Growers Optimistic Amid Economic Turmoil

Growers Optimistic Amid Economic Turmoil

Sales are down this fall but spirits remain mostly high among growers, despite the current state of the economy. We asked a few top growers, including some of our Ones To Watch, how market conditions are affecting their own greenhouse operations and their plans for the coming year.

Abe Van Wingerden, president of sales, marketing and merchandising
Metrolina Greenhouses; Huntersville, N.C.

“We do not plan any large-scale changes in 2009 versus what our original plan was. Yes, we are tightening expenses, but our expansion plans continue, we will still do the full amount of contract growing we had planned and our long-term goals are still in place. We still feel good about 2009 and the ability to drive sales in a tough environment. Reasons we are bullish:

“Our scan data in the fall has been 20 percent stronger than last year on mums and pansies–and still well ahead of 2006, as well. We have historical data that shows the garden consumer will still shop (if not more) during a downturn in the economy. The data suggests that when the economy is tough, people cut expenses. The first two expenses they cut is traveling and going out to eat. That puts consumers at home more, and when they are at home, they might not do the $5,000 kitchen remodel–but they will invest $50 in plants. They do this because it is a relatively cheap hobby, but more importantly, because it makes them feel better. That is what plants are all about.

“Our plans with our customers are better. We have less duplication across sizes, we have better container and basket designs/colors, and our efficiencies in pulling and shipping are better. We can get 10 percent more out of the greenhouse on our best day than we could last year with better processes and technical system upgrades. The season will peak, and we will be able to drive it even more on the peak days with our investments over the off-season.

“Somebody has to be bullish. If we all produce 10 percent less, we will sell 10 percent less, and that is no fun.

“We bought 10 new trailers, 4,000 new carts, and we continue to invest in the business. We are well positioned for the long-term, and we can endure a tough season if we need to, but I feel like 2009 will be one of our best ever.”
 
Pamela Youngsman, sales manager
Skagit Gardens; Mount Vernon, Wash.

“We have been talking with a lot of our garden centers and growers about 2009. I would say there’s optimism, which may be a bit surprising, especially in the Northwest because the weather was so bad people are feeling like things can’t get any worse than they were this year.

“With the economy in its current state, traffic has just plummeted. There’s optimism that when spring comes, as long as we have some good weekends, that should change. We think people will want to plant. If they’re not traveling, they’ll want to do something to add color to their world. There’s a lot of talk about vegetables.

“We had a good summer as far as July sales went. June was also very strong. I think in the last month, it’s been a little bit quiet. On the grower side, we are seeing some people make changes to orders. It’s not in a certain region of the country. It’s a grower here, a grower there. There hasn’t been a big number of changes to orders.

“I have talked with some growers who will be making changes to their programs. The overall vibe from growers is that they may be more conservative next year, but they’re optimistic.”
 
Andy Ambrosio, sales and marketing manager; Wenke Greenhouses; Kalamazoo, Mich.

“We are seeing pansy sales this fall soften the past three weeks due to (a) the gas shortage in Atlanta that recently was abated, (b) a warmer-than-normal early October, © persistent drought in the Southeast and (d) the hammering of the consumer’s 401k and home values.
 
“Instead of planning on our previous double digit growth we have experienced for the past seven-plus years, we are planning a flat to slight increase (next spring). Direct costs are going up for almost all inputs, so we have to increase our pricing accordingly.

“Any improvement in weather will be a positive. In fact, many retailers we have spoken to said that should the weather improve and the economy at least stabilizes, we could have flat, year-on-year retail sales. 
 
“Overall, we are concerned that the tail spin on the economy and on people’s financial/home values will make it more challenging. Having dramatic cost increases does not bode well, and I fear many growers had a challenging 2008. So there is the potential for supply contraction over the next 12 to 18 months.

“Ultimately, it comes down to the weather. I once thought weather accounted for 85 percent of a negative impact on flower sales and the economy 15 percent. Now, it may be more like 60 percent weather and 40 percent the economy.”

Denise Godfrey, sales
Olive Hill Greenhouses

“As far as what we are doing in 2009: We are down a bit and trying to make the most of things by adjusting our numbers, reducing the ones that are not selling as strongly, increasing the few varieties that are and working to diversify with new varieties. 

