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The Korean rose industry is increasing production quantities and extending its production areas by the active support of the Korean government and have recently achieved high returns. But the sudden increase in supply and production areas in the rose industry have created excess surpluses, causing the rose prices to drop gradually. In this article, the effect of increasing quantity upon the rose price is analyzed by using Armington Model. According to the results, the fluctuations in the rose price in the most productive areas are largest during winter season and are smallest during summer season. Therefore, to minimize the fluctuations of price and to stabilize their incomes, first, the producers need to prevent excess shipments to the rose market by cultivating those types suitable to their production areas. Second, the shipments need to be dispersed into the other markets when the shipments are increased suddenly. Third, high quality control and strict sorting of products are needed to achieve high valuation from the market. Forth, the producers in the production areas in which the price is low need to keep their incomes in stable condition by managing their businesses well. Fifth, government support is needed to stabilize the rose prices in the Korean rose industry.

An Analysis of Rose Prices As Influenced by the Extension of Production Areas and the Increase of Quantity Supplied in Korea