Blooming Economy
A fun fact about me is I love flowers. I would have my own floral garden with diverse blossoms if I could. However, this dream cannot become a reality because I rent in Los Angeles and have no backyard or front yard. Consequently, I am forced to follow what Miley Cyrus preaches in her song “Flowers” and “buy myself flowers.”
Every time I go to the grocery store, without fail, the first thing I go to is the flower selection. Eyes wide, I am always amazed at the offerings, such as peonies, roses, and tulips. This week, though, when I went to the flower section in my local Trader Joe’s, my amazement was replaced with questioning. I had just learned about trading and comparative advantage in my JOUR 469 class, and I began to wonder where most of the flowers in the world come from.
Upon further research, I quickly discovered that the Netherlands is the top exporter of flowers. The Netherlands is the Silicon Valley of the flower industry, producing about 1.7 billion cut flowers annually. One of the reasons this country has earned this title is because of its comparative advantage. This is when a country and its labor force can produce something more efficiently than others.
The Netherlands is a small country. Yet, despite their size, they can still have a role in global trade because of their comparative advantage. For instance, the Netherlands exports its flowers to countries such as the United States, Germany, the United Kingdom, France, Italy, and Poland.
One of the reasons for its efficiency has to do with its history. The Netherlands has been growing and exporting its flowers for centuries. In the 16th century, the Netherlands imported tulips from the Ottoman Empire, quickly becoming a hot commodity. Tulip bulbs were selling for ten times what a person had made a year and were worth more than gold. This period was known as tulip mania. Since the Netherlands has been producing flowers for a long time, they have enhanced and improved the process.
Today, the Netherlands uses various techniques to produce flowers, prioritizing innovation in gardening. Some growers have labs where they combine pollen and seeds to create stronger flowers that can fight against pests and diseases. They also use greenhouses, which reproduce natural conditions. The Netherlands also researched which natural compounds could substitute chemical crop protection agents. For example, they found that the juice of a plant can kill Thrips, an insect that is terrible for flowers in greenhouses.
Ultimately, flowers in the Netherlands are an essential part of the Netherland’s economy. It gives them opportunities for international trade, creates jobs, and overall aids in economic growth as the exports bring in an annual revenue of 6.2 billion euros. The Netherlands plays to its strength and knows it dominates the floral industry, allowing it to be a valuable contributor to international trading.
Now knowing this, whenever I see flowers, whether for birthdays, holidays, weddings, or even in the grocery store, I will always ask myself the question — did these come from the Netherlands?