“I am hoping everything shapes up next year after the elections are done. We are just thinking about ways to infuse a bit more vigor into the market and determine how to get into different market sectors.”

 

Leave a Reply

More From State of the Industry...
Bees on flowers

October 11, 2016

Bees Endangered? Here’s The Rest Of The Story

Recently, mainstream media reported that certain bee species have been placed on the endangered species list, but the situation isn’t as dire as one might think.

Read More
cuttings-facility

September 27, 2016

How Global Suppliers Of Unrooted Cuttings Are Working To Improve The Pipeline

The world’s top vegetative producers discuss how they continue to evolve to overcome challenges and embrace opportunities to help growers and the varieties supply chain.

Read More
OSU ATI Greenhouse

September 21, 2016

Your Support Is Essential For Current And Future Students

September is back to school time, and that means renewed opportunity to support the young people who are electing to pursue careers in horticulture. I continue to hear from growers of all sizes, from all over the country, that there just are not enough qualified graduates of two- or four-year horticulture programs. We also need to be active in promoting careers in horticulture to those who are not aware of the opportunities available. There have been some great success stories in this area recently. At University of Florida (UF) last fall, Anna Ball and Dr. Marvin Miller of Ball Horticultural Co. joined UF’s Dr. David Clark in an introductory environmental horticulture couse that’s open to any major. After the class, the line of students waiting to talk with Ball, Miller, and Clark was out the door. It is so important, Ball says, for each of us, individually and collectively to […]

Read More
Latest Stories
Bees on flowers

October 11, 2016

Bees Endangered? Here’s The Rest Of The Story

Recently, mainstream media reported that certain bee species have been placed on the endangered species list, but the situation isn’t as dire as one might think.

Read More
cuttings-facility

September 27, 2016

How Global Suppliers Of Unrooted Cuttings Are Working T…

The world’s top vegetative producers discuss how they continue to evolve to overcome challenges and embrace opportunities to help growers and the varieties supply chain.

Read More
OSU ATI Greenhouse

September 21, 2016

Your Support Is Essential For Current And Future Studen…

September is back to school time, and that means renewed opportunity to support the young people who are electing to pursue careers in horticulture. I continue to hear from growers of all sizes, from all over the country, that there just are not enough qualified graduates of two- or four-year horticulture programs. We also need to be active in promoting careers in horticulture to those who are not aware of the opportunities available. There have been some great success stories in this area recently. At University of Florida (UF) last fall, Anna Ball and Dr. Marvin Miller of Ball Horticultural Co. joined UF’s Dr. David Clark in an introductory environmental horticulture couse that’s open to any major. After the class, the line of students waiting to talk with Ball, Miller, and Clark was out the door. It is so important, Ball says, for each of us, individually and collectively to […]

Read More
young-plants

September 20, 2016

The Top Young Plant Growers, And Four Critical Challeng…

In Greenhouse Grower’s 2016 Top Young Plant Growers Survey, growers discuss the latest challenges and opportunities in fulfillment, shipping, labor, and crop protection.

Read More

August 13, 2016

Plants Sales Are Up For Fourth Straight Year, According…

Growers declared spring 2016 to be a success in Greenhouse Grower’s 2016 State Of The Industry: Spring Crops Recap Survey.

Read More
Joe Bischoff

July 26, 2016

SAF Partners With Cornerstone Government Affairs To Adv…

A new partnership between the Society of American Florists (SAF) and Cornerstone Government Affairs ensures that SAF will continue its highly effective work advocating for issues that affect the floriculture industry. “SAF and Cornerstone together provide experienced voices on Capitol Hill to protect our growers’ interests,” says SAF CEO Peter Moran. “We’ll continue to move major policy priorities forward on behalf of small business and agriculture.” Cornerstone is a public affairs firm specializing in government relations, strategic consulting, and advocacy. Its team of more than 50 senior professionals includes former senior professional staff from both authorization and appropriations committees and the U.S. Department of Agriculture (USDA), as well as veterans of the horticulture industry. Agricultural and horticultural issues of primary concern to SAF members include access to labor, immigration, crop protection, international trade and other matters related to the day-to-day operations of growers. Before she retired this year, SAF lobbyist Lin […]

