FLORICULTURE AND ENVIRONMENTAL HORTICULTURE November 8, 1999 October 1999, ERS-FLO-1999 Approved by the World Agricultural Outlook Board -------------------------------------------------------------------------- FLORICULTURE AND ENVIRONMENTAL HORTICULTURE is published by the Economic Research Service, U.S. Department of Agriculture, Washington, DC 20036-5831. This release contains only the text of FLORICULTURE AND ENVIRONMENTAL HORTICULTURE--tables and graphics are not included. Printed copies of this report will be available from the USDA Order Desk. Call, toll-free, 1-800-999-6779 and ask for stock # ERS-FLO-1999. The USDA Order Desk accepts MasterCard and Visa. -------------------------------------------------------------------------- Floriculture and Environmental Horticulture Situation and Outlook Report. Market and Trade Economics Division, Economic Research Service, U.S. Department of Agriculture, October 1999, FLO-1999. Contents Summary List of Tables Situation Coordinator Doyle C. Johnson Voice: (202) 694-5248 Fax: (202) 694-5820 E-mail: djohnson@econ.ag.gov Principal Contributor Doyle C. Johnson Statistical Assistant Brenda Toland Editor Diane Decker Design and Layout Wynnice Pointer-Napper Approved by the World Agricultural Outlook Board. Summary released October 1, 1999. Summaries and full text of Situation and Outlook reports may be accessed electronically via the ERS web site at www.econ.ag.gov/. To order, call 1-800-999-6779 in the U.S. or Canada. Other areas please call (703) 605-6220. Or write USDA Order Desk , 5285 Port Royal Road, Springfield, VA 22161. Summary Value of Floriculture and Environmental Horticulture Crops Continues To Rise Grower cash receipts for U.S. floriculture and environmental horticulture crops, as estimated by USDA's Economic Research Service (ERS), reached $12.1 billion in 1998, up 2 percent from the previous year.1/ ----- 1/ Floriculture and environmental horticulture crops are classified as "nonedible horticulture," or flowers, plants, bulbs, sod or turfgrass, and other related horticultural specialties that are grown primarily for ornmental or environmental purposes, but also included are trees, plants, and vines that are purchased by commercial growers for food production purposes. ----- The value of production has grown an average $440 million a year since 1991 when grower receipts were $9.0 billion. Cash receipts for products from the environmental horticulture sector rose from $5.8 billion in 1991 to $7.7 billion last year. This category includes trees, outdoor plants, bulbs, turfgrass, and ground covers except bedding and garden plants. Cash receipts for some categories of the floriculture sector also posted substantial gains, particularly bedding and garden plants, which jumped from $1.2 billion in 1991 to $2.1 billion in 1998. Potted plants (flowering and foliage varieties used indoors) registered moderate gains since 1991, increasing from $1.4 billion to $1.7 billion. Domestic growers realized modest gains in cash receipts for cut flowers and cut cultivated greens in 1998, but their receipts were down from $658 million in 1991 to $639 million last year. Ever increasing volumes of imports are taking a larger share of the U.S. floral market. The domestic grower share has fallen from 65 percent in 1991 to 47 percent in 1998. Grower cash receipts for all floriculture crops (cut flowers, cut greens, potted plants, and bedding and garden plants) increased 6 percent from 1997. Receipts for cut flowers increased 3 percent, while receipts for cut greens jumped 9 percent. Receipts for potted flowering plants were up 3 percent and potted foliage plants climbed 4 percent. Bedding plant receipts rose 8 percent while all other outdoor landscaping plant receipts, including nursery stock and sod, continued steady. Greenhouse and nursery production is concentrated in the West and the South, mostly due to climate factors, but also due to demand factors stemming from proximity to population centers. However, greenhouse and nursery production is also important in the Northeast and the Midwest, and has also been increasing in states with minor production. Ten states account for more than two- thirds of U.S. output. The most important states, ranked by their respective share of U.S. receipts, are California (20), Florida (11), Texas (9), North Carolina (8), Ohio and Oregon (5 percent each), Michigan (4), Pennsylvania (3), New York (2), and Oklahoma (1 percent). Retail Expenditures Hit $203 Per Capita In 1998, retail expenditures for all floriculture and environmental horticulture products,2/ ----- 2/ Equivalent retail value of green goods and closely associated products and accessories, including services such as delivery, installation, landscaping, and other service activities. ----- as estimated by ERS, reached $54.8 billion, or $203 per