FLORICULTURE AND ENVIRONMENTAL HORTICULTURE YEARBOOK October 1, 1997 October 1997, FLO-1997 Approved by the World Agricultural Outlook Board ----------------------------------------------------------------------------- FLORICULTURE AND ENVIRONMENTAL HORTICULTURE YEARBOOK is published annually by the Economic Research Service, U.S. Department of Agriculture, Washington, DC 20005-4788. This release contains only the text of this report -- tables and graphics are not included. Subscriptions to the printed version of this report are available from the ERS-NASS order desk. Call, toll-free, 1-800-999-6779 and ask for stock #FLO. Individual copies are also available. ERS-NASS accepts MasterCard and Visa. ----------------------------------------------------------------------------- Floriculture and Environmental Horticulture Cash Receipts Up 5 Percent in 1996 Grower cash receipts for U.S. floriculture and environmental horticulture crops reached $10.9 billion in 1996, up 5 percent from a year earlier. 1/ Value of production has grown an average of 5 percent a year since 1989. The value of environmental horticulture production rose 6 percent annually to $6.9 billion last year. This category includes trees, outdoor plants, bulbs, turfgrass, and ground covers (except bedding and garden plants). In the floriculture sector, value of bedding and garden plants increased from $1.1 billion in 1989 to $1.8 billion in 1996. Potted plants (flowering and foliage varieties used indoors) registered small gains, increasing from $1.4 billion to $1.6 billion. Cut flowers and cut cultivated greens were valued at $642 million in 1996, down from $671 million in 1989. Increasing volumes of imported product are capturing a larger share of the U.S. floral market. 1/ Floriculture and environmental horticulture crops include cut flowers, cut cultivated greens, potted flowering plants, potted foliage plants, bedding and garden plants, sod, ground covers, nursery crops, bulbs, and other nursery and greenhouse products, except flower and vegetable garden seeds, food crops grown under cover, and cut Christmas trees. Compared with a year earlier, the total value of floriculture crops (cut flowers, cut greens, potted plants, and bedding plants) increased 3 percent in 1996. The value of cut flowers increased 5 percent and cut greens jumped 7 percent. Value of potted flowering plants rose 1 percent and potted foliage plants 2 percent. Bedding plant value advanced 4 percent, while outdoor landscaping plants, including nursery stock and sod, increased 6 percent. Ten States account for more than two-thirds of U.S. output. The most important States (and their percent of U.S. receipts) are California (20), Florida (11), North Carolina and Texas (8 each), Ohio and Oregon (5 each), and Michigan, Pennsylvania, Oklahoma, and New York (2-4 each). Greenhouse and nursery production is concentrated in the West and the South, but is also important in the Northeast and the Midwest. Significant growth has occurred in States with minor production. Retail Expenditures Hit $140 Per Capita ERS estimates that in 1996, expenditures for floriculture and environmental horticulture products reached $37.2 billion, or $140 per capita. Growth in expenditures has averaged 5 percent a year since 1989. Expenditures would be higher if services such as delivery, installation, landscaping, and other closely related service activities were included. Expenditures for cut flowers and cut greens increased $100 million from 1995 to $6.5 billion ($26.80 per capita). Potted flowering plant expenditures were unchanged at $3.4 billion ($12.80), while expenditures for potted foliage plants went up 3 percent to $2.9 billion, ($10.90). Expenditures for bedding and garden plants rose 4 percent to $2.6 billion ($9.90). Retail expenditures for environmental horticulture crops (nursery crops, bulbs, and turfgrass) jumped 6 percent to $21.2 billion, or $79.90 on a per capita basis. Floriculture Production Area and Sales Increased as Grower Numbers Slipped Commercial production of floriculture crops in 36 major producing States was valued at $3.4 billion in 1996, up 3 percent from the previous year. Total covered area of 842 million square feet was used to grow floricultural crops last year, down slightly from 1995, while open ground area increased to 31,100 acres. The number of growers peaked in 1993 and has steadily declined since then. Reasons for the decline include import competition in cut flowers, grower consolidations, and general attrition. Cut flowers: Consumption of carnations continued upward last year, rising 4 percent to 1.4 billion stems (5.3 per capita). Imports accounted for 90 percent of total consumption. Because of reduced grower prices, domestic sales were lower than a year earlier. Imports of standard and miniature carnations were up, while average import values were steady to slightly higher. Consumption of cut roses continued to climb, reaching nearly 1.2 billion stems (4.4 per capita). The import market share was 71 percent. Domestic grower sales declined while prices were higher. Import volumes of hybrid tea and sweetheart roses were higher and average import values were mostly higher. Consumption of cut chrysanthemums increased last year to 746 million stems (2.8 per capita). Imports accounted for 89 percent of total consumption. Sales by domestic growers were generally lower while prices were higher. Imports of standard and pompon chrysanthemums rose and average import values were steady. Domestic production of cut flowers other than the major cuts (roses, carnations, chrysanthemums, and gladioli) continued to trend upward. Domestic production of "all other cut flowers" in 1996 was valued at $251 million, up 20 percent from 1995. Cut cultivated greens: Consumption of cut cultivated greens in 1996 was nearly 2.3 billion stems. About 21 percent of the total was imported. Leatherleaf ferns accounted for more than 61 percent of the total stems purchased and Chamaedorea accounted for 18 percent. Nearly all U.S. leatherleaf production is in Florida, where year-to-year output has been nearly constant. Potted flowering plants: Consumption of most varieties of flowering plants continued an upward trend in 1996. Sales were higher for poinsettias, Easter lilies, cyclamens, kalanchoes, and flowering hanging baskets. Florist chrysanthemums, florist azaleas, African violets, and the "all other" flowering potted plant category posted lower sales. Grower prices for most varieties of potted flowering plants were steady or unchanged. Potted foliage plants: Although sales of potted foliage plants were up last year, sales of foliage hanging baskets declined. Consumption in both categories remained fairly constant over the past 8 years. Area in production and the value of grower sales were nearly unchanged since 1989. Bedding and garden plants: Unit sales and sales value of most varieties of bedding plants rose from 1995. This category includes plants in flats or pots or of the vegetable or flowering type. Bedding geraniums from cuttings or seed were a notable exception with smaller quantities and lower sales value. Prices for most bedding plants averaged higher in 1996. U.S. Remains a Net Importer of Greenhouse and Nursery Products U.S. imports of greenhouse and nursery products reached $950 million last year, up $100 million from 1995. Cut flowers and cut greens, mostly from Latin America and the Netherlands, accounted for more than 60 percent of the value. The remainder was mostly nursery products such as bulbs and propagative plant materials, but also included some potted flowering and foliage plants that were mostly from Canada. The United States exported $225 million in greenhouse and nursery products in 1996. The exports were mostly nursery products, such as trees and foliage plants shipped to Europe. For more information, contact Doyle Johnson (202) 501-7159. END_OF_FILE