughly a one and one half hour drive from Ecuador’s capital city of Quito. The ride to Cayambe is breathtaking, both for the scenic vistas of the majestic mountain created by the Cayambe volcano, and for the phenomenal driving skills exhibited by our bus driver, Jose (who received a healthy and well-earned tip at the end of the week!). It is the third highest peak in Ecuador and stands at a height of 5,790m (18,997 feet). This rugged volcano is dormant but is partially responsible for the success of the important flower growing business of which Cayambe is considered the focal point. While many varieties of flowers thrive in this region, it is most famous for its roses.

Cayambe is a Flower’s Heaven

Cayambe is located 0 0’0’ latitude – for non-geography buffs that means it is on the equator and the sun shines 12 hours per day. The humidity is just right year round too.  Also, evenings and nights are cool and the volcanic soil is fertile and ideal for raising flowers. Altitude, climate, soil and the pure mountain-top water provide the perfect mix for growing flowers that is not matched anywhere else in the world.

Impact of the Flower Industry

Flowers are the fourth largest export from Ecuador and roses make up about 75 percent of the flowers exported. Moreover, between one-third and one-half of the roses sold in America come from Ecuador which ships about 70 percent of its flower exports to the United States. The flower industry pumps nearly one-half billion dollars into the Ecuadorian economy. While the flower farms are busy year round the two busiest times of the year are just before Mother’s Day and Valentine’s Day when the level of activity is frenetic.

Though other regions of Ecuador have some flower farms, the industry began in Cayambe in 1983 with only five acres devoted to growing flowers. Thanks to the Andean Trade Preference Act and its successor The Andean Trade Promotion and Drug Eradication Act (ATPDEA) there are now ~700 flower farms in Ecuador.

Cayambe Growth

Once known as the poorest area of Ecuador, Cayambe and its surrounding countryside have benefited and grown thanks to the economic benefits of the flower industry.

In the 1990s Cayambe had a population of about 10,000, most of whom were indigenous to the region. The indigenous inhabitants are Caranqui and Cayambi people, known for resisting an attempt by the Inca people to take over the region in the 1600s for twenty years before the Inca finally conquered them.

Even in the 1600s the Cayambe was home to a farming population. Once the Inca overpowered them all but the very old and the very young were slaughtered. It is estimated that nearly 50,000 people were ruthlessly killed.

Before the surge of the flower industry, Cayambe was best known for its volcano, its bizcochoss, a buttery cheese biscuit and its dairy products.

Population Growth of Cayambe Due to Flower Industry

Today, the population of the Cayambe region has swelled to more than 70,000 people. The primary driver of economic growth is stable, well-paying employment on the flower farms. Wages on the farms average around $400 per week ($20,800/yr) which is outstanding in Ecuador where the cost of living is much lower than in the United States. It is common for both spouses to work (though often at different farms), with children educated in private schools afforded by the competitive wages. The flower industry employs both directly and indirectly over 120,000 workers in Ecuador who, before the industry blossomed, were mostly subsistence farmers earning meager wages with seasonal crops. Farm workers not only make good wages, but they also receive pension benefits and health care that would make most North Americans jealous. Ecuador provides free health care to its citizens and the health care delivery system in Cayambe consists of a modern hospital and 16 health clinics, in addition to the on-site doctors and nurses provided by the farms.

Cayambe straddles the Pan American Highway. As wages have increased so has the number of cars in the region. Roads that were once uncluttered leading to Quito are now often packed. While the traffic patterns were enough to make be quite grateful that I was not behind the wheel, we only witnessed one accident all week.

There is no doubt that Ecuador in general and Cayambe in particular have had spectacular growth thanks to the flower industry which has prospered so well under the ATPDEA. This agreement has been a win for Ecuador’s people and for the American consumer who enjoys beautiful affordable roses and other flowers that are imported from Ecuador.

At the end of our second day in Ecuador we’ve completed our farm tours, and we’re preparing for the opening of the Agriflor show tomorrow at noon. After touring four of the top farms in Ecuador I was asked by the legendary Bill Schodowski how my experience matched up with my expectations. I had to admit that what we have seen and learned far outpaced anything I was prepared for.

In fact there are three things that really stood out for me…

“Bill”, I said, “You know how in all those pictures we in North America see of the rose farms it’s one shot after another of rows of roses? Then a pic of a person standing in a row of roses? Then another row? I figured we’d be spending our days walking up and down rows of plants, row after row …  Those pictures really don’t do these farms justice at all.”

Nothing could be further from the truth! While we have had occasion to walk amongst the roses (with much excitement, I might add), the real impressions were made by what happens beyond the plants themselves.

