The Ontario Greenhouse Floriculture Industry
Table of Contents
1.0 Sector Profile1.1 Industry OverviewThe Ontario greenhouse flower industry has had significant growth over the past 25 years. Based on farm gate receipts it is now the third largest agricultural sector behind dairy and swine. Since the early 1980's until recently (2004), expansion by more than 10% occurred each year even through times of recession in the rest of the Canadian economy. Most medium to large wholesale growers are a very dynamic, aggressive and technologically advanced sector of the industry and have been key to the success of the Ontario sector within the North American market. In 2009 the industry reported employing over 10,000 people (6,300 seasonal and 4,000 full-time) with a gross yearly payroll of $154 million (Statistics Canada Publication 22-202). Floriculture production includes flowering potted plants, annual spring/bedding plants, container-grown perennials, spring flowering containers and cut flowers produced in heated greenhouses and freestanding hoop houses. 1.2 Value of the IndustryThe 2009 farm gate value of the Ontario greenhouse floriculture industry as reported by Statistics Canada (Publication 22-202) was $742 million, an increase of 21% over 2008 in which the farm gate value decreased by 21%. From the early 1990's until 2004 an average growth rate of over 10% had been recorded. Export sales peaked in 2002 with record export sales of $317 million (International Trade). From 2003 through 2008, export sales to the United States steadily declined to $172 million representing a 45% decline; with the sharpest decline occurring in 2005. In 2009 export sales increased by 2.5% to $177 million (International Trade)over 2008. Exports now only represent 28% of total sales but are critical to the viability of the large wholesale growers located in the Niagara and surrounding regions. Because the $ value of imports (cut flowers and cuttings) has remained steady while exports have dropped from a high of $317 million in 2002, the sector now has a negative trade balance of almost $18 million. 1.3 Ontario Industry in PerspectiveIn 2009, the Ontario industry represented 52% of the total Canadian farm gate receipts of $1.42 billion) an increase of 4% over 2008. The British Columbia industry (19%) and Quebec (13.0%) are the other two regions with significant greenhouse floriculture sectors. These two provinces, like Ontario, have experienced considerable growth during the past decade or so. Although the BC farm gate value has dropped in the past couple of years, the decline has been less than that of the Ontario industry because of a lower reliance on export markets while the Quebec industry has grown modestly servicing the provincial market. Expansion in the past by the Ontario growers has been driven by the relative proximity to provincial and large US market (eastern seaboard population), climate and the concentration of larger, technologically advanced operations within a small area that has allowed crop specialisation to occur. Among North American jurisdictions, Ontario is the third largest producer of greenhouse floricultural products behind California ($1.02 billion US) and Florida ($922 million US). Michigan, being similar in climate to Ontario, is the third largest US floriculture production with $376 million US. In 2008 farm gate value dropped 2, 5 and 3% respectively for these 3 states. The total US greenhouse floriculture farm gate value in 2008 declined by 3% while Ontario declined by 20% and the total Canadian floriculture industry by 14%. From a global perspective, the value of the Canadian production is about 30% of the US industry and 25% of the Netherlands. 1.4 Production Area and Number of GrowersIn 2006, 460 ha of greenhouse floriculture production were reported by 1274 Ontario producers (Agricultural Census), representing a 13% increase from the 406 ha reported in the 2001 Agricultural Census. Results of the 2009 annual greenhouse industry survey (Stats Canada Pub 22-202) reported approximately 431 ha, decline of 30 ha. In comparison, the production area for greenhouse vegetables totalled 756 ha, nearly 325 ha larger than floriculture. During the past several years, the greenhouse vegetable industry has continued to expand while there has been considerable contraction in the greenhouse floriculture sector as market conditions have changed. The number of commercial flower growers has declined by 21% since the last census based on the results of the 2009 annual survey. Those leaving the business have been a mix of wholesale growers and smaller wholesale/retail growers. There are still many smaller retail-oriented growers operating successful operations, 6 - 7 months per year, in non-traditional greenhouse production areas to service a vibrant local spring garden market. Statistics Canada survey results show that on average, all greenhouse production facilities are operated on average 8.5 months of the year, reflecting a slight decline since the late 1990's. This does not reflect the greenhouse vegetable reality where production facilities are operating year round. With changing economic realities many flower growers do not operate large sections of their production facilities during the fall and early winter months because of weak market demand and high energy costs. 