Green Industry
Situation and Outlook
2008 Southern Region
Agricultural Outlook
Conference
Ronald L. Rainey
Associate Professor/Extension Economist
What is the Green Industry?
Greenhouse and Nursery Crops
Greenhouse crops
Nursery Crops
Bedding/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).
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
p
$0
U.S. Greenhouse and Nursery Grower Cash
Receipts, 2000-date ($1,000).
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
Floriculture
Christmas trees
Nursery
p
06
20
05
20
04
20
03
20
02
20
01
20
20
00
$0
U.S. Greenhouse and Nursery Grower Cash
Receipts, Regions ($1,000).
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
Northeast
Midwest
West
06
20
05
20
04
20
20
03
$0
South
Top 10 Greenhouse and Nursery States in Terms of
Grower Cash Receipts, 2006p ($1,000).
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
California
Florida
Texas
Oregon
North Carolina
Michigan
Ohio
Pennsylvania
New York
Georgia
Total Top 10
Total U.S.
$3,804,453
1,753,399 *
1,496,345 *
1,040,452
1,026,509 *
642,393
604,438
411,441
408,976
400,000 *
11,588,406
$16,891,934
Greenhouse and nursery cash receipts, by
Southern state, 2006p ($1,000).
$1,800,000
$1,500,000
Southern region represents about
37% of total U.S. production.
$1,200,000
$900,000
$600,000
$300,000
$0
AL AR FL GA KY LA MS NC OK SC TN TX VA
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 Consumption
by household (Dollars).
$170
$160
$150
$140
$130
$120
$110
$100
20
07
p
20
06
20
05
20
04
20
03
20
02
20
01
$90
Value of Greenhouse and Nursery Imports and
Exports, 1994-date ($1,000).
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
p
$0
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?