capita. This is 3 percent above the previous year and 37 percent higher than in 1991. Expenditures for cut flowers and cut greens increased $335 million to $8.5 billion ($31.60 per capita). Potted flowering plant expenditures increased $135 million to $3.9 billion ($14.60 per capita), while expenditures for potted foliage plants went up $191 million to $3.5 billion ($13.10 per capita). Expenditures for bedding and garden plants rose 8 percent to $6.3 billion ($23.50 per capita). Retail expenditures for environmental horticulture crops (nursery plants, trees, shrubs, bushes, bulbs, ground covers, and turfgrass) reached $38.8 billion, ($120 per person). Floriculture Production Area, Sales Increase, Grower Numbers Also Higher Commercial production of floriculture crops as surveyed annually by USDA's National Agricultural Statistics Service in 36 major states reached $3.93 billion in 1998, up slightly from 1997. This includes all growers with $10,000 or more in sales of floriculture crops. California was again the leading state with crops valued at $769 million, down 3 percent for the year. Florida was down slightly from 1997 with $654 million in wholesale value. The two states accounted for 36 percent of the total value. Of the 36 states surveyed, 21 showed increased value over the previous year. The top five--California, Florida, Michigan, Texas, and Ohio--accounted for $2.02 billion in sales of floriculture crops, 51 percent of the total. Growers with sales exceeding $100,000 for the year accounted for 91 percent of the total, at $3.56 billion. This group comprised 36 percent of the total number of growers. The number of floriculture crop growers surveyed totaled 14,308 in 1998, compared with 1997's revised count of 12,717. Those with sales of $100,000 or more dropped from 5,244 to 5,177 due to a decline in growers with more than $500,000 in total sales. The two smallest size groups (sales of $10,000-$19,999 and $20,000- $39,999) showed large increases. Grower numbers in all other sales groups declined from 1997 with the exception of the $100,000-$499,999 group, which gained 7 percent. Covered area for floriculture crop production in 36 major states in 1998 totaled 1.07 billion square feet, up 15 percent from 1997. All growers with sales over $10,000 increased area used in production. All types of area increased, including glass greenhouse cover, fiberglass, film plastic, shade and temporary cover, and open ground. Greenhouse space accounted for 61 percent of the total covered area with 654 million square feet, up 22 percent from 1997. Film plastic structures increased 30 percent to 463 million square feet. Fiberglass and other rigid plastic covers were up 7 percent for the year while glass greenhouse area increased 5 percent. Shade and temporary cover constituted the remaining 420 million square feet of covered area, up 7 percent from 1997. Open ground use totaled 46,763 acres, 32 percent higher than in 1997. Cut flowers: U.S. consumption (total use) of carnations, as estimated by ERS, declined in 1998 to 1.2 billion stems, or 4.3 stems per capita. Imports accounted for 92 percent of total consumption. Domestic grower sales and prices were generally lower. The import volumes of standard and miniature carnations were down while prices were steady to slightly higher. Consumption of cut roses was slightly lower last year at 1.3 billion stems (4.7 stems per capita). The import market share climbed higher to 77 percent last year. Domestic grower sales declined last year even though prices were higher. Import volumes of hybrid tea and sweetheart roses were higher while prices were mostly steady to lower. Consumption of cut chrysanthemums increased to 745 million stems (2.8 stems per capita). Imports accounted for 89 percent of total consumption. Domestic grower sales and prices were higher. Imports of standard and pompon chrysanthemums rose and prices remained steady. Domestic production of cut flowers other than the major cuts (roses, carnations, chrysanthemums, and gladioli) has been trending upward. However, the value of domestic production of the "all other cut flowers" category in 1998 fell to $238 million, down 13 percent. Cut cultivated greens: U.S. consumption of cut cultivated greens in 1998 was nearly 2.2 billion stems. About 17 percent of the total was imported. Leatherleaf ferns accounted for more than 62 percent of the total stems purchased, with chamaedorea accounting for 14 percent, and all other types of cut greens rounding out the remainder. Nearly all U.S. leatherleaf production is in Florida, where year-to-year output has been very constant. Potted flowering plants: Consumption of most varieties of flowering plants was higher in 1998, continuing an upward trend. However, units sold and dollar value of sales were lower for many potted flowering plants including