1.5 Location of the IndustryThe majority of the Ontario production (75%) is situated in southern Ontario in the counties/regions located around the western end of Lake Ontario (Niagara and Hamilton) and the counties along the north shore of Lake Erie (Essex, Haldimand and Norfolk in particular). In southern Ontario, 50% of the growers and 60% of the production area are located in the regions of Niagara and Hamilton. During the past the percentage of the production from these regions is destined for the export market has declined. Between 2001 and 2006, the production area in Niagara grew by 31.5 ha but since then it is estimated an equivalent area has been taken out of production. Essex was the second largest floriculture production area but the sector has dramatically declined over the past five years because a higher percentage of the area was dedicated to cut flowers (rose, Alstroemeria, Chrysanthemum) and many growers were forced to leave the industry because of the inability to compete on price and perceived quality of South American produced flowers. 1.6 Size of OperationsThe average operation in Ontario is just over 3600 m2 (39,000 ft2) according to the 2006 Agricultural census. However, the operations in the major production areas are much larger. In 2006, the average operation in southern Ontario was about 8,660 m2 (93,200 ft2) compared with 1550 m2 (16,500 ft2) or less in non-traditional production areas of the province. These small family operations service their local market primarily with bedding plants, perennials and garden mums in the late summer. 2.0 Industry TrendsCrops and Production HighlightsGreenhouse floriculture is very diverse in the range of crops grown. Several thousand plant genera are grown as cut flowers, flowering and foliage potted plants, bedding plant/spring annuals and herbaceous perennials. The industry has historically been divided into 3 major sectors: bedding/spring plants, potted flowering plants and cut flowers. Typically cut flower growers only produce cut flowers and specialise in one or two crops. Growers of cut flowers are experiencing market changes that have occurred at breath taking speed since 2002. By 2009:
Flowering potted plant growers are a diverse group with two main production strategies; those who specialise in weekly production of one to several key flowering crops such as Kalanchoe, Rieger begonia, mini-rose; and those who focus on holiday crops such as poinsettia, hydrangea, Easter lilies and spring flowering bedding plants. Market forces have triggered rapid and massive changes in the potted flowering plant sector. In 2008 compared with 2007, production of most potted plants declined by 20 - 60%; cyclamen 57%, kalanchoe 60%, chrysanthemum 48%, Easter lilies 21%. Orchid production (primarily Phalaenopsis) increased by 300%. In 2009, production numbers of most flowering potted plants continued to decline by 10-155. Bedding plant growers have traditionally focused on the production of spring bedding plant crops, flowering hanging baskets and zonal geraniums and garden mums grown outdoors during the summer for late summer fall sales. In the past decade there has been a plethora of new vegetatively propagated flowering annuals introduced into the spring market used primarily in mixed hanging baskets and containers but replacing a considerable percentage of the seed propagated annuals market. In recent years the distinction between the other two sectors has become less because of economic pressures and where demand has been strongest. Bedding plant producers now produce a whole range of herbaceous perennials using bedding plant technology. Some bedding plant growers have become very large to service the mass market while there are many seasonal growers operating only 5-6 months a year, often retail oriented that are located in every smaller community across the province to serve the local market. In large urban centres, consumer preference for spring plant material has changed with a dramatic increase in demand for larger container sizes of spring annuals, hanging baskets and value added products. In an era of 'instant everything' consumers desire instant colour and impact. Consumers are now more into decorating with colourful plants to showcase their homes and patios than gardening; in part due to time constraints. Computerisation and automated technology now play a vital role in maintaining the competitiveness of the industry. Most year-round operations use computerised environmental controls. Automation including robots has become the standard in most operations and is used for seeding and transplanting bedding plants, pot filling, irrigation, harvesting and grading of cut flowers and pesticide applications. The adoption of integrated pest management principles is universal across the flower industry. Adoption of IPM