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ISHS Acta Horticulturae 55: IV Symposium on Horticultural Economics

SHIFTING COMPARATIVE ADVANTAGE FOR FLORICULTURAL PRODUCTS IN THE AMERICAS

Author:   Cecil N. Smith
Abstract:
Vast shifts in the location of major segments of the cut flower and flowering plant industry have occurred in the United States. Areas with climatic advantages, in comparison with greenhouse production concentrated in the vicinity of major eastern and midwestern markets, have risen to the forefront as major producers of flowers in the United States. The import of cut flowers and of cuttings of foliage plants for propagation from Latin America and the Caribbean has brought about vast and continuing changes in the cut flower and foliage plant industry. Other changes have occurred in the marketplace whereby retail florists' shops, still the major outlet for most cut flowers, have to an increasing extent, faced competition from mass market outlets not only for foliage and other potted plants, but also for many cut flower items. It is recognized, however, that demand for flowers retailed by florists' shops tends to be inelastic while that for flowers sold by mass marketers tends to be elastic.

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