poinsettias, Easter lilies, orchids, cyclamen, florist chrysanthemums, florist azaleas, African violets, and flowering hanging baskets. Kalanchoes and the Aall other flowering potted plant" category were higher. Grower prices for most varieties of potted flowering plants were mostly steady or unchanged. Potted foliage plants: Although sales of potted foliage plants were up last year, sales of foliage hanging baskets were lower. Consumption of both categories has been fairly constant over the past 8 years. Area in production and the value of grower sales are nearly unchanged since 1991. Bedding and garden plants: Most varieties of bedding plants (vegetable or flowering type) sold in pots recorded increased unit sales and a higher value of sales. Sales of flowering hanging baskets were lower for geraniums and impatiens, but higher for petunias and the "all other hanging baskets" category. Units sold and dollar sales of bedding plants (flowering and vegetable types) sold in flats were lower in 1998. Prices for bedding and garden plants were mixed, with some higher and some lower. U.S. Remains a Net Importer of Greenhouse and Nursery Products The value of U.S. imports of greenhouse and nursery products reached $1.1 billion last year, up $77 million from 1997. Cut flowers and cut greens accounted for 64 percent of the value, and were mostly imported from Latin America and the Netherlands. The remaining 36 percent was mostly nursery products such as bulbs and propagative plant materials, but included some potted flowering and foliage plants that were imported mostly from Canada. The United States exported $284 million in greenhouse and nursery products in 1998, up from $261 in 1997. These exports were mostly nursery products, such a specimen trees and foliage plants shipped to Europe. Methodology for Estimates of Wholesale Values and Retail Expenditures Estimates for wholesale values and equivalent retail expenditures for the floriculture and environmental horticulture sector shown in table 13 are based upon a series of calculations explained below. Wholesale values are calculated for cut flowers and cut greens by type of flower or cut green for comparison with quantity estimates and to view total market use. These estimates are shown in tables 22 and 23 for cut carnations, 25 and 26 for cut roses, 28 and 29 for cut chrysanthemums, 31 and 32 for cut gladioli, 34 and 35 for cut orchids, and 42 and 43 for cut cultivated greens. Retail expenditures are not calculated by type of cut flowers or cut greens nor are they calculated for the various kinds of nursery crops, turfgrass, cut Christmas trees, bulbs, and other crops. Calculations of Wholesale Values Estimates of U.S. grower cash receipts (value of domestic production) are provided for the following subsectors: cut flowers, cut greens, potted flowering plants, potted foliage plants, bedding and garden plants, and environmental horticulture crops. These cash receipts are based on annual estimates released by the Economic Research Service (ERS), USDA for the entire floriculture and environmental horticulture sector; annual estimates of the wholesale value of floriculture crop production released by the National Agricultural Statistics Service (NASS), USDA (estimates for crop subsectors are only for growers with $100,000 or more in floriculture sales in 36 major states); and the U.S. Census of Agriculture data collected every five years (1997 is the latest Census year). Estimates of grower cash receipts are revised and released annually in September by ERS, USDA and will be revised following the release of the 1998 Census of Horticultural Specialties by NASS, USDA. Wholesale values represent the value of domestic production plus an expanded value of imports minus the value of exports, f.a.s. basis (free-along-side ship). These estimates approximate the value of the products as they enter the marketing channels. Domestic production is valued at the grower level and is estimated by subsector for all fifty states based on total grower cash receipts published by ERS. Imports are c.i.f. values (cost, insurance, and freight at port of entry) reported by U.S. Customs Service expanded to represent the value of the products as they enter the marketing channels, usually at shipping points. The expansion factor used is one and half times the c.i.f. value. This expansion represents a margin between c.i.f. values and selling prices at shipping points which is based on surveys conducted by the Florida Association of Floral Importers and other industry data. Estimates of Retail Expenditures Retail expenditures are based on wholesale values expanded to an equivalent retail value representing estimated sales through all outlets such as retail florists, retail nurseries, home and garden centers, grocery stores, other retail businesses, landscapers, interiorscapers, government