Monday 17 September 2012

3 Ways Oil Prices Affect Flower Delivery

The price of oil seems to go up & down like a yo-yo.

But the TREND with oil prices is on an upward slope.

The Canadian economy, the Middle East, the US economy, and now even the economy in China all impact on prices.

It's a global marketplace in today's world.

But the bottom line is that we're dealing with a finite resource. Prices will continue to increase over time regardless of short term economies.



So oil prices down the road will impact florists in Canada in 3 ways:
  1. 85% of flowers consumed in Canada come from South America, mainly Colombia and Ecuador. It takes a lot of gas to fly flowers to Miami, haul them up north in reefer trucks, and then have them delivered by a wholesaler. 
  2. The few types of flowers that are still grown in Canada are field crops, and oil prices would have minimal impact. But those flowers that are grown in greenhouses require heat, and that heat is supplied by oil or gas.
  3. Those local delivery vehicles don't run on air! "Free delivery" won't be free when the price of a litre of gas hits $1.50.
It would be a simple solution to simply grow more flowers locally. But that requires planning. Two to three years from planting to first harvest. And not every flower can grow in a field here in Canada.

So just like buying food at the grocery store, prices aren't going down.

I guess the price of flowers and flower delivery aren't likely to be decreasing either...

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