The economics of Ethiopian floriculture

Most cut flowers have a high value-weight ratio, and are very perishable.  Flowers are consumed throughout the year, and must respond to varying consumer requirements through time.  Thus, the industry depends on air transport and cold-chain logistics throughout the value chain.  Air transport fees account for more than half the total cost of the product…and combined with marketing account for up to 75 percent of total costs.  Frequency and timeliness of flights and other logistical arrangements are of utmost importance in meeting orders on time and ensuring that flowers arrive fresh to maximize vase time.  The strategic and role of EAL [Ethiopian Air Lines] becomes clear from this perspective.

That is from Arkebe Oqubay’s Made in Africa: Industrial Policy in Ethiopia.  In Ethiopia, they sell this book for less than half of its Amazon list price.

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