2019 Challenges for the Ecuadorian Flower MarketJanuary 02, 2019
Logistic complication: The demand for products through electronic commerce occupies more air cargo spaces, which reduces the availability to send Ecuadorian flowers to other countries, so it is considered urgent to find a solution for this matter.
As the Demand grows, the providers of transportation services are rising up their costs. That means – the final cost of transported flower will also rise significantly. And if a buyer-wholesaler wants to maintain his customers by offering them usual prices, he cannot just let the bad quality flower fly! It is paying for transportation of garbage! To stop receiving garbage flower – you need to work with High Control Group
Elimination of VAT: By eliminating the Value Added Tax on the flower product, some new business areas will be promoted to export flowers. At present, this affects the productive cost because many companies (bouuet making and exporting farms) to increase their exportable offer – buy flowers from different farms and the engraved VAT is not deductible for the farm that sold them. In addition, the exporter must wait more than 90 days for the VAT refund.
Greater competitiveness: Especially in the workforce, through labor flexibility, costs and competitive productivity.
Changes in the Ingenios Code: This will result in a relief to the commercial strategy of Ecuador thus exclusive flowers will be offered. To achieve this, a broad code is needed to provide support in local and international areas and in this case total security is given to flower breeders in their contract signing.
Commercial opening: The advances in the negotiations on the tables of the Trade and Investments Council (TIC) are aimed at getting the roses into the Generalized System of Preferences and in turn enter the market of the United States without tariffs.
This blog entry was based on the following original article (in Spanish)