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Green Industry Green Industry Situation and OutlookSituation and Outlook
2008 Southern RegionAgricultural Outlook
Conference
Ronald L. Rainey
Associate Professor/Extension Economist
What is the Green Industry?
Greenhouse and Nursery CropsGreenhouse crops Nursery CropsBedding/garden plants
Potted flowering plants
Foliage plants
Bedding & garden plants
Cut cultivated greens
Propagative materials
Broadleaf evergreens
Coniferous evergreens
Deciduous shade trees
Deciduous flowering shrubs
Fruit/nut plants
Palms
Ornamental grasses
Other woody ornamentals
Christmas trees
Vegetable transplants
Propagation materials
U.S. Greenhouse and Nursery Grower Cash Receipts, 1993-date ($1,000).
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,00019
9319
9419
9519
9619
9719
9819
9920
0020
0120
0220
0320
0420
0520
06p
U.S. Greenhouse and Nursery Grower Cash Receipts, 2000-date ($1,000).
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2000
2001
2002
2003
2004
2005
2006
p
Floriculture Christmas trees Nursery
U.S. Greenhouse and Nursery Grower Cash Receipts, Regions ($1,000).
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2003
2004
2005
2006
Northeast Midwest West South
Top 10 Greenhouse and Nursery States in Terms of Grower Cash Receipts, 2006p ($1,000).
1. California $3,804,453
2. Florida 1,753,399*
3. Texas 1,496,345*
4. Oregon 1,040,452
5. North Carolina 1,026,509*
6. Michigan 642,393
7. Ohio 604,438
8. Pennsylvania 411,441
9. New York 408,976
10. Georgia 400,000*
Total Top 10 11,588,406
Total U.S. $16,891,934
$0
$300,000
$600,000
$900,000
$1,200,000
$1,500,000
$1,800,000
AL AR FL GA KY LA MS NC OK SC TN TX VA
Greenhouse and nursery cash receipts, by Southern state, 2006p ($1,000).
Southern region represents about 37% of total U.S. production.
Grower Cash Receipts
• Annual growth is projected to be 0.3% for 2006. The market has slowed along with the economy. Even though the housing market is in a crisis, greenhouse and nursery product sales have remained fairly constant.
• The Southern region contributes the largest share of sales (approximately 38%) but experienced a decrease of 2.9% in grower sales receipts for 2006.
Floriculture Growers• Industry is continuing to transition with
growers exiting the industry, increased concentration and consolidation.
• Larger producers are getting bigger.
• Automation, economies of scale and specialization continue, with this trend being pushed by mass marketers.
• Finding quality, available labor continues to be a primary concern.
Greenhouse and Nursery Consumptionby household (Dollars).
$90
$100
$110
$120
$130
$140
$150
$160
$17020
01
2002
2003
2004
2005
2006
2007
p
Value of Greenhouse and Nursery Imports and Exports, 1994-date ($1,000).
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
p
Exports Imports
Imports
• Cut flower and nursery stock continue to dominate the greenhouse and nursery imports, which were up 8.3% and 2.2% for 2006, respectively.
• Cut flowers represent 53% of green industry imports.
Summary• The green industry continues to be a major sector
within U.S. agriculture (12%) and is of major importance to farmers, rural communities, and consumers.
• Imports continue to trend upward driven by the demands for cut flowers and nursery stock.
• Although the industry has maintained overall grower sales levels, the number of growers continues to decline.
Summary
• Higher Energy costs continue to dampen consumer spending including discretionary goods such as ornamentals,
• Inflationary pressures subdued demand, so prices of greenhouse and nursery crops will be unable to rise enough to combat higher production costs.
Summary• Niche branding along with value-added services and
products are emerging strategies for small growers to gain market share.
• Sustainability, certification products, and production systems are emerging as a method of market segmentation.
Questions?