The Economics of Everyday Things – Episode 117: Cut Flowers

Host: Zachary Crockett (Freakonomics Network)
Date: December 8, 2025

Overview

In this episode, Zachary Crockett dives into the surprisingly complex and global economics of cut flowers. He explores how flowers move from farms around the world into homes, stores, and significant life events, unpacking the transformation from local, seasonal products into a multi-billion dollar international industry. The episode features two industry insiders—Bob Milano (VP, Milano and Company) and Jasmine Gomez Gonzalez (COO, OC Wholesale Flowers)—to discuss logistics, supply chains, fluctuating prices, sourcing challenges, labor, and the allure of the perfect peony.

Key Discussion Points & Insights

1. Why Americans Love Flowers

• Americans purchase flowers for all types of occasions: Valentine's Day, Mother's Day, weddings, and just because.
• Peonies are singled out for their popularity and unique dilemma—once seasonal, now in-demand year-round due to consumer preferences.
  • Jasmine Gomez Gonzalez: “Everyone loves peonies.” [02:15]

2. From Local to Global: The Evolution of the Flower Industry

• Refrigeration & Logistics: Technology allows flowers to be shipped internationally, making previously seasonal flowers available year-round.
  • Bob Milano: “You can get your peonies year round now for the most part, and it's by bouncing around the entire world.” [03:04]
• Cut flowers are now a $7 billion/year industry in the U.S., with Americans as the biggest buyers globally.

How Year-round Peonies Became Possible

• Farms across Chile, Israel, the U.S. (Arkansas, North Carolina, Oregon, Washington, Alaska), and the Midwest stagger their production.
• Price and availability vary based on geography and season.

3. The American Market’s Global Influence

• The U.S. dictates what types of flowers are grown internationally and when, pushing farms to adapt to American taste and holiday-driven demand.

4. The Wholesalers’ Perspective

• Milano and Company is a third-generation family business in California.
  • The family's entry into flowers began with foraging and delivery through horse-drawn buggy (1920s), shifting to growing and selling at the LA Flower Market [05:02].
  • Refrigeration was game-changing; prior, the whole industry depended on hyper-local supply.
• OC Wholesale Flowers services a diverse set of clients, from retail florists to large event producers.
  • They handle hundreds of flower types and receive substantial weekly orders primarily from South America, supplemented by Japanese, Dutch, Italian, and U.S. growers.

5. The International Supply Chain

• Flowers move through a network from farm (often South America, some Africa) → international shipping (air or sea freight, mostly via Miami, sometimes direct to LA) → wholesaler → retailer/event planner [10:04–13:27].
  • Bob Milano: Lays out in detail the multi-day, multi-step journey of a rose from South American farm to a West Coast wholesaler—a rose might be up to two weeks old when it reaches a consumer in the U.S. [12:24].
• Fast, Cold, and Inspected: The “cold chain” must be meticulously maintained at 42°F, or flowers risk molding and rapid decline.
  • Temperature is tracked by thermometers from farm to warehouse to guarantee freshness [13:55–14:26].
  • Regulatory hurdles add cost and time: USDA and state-level inspections.
    • Milano: “There's redundancies in there... every single time you touch the flowers. It's increasing the cost and it's potentially hurting the quality of the flowers.” [11:48]

6. Flower Quality, Cost, and Freshness

• High-end retailers and event planners demand fresher, more robust flowers with better “head size” and longevity, compared to less expensive grocery store bouquets.
  • Gomez Gonzalez: “They want something that opens beautiful, they have a high petal count.” [14:57]
• Peak Holidays: Valentine's Day and Mother's Day create spikes in demand and strain the supply chain, increasing freight costs and prices across the board.
  • Milano: “You’re talking about 5xing the overall daily consumption of flowers, and that's a big strain on the infrastructure…” [15:28]

7. Freight, Tariffs, and Pricing Pressures

• Air freight costs soar around holidays ($1.75–$2.75 per kilo), adding $5 per bunch of roses [20:21].
• Tariffs and labor costs feed into end prices.
  • Gomez Gonzalez: “We are paying 16.8% tariff costs from Ecuador on roses alone. So by the time that you purchase a bunch of roses at, let's say, seven or eight dollars a bunch, including freight, the cost of product actually is getting here at around maybe 12, $14 a bunch...” [23:09]

8. Managing Waste and Demand Uncertainty

• Predicting daily demand is challenging; holidays are predictable, but ordinary seasonal demand fluctuates with economic trends.
  • Milano: “If I could answer that question, then we wouldn't have all the problems that we have. It's tough. It's extremely tough.” [20:44–20:59]
  • Standing orders and waste management strategies help minimize losses (~5% waste week-to-week) [21:40–21:58].

9. U.S. Flower Farms: Shifting Niches and Challenges

• Local growers have been squeezed out of high-volume staples; many now focus on niche or specialty blooms to serve high-end clients [23:55–24:06].
• Labor costs, water shortages, and even legal marijuana’s competition for land have put further pressure on the business [24:34–25:08].

10. Generational Shifts and the Future

• There’s renewed enthusiasm from younger generations—for flowers, for “buying local,” and for supporting specialty growers [25:12].
• The family tradition continues with Jasmine bringing her kids into the wholesale business, fostering hope for the next generation [25:38].

Memorable Quotes & Moments

• Milano on his favorite flower:
  “My favorite flower is a sold flower that's paid for.” [04:30]

• Gomez Gonzalez on her devotion to peonies:
  “I will be a die hard peony fan till my end days. I love them.” [04:21]

• On the challenge of forecasting:
  “If I could answer that question, then we wouldn't have all the problems that we have.” – Milano [20:59]

• On the family business legacy:
  “I have two young babies... I bring my Ezekiel to work. He washes buckets... So maybe one day. You never know.” – Gomez Gonzalez [25:38]

Notable Timestamps

• 02:15 – The rise of peonies and the year-round flower phenomenon
• 05:02 – Milano family history and the local origins of flower wholesaling
• 10:04 – Quick-fire breakdown of the cut flower supply chain
• 14:57 – The difference between high-end and grocery store flowers
• 15:28 – The “Super Bowl” holidays for the flower industry
• 20:21 – Air freight vs. sea freight and cost breakdown
• 23:09 – How tariffs directly impact flower prices
• 25:12 – The new generation’s impact on flower consumption

Conclusion

Crockett paints a vivid picture of how a simple bouquet embodies a web of international logistics, economic calculation, shifting consumer taste, and family tradition—rooted in both the romance and the realities of perishable commerce. The episode provides an inside look at an industry most take for granted, exploring everything from why peonies are suddenly everywhere, to how international regulations and trends in marijuana farming shift what’s in our vases.

For more bite-sized explorations of the everyday economy, check out other episodes of The Economics of Everyday Things.