amenity profile pages

105 Pages·2003·2.8 MB·English

M a r k e t I n t e l l i g e n c e
Amenity Profile

Amenity
Amenity Profile
Scope of the Amenity Profile
The term ‘amenity’ horticulture is used in the context of this profile, to address the non-food part
of horticulture. As such, the Amenity Profile examines all aspects of ornamental horticulture, from
garden and house plants to landscape and garden products/services.
In particular, the Amenity Profile focuses on supply chain issues, affecting the most important
amenity crops in Ireland. A short summary of key production issues for each sector is followed by
a review of the marketplace. While many of the most popular species of ‘cut flowers’ purchased
in Ireland are not grown here, this particular sector is reviewed in the context of presenting import
substitution possibilities. A market analysis of the Christmas tree and turf grass sector is not
covered in any great depth and is planned to be the subject of a separate review. Aspects of
interior landscaping are also not comprehensively covered in the document.
Conversions
1 Hectare = 2.471 Acres
1 Acre = 0.404 Hectare
page 1
Sector Profile
Published by:
Bord Glas,
The Horticultural Development Board,
Commercial House,
West End Commercial Village,
Blanchardstown,
Dublin 15.
Acknowledgements: Bord Glas would like to thank all contributors from the Irish amenity horticultural industry
who have assisted in this publication.
© Bord Glas 2003
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted
in any form by any means, electronic, mechanical, photocopying, recording or otherwise without prior
permission, in writing, from the publishers.
Note: This information is intended as a general guide only. Bord Glas is not liable for any problems or loss
resulting from the use of information contained in this document. Bord Glas strongly recommends that
readers seek professional advice in market or business planning.
Taylor Nelson Sofres/Market Research Bureau of Ireland (TNS MRBI) consumer research figures are quoted
throughout this document. All figures quoted are based on specific market research or on their Phonebus
survey measurement in the Republic of Ireland. The figures quoted in the report are estimates derived from
sample surveys carried out in accordance with accepted market research methods and are subject to the
limits of normal statistical error. All reasonable steps are taken to ensure that the data is reliable.
The figures provided in this document are based on the best information available to Bord Glas at this point in
time. For convenience many of the figures have been rounded up.
For Further Information Contact:
Lorcan Bourke,
Development Marketing Executive,
Bord Glas,
Commercial House, West End Commercial Village, Blanchardstown, Dublin 15.
Tel: [phone] Fax: [phone]
E-mail: [email protected]
Web: www.bordglas.ie
Design: Bill Murphy Design
Printed in Ireland by Impress Printing Works
page 2
Amenity
Contents
A. Horticulture in Ireland & Amenity Production Profiles 5
1. Definition of Horticulture 5
2. Amenity Horticulture – Introduction 5
3. Amenity Production & Irish Nurseries 7
4. Range of Plants 10
5. Amenity Horticultural Supply Chain 11
6. Amenity Production Profiles 15
6.1 Amenity Horticultural Production 15
6.2 Land Use in Ireland 17
6.3 Amenity Sector Profiles – Hardy Nursery Stock (HNS) 18
– Bedding and Pot Plants 22
– Outdoor Flowers and Bulbs 26
– Christmas Trees 29
– Cut Foliage 33
– Turf Grass 36
– Niche Amenity Products 38
B. The Horticultural Amenity Market 39
7. Purchases of Garden Products/Services & Amenity Market Research 40
7.1 Spend on Garden Products &Services 40
7.2 Consumer Amenity Market Research 44
8. Evolution of the Garden Centre Market & Garden Centre Market Research 51
8.1 Evolution of the Garden Centre Market in Ireland 51
8.2 Garden Centre Market Research 52
9. Evolution of the Landscape Sector & Landscape Market Research 63
9.1 Evolution of the Landscape Sector 63
9.2 Landscape Market Research 64
page 3
Sector Profile
10. The Cut Flower Market and Consumer Market Research 78
10.1 The Cut Flower Market 78
10.2 Cut Flower Consumer Market Research 87
11. Exports from Amenity Horticulture 89
12. Bord Glas Quality Programmes for the Amenity Sector 92
13. Conclusions 96
C. Key Organisations in the Amenity Horticultural Industry 100
page 4
Amenity
A. Horticulture in Ireland & Amenity Production Profiles
1. Definition of Horticulture
“Horticulture includes that branch of agriculture that deals with the cultivation of
plants used for food or for the production of food or ornament, including the
technical procedures necessary for the production and preparation for market of
flowers, decorative cut foliage, fruit, honey, mushrooms, nursery stock, vegetable
crops (including potatoes and seed potatoes) and hops, and including the
cultivation of woody and herbaceous plants and sports turf” [Bord Glas Act 1990]
2. Amenity Horticulture – Introduction
Amenity crops are plants and flowers grown primarily for their aesthetic or ornate appreciation for
use in the home, workplace and garden or in commercial landscape situations. Crops may be
grown in a short focused season, for a particular market (e.g. Poinsettias for Christmas) or be
available to the market throughout the year (e.g. trees, shrubs, indoor foliage plants, turf grass,
etc.).
