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REGIONAL PROJECTS PROJECT: S-103, TECHNICAL AND ECONOMICAL EFFICIENCIES
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ANNUAL REPORT OF COOPERATIVE REGIONAL PROJECTS
Supported by Allotments of the Regional Research Fund,
Hatch Act, as Amended August 11, 1955
January 1 to December 31, 1998PROJECT: S-103, TECHNICAL AND ECONOMICAL EFFICIENCIES
OF PRODUCING AND MARKETING LANDSCAPE PLANTS
PROGRESS OF THE WORK AND PRINCIPAL ACCOMPLISHMENTS:
Numerous articles, bulletins, and other publications were completed as work progressed on the three major project objectives: (1) evaluate alternative landscape (environmental) plant production, establishment, and maintenance systems, (2) evaluate the regional competitiveness within the landscape (environmental) plant industry, and (3) evaluate the demand for landscape (environmental) plants, materials, and services. The unique multi-disciplinary blend of horticulturalists and agricultural economists continue to provide innovative and thorough analyses and collaboration. The committee includes representation from twenty two states, with twelve of these states being outside the Southern region. This national membership has evolved because of the relevance of investigating the production, marketing, and economic impacts of landscape plants within and across plant hardiness or climatic zones, rather than state or regional boundaries. Progress is reported under the appropriate project objective.
Objective 1: Evaluate alternative landscape (environmental) plant production, establishment and maintenance systems.
a. Plant production systems
Project objectives were to develop and evaluate alternative environmental plant production, establishment and maintenance systems, and to increase regional competetiveness within the envrionmental plant industry. Towards these objectives we evaluated the use of copper paints and copper-treated burlap for the control of rooting out in B&B nursery stock during holding
in wholesale and retail yards. We also evaluated copper polymers for use in controlling circling of plant roots within containers. Plants grown in treated bags and containers were planted out in the field for evaluation of post-production root growth and plant health. We also evaluated (ongoing)
the remediation of runoff from nursery and landscape facilities using treatment wetlands planted with ornamental plants that might provide additional income for growers. We evaluated the growing and marketing requirements of new sustainable plant species for introduction to the
nursery industry. We also initiated trials of methods for repelling deer from nursery and landscape settings, with the goal of improving plant production and maintenance. Most important were the development and evaluation of methods for maximizing plant production and maintenance while
reducing environmental impacts. This included methods of controlling and treating point source pollution from nurseries, methods for maintaining product quality through the control of root growth, introduction of new plant species and reduction in deer browse.Production costs were estimated for 38 combinations of vegetable crop, market, machinery and technology. Production practices and inputs used for 4-row and smaller equipment were from a periodically updated commercial grower survey, and by Extension Specialists. A state-wide survey of machinery dealers used to update machinery complement prices, and input prices were based on a supplier survey. Chemicals included were updated as appropriate when labels changed. Using the per hectare cost levels from budgets, and revenues from assumed prices and yields net returns depended on market channel, technology and mechanization assumed. For most crops returns exceeded direct costs including a charge for all hours of labor required. Generally, higher technology levels and larger machinery provided higher returns compared to standard technology and smaller equipment.
In-field, above-ground, and pot-in-pot production methods for crapemyrtle were analyzed. Container systems were more profitable than the in-field system and plant size at selling had important effects on profits. The pot-in-pot system had highest total capital outlay and fixed cost levels but was least costly on a per harvested plant basis due primarily to less intensive, labor-saving cultural practices and the ability to grow more plants per unit of land.
b. Plant establishment techniques
The adaptability of flowering crabapple cultivars to extreme environmental conditions
has been monitored for ten years in the Carolina sandhill region. Conditions of summer
drought and high temperatures along with late spring freezes have created very stressful
conditions. The study initially contained three trees each of 61 cultivars. After ten years,
all three trees of the following cultivars were acceptable for non-irrigated landscape uses:
Weeping Candid Apple, Red Jewel, Ruby Luster, hupehensis, Robinson, Ralph Shay,
Molten Lava and floribunda. The following cultivars lost all three trees after ten years:
baccata var. Jackii, yunnanensis, Jewelberry, Dolgo, and Harvest Gold. This study will be
terminated due the relocation of the principal investigator.c. Plant Maintenance
Two projects are examining plant maintenance issues. One project deals with evaluating methods for repelling deer from nursery and landscape settings, with the goal of improving plant production and maintenance (RI). The other project is evaluating the use of copper paints and copper-treated burlap for the control of rooting out in B&B nursery stock during holding in wholesale and retail yards (RI). In addition, copper polymers are being evaluated for use in controlling circling of plant roots within containers(RI). Plants grown in treated bags and containers have been planted out in the field for evaluation of post-production root growth and plant health .
Objective 2: Evaluate the regional competitiveness within the landscape (environmental) plant industry.
