2002 Profile of the Ontario Nursery Industry

Table of Contents

1. Executive Summary
   
2. Description of the Ontario Nursery Indusy
   
• Sources of Information
  
• Value of Nursery Production in Ontario
  
• Number of Nursery Operations in Ontario
  
• Size of Nursery Production in Ontario
  
• The Ontario Nursery Labor Force
  
3. Description of the Crops Grown
   
4. The Market
   
• Distribution Chain of Nursery Products
  
• Market Segmentation
  
• Imports
  
• Exports
  
• Trends
  
5. Industry Analysis
   
• Strengths
  
• Weaknesses
  
6. Future Trends
   
• Environment
  
• Product
  
• Technology
  
7. Regulations Affecting the Nursery Industry
   
• Provincial
  
• National
  
• Industry
  
8. Associations
   
• Provincial
  
• National
  
• International
  
9. Periodicals
   
10. OMAFRA Resources
    
• OMAFRA Nursery and Landscape Plant Production, Publication 383
  
• OMAFRA Nurery, Landscape & Turf Bulletin
  
• OMAFRA Nursery-Landscape Information Agriphone
  
• OMAFRA Website
• OMAFRA Nursery-Landscape page
  
11. Educational Courses and Trade Shows
    
12. Contacts and Resource persons
    
• OMAFRA
  
• University of Guelph
  
• Horticulture Research Institute of Ontario
  
• Pest Diagnostic Clinic

Executive Summary

The Ontario nursery industry is a diverse industry produces a wide range of woody and herbaceous plants for the landscape. In 2001 the farm gate value of the industry was $ 230,000,000. Currently there are about 1,443 producers of nursery stock in Ontario. About 25% of growers have greater than 5 acres under production. The market segmentation for nursery products is quite complex. A product may be sold several times before being sold to the retail client. The market for nursery stock consists of other growers, garden centres, mass merchandisers, landscapers, fruit trees and brokers. The export market to the United States has being increasing over the past few years.

While poised to continue to be a successful industry in Ontario, the nursery industry faces many challenges in the future. These include: lack of pesticides, high labor costs, lack of a reliable, skilled labor force, competition with other activities for the consumer's limited leisure dollar, improved promotion, and lack of detailed industry statistics.

| Top of Page |

Description of the Ontario Nursery Industry

1. Sources of Information

There are currently two surveys in Canada: Census of Agriculture (completed every 5 years) and Statistics Canada Survey of the Canadian Nursery and Sod Industry (completed annually). These surveys report the size, number of operations and farm gate value of commercial nursery production in Ontario. However, they report different numbers. Some of the discrepancies could be explained for the following reasons:

1. Statistics Canada survey reports only those operations with five acres or more.
2. The Census of Agriculture reports all those who produce woody nursery stock. This includes mixed agricultural operations such as livestock, cash crop and other horticultural operations
3. The definition of what is considered a nursery may not be consistent. For example a garden centre which produces its own nursery stock for its own retail sales and landscape design use, may consider itself a nursery under the Census of Agriculture, but its farm gate value may exclude it form being considered in the Statistics Canada Survey.
4. The numbers may vary depending on how the operation is registered.

2. Value of Nursery Production in Ontario

a. Census of Agriculture

1. The census does not report an overall dollar value of farm receipts from the sale of nursery stock
2. 7% of growers of nursery stock reported sales greater than $500,000 in 2001. There was an 8% increase in those reporting sales in this category.
3. 44% of reported sales less than $10,000.
4. 48% of the total nursery production area is responsible for generating sales greater than $500,000.
5. It appears that the majority of land under production is utilized by a small percentage of producers.
6. A significant number of reporting farms are utilizing small parcels of production area (e.g. "hobby farms").

   | Top of Page |

b. Statistics Canada: Survey of Canadian Nursery Trades Industry

1. 2001 total farm gate sales in Ontario were $229,926,000. This accounts for 47% of the total farm gate sales in Canada. British Columbia sales comprised 32% of national sales.

