Poinsettia Sales and Profits Increase for New Client

Rafael Silva is the owner and manager of Jardín de las Flores, a wholesale greenhouse and field nursery located in Ahuachapan, El Salvador, that specializes in distributing potted plants to nurseries and retail outlets throughout the country. In operation for seven years, the company employs twenty-three permanent workers and has four greenhouses totalling 3,000 square meters. Poinsettias make up approximately 60 percent of annual gross sales, or $40,000 in 2003. However, considerable plant damage and low returns due to poor quality led to a net loss of $43,000.

Fintrac IDEA began providing Jardin de las Flores with technical assistance in July 2004 in anticipation of the holiday season. The IDEA team recommended installation of a drip irrigation system (everything prior had been manually irrigated), and established a fertilizer and pest control program. Mr. Silva was nervous initially about the investment involved, particularly for drip irrigation, but is now completely sold on the technology given the dramatic results.

Instead of the 50 percent rejection rate experienced last year, Jardin de las Flores expects to show nearly 100 percent plant recovery this season. Cost of production has dropped from $7.40 to $2.00 per plant. Initial sales results, based on a bulk order of 5,000 plants, were $25,000, and projections indicate that if this price holds and losses are kept at 5 percent of the total crop, sales will reach nearly $104,000 for the 2004 season, netting over $63,000. "The support Fintrac is bringing to us is excellent!," says Mr. Silva.