strategies has been essential if operations are to operate under the Potted Plant Export Certification Programme put in place by the Canadian Food Inspection Agency (CFIA). The use of biological control agents is now widely adopted by many flowering potted plant growers because of insect resistance issues (Silver leaf Whitefly Q bio-type, Western Flower Thrips, Foxglove Aphid). The lack of effective insecticides has been reflected in serious crop losses. There are many challenges given the diversity of crops and production systems. Smaller bedding plants in general are less likely to adopt bio-control strategies because pest pressures are less because of their seasonal nature and reliance on seed propagated plant material and distance from service and guidance. 2.2 Market Development - Domestic and ExportThe strong growth in the wholesale production sector in both the domestic and export market has been because of the involvement of the mass market chains, including discount department, home building and grocery chains in the sale of plants and flowers. Florist shops have maintained market share in the wedding and funeral sector of the retail market but have lost most of the potted plant market and bedding plants. Beginning in the mid-1980's until 2003, growers, particularly in Niagara, were successful in the development of an export market throughout the United States eastern seaboard, with destinations as far south as Florida and Texas and as far west as Chicago. The Ontario industry was initially successful in penetrating the US mass market because of their investment in technology, product quality, diversity, specialisation and volume. The concentration of growers and wholesale distributors within a relatively small area was beneficial in being able to supply all the stores of a mass market chain within a specific region with a full line of floral product. It allowed individual growers to specialise in the crops grown. In addition, during the 1990's and early 2000's the exchange rate favoured Ontario growers. According to Statistics Canada, International Trade Division, exports increased rapidly during the 1990's; from $63.3 million in 1991 to a high of $317 million in 2002. Export sales dropped for a variety of reasons including the rapidly rising value of the Canadian dollar, dramatic increases in fuel costs for heating and transportation and changing purchasing patterns by mass market buyers in response to changes in consumer purchasing patterns. 3.0 The Challenges3.1 Export SalesThe export market since 2003 has declined sharply for a variety of reasons. The rapid rise in the Canadian dollar (March 2011 CA exchange rate $1.02-1.03) has reduced a key competitive advantage. Expansion and modernisation by both large US and Ontario growers has meant an oversupply in the market place for weekly potted flora crops. The competitive and price point sensitive pricing by the large chains has resulted in unit plant prices being flat lined for the past decade or more. Escalating transportation costs including fuel surcharges, greenhouse heating, growing containers and packaging costs (pot covers, sleeves and cardboard (essentially all inputs that use energy to manufacture) have resulted in razor-thin production margins. 3.2 The Market PlaceHome improvement, discount department and supermarket chains in the US and Canada have changed their purchasing patterns with most now focused only on key holiday sales (Easter, Mother's Day, US Memorial Day, Thanksgiving and Christmas) and most importantly the spring market because many of the chains experienced high level of product loss (poor sell through) during the remainder of the year. Many chains now demand direct delivery of small shipments to individual stores instead of through regional warehouses. This change in focus has created problems for growers from both a production and labour perspective. The US consumer purchasing habits for floral product is different from European consumers who purchase cut flowers and or flowering potted plants almost weekly and annually spend 10 times more per person than North Americans. Canadian consumers purchasing habits fall somewhere in the middle but most purchases are flowering potted plants. Industry surveys show that most Ontario consumers only purchase cut flowers 3-4 times per year for themselves. The US political and economic reality has had a strong influence. The 9/11 incident appears to have increased the level of consumer awareness to purchase US grown product and more recently, the recession, high rates of unemployment and the financial market collapse, has reduced demand for floral products. The introduction of UPC codes on most floral products and now Pay-by-Scan sales by some large mass market chains has been a challenge because many floral product UPC codes are specific to each company and can only be added when shipping orders are received. In addition, many Home Improvement chains with a garden centre have implemented a 'lead vendor' policy that requires the lead vendor to take on much of the responsibility of maintaining