This represents an increase in total sales from 1996 by 82.6%. This may be attributed to the economic boom experienced during the late 90's. Sales in British Columbia increased by 72% and in the Prairie Provinces by 89%.

3. Number of Nursery Operations in Ontario

a. Census of Agriculture:

Southern: Brant, Elgin, Essex, Haldimand-Norfolk, Hamilton-Wentworth, Kent, Lambton, Middlesex, Niagara, Oxford
Western: Bruce, Dufferin, Grey, Halton, Huron, Peel, Perth, Simcoe, Waterloo, Wellington
Central: Durham, Halibutron, Hastinga, Muskoka, Northumberland, Parry Sound, Peterborough, Prince Edward, Victoria, York
Eastern: Frontenac, Lanlark, Leeds-Grenville, Lennox-Addington, Ottawa-Carleton, Prescott-Russell, Renfrew, Stormont-Dundas-Glengarry
Northern: Algoma, Cochrane, Kenora, Nipissing, Rainy River, Sudbury, Sudbury Regional Municipality, Thunderbay, Timiskaming

1. In 2001, the number of nursery stock producers in Ontario was 1,443. This is a decrease of 11% from 1996.
2. 32% of the nurseries in Canada are located in Ontario. This has changed little from the 1996 census.
3. 45% of the total production area in Canada is found in Ontario.
4. Table 3 outlines the distributions of nurseries in Ontario. For a definition of the regions, see table 3.
• 34% of the nurseries are located in the Southern region,
• 28% are located in the Western region,
• 22% are located in the Central region,
• 12% are located in the Eastern region, and
• 4% are located in the northern region.
5. The Central region has experienced a 2% decrease in the number of nurseries.
6. The distribution of nurseries throughout Ontario has remained relatively unchanged from 1996 to 2001.
7. The 5 main areas of nursery production are:

| Top of Page |

b. Statistics Canada: Survey of Canadian Nursery Trades Industry

1. In 2001, 365 nurseries were surveyed in Ontario. This is a decrease of 12% from the year 2000.
2. According to the survey, 32 % of the producers are located in Ontario. This is the same as the Census.
3. The survey does not break nursery production or producers down by area.

4. Size of Nursery Production in Ontario

a. Census of Agriculture

1. In 2001, the total production area for nursery stock in Ontario was 10,315 ha (25,488 acres). This is a 3% decrease from 1996.
2. The average size of a nursery in Canada is 7.1 ha (18 acres). This represents a 9% increase in the average farm size since 1996.
3. The Eastern, Central and Western regions have all experienced an increase in the area of land involved in nursery production (Table 3). While the Northern and Southern regions show a decrease in nursery production area.
4. The distribution of land involved in nursery production throughout Ontario has remained relatively unchanged from 1996 to 2001 (Table 3).

b. Statistics Canada: Survey of Canadian Nursery Trades Industry

1. In 2001, 17,866 ha (44,150 acres) of land, owned (82%) and rented (18%), was involved in the production of nursery stock. This is an 11% increase over the total production area in 1996.
2. Between 1996 and 2001, the amount of land rented for the production nursery stock decreased by 56% and the land owned increased by 39%.
3. The average size of a nursery in Ontario is 49 ha (121 acres). This is larger than that reported by the Census of Agriculture. (It may be because of the requirement for a minimum of 5 acres for each reporting nursery).
4. In 2001, 60% of all the land used to grow nursery stock in Canada was located in Ontario.

   | Top of Page |

5. The Ontario Nursery Labor Force

1. The gross yearly payroll for Ontario nurseries in 2001 was $88,281,000. The gross yearly payroll for all Canadian nurseries was $175,852,000. Ontario accounts for 50% of the total gross yearly payroll. In 2001, the gross yearly payroll for all Canadian nurseries was $111,854,000. (Statistics Canada)
2. The industry employed a total of 5,415 people in 2001.
   • 46% (2,475) were full time
   • 54% (2,940) were part time
   • This reflects an increase in total employees by 29% since 1996.
3. The full time labor force increased by 50% from 1,650 in 1996 to 2,475 in 2001.
4. The part time labor force was 2,560 in 1996 and 2,940 in 2001. This represents an increase of 15%.
5. In 1996, national employment figures in nurseries were 40% full time and 60% part time.
6. About 10% of the Ontario nursery labor force consists of off shore labor. This labor force is employed between the months of April to November.