By comparison with mainland Europe, Ireland has a mild temperate climate, which provides ideal
growing conditions for a comparatively large range of garden/landscape plants and flowers.
Commercial amenity crops are grown either indoors in permanent structures such as glasshouses,
fixed and mobile polythene tunnels or in open field/plant bed situations. However, many warm
climate, tropical and sub-tropical plants can not be economically grown in Ireland and must be
imported. Temperate climate crops are therefore the main focus of domestic production.
page 5
Sector Profile
Many of the amenity crops produced in Ireland are high value items (compared to edible
horticultural crops) sold through garden centre outlets, supermarkets, florists and a wide range of
other retail outlets. In each sector of the amenity market, growers compete on quality, range of
plants, novelty, service and price. The amenity market is highly seasonal, with gardeners choosing
to buy according to the season or the latest gardening/landscaping fashion. The market is also
highly weather dependent, with many consumers becoming actively involved in periods of good
weather but being less interested during periods of bad weather. In Ireland, consumer interest
tends to be highest during the main planting season from April to June, which makes this period
the busiest for garden centres.
Sales of garden products are influenced by the general state of the economy, with increased
affluence and higher disposable incomes promoting higher sales of all lines but particularly higher
value lines. Recession and stagnant economic conditions can slow up sales of ‘higher ticket’
items, as these purchases are often viewed as non-essential. However, plant and flower sales are
steadier and not as exposed to broader economic fortunes, as consumers continue to invest in
their homes and gardens even in times of economic downturn. The level of activity in the
commercial landscape sector is dependent on the broader health of the economy, which
influences the level of projects taking place in the construction industry and the development of
the national infrastructure.
The influence of the media has impacted significantly on gardening trends in recent years. There
has been an increased interest in gardening, due in part to its popularisation on television. In line
with contemporary convenience trends, much of the attention in these programmes is devoted to
low maintenance gardening, as well as usage of mature and semi-mature plants and flowers to
produce instant garden effects. Many people are unwilling to wait the time required to grow a
tree/shrub/flower from a whip/cutting or seed, to maturity. Increased overseas travel has also
influenced gardening tastes and fashions. Many people try to replicate foreign features in their
own gardens (e.g. Italian landscapes — sculpted laurels, yews, cypress, Lombardy Poplars,
statues, fountains, etc.).
Ireland has experienced a large increase in apartment block developments in recent years with
buildings which have little or no provision for gardening. Higher density housing has only small
areas in which to keep plants, however many of these dwellers purchase significant quantities of
indoor plants, as well as outdoor hanging baskets and other containerised plants for their living
area, balconies, window sills, etc.
page 6
Amenity
3. Amenity Production & Irish Nurseries
The majority of amenity crops (e.g. hardy nursery stock, pot plants and flowers) are grown in
dedicated nurseries. The following is a summary of the main changes experienced by Irish
nurseries over the past two decades:
• Nursery Evolution:Amenity production has largely evolved from small-scale family run
growing units or in some cases as alternative family farm enterprises, to become a highly
focused business activity requiring specialist growing/management skills and sector
knowledge to produce and market crops. Growers have adjusted their range of products,
production systems and technical skills to meet the changing market requirements over
time. Professional plant buyers seek quality and consistency of product. Growers have had
to re-examine each step of the supply chain, to optimise production efficiency and
continuously improve quality.
