A Guide to Surviving the Valley of Death
While it is often said history is an excellent teacher, can the history of established markets help protect cultivators’ businesses in emerging markets? As cultivators enter the marketplace, insights from established markets suggest a systemized approach to cultivation can benefit those in emerging locations. Similar to products in all other free markets, cultivators’ economics are heavily influenced by the balance of available supply and the market’s demand. As horticultural offerings deemed desirable by a market segment become available, early demand typically has been met by relatively limited supply, driving up market prices. Of course, a natural response to rising prices is the entry of new producers, causing prices to decline as market supply increases. This economic pattern recently has been seen in new markets where an increase in competition was followed by a drop in flower prices . While growers cannot control external market forces, they can make an effort to reduce operat...