Description of the Crops Grown

The nursery industry produces a wide range of plant materials for the landscape market. It can generally be divided into two groups: woody or herbaceous plants. The table below outlines the different commodities produced by the nursery industry.

Nursery stock has been traditionally grown in the field and then dug, potted or dug bare root. In recent years container growing of nursery stock has become a common practice. In Ontario, field grown nursery stock comprises about 70% the stock currently grown. Container production is about 30%. Container grown nursery stock provides extended shipping season. Nursery stock grown in the fields can be sold in several ways depending on the crop grown the end market user.

Field grown nursery stock

Some nursery operations may consist solely of one method of production or a combination of both. Container grown nursery stock can be continuously grown in a container or it may be started in the field, dug bare root and then potted into the container. The containers or pots are made of sturdy plastic.

| Top of Page |

The Market

1. Distribution Chain of Nursery Products

The distribution of nursery products in the domestic market can be quite involved. Stock may be sold several times before actually arriving at its final destination. The chart below outlines the movement of nursery stock between growers, brokers and clients. There is no marketing board or agency involved in the setting of prices or regulating the supply of products. Wholesale and retail prices are determined by the market.

Figure 1. The Distribution of Nursery Stock

2. Market Segmentation

The Statistics Canada survey segments the Ontario nursery market into seven groups:

1. retail (a grower's own retail sales)
2. fruit growers
3. landscape contractors
4. garden centres (independent garden centres)
5. mass merchandisers (i.e. Canadian Tire, Home Depot, Loblaws)
6. other nursery growers
7. other buyers

   | Top of Page |

The graph below, figure 2, shows the segmentation of the Ontario market based on the dollar value of sales to the different sectors in 1996 and 2001.

Figure 2. Market Segmentation for Nursery Stock in 1996 and 2001 Based on Sales

Highlights:

1. The dollar value sold through landscape contractors and garden centers increased. This may mean that the quantities sold have increased and/or the dollar of product increased. The dollar value of sales to garden centers increased by 45% and to landscape contractors by 182%. This may also reflect the increase in housing construction and strong gardening trend in North America with an emphasis on home improvement.
2. In 2001, garden centers accounted for 28% of the total sales of nursery stock.
3. There was a decrease in the dollar value of nursery stock sold to mass merchandisers compared to 1996. In 2001, the mass merchandiser segment demonstrated a 10% decrease between 1996 and 2001. Nationally, these sales increased by 33%.

   | Top of Page |

3. Imports

Import Commodity Records, Revenue and Excise Canada now list imports and exports provincially as well as nationally. However, it is still difficult to estimate the imports of nursery stock since the commodity categories include nursery as well as floriculture crops. Imports to Ontario come generally from the United States, Netherlands and British Columbia.

Highlights:

1. Overall imports have increased over the period of 1996 to 2001 by 58%.
2. 2001 imports to Ontario comprise 57% of all imports to Canada.
3. In 2001, the nursery stock imported to Canada from the United States was 51% ($174,123,000) of the total imports ($341,482,000). This is a 52% increase from 1996.
4. The nursery stock imported to Ontario from the United States was 53% in 2001. This is a 67% increase from 1996.

   | Top of Page |

4. Exports

Like imports, export commodity categories include nursery as well as floriculture crops. Exports from Canada go primarily to the United States.

| Top of Page |

Highlights:

1. Overall exports have increased over the period of 1996 to2001 by 108%.
2. In 2001, exports from Canada to the United States comprised 98% ($495,639,000) of the total export dollar value ($505,250,000). This is a 108% increase from 1996.
3. In 2001, Ontario exports to the United States comprised 99.8% ($ 293,818,092) of the total ($ 294,489,959). This is an 86% increase since 1996.
4. Exports coming from Ontario comprised 58% of the total exports from Canada.
5. The dollar value of rose exports ($20,374,222) has increased 175% from 1996 to 2001. This may include greenhouse roses. However, there has been an increase in field grown rose production in Ontario.

