by Ron van der Ploeg
MADRID, Spain, December 17, 2009: Spanish flower growers are suffering from a “dramatic crash” in prices this year even as they prepare for the Christmas and Valentine peak sales season., the Spanish Union for small farmers UPA (Unión de Pequeños Agricultores y Ganaderos) said.
The prices of flowers have collapsed compared with last year because of the global economic recession, the Madrid-based organization said today in a statement. There have been dramatic price drops in carnations, Chrysanthemums and roses on average of 22% to 28%, with peaks of even 40%.
Falling prices were compounded by major increases in production costs, the Union said. A meeting with producers and government ministers should be organized to identify measures to assist the sector.
The UPA calls for a stimulus plan, including renovation of old greenhouse structures in the South of Spain and a promotion campaign.
The production of cut flowers is mainly concentrated in Andalucia, the Canary Islands, Extremadura, Cataluna and Galicia.
According to a new report from Spanish customs, Spain has suffered a significant worsening of the balance of trade with regards to cut flowers. In 2008, the Spanish exports of cut flowers amounted to € 32 million, a 7% decrease compared to 2007. In the meantime the imports of fresh cut flowers amounted to more than € 70 million in 2008. During the first semester of 2009 exports of Spanish cut flowers also decreased with 19% totaling € 20.2 million
The biggest drops in exports were registered  in roses and Chrysanthemums. Exports of Spanish carnation (Spain’s most important export flower) decreased by 21% during the first semester of 2009.