1) These are real businesses run by excellent business people

It only took a few minutes at our first stop to dispel any remnants of the North American perception of how business is run outside of our borders. The men and women owning and operating these farms are serious operators, well schooled in their craft from local and international universities, and fiercely dedicated to the success of their farms. Jose Javier Pallares of GreenRose by ProductNorte was a successfully practising lawyer before making the transition to farming ~15  years ago. Fausto of FreshCut is a university educated agronomist with 25 years of experience working for companies like Sunburst and Dole before purchasing his own farm and making the transition to a completely organic operation. (Profiles on each farm we visited will be posted in the near future.) From technology to human resources to hiring outside process management consultants, these owners take their businesses very, very seriously.

2) Employees are valuable assets

Don’t be fooled by outdated stereotypes and semi-fictional exposes, the workers at these farms are very well paid and supported, and take a lot of pride in their work. The floral industry is largely responsible for dramatically improving the economic environment – especially in rural areas, and especially for women workers!

A Grader at RosaPrima evaluates each rose one by one for head size, quality, stem straightness, foliage health, and potential defects. Each Grader has the authority to reject any rose if for any reason it does not measure up to their standards.

While the perks and wages naturally vary from farm to farm the average family is now earning a wage sufficient that each household has TV, DVD / BluRay players, dental care and braces for all the children, and many are placing their kids in private schools. Cars are now affordable for most families (which leads to some interesting traffic challenges in and around the major city of Quito!). Most impressive is the medical care provided by the farms with on-site doctors and nurses dispensing medicine which is available even for family members without an upfront cost.

Transportation to and from work is provided for the workers, starting early in the morning so that they can arrive for breakfast (lunch is also provided by the farm), and buses take them home around 4-5pm. Ongoing training, consistent feedback processes and athletic / recreation areas all help to ensure the farm employees feel valued, leading to long term employment.

3) There’s a science to this

On one hand it really shouldn’t come as a shock to anyone that science is heavily involved in flower growing. But when I hear about farms altering the type of plastic used for the greenhouse roofing based on the type and colour of the flowers being grown, I am duly impressed.

Farms that are heavily invested testing new “codes”, or varieties, can spend several years and tens of thousands of tests just to bring one or two new varieties to production. This requires investment, rigorous data collection, communication with breeders, and a willingness to risk the production of several hectares while waiting for the chosen new variety to grow to production level. The next time you see a new variety of rose or delphinium at your wholesaler stop and remember that upwards of 50,000 tests were involved in the selection of that one plant!

From growing to harvesting to grading to packing to cold chain and transportation there are so many tiny incremental variables that the farmers are working to adjust all the time in pursuit of better flowers, longer life and happier consumers!

Next week I’ll be travelling to Ecuador to attend the FlorEcuador Agriflor show in Quito. Agriflor is the largest flower show in the Americas, and a venue for growers to show off the best of their wares. I’ll be blogging from Ecuador next week with highlights, but before starting that series I thought it would be worth covering some background on the Ecuadorian floral industry and, more specifically, the hot topic of the ATPDEA. Don’t let the acronym and the politics bore you – this issue affects every florist in the USA!

The Andean Trade Preference and Drug Eradication Act is a treaty that dates back a decade between the United States and four Latin American countries; Boliva, Peru, Colombia and Ecuador. The pact gives preferential trade status to many exports from these four Andean countries to promote economic agricultural growth by granting duty free status to these exports that are alternative crops to the illegal drug crop – cocaine.

Examples of some great successes are Chilean grapes, Bolivian fruits and vegetable and flowers from Colombia and Ecuador. Over the years President Bush excluded Bolivia from preferential trade status as the country was not proactively engaging in anti-drug enforcement and Peru signed a separate trade agreement with the United States. A broader trade agreement was reached with Columbia in 2006, but it didn’t come into effect until May of 2012. Now only Ecuador is covered by the pact which is set to expire in mid-2013. It is in the best interests of the United States that the treaty be renewed.

ATPDEA Benefits

Many have criticized this agreement as “one way trade pact” with the beneficiary being the Andean countries. They are wrong.

US companies enjoy open trade with our ATPDEA partners and sell millions and millions of dollars of seed, fertilizer and farm equipment to them. If the treaty is not renewed thousands of American jobs could be lost. In the floral industry within the United States tens of thousands of jobs in transportation, distribution and retail florists will be endangered if the act is not renewed.

American consumers benefit by having affordable beautiful fresh flowers available in their neighbourhoods all year long, and North American floral retailers have come to depend on a large volume of high quality reasonably priced flowers from Ecuador.

The Society of American Florists wants Americans to understand that this treaty is good for the American consumer as it provides reasonably priced flowers for them and is good for the American society in that it is an effective part of the solution of illegal drugs being sent to the United States.

Further, the economy of Ecuador is, to a large degree, dependent on floral exports to the United States even though for every dollar spent on flowers from these countries only 25 cents stays in them. Seventy-five cents of every dollar is kept in the United States. The treaty fosters a mutually beneficial relationship between the US and Ecuador and the ATPDEA should be not be allowed to expire.

Stay tuned for Live Blogging coverage of the 2012 Florists For Change meeting in Grand Rapids, MI.