5. Trends

Trends in the market place are difficult to forecast. Most nursery stock requires several years before it reaches a marketable size. There are two different trends which affect the industry: changes in demand for plants material and changes in the approach to landscape design.

Highlights:

1. varieties of plant forms: topiary, weeping forms, standard grafted plants
2. plants which provide year round seasonal interest in form, leaf color, flower and fruit
3. smaller plants more suitable to the smaller urban private space
4. perennials
5. plants that are packaged so they are easier to handle in the garden centre and for the client
6. native or indigenous plants
7. less interest in problem trees; these problems may be perceived or real i.e. Austrian pine, white birch, crabapple
8. aging population; gardening is and is predicted to continue as the main leisure activity.

   | Top of Page |

Industry Analysis

1. Strengths

1. According to market forecasts and population demographics, gardening and landscaping will continue as the number one leisure activity in the future.
2. While interest in the environment may have waned slightly, nursery products are "environmentally friendly" in that they contribute to enhancing the environment.
3. The Canadian dollar, excellent quality and close proximity to large US market should continue to encourage and support the export market.
4. The industry has strong association leadership.

2. Weaknesses

1. Lack of pesticides (herbicide, fungicides and insecticides) comparable to those currently registered in the US.
2. Labor costs continue to be the highest input cost in the production of nursery stock.
3. In addition to labor costs is the lack of a reliable, skilled labor force. Many nurseries are dependent on off shore labor during the growing season.
4. Landscaping and gardening are leisure activities. It must compete with other activities for the consumer's limited leisure dollar.
5. The industry does not currently have a united, planned marketing approach to promote the Ontario nursery and landscaping industry. Such a program was attempted. The industry was seeking to establish a "designated association" under the Farm Products Marketing Act. It was not widely supported by the industry.
6. The Canadian Food Industry Agency is certifying nurseries currently involved in export. This would involve more self-regulation.
7. Lack of a good survey which examines production methods and types of plants grown.

   | Top of Page |

Future Trends

1. Environment

1. The nursery industry, like other agricultural commodities, requires high inputs. Future trends include less impact on the environment through better water and nutrient management. In the future, nurseries will be striving to become closer to a closed system.
2. In light of the few pesticides registered, increase in pest monitoring and more judicious use of pesticides will be adopted.

2. Product

1. Container production of nursery stock is expected to continue and increase. Containers allow for planting throughout the growing season, easy of handling in the garden centre, landscape site and for the consumer, better use of land which may be marginal for field production, and increased control over the plants' growing conditions.
2. Alternate methods of field growing plants including new systems such as "pot-in-pot", the Ohio System and Cellugro.

3. Technology

1. Currently most container nursery stock is watered overhead. In the future, container yards may water stock using subirrigation, overhead and drip irrigation.
2. A closed system of production is possible and has been demonstrated in the United States and in Europe.
3. Increased technology in how plants are handled in the yard to reduce labor inputs. There are a number of technologies currently used in the greenhouse industry for grading, inventory control and handling plants that could be adopted.

   | Top of Page |

Regulations Affecting the Nursery Industry

1. Provincial Acts

More information on current provincial acts can be obtained through:

a)Grower Pesticide Safety Course - Nursery Growers

In order to purchase and apply schedule 1, 2 or 5 pesticides on your nursery operation you must have successfully completed the Grower Pesticide Safety Course and been granted a Grower Pesticide Safety Certificate. It is a one day course. For more information contact you local OMAF field office.

b) Permit to Take Water (Ontario Water Resources Act)

This permit is required for the taking of more than 50,000 litres (10,000 imperial gallons) of water per day from surface and/or ground water sources, excluding domestic, livestock and fire protection uses. For more details contract your district MOEE field office.

c) Pesticides Act

This schedules the use and storage of pesticides in Ontario. It also regulates the use of pesticides for commercial applicators.

d) Public Lands Act : Work Permit - authorize specific activities and works on public lands and shore lands.