Read More

July 26, 2016

AFE Releases New Videos Highlighting Industry Successes

The American Floral Endowment (AFE) recently released five new videos, created to highlight floriculture successes through industry collaboration, support, and participation. “Each video shares real stories from industry members on career development through scholarships and internships, and true examples of research solutions that have shaped how the industry operates today,” says Laura Shinall, President of Syndicate Sales, Inc., and AFE Public Relations and Development Chair. “We’re excited to be able to share some great success stories in an effort to increase industry participation.” The introductory video “Heard of the American Floral Endowment?” helps educate those who aren’t currently aware of AFE’s programs, while other segmented videos (retail, wholesale, grower) share how Endowment programs complement each group and why it’s so important that everyone in the industry participates: Retail Florists Share Why They Turn to AFE New Resources for Floral Wholesalers and Suppliers AFE Helping Growers Profit Ready for a Career in Floriculture or Horticulture? […]

Read More

July 19, 2016

Do You Grow Young Plants? Only 4 Days Left To Take Our …

If your operation produces plugs or liners for wholesale growers, please take a few minutes to participate in Greenhouse Grower’s 2016 Young Plant Grower Survey. We know you are very busy and we value your time and input. This survey should only take a few minutes. Greenhouse Grower’s Young Plant Grower Survey has played a key role in building our Top 20 Young Plant Growers list over the years. The information helps us zero in on trends taking shape and the challenges you’re facing as young plant growers. If you have any questions about this survey or you are not the right contact for this at your operation, please email me at [email protected], or please forward the survey link to the appropriate person. We would like to wrap up this survey by July 25, so please take it soon! Thank you in advance for your participation. We value your opinion! » […]

Read More
State of the industry 2016

February 23, 2016

Download Greenhouse Grower’s 2016 State Of The Industry…

A year of growth in 2015 also had its share of challenges, and as a result, growers and suppliers were a bit more guarded going into 2016. After a few years of extreme weather and drought, a massive ongoing labor shortage, a shaky economy, and increased government regulation, Greenhouse Grower’s 2016 State Of The Industry Survey shows growers and retailers are moving forward with cautious optimism. Despite their many concerns, growers are ready to tackle another spring season in 2016, and many have reported that investments they have made within the past year are helping to drive their operations into the future. Further, rising consumer confidence indicates good things for 2016, growers said. Greenhouse Grower‘s 2016 State Of The Industry Whitepaper includes all the results of the survey, including comparisons of 2015 sales to past years, details on how 2016 production volume and prices will compare to 2015, crops that […]

Read More

February 18, 2016

Poinsettia Survey Shows Strong Sales For Greenhouse Gro…

The year 2015 might have been one that many were glad to see in the rear view mirror, but for poinsettia growers, it was a good sales year — perhaps the strongest in quite a while. Compared to 2014, which was also widely deemed a success among growers for its seasonal cold at just the right time, good weather for shipping, and a good holiday spirit, the 2015 season was solid for a number of reasons. The weather, a rebounding economy, and increased demand all contributed to what growers said was a “very strong” sales season. “It was a strong year beginning to end due to great weather and quality product as the market demanded,” said Dan Chaney of Ivy Acres, in Greenhouse Grower’s 2015 Poinsettia Survey.     “Sales were strong. Demand was better than the previous two years,” said Larry Windham of Windham Greenhouses Inc. “Very good. The […]

Read More
Pot Mum Combos (Syngenta Flowers)

February 8, 2016

Syngenta Has A New Buyer, Will Not Divest Flower Seeds …

Syngenta has announced that it will likely approve an offer from ChemChina to acquire the company, which means it no longer plans to divest its flower seed business.

Read More
State of the industry 2016

January 21, 2016

Green Industry Is Set For Continued Growth In 2016

Economist Charlie Hall says the outlook for the green industry is promising despite the havoc wreaked on plant sales by the downturn in housing.

