Effects of Seasonal Variation Driven Price Disparity on Fresh Flower Business: Evidences from Bangladesh
Journal of Business & Retail Management Research
As an emerging sector, the commercial cultivation of flowers is gaining popularity in Bangladesh and creating a new competition of high-quality flower production. This paper examines the price differences practiced by growers and other channel members of the industry which is affected by seasonal variation. Using the evidence collected from 220 respondents of growers and channel members like local traders, wholesalers and retailers, the study finds that the market price of flowers usually
... owers usually remains uncertain and unstable in Bangladesh, and it is mainly associated with its demand and supply in the market during different seasons. Higher price is observed for Rose, Tuberose, Gerbera, and Gladiolus in rainy season when the supply and wastage of perishable flowers fail to match the demand of those flowers. On the contrary lower price is observed in spring when the supply of flowers increases due to favorable weather for production. However, flower traders get more prices by selling Marigold in winter, the time which is suitable for cultivating and harvesting. Nevertheless, they obtain lower price in summer. Moreover, they receive elevated price in winter for trading Jasmine and poorer in rainy season. This overall market price difference, in turn, affects the profit of the traders. In favorable weather, profits of flowers are found lower due to the additional supply of flowers compared to the demand whereas in adverse weather, extra cost of wastage or post-harvest loss makes the profit lesser again. This study aims to provide useful policy insights to the policy makers as well as researchers for reducing the seasonal effects on flower trading in Bangladesh. In this way this study will also help the government to realize the importance and develop ways of solving the effects of seasonal variation driven price disparity on fresh flower business.