and other institutions, and all other users. The retail expenditures are the retail value of the green goods including the value of closely associated products and accessories sold accompanying the green goods including the cost of services such as delivery, installation, landscaping, and other service activities. The retail expenditure estimates provide the industry and other data users with information on the size of the markets in the United States, year-to-year changes in total and per capita consumption (use) and import shares of the market, and overall trends stemming from supply, demand, and U.S. economic conditions. The margins between wholesale values and retail values represent the added value of the products at retail to consumers and other purchasers. These margins vary significantly by product type and are based on several sources of information including U.S. Census of Retail Trade, U.S. Census of Wholesale Trade, U.S. Census of Service Industries, economic analysis conducted by ERS, USDA, private sources, industry groups, universities, and others. List of Tables Greenhouse and Nursery 1. Greenhouse and nursery crops: Grower cash receipts, by State, 1991-98 2. Greenhouse and nursery crops: Grower cash receipts, percent of total by State, 1991-98 3. Greenhouse and nursery crops: Leading States by share of grower cash receipts, 1960 to date 4. Greenhouse and nursery crops: Value of grower cashes receipts, by subsector, 1966 to date 5. Greenhouse and nursery crops: Grower cash receipts, by subsector, region and State, 1991-98 6. Greenhouse and nursery crops: Farms, acreage, and sales, by subsector, 1959-97 7. Greenhouse and nursery crops: Farms, acreage, and sales, by region and State, 1997 and 1992 8. Greenhouse and nursery crops: Farms, acreage, and sales, by value of sales, 1997 and 1992 9. Greenhouse and nursery crops: Grower sales, by region and state, 1997 10. Greenhouse and nursery crops: Acreage in the open, by region and State, 1997 11. Greenhouse and nursery crops: Area under glass or other protection, by region and State, 1997 12. Greenhouse and nursery crops: Farms reporting sales, by region and State, 1997 Floriculture 13. Floriculture and environmental horticulture products: Value of production, imports, exports, wholesale supply, and retail expenditures, 1986 to date 14. Floriculture crops: Wholesale value of production, by State, 1990-98 15. Floriculture crops: Growers and growing area, major States, 1985-98 16. Floriculture crops: Growing area by type of cover, operations less than $100,000 in sales, $100,000 or more, and all operations 1993-98 17. Floriculture crops: Growers and growing area, by States, 1991-98 Cut Flowers and Cut Cultivated Greens 18. Cut flowers and cut cultivated greens: Farms, acreage, and sales, by region and State, 1997 and 1992 19. Cut flowers: Quantity, price, and value of U.S. imports, 1991-98 20. Cut flowers: Average value per area, by type, major States, 1991-1998 21. Cut carnations: Growers, production, and value of sales, major States, 1991-98 22. Cut carnations: Quantity of production, supply and consumption, United States, 1991-98 23. Cut carnations: Wholesale value of production, supply, and consumption, United States, 1991-98 24. Cut roses: Growers, production, and value of sales, major States, 1991-98 25. Cut roses: Quantity of production, supply, and consumption, United States, 1991-98 26. Cut roses: Wholesale value of production, supply, and consumption, United States, 1991-98 27. Cut chrysanthemums: Growers, production, and value of sales, major States, 1991-98 28. Cut chrysanthemums: Quantity of production, supply and consumption, United States, 1991-98 29. Cut chrysanthemums: Wholesale value of production, supply, and consumption, United States, 1991-98 30. Cut gladioli: Growers, production, and value of sales, major States, 1991-98 31. Cut gladioli: Quantity of production, supply, and consumption, United States, 1991-98 32. Cut gladioli: Wholesale value of production, supply, and consumption, United States, 1991-98 33. Cut orchids: Growers, production, and value of sales, Hawaii, 1991-98 34. Cut orchids: Quantity of production, supply, and consumption, United States, 1991-98 35. Cut orchids: Wholesale value of production, supply, and consumption, United States, 1991-98 36. Cut anthuriums: Growers, production, and value of sales, Hawaii, 1991-98 37. Cut anthuriums: Quantity of production, supply, and consumption, United States, 1991-98 38. Cut anthuriums: Wholesale value of production, supply, and consumption, United States, 1991-98 39. Other cut flowers: Growers, production, and value of sales, major States, 1991-98 40. Other cut flowers: Value of production, supply, and consumption, 1991-98 41. Cut cultivated greens: Growers, production, and value of sales, major States, 1991-98 42. Cut cultivated