plant material and setting up displays in the individual garden centres to increase the profitability and the sell through of bedding plants and other flowering potted plant material by reducing their losses. This has required growers to hire staff and or third-party contractors to monitor and maintain the plant material delivered to the individual garden centres potentially hundreds of kilometres away. Some view this as an opportunity to sell more plants given skyrocketing input costs, when no increases in wholesale pricing and the perishable nature of the product are factored in. The cut flower sector is currently in crisis. It has become extremely difficult to compete with cheaper imported 'bread and butter' cut flowers (rose, carnation, chrysanthemum, alstroemeria) from South America and Africa for use in mass market mixed flower bouquets and florist arrangements. These crops can be grown under high light conditions year round and ship well dry. Since January 2005, one leading domestic retail chain has been accessing pre-made supermarket mixed bouquets directly from South America, eliminating Ontario rose and chrysanthemum growers as well as wholesale bouquet makers from the marketplace. As a result the market price for domestic product has dropped dramatically. Domestic cut rose production has declined sharply. In 2002 over 34 million tea and sweetheart rose stems were produced in Ontario; in 2008 only 8.4 million produced; a 75% reduction in six years. Much of this production area has been replaced by gerbera and snaps, two alternate cut flower crops that do not ship as well over long distances. As a consequence, cut gerbera and snapdragon prices have fallen dramatically. Currently surviving on their equity, it is likely that additional cut flower growers will be forced out of business within the next few years. The few cut flower growers remaining are attempting to compete by growing only the latest novelty or non-traditional colours that the key producing regions don't produce until the demand becomes sufficiently large. The inability to access the latest cultivars of cut chrysanthemum developed in Europe because of the importation ban on cuttings because of Canadian Food Inspection Agency regulations for chrysanthemum white rust means that they are unable to supply the local market with the latest cultivars. The remaining chrysanthemum growers continue to grow many cultivars that are now 25-30 years old. 3.3 Crop ProtectionThe availability of the same pest control products as their US counterparts continues to be an issue. The industry has supported the Canadian minor use programme but requirements by PMRA for greenhouse-based dislodgeable foliar residue data and occupational exposure studies not generally required by the US or other OECD countries have been key stumbling blocks to achieving new registrations. A more recent requirement that label expansion of new pesticides through the URMULE programme must be within the same Use Site Category has been an additional obstacle to the registration system. The lack of new, effective, reduced risk products that are IPM/bio-control friendly continues to frustrate the industry. The adoption of bio-control programmes where feasible, has been a positive outcome to this dilemma. The Ontario industry is the leading jurisdiction in North America and Europe in the adoption of bio-control. However, for the adoption of bio-control programmes over a wide range of flower crops, registrations of reduced risk pesticides is an absolute necessity since the use of many existing active ingredients causes serious setbacks to progress. The successful adoption of bio-control programmes may be useful as a marketing strategy as consumers become more concerned about 'Green' and 'sustainability'issues. Flowers Canada Ontario, for the past decade, has funded a technical specialist to assist in the development of User Requested Minor Use Label Expansions applications. 3.4 Dollar Exchange RatesGrowers and wholesale distributors have experienced 'serious turbulence' because of the sky rocketing rise in value of the Canadian $ that began in 2004. In early 2011 the Canadian dollar is above par. To retain current market share growers are focused on quality and service. The bottom line is that most chain store buyers are only concerned about the unit price. 3.5 Border IssuesDelays at the US border due to increased security since 9/11 and numerous shipments being delayed for 6 - 12 hours or being turned back due to what the industry perceives as non-tariff pest issues has been costly. The results have included reduced shelf life, lower quality of the product upon reaching its destination and most importantly disgruntled retail customers who rely on 'just-on-time' delivery of product to their distribution centres or individual stores. 