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Flower business has lobbied for higher prices for imported roses

Ukraine introduces a special import duty on cut roses for three years. In the first year its amount will be 56%, in the second—44.8% and in the third—35.84%. At the same time, the duty does not depend on the country of origin and export.

This decision has been made by the Interdepartmental Commission on International Trade. It will enter into force 30 days after publication, according to the newspaper Uryadovyi Kurier.

The duty does not apply to the import of roses from about 60 countries, including Iceland, Liechtenstein, Norway, Switzerland, Montenegro, Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Uzbekistan, Tajikistan, Turkmenistan, Afghanistan, Angola, Bangladesh, Benin, Bhutan, Cambodia and others.

Uryadovyi Kurier notes that the company Askania-Flora has initiated an investigation into the import of roses. It was carried out from May 2020 and it covered the period 2017—2020. During this time, the import of roses to Ukraine increased by more than 71%, the share of import compared to production—by 72%, consumption—by 40%. At the same time, despite an increase in apparent consumption by over 20%, production decreased by 26.3%, sales by 25.3%, exports by 79%, and prices were much lower than the cost price, despite the fact that it increased by 23%.

The report also says that during the investigation, import prices were lower than the cost of Ukrainian roses, and the difference between them during this time increased by 22.6% and 33.7%, respectively.

The roses greenhouse complex Askania-Flora is the largest producer of roses in Ukraine. It is part of the Ascania group of companies that includes 12 companies, and began its work in 2000. Valerii Horban is the founder and CEO of Askania-Flora.

As for flower import and export, in winter and spring the share of imported flowers in Ukraine is about 82%, in summer—48%, while of Ukrainian flowers—52%. Ukraine exports roses to Poland, Belarus, and the Netherlands.

Context. Earlier, Askania-Flora told about the extermination of most of the roses due to quarantine restrictions in Ukraine and falling demand. According to the company's commercial director Viktor Fedorenko, the sales market of Askania-Flora is concentrated in Ukraine for more than 90%, but now it has decreased to a minimum, and the shipments of roses have decreased several times. He stated this in a commentary to the news agency Interfax-Ukraine.

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