• Specialisation:This period saw the emergence of dedicated liner producers in Ireland
where previously the propagation of young plants was carried out by each individual nursery
or bought from specialist nurseries abroad. The technology to produce liners from tissue
culture was also developed during this period. The majority of Irish nurseries continue to
grow a wide range of plant types to cater for a large number of smaller sized re-sellers. This
differs from other European countries where many nurseries are focused on the production
of large quantities of a narrow range of species – however, there is an increasing number of
Irish nurseries currently pursuing the European production model. In recent years the
industry has clearly divided into those who grow plants (i.e. specialist nurseries) and those
who sell/retail plants (i.e. specialist garden centre outlets). Wholesale nurseries may conduct
‘cash and carry’ sales from some part of their nursery but this is usually restricted to
landscapers and/or smaller garden centres or re-sellers such as market traders.
• Product Range:With an increased emphasis on selling plants when they are most visually
appealing (e.g. in flower, in bud, etc.), in order to maximise impulse sales to an increasingly
‘novice’ gardening public, many growers of hardy nursery stock have diversified into annual,
biennial, perennial and tropical/exotic plants, to increase the range of species suitable for this
market. This trend is likely to continue to become more prevalent, as nurseries and retailers
search for new offerings to increase stock turn. While the total area and diversity of plants
grown have increased over this period, sales of some traditional lines (e.g. conifers, roses,
fruit trees) have stagnated or declined. Nursery growers are continuously searching for new
and more exotic/unusual plant lines to put on to the market. Value added products, such as
ready filled containers, hanging baskets, etc. are increasing in importance.
• Containerised Production:Over the last decade nursery stock producers have converted
almost completely to the use of rigid containers or pots. The traditional ‘field’ system of
production is now reserved for trees and hedges with a limited number of the ‘A to Z’ range
of shrubs grown in the open field for lifting as ‘bare root’ and/or ‘root ball’ plants.
Containerised production has facilitated year-round sales and planting of hardy nursery stock.
page 7
Sector Profile
• Spring/Summer Sales:The conversion to containerised production has fuelled the
preference for Spring/Summer planting, when plants are in leaf or flower, making them
instantly visually appealing. Traditional field production required most plant species to be in a
dormant state to be successfully transplanted.
• Investment: The number of growers of amenity crops has increased significantly in the
past decade, which reflects the growth and expansion experienced in the entire industry.
Certain amenity enterprises (e.g. daffodils, cut foliage) require relatively smaller amounts of
capital investment and some of the spend can be shared across other mainstream farming
activities. However, over the past decade, dedicated nurseries have invested heavily in the
specialist infrastructure to grow, irrigate, lift, grade, pack, store and transport plants.
Nurseries (particularly the larger ones) have committed large capital investments, to
purchase glasshouses, polythene tunnels, pack-houses and equipment, to grow and
prepare plants for the market. Whether production is carried out in the open ground (e.g.
trees) or containerised (e.g. shrubs) significant capital is required to develop the production
site and service it with the required infrastucture (roads, paths, water/irrigation, electricity,
etc.) and associated buildings.
• Market Size & Structure:The size of the retail market has changed greatly over this
period, largely through an expansion of the domestic and export markets. This expansion
was driven by sustained growth in consumer demand. However, in response to this demand
there has been an increase in the different types of market outlets selling amenity products.
While independent garden centres continue to dominate sales in Ireland, there has been
increased involvement in the domestic market by supermarkets, DIY sheds, hardware stores,
florists, garages, etc.
• Structures:Glasshouses and polythene tunnels represent the main crop protection
structures employed by Irish nurseries. Many of the glasshouses currently used by Irish
nurseries were originally built for tomato production but were modified for amenity crop
production. There has been some investment in new glasshouses dedicated to amenity
production in recent years but Irish growers are mainly investing in less expensive polythene
structures.
• Profitability:The total throughput per unit area of saleable quality plants has increased due
to production efficiencies, technical advances and improved husbandry. This is particularly
true of the larger and medium sized nurseries. Stock turnover has become a key measure of
success of nursery businesses, with many nursery owners seeking to maximise the turnover
of higher profit/margin plants per unit area.
• Transport:Transport to market is a key cost to growers, as distribution costs can represent
10–15% of a nursery’s sales turnover. Therefore logistical efficiencies are paramount to
running a successful nursery – the least cost route that maintains product quality, is most
desirable to maximise profitability. Growers who traditionally would have had their own
delivery truck are increasingly using specialist haulage companies to deliver their products.
page 8