greens: Quantity of production, supply, and consumption, 1991-98 43. Cut cultivated greens: Value of production, supply, and consumption, 1991-98 Potted Flowering and Potted Foliage Plants 44. Potted foliage plants: Farms, acreage, and sales, by region and State, 1997 and 1992 45. Potted foliage: Growers, production, and value of sales, major States, 1991-98 46. Potted foliage and foliage hanging baskets: Wholesale value of production and average value per area, major States, 1991-98 47. Foliage hanging baskets: Growers, production, and value of sales, major States, 1991-98 48. Potted flowering plants: Farms, acreage, and sales, by region and State, 1997 and 1992 49. Potted flowering plants: Wholesale value of production, by type, major States, 1991-98 50. Potted African violets: Growers, production, and value of sales, major States, 1991-98 51. Potted cyclamen: Growers, production, and value of sales, major States, 1994-98 52. Potted chrysanthemums: Growers, production, and value of sales, major States, 1991-98 53. Potted Easter lilies: Growers, production, and value of sales, major States, 1991-98 54. Potted kalanchoes: Growers, production, and value of sales, major States, 1994-98 55. Potted poinsettias: Growers, production, and value of sales, major States, 1991-98 56. Potted finished florist azaleas: Growers, production, and value of sales, major States, 1991-98 57. Other potted flowering plants: Growers, production, and value of sales, major States, 1991-98 58. Potted orchids: Growers, production, and value of sales, 1996-98 59. Potted dendrobium orchids: Growers, production, and value of sales, Hawaii, 1991-98 60. Potted other orchids: Growers, production, and value of sales, Hawaii, 1991-98 Bedding and Garden Plants 61. Bedding and garden plants: Farms, acreage, and sales, by region and State, 1997 and 1992 62. Bedding and garden plants, flowering hanging baskets: Wholesale value of production by type, major States, 1991-98 63. Bedding and garden plants: Number sold in pots, flats, and hanging baskets, by type, major States, 1991-98 64. Flowering hanging baskets: Growers, production, and value of sales, by type, 1991-98 65. Potted hardy and garden chrysanthemums: Growers, production, and value of sales, major States, 1991-98 66. Potted geraniums, cuttings: Growers, production, and value of sales, major States, 1991-98 67. Potted geraniums, seed: Growers, production, and value of sales, major States, 1991-98 68. Potted impatiens: Growers, production, and value of sales, major States, 1994-98 69. Potted New Guinea impatiens: Growers, production, and value of sales, major States, 1994-98 70. Potted petunias: Growers, production, and value of sales, major States, 1994-98 71. Other potted flowering bedding plants: Growers, production, and value of sales, major States, 1991-98 72. Potted vegetable bedding plants: Growers, production, and value of sales, major States, 1991-98 73. Bedding geraniums, flats: Growers, production, and value of sales, major States, 1991-98 74. Bedding impatiens plants, flats: Growers, production, and value of sales, major States, 1994-98 75. Bedding New Guinea impatiens plants, flats: Growers, production, and value of sales, major States, 1994-98 76. Bedding petunias flats: Growers, production and value of sales, major States, 1994-98 77. Other flowering and foliar type bedding plants, flats: Growers, production, and value of sales major States, 1991-98 78. Vegetable bedding plants flats: Growers, production, and value of sales, major States, 1991-98 Nursery Crops, Bulbs, Sod, and Other Products 79. Bulbs: Farms, acreage, and sales, by region and State, 1997 and 1992 80. Nursery crops: Farms, acreage, and sales, by region and State, 1997 and 1992 81. Sod harvested: Farms, acreage, and sales, by region and State, 1997 and 1992 82. Vegetable and flower seeds: Farms, acreage, and sales, by region and State, 1997 and 1992 83. Greenhouse vegetables: Farms, acreage, and sales, by region and State, 1997 and 1992 84. Mushrooms: Farms, acreage, and sales, by region and State, 1997 and 1992 85. Cut Christmas trees harvested: Farms, acreage, and sales, by region and State, 1997 and 1992 86. Other greenhouse and nursery products: Farms, acreage, and sales, by region and State, 1997 and 1992 Trade 87. Cut flowers: Value of U.S. imports, by country, 1994-98 88. Nursery stock: Value of U.S. imports, by country, 1994-98 89. Greenhouse and nursery products: Value of U.S. imports, 1994- 98 90. Cut flowers and decorative greens: Quantity of U.S. imports, by product and country, 1991-98 91. Greenhouse and nursery products: Value of U.S. exports, by country, 1994-98 92. Greenhouse and nursery products: Quantity and value of U.S. imports, by commodity, 1996-98 93. Greenhouse and nursery products: Quantity and value of U.S. exports, by commodity, 1996-98 END_OF_FILE