'Country of Origin Labelling' is also an issue challenging the export of mass market cut flower bouquets and floral arrangements that contain both imported (typically South America) and Ontario-produced cut flowers; in part because Canada does not inspect cut flowers entering the country while the US does. Industry has worked with both the Canadian Food Inspection Agency and US government Plant Health officials to resolve this issue but with limited success to date. 3.6 Quarantinable Pests and DiseasesJapanese Beetle, Ralstonia, Phytophthora ramorum (Sudden Oak Death) and Chrysanthemum White Rust have caused many problems and cost the industry hundreds of thousands of dollars in lost sales during the past couple of years because of restricted international movement of both finished and propagative material. In 2005 and again in 2008, a new insect pest, Duponchelia fovealis, not previously known to exist in North America, and not yet reported in US, but widely distributed in greenhouse operations in Europe, was identified as being present in several operations. Huge costs were associated with its eradication now confirmed to exist in more than 12 states in the US in 2010. Considerable concern continues to exist within the whole greenhouse industry because of the reliance on the US market as a destination for both flowers and vegetables produced in Ontario. Swede midge was removed from the quarantine list in 2009. However, most consumer vegetable transplant production to the US had already been lost because of the inability of growers to meet CFIA certification requirements. In 2007, CFIA began consulting with the industry concerning pests of quarantinable interest and the impact on the industry and have just issued a report. Currently, individual growers financially bear the cost of destruction and loss of sales whenever a quarantinable pest or disease has been identified. Flowers Canada Ontario has been examining the feasibility of creating an industry sponsored insurance programme. 3.7 EnvironmentCITES, the international agreement to protect species of wild plants occasionally creates difficulty when exporting flowering plants such as cyclamen, many cacti and orchids because the native genera are protected under the International Convention. 3.8 Water and nutrient managementThis broad area is of major concern because of the intensity of modern production. Through normal greenhouse production practices, growers create leachate and rinsate that potentially contain nutrients, plant pathogens, traces of residual pesticides, sanitation materials and shading compounds that are typically discharged directly or indirectly to the environment. The industry depending on the crop and economics has been pro-active since the early 1990's, installing recirculation systems (primarily subirrigation for potted plant production) to better manage and reduce water and nutrient usage when building new production areas or retrofitting older facilities. However, growers producing cut flowers such as snapdragons, alstroemeria and chrysanthemums, crops traditionally grown in soil or containerised crops such as bedding plants continue to be produced in open systems. Management of storm water including parking areas and greenhouse tile drainage is an increasing challenge. 3.9 Waste GenerationUntil recently much of the newer production area has utilised inflated double layer of 6 mil polyethylene as the greenhouse roof covering of choice in part because of initial investment costs. Disposal of the poly, which must be replaced every 3-4 years, has become increasingly difficult as many municipal landfills no longer will accept it as a waste. Recycling initiatives are being investigated by the greenhouse sector but challenges exist because of pesticide contamination concerns. Renewed interest in glass has occurred for two reasons; a lifespan of 20+ years and the 30% higher light levels critical to crop quality and production during winter. Most potted plants including bedding plants are produced in some type of plastic container. Retail garden centres and consumers have raised concern that many municipalities will not accept this type of plastic into the waste plastic stream and that the greenhouse industry does not have a recycling programme. Plastic suppliers are now beginning to develop programmes with independent garden centres to collect, bundle and recycle these materials but challenges exist because of the mixing of incompatible plastics causing major problems for container manufacturers who prefer virgin resins. Cardboard is another major waste created because of shipping requirements. 3.10 Crop MarginsPrices have dropped over the past few years while input costs continue to rapidly increase, with some like natural gas, plastics and transportation (surcharges often an issue) increasing by more than 30% during the past five years. To remain profitable in the past, growers attempted to become more efficient in production and management through a variety of means including focusing on one crop, economy of scale and technology. Crop specialisation has been associated with weekly production which has proven challenging over the past several years because of changes in consumer demand and preferences. The use of European technology, primarily automated robotics, designed for weekly, year round production, is costly and not necessarily well suited for seasonal production systems that exist in NA. Dramatic consolidation or strategic alliances in the supply side of the industry, both in seed/plant breeding, pots/containers and water soluble fertiliser manufacturing during the past couple of years has resulted in less competition and higher pricing. Increasing the price of many floral products to reflect the rising cost of production has proven difficult when negotiating with mass merchandisers. Many in the industry see floral products as having become a commodity item with the profit margins now being 'pennies per unit'. 