A questionnaire was developed, and tested, to use in the third S-103 nation-wide survey of nurserymen. As with the two earlier surveys, the S-103 regional committee is collaborating on this data collection activity. The questionnaires have been distributed to the appropriate researcher in each participating state for distribution to their respective samples in January/February, 1999. Also, TN will receive all of the mail-back questionnaires for coding and initial data analysis. Once the data are entered and cleaned, state data files with the supporting SAS programming codes will be provided to each collaborating researcher. In 1989 and 1994, 23 and 24 states, respectively, were covered in those surveys. For this new survey, 32 states will be included and the combined production from these states represents slightly more than 95 percent of the total U.S. nursery crop production.
This third data set will permit considerable analyses of structural changes in the production and marketing of environmental crops within the U.S.. With data for the calendar years of 1988, 1993, and 1998, researchers will have three sets of cross sectional data at five year intervals. Analyses of adjustments in production by crop groups and growing techniques, wholesale sales by type of market outlet, trade flows of product among states, and other production and marketing factors should help nurserymen when planning the mix and volumes of particular products to produce as well as reasonable identification of targeted market outlets.
Research was conducted to examine financial structure of the ornamentals nursery and floriculture products sector using annual sales data for 1997 for 398 firms. For comparison purposes, data for the top 41 firms was collected for the ornamental floriculture and nursery products industry and for the poultry industry, another prominent Southern agricultural industry. When the top 398 firms (each representing more than $2 million in annual grower receipts) in the ornamental floriculture and nursery products sector were examined, the top firm had 6.3% market share, followed by the next four firms having 4.9%, 4.8%, 3.8%, and 2.9% market shares, respectively, of the aggregate sales for the 398 firms. These five firms accounted for about 22% market share; the top 25 firms accounted for 41.66% market share; the top 50 firms accounted for 51.27% market share; and the top 100 firms account for 64.29% market share. These numbers overstate the actual market share, for if $11.4 billion grower receipts for 1997 are used the market share numbers change dramatically. For instance, the top firmís market share dropped from 6.3% to 1.54%, with the next four firms having market shares of 1.20%, 1.19%, 0.93%, and 0.73%, respectively, for a top five market share of 5.61% of the $11.4 billion market. Similarly, the top 25 firms, 50 firms, and 100 firms accounted for 10.22%, 12.58%, and 15.78% market share, with the 398 firms included in the sample accounting for a combined 24.54% market share.
The poultry industry and the ornamental floriculture and nursery products industry were compared by examining the largest 41 firms in each industry. The top firm in the poultry industry is much more dominant (23% market share versus 14% for the leading nursery). The four firm concentration is 48% for poultry versus 41% for the ornamental floriculture and nursery products, using the 398 firm nursery data.
Objective 3: Evaluate the demand for landscape (environmental) plants, materials and service.
a. Plants demand
Several international programs related to the technical and economical efficiencies of producing, marketing, and managing landscape plants have been conducted over the last year or so. In 1996, the XIIIth International Symposium on Horticultural Economics was held in New Brunswick, NJ at Rutgers University. The proceedings of that Symposium were published in a volume of Acta Horticulturae. Research that surveyed the nursery industry in Australia was published. Results of a survey of the greenhouse industry in Turkey were presented at professional meetings. In additional, analysis of projects promoting the horticultural industries in the Middle East, Armenia, and Nepal were conducted and published.
b. Materials demand
Following up on a study of the demand for labor in Florida's turfgrass industry was an examination of associated labor issues affecting turf-related enterprises (FL). A similar project developed a business management oriented teaching case for a small nursery and landscape business (LA). The focus was on an employee empowerment program that moved decision-making closer to the work site. The case used balance sheets and owner description of objectives and implementation to show the firm's changing managerial structure in its attempts to encourage employee initiative and entrepreneurship, thus capturing the potential advantage of a decentralized management style. The case suggests caution since not all managers want to be in an empowered environment, and the learning curve in implementing this system may be a significant factor.
Concentration in the produce/floral distribution system has been documented. Because impacts are expected to vary by company size, a study of the perceived impacts and responses to the pressure of concentration on small and medium sized produce/floral distribution companies was initiated. A literature review covering concentration and strategic planning and strategic response, both inside and outside the food/floral system, was conducted. Research methodology for a national mail survey was identified, a mailing list from the Produce Reporter Companyís Blue Book Services was developed, and a survey instrument focusing on factors identified from the was written.
c. Services demand
Research was conducted on consumer perceptions and expectations of garden center products service quality (TX, AL, NC, GA, TN, DE). Data is currently being analyzed.
Effects of consumer advertising and the demand for plants purchased in independent garden centers during the fall marketing season. Consumer surveys were conducted in 1996 and 1997. Results indicate that garden center managers could improve the effectiveness of their advertising by focusing on a special promotion event or plant sale.
The plant data set from the 1992 garden center survey was combined with the plant data from the 1996 and 1997 surveys to determine the major types of plants purchased and the consumer profiles by major plant category. An article summarizing the floriculture plants purchased during the spring and fall marketing seasons has been accepted for publication in a nursery trade magazine.
Quality characteristics consumers consider important when purchasing ornamental plants and estimating how much they will pay for these characteristics. The survey phase of this project was completed during the 1998 fall semester. Preliminary findings have been presented at the American Horticulture Society's Annual Meeting and at the Southern Nursery Association's Annual Research Conference.