Administered through Ontario Ministry of Natural Resources, this approval is required for any construction work in or connected to a lake or river, if it will hold back, forward or divert water.

e) Weed Act

This act regulates the control of weeds in agricultural land of noxious weeds in Ontario in order to minimise the impact of weeds on horticultural and agricultural production.

| Top of Page |

2. National

Importing and Exporting Live Plants

The movement of plants across international and provincial borders is the responsibility of Canadian Food Industry Agency (CFIA)

1. Importing plants requires an import permit and international broker. Upon arrival, plants will need to be inspected by a CFIA inspector.
2. Exporting Plants requires a Phytosanitary Certificate issued by CFIA. Other requirements and restrictions may apply depending on the importing country.
3. CFIA Plant Protection Division:

1. Belleville (Northeast Region) 613-969-3420


2. Guelph 519-837-9400 x 2111


3. Hamilton (Central Region) 905-572-2192


4. London (Southwest Region) 519-691-1300 x 114


5. Niagara Falls 905-262-5331


6. Toronto (Toronto Region) 416-954-1714 or 416-952-0543


7. Queenston (Central Region) 905-262-0369


8. Windsor (Southwest Region) 519-969-2522

4. Permit applications by fax: 613-228-6605 or by mail at:

Plant Health & Production Division
59 Camelot Drive
Nipean, ON
K1A 0Y9

5. www.inspection.gc.ca

   | Top of Page |

3. Industry

1. Canadian Standards for Nursery Stock

Nursery stock must meet size and quality standards. These standards are agreed to by the industry and developed with industry input. A copy of these standards is available through the Canadian Nursery Trades Association (see under Associations)

Associations

1. Provincial

a) Landscape Ontario Horticultural Trades Association

Tony DiGiovanni, Executive Director
Fifth Line South, R. R. #4,Stn. Main, Milton, Ontario L9T 2X8
Phone: 905-875-1805; 1-800-265-5656 FAX: 905-875-3942
Email: lo@hort-trades.com Website: www.hort-trades.com

b) International Society of Arboriculture - Ontario

Randy Lidkea, Executive Director
Box 711 Owen Sound, Ontario N4K 5R4
Phone: 1-888-463-2316 FAX: 519-376-2388

2. National

a) Canadian Nursery Landscape Association

Chris Andrews, Executive Director
7856 Fifth Line South, R. R. #4 Stn. Main, Milton, Ontario L9T 2X8
Phone: 905-875-1399; 1-888-446-3499 FAX: 905-875-1840
Email: cnla@canadanursery.com Website: www.canadanursery.com

b) Canadian Ornamental Plant Foundation

Peggy Walsh-Craig, Executive Director
P.O. Box 21083 RPO Algonquin, North Bay, ON P1B 9N8
Phone: 705-495-2563; 1-800-265-1629 FAX: 705-495-1449
Email: info@copf.org Website: www.copf.org

| Top of Page |

3. International

a) American Association of Nurserymen

1250 I Street, N. W., Suite 500, Washington, D.C. 20005
Phone: 202-789-2900 FAX: 202-789-1893

b) International Society of Arboriculture

P.O. Box GG, Savoy IL. 61874 USA
Phone: 217-355-9411 FAX: 217-355-9516

Periodicals

1. American Nurseryman

77 W. Washington St., Suite 2100, Chicago, IL 60602-2904
Phone: 312-782-5505 FAX: 312-782-3232

2. Horticulture Review

Landscape Ontario
7856 Fifth Line South, R. R. #4 Stn. Main, Milton, Ontario L9T 2X8
Phone: 905-875-1805 FAX: 905-875-3942
Email: lo@hort-trades.com