3.11 EnergyThe price of natural gas has risen rapidly since 2001, but prices during 2009-10 prices have declined because of the economic recession. Heating is a major input cost representing 20-35% of the total cost of production depending on the crop being grown. The months of December - February represent 58% of the total annual heating requirements. The Ag Energy Co-Operative, has cushioned some of the cost increase through volume purchases and long term contracts. Fuel costs have increased by 30% during the past five years while wholesale prices have increased by less than 3%. The industry is divided on the approach to alternate energy sources. Some are utilising anthracite coal while others are using alternate fuel sources such as waste wood products, oat hull pellets and corn. Often growers have not appreciated the many issues and the increased level of management required to operate boilers when utilising alternate fuels. Others are installing new boiler and computer technology that allows for greater energy efficiency. Others with older structures are shutting down parts of their operation during the coldest time of the year because of low product pricing and demand. A few larger operations may consider installation of co-gen units based on policy and pricing decisions made by the province, but most floricultural operations suggest that they are not sufficiently large compared with greenhouse vegetable growers to make it economical. Electricity costs in general, account for 10% of the total energy bill and the rapid increase in prices in 2002 following the deregulation of the Ontario market was a major concern for many growers. Use of high pressure sodium lighting has dropped significantly because of rising electricity costs (pricing during peak usage) and lower wholesale flower prices. A $0.01/kWh increase in electricity is estimated to increase cost of production by $2.25 million. The industry during past five years has supported a comprehensive audit of energy consumption (heating and electricity) to identify where savings could be achieved. Some operations have changed from forced air ventilation to passive top ventilated greenhouses to reduce the number of motors required to operate during the summer months. 3.12 LabourFinding and retaining qualified labour to manage crop production continues to be an issue because of the increasing seasonality of the work, in almost all flowering potted and bedding/spring plant production. Statistics Canada Publication 22-202 reports that the yearly payroll continues to decrease but at a much lower rate than total farm gate value. Labour costs typically represent 30 - 35% of the cost of production. Many operations with peak seasonal work, are increasingly relying on the off shore labour programme to supplement their labour force. In potted plant production, technology, primarily robotics, is being incorporated where it makes sense, eliminating repetitive activities such as pot filling, seeding, and bedding plant transplanting and spacing while with cut flowers, automated grading and bunching machines are becoming more common. However utilising automated technology is proving difficult because of the vast array of pot sizes and shapes being demanded by the various chains as they attempt to differentiate themselves from the competition. 3.13 Postharvest/Crop Production PerformanceIn response to escalating costs of production but with no comparable product price increase, two trends have occurre. Firstly growers and plant breeders are developing plant cultivars that are more compact (grow more plants per unit area) and with a shorter flowering response time. However many are not well suited for growth during low light levels of the year even with the use of high pressure sodium light supplementation. Secondly, reduction of labour costs at planting and shipping, water and fertiliser usage, by many flowering potted plant growers by shifting to sub-irrigation systems. Unfortunately, in most cases, post harvest/consumer performance has been the one critical piece of the puzzle not evaluated primarily because there are very few researchers around the globe working co-operatively with production specialists to determine the impact. Consumers must perceive value and performance whether it is in their home or garden if they are to be eager purchasers of floral products. 