VZCZCXYZ0006
RR RUEHWEB

DE RUEHBO #8534/01 3482116
ZNR UUUUU ZZH
R 142116Z DEC 07
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC 0507
INFO RUEHCV/AMEMBASSY CARACAS 9670
RUEHPE/AMEMBASSY LIMA 5714
RUEHZP/AMEMBASSY PANAMA 0982
RUEHQT/AMEMBASSY QUITO 6412
RUEHLP/AMEMBASSY LA PAZ 9125

UNCLAS BOGOTA 008534 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAGR ECON ELAB ETRD SENV EAID CO
SUBJECT: COLOMBIAN FLOWER INDUSTRY MAKES SOCIAL AS WELL AS 
ECONOMIC CONTRIBUTIONS 
 
 
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Summary 
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¶1.  Colombia's flower industry contributes USD 1 billion to 
the economy and directly employs 100,000 workers, the 
majority of them female heads-of-households.  The industry 
spends millions on social programs for its workers and has 
developed a certification program that has dramatically 
improved environmental standards.  Still, critics complain 
that the industry has not supported workers' freedom of 
association and workers' rights are marginalized. 
Acknowledging the issues, the industry's main certification 
program now explicitly supports freedom of association and is 
considering ways to improve other labor issues.  With 
increased direct flights to the U.S. and growth between 20-30 
percent, the industry predicts a "rosy future."  End Summary. 
 
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A Blooming Business 
------------------- 
 
¶2.  Over the last 40 years Colombia's flower industry has 
evolved into the world's second largest flower exporter, 
directly employing 100,000 people and contributing close to 
USD 1 billion to Colombia's economy.  Flowers are the 
country's second most valuable agricultural export (after 
coffee).  Colombia exports 98 percent of its flowers, with 80 
percent headed for U.S. and the rest bound for Europe and 
Japan.  Forty large farms (50  hectares) control one-half of 
the market with the rest equally divided between 60 medium 
(20  hectares) and 200 small farms (less than 20 hectares). 
Eighty percent of export flowers grow within a few hours 
drive from Bogota because of the large labor pool, good 
growing climate, substantial water resources and easy access 
to an international airport.  The flower industry currently 
uses 75 percent of all Colombian air cargo space.  The 
Colombian Association of Flower Exporters (Asocolflores), 
which represents 75 percent of all flower exporters, said 
cargo availability has been one of the industry's biggest 
bottlenecks.  Industry experts predict that increased direct 
flights to the U.S. would generate increased growth of 20-30 
percent over the coming years. 
 
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Deeply Rooted Social Values 
--------------------------- 
 
¶3.  The flower industry is a leader in corporate social 
responsibility in Colombia.  Ernesto Velez, Chairman of the 
Board of Asocolflores told us 100 percent of the workers for 
Asocolflores' 225 member companies are covered by social 
security, 85 percent are permanent employees, and 75 percent 
receive 20 percent or more above the minimum salary.  Velez 
also said the industry plays an important role in social 
stability as over 60 percent of the workforce are female 
heads-of-households.  The industry spent USD 14 million on 
social investments in 2006.  Asocolflores runs a School of 
Floriculture, supported by USAID, that reaches out to victims 
of Colombia's conflict offering them vocational training, 
psychological support and other opportunities with the goal 
of reintegrating them back into society.  Asocolflores also 
created daycare centers for 20,000 children, and helped 
almost 5,000 families own their own home. 
 
-------------------------------------------- 
Florverde: A Homegrown Certification Program 
-------------------------------------------- 
 
¶4.  In 1996 Asocolflores created an industry certification 
program, "Florverde", which requires that companies meet 
specific environmental and social standards.  Florverde 
consistently raises the standards creating "continuous 
improvement among member companies" according to Florverde's 
Director Juan Carlos Isaza.  With 140 participating member 
companies, Florverde currently certifies almost one-half of 
all flowers exported from Colombia.  Isaza said Asocolflores 
created Florverde to provide flower growers with an 
internationally recognized certification that would increase 
their marketability.  He emphasized that the real strength of 
Florverde is its continuous efforts to improve standards. 
For example, Florverde environmental standards exceed 
government regulations for pesticide application, water use, 
biodiversity, and waste management.  According to Isaza, 
these standards have helped Florverde farms reduce their 
pesticide use by between 40 to 80 percent over the last ten 
years. 
 
¶5.  Pedro Mejia, Managing Director of the non-Asocolflores 
associated flower business Benilda Flowers, agreed that 
Florverde makes Colombian flowers more marketable 
internationally.  About 10 percent of Colombia's flower 
growers, including Benilda, use a Europe-based certification 
program, EurepGap (European Good Agricultural Practices). 
Mejia said the European market still considers EurepGap a 
more rigorous certification program, largely because it uses 
outside auditors to ensure member compliance, in contrast to 
Florverde's self-certification.  Mejia thinks the flower 
business has to respond to NGO concerns because international 
consumers are increasingly sensitive to how products are 
produced: his worst nightmare would be the presence of 
picketers in front of WalMart on February 13 protesting the 
sale of flowers from Colombia. 
 
------------------------------ 
Progress on Some Thorny Issues 
------------------------------ 
 
¶6.  Aura Rodriguez, Executive Director of Cactus, an NGO 
devoted to improving human rights in Colombia's flower 
industry, claims Florverde standards are lower than most 
international certification programs.  Still, Rodriguez said 
the industry has made steady progress and attributes this 
largely to Florverde.  Rodriguez admits Florverde has helped 
reduce pesticide use and worker exposure.  She said the 
biggest remaining challenge is improving labor rights, 
particularly the freedom to associate.  Rodriguez also 
pointed to another labor problem: employers insisting on 
pregnancy tests for female workers.  Although employers claim 
the measure protects pregnant women from exposure to harmful 
chemicals, Rodriguez said they use it to avoid hiring 
pregnant women and paying maternity leave. 
 
¶7.  Ayade Silva, President of Colombia's largest flower 
workers union, Untraflores, agreed on the importance of the 
freedom to associate. Silva said workers who try to organize 
union activities in the flower industry have been threatened 
and fired. She criticized Florverde for not explicitly 
stating that members must permit workers the freedom to 
associate. Silva also said employers take advantage of a 
legal loophole to create worker's cooperatives, ostensibly 
owned and controlled by workers, but in reality intended to 
reduce workers' rights. 
 
¶8.  Isaza told us Florverde standards did not initially 
include freedom to associate because the right is already 
guaranteed by law and because the flower industry's 14 
percent union membership is the highest in the private 
sector.  He acknowledged, however, that the omission was a 
mistake that weakened Florverde's image.  Isaza said that 
since July 2007 Florverde has required that all members 
provide evidence of workers' freedom to associate, a system 
for worker complaints, and a collective bargaining mechanism. 
 Isaza said Florverde also plans to issue standards to reduce 
pregnancy testing and the inappropriate use of workers' 
cooperatives. 
Brownfield