3. Landscape Trades

Landscape Ontario
7856 Fifth Line South, R. R. #4 Stn. Main, Milton, Ontario L9T 2X8
Phone: 905-875-1805 FAX: 905-875-3942
Email: lo@hort-trades.com

4. NMPRO (Nursery Management & Production)

P.O. Box 1868
Fort Worth, TX 76101 USA
Phone: 800-946-6776 FAX: 817-882-4121

| Top of Page |

OMAFRA Resources

1. OMAFRA Nursery and Landscape Plant Production, Publication 383

Nursery & Landscape Plant Production is a resource guide for currently recommended chemical and cultural control of insects, diseases and weed control for woody plants in the nursery and landscape. It features:

• insect, disease and weed control all in one book
• cultural information about managing soils for woody landscape plants
• an expanded listing of insect and disease problems in Ontario on woody landscape plants
• colour photos of common plant pests
• an Ontario Insect Calendar listing monthly insect activity and stage of development
• all woody plants are listed by their botanical names
• a new section on weed control
• descriptions of currently registered herbicides including application methods, weeds controlled, currently registered woody plants, uptake and translocation, and residual activity
• weed control tables that cross reference herbicides with weeds controlled and registered woody plants.
• a searchable index

2. OMAFRA Nursery, Landscape & Turf Bulletin

• monthly column printed in Horticulture Review
• updates on insect, pest problems and issues related to nursery problems & landscape maintenance
• periodic articles in Landscape Trades

3. OMAFRA Nursery-Landscape Crop Updates

• 1-888-290-4441 or 519-826-3414 or
• weekly updates of current insect, disease and cultural recommendation
• available from April to October

4. OMAFRA Website: www.ontario.ca/omafra

5. OMAFRA Nursery-Landscape Page

• articles on pest management, nutrient and soil management, and other issues related to nursery production and maintenance of ornamental plants
• links to other useful web pages related to ornamentals

| Top of Page |

Educational Courses and Trade Shows

1. Landscape Ontario Horticultural Trades Association

7856 Fifth Line South, R. R. #4, Stn. Main, Milton, Ontario L9T 2X8
Phone: 905-875-1805; 1-800-265-5656 FAX: 905-875-3942
Email: lo@hort-trades.com Website: www.hort-trades.com

• Landscape Ontario Congress and Trade Show (mid January)
  
• Landscape Ontario Growers' Short Course (mid February)
  
• Landscape Ontario Growers' Summer Tour (mid summer)
  
• Landscape Ontario Winter Workshops (January - March)
  
• Monthly chapter meetings September through March
  
• OMAF winter workshops (eg. Grower IPM in February - March)

2. Independent Study, University of Guelph.

Guelph, On N1G 2W1
Phone: 519-824-4120 ext. 3375

• offers correspondence courses in many different aspects of horticulture

Contacts and Resource Persons

a. OMAFRA

Jennifer Llewellyn, Nursery Crop Specialist
Horticulture Science Division, University of Guelph, Guelph ON N1G 2W1
Phone: 519-824-4120 ext 2671 Fax: 519-767-0755
Email: jennifer.llewellyn@ontario.ca

b. University of Guelph

Dr. Glen Lumis, Researcher Nursery Crops
Horticulture Science Division, University of Guelph, Guelph ON N1G 2W1
Phone: 519-824-4120 ext. 2130 Fax: 519-767-0755
www.plant.uoguelph.ca/faculty/glumis/

c. Horticulture Research Institute of Ontario/University of Guelph

Dr. Calvin Chong
Department of Plant Agriculture, Bovey Building,
University of Guelph, Guelph, Ontario, Canada N1G 2W1
Phone: 519-824-4120 ext 53032
Fax: 519-767-0755
www.plant.uoguelph.ca/faculty/cchong

d. Pest Diagnostic Clinic (University of Guelph)

Agriculture and Food Laboratory Services Centre
P