3.14 Urban-Rural ConflictsConflicts with neighbours are more common. The issues include fan noise, tractor-trailer traffic, stray supplemental lighting and environmental concerns related to burning of alternate fuels and potential discharge of nutrients and pesticides. Increasingly Ministry of Environment is becoming involved. 3.15 MarketingGrowers suggest that this is the biggest challenge facing the industry today. The dilemma is how to encourage consumers to purchase more locally grown floral products. Flowers are purchased using discretionary income. Consumers are being pulled in many directions by great advertising campaigns in print and media on where they should spend their discretionary income. Flowers must have perceived quality and value (freshness, performance, improved quality of life) and most importantly the 'WOW' factor if consumers are to purchase flowers more regularly. As higher percentages of crops are marketed through supermarkets and large box stores such as the Loblaw Group and Home Depot, medium and large wholesale growers are relying more on the large wholesale distributors to market the product because of their sales force and contacts. Medium growers can then rely on what they do best, grow quality product. The downside is less direct communication with the customer. Increasingly, the chains are consolidating the number of growers or suppliers from whom they purchase in a particular region of the country. Bankruptcy and consolidation of several US chains always puts a 'chill in the air' for growers. The mass market chains expect growers to 'grow with them'as they open more stores. In response to these kinds of demands, there has been a spate of corporate buyouts and amalgamations of numerous large growing operations by investment bankers during the past decade in the US. This trend has just come to Ontario but many view this activity with considerable scepticism because a couple of large corporate interests in the US have divested of their production facilities after making greenhouse acquisitions. Flowers Canada Ontario Inc. was successful in 2008 in being designated as the representative association for the industry through Section 12 of the Ontario Farm Products Marketing Act. This initiative now allows the collection of mandatory check-off fees to fund the organisation, industry research and marketing/branding campaigns of locally grown product. With funding support from the Ontario Ministry of Agriculture, Food and Rural Affairs, Flowers Canada Ontario has initiated 'Pick Ontario', a branding campaign directed specifically at consumers. 3.16 Capital CostsModern, state-of-the-art greenhouses are costly to construct; $250
- 400 per square metre depending on the technology incorporated
inside the greenhouse. This is a barrier to new growers entering
the industry. As a result, many of the existing family operations
continue to expand as the next generation enters the family business.
In the Netherlands, greenhouse production facilities are often considered
obsolete within 10 - 15 years. Because of the importance of the
sector in the Netherlands policies are in place to promote replacement
of older facilities with state-of-the-art. 4.0 Industry Associations4.1 Flowers Canada (Ontario) Inc. is now the mandated organisation to represent the interests of commercial greenhouse flower growers in Ontario. Flowers Canada (Growers), the national grower division of Flowers Canada is also managed by the Flowers Canada Ontario office located in Guelph and represents Canadian growers on issues of national interest such as pesticide minor use issues, border issues, quarantinable pests and diseases and Ontario growers on provincial issues. 4.2 The Ag Energy Co-Operative, founded by greenhouse growers and also located in Guelph, purchases gas and electricity contracts on behalf of its grower members. It now represents 2/3 of all greenhouse natural gas consumption in the province. 4.3 The Ontario Greenhouse Alliance (TOGA) is a strategic partnership of the Ontario Greenhouse Vegetable Growers and Flowers Canada (Ontario) Inc. with its major focus being on issues common to the members of both organisations. 4.4 Flowers Canada Growers is a member of The Canadian Ornamental Horticulture Alliance (COHA) formed to further the common interests of Canada's floriculture and nursery sectors from a national perspective. 5.0 SummaryThe industry sells life style 'beauty, colour, and most importantly quality of life'. Plants and gardening must bring both pleasure and fun! The typical North American family leads a hectic life style with little free time. Because of technological advances (cell phones, e-mail, microwaves) consumers expect instant gratification even when purchasing plants. Because the industry sells beauty and colour, growers must be aware of colour trends and understand that the consumer grows tired of the 'same old -same old' floral products. Hence, growers must grow and market new and different flower and plant products tailor-made to meet those expectations.
For more information: Toll Free: 1-877-424-1300 Local: (519) 826-4047 E-mail: ag.info.omafra@ontario.ca
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