Read More
How will growers' production in 2016 compare to 2015

January 18, 2016

2016 State Of The Greenhouse Industry Numbers At A Glan…

Greenhouse Grower‘s 2016 State Of The Industry Survey shows some promising trends for the new year. Here’s a look at the greenhouse market for 2016, in graphics.     For a more in-depth analysis of where the industry stands, read Greenhouse Grower‘s 2016 State Of The Industry article, “Growers And Suppliers Move Forward With Cautious Optimism In 2016.”

Read More
Top Concerns sidebar

January 18, 2016

Growers And Suppliers Move Forward With Cautious Optimi…

A year of growth in 2015 also had its share of challenges, and as a result, growers and suppliers are a bit more guarded going into 2016. After a few years of extreme weather and drought, a massive ongoing labor shortage, a shaky economy, and increased government regulation, Greenhouse Grower’s 2016 State Of The Industry Survey shows growers and retailers are moving forward with cautious optimism. Greenhouse Grower’s 2016 State Of The Industry Survey included separate questions for growers and for suppliers. Of our 358 respondents, 103 were suppliers, 111 were grower-retailers, 109 were wholesale growers, and 35 were young plant growers. Among growers, 57% indicated their operations were small (less than 100,000 square feet), 21% were medium-sized (100,000 to 399,999 square feet), and 22% said they were large growers (400,000 square feet or larger). Sixty-eight percent of the grower respondents said their sales grew in 2015 over 2014, down […]

Read More
State of the industry 2016

January 14, 2016

Craig Regelbrugge Says 2016 Will Be A Year Of Waiting F…

The 2016 presidential election will make for slow progress on critical regulatory issues like health care, pollinator health, and immigration reform.

Read More

December 29, 2015

The Home Depot Says No To Neonics

The Home Depot plans to phase out neonicotinoids by 2018, according to a recent statement on the company’s website. The large home improvement retailer stated that its live goods suppliers have reduced the number of plants that they treat with neonicotinoids, and now more than 80% of all flowering plants sold at The Home Depot are not treated with neonicotinoids. The retailer said it will continue this decrease unless: Treatment is required by state or federal regulation, or Undisputed science proves that the use of neonicotinoids on live goods does not have a lethal or sub-lethal effect on pollinators Aside from these exceptions, the retailer has implemented a complete phase-out of neonicotinoid use on live goods by the end of 2018. Meanwhile, The Home Depot has required all of its live goods suppliers to label plants that have been treated with neonicotinoids. “The Home Depot is deeply engaged in understanding the […]

Read More
Pollinator-Conference-NC State

December 9, 2015

Pollinator Gardens Are On The Rise, Provide Opportuniti…

Thanks to the Million Pollinator Garden Challenge, enacted in June 2015 by the National Pollinator Garden Network, scores of new pollinator gardens to be planted over the next year and beyond will provide growers with ample opportunities to produce, promote and sell plants that are ideal for pollinator forage and health. And with research underway within the industry, we’ll soon have more knowledge about which plants are the most beneficial and attractive to pollinators. At Bayer’s Bee Care Center, the level of consumer engagement and interest in planting pollinator gardens is very high, Bayer’s Sarah Myers says. Bayer now has 73 local and industry partners and counting in its “Feed A Bee Campaign,” launched in March. Educating consumers about what they can plant to attract bees, and the impact they can have with even the smallest amount of space, is highly important, Myers says. It’s worth explaining to them that […]

Read More
foodscaping at epcot - Foodscaping Goes Big At Disney

December 9, 2015

Foodscaping Challenges Conventional Ideas About Landsca…

Conventional ideas about what a landscape should look like are being challenged left and right, from young homeowners like Sarah Baker of Baker’s Acres, who are standing up for their right not to mow their lawns, to Brie Arthur’s passion to start a movement to incorporate food with flowers throughout suburban and urban landscapes nationwide. As younger generations step up as consumers and industry leaders, these changes are likely to continue, and the horticulture industry, which has the most to gain, would be remiss not to embrace and influence them. Well known for her personal foodscape, which she has promoted across social media, and her annual tomato-tasting fundraising event benefiting the nearby J.C. Raulston Arboretum in Raleigh, N.C., Brie Arthur has also been working with schools and her local Homeowner Association (HOA) to challenge the traditional idea of the landscape to one that incorporates the growing of food with mainstream, […]

Read More
[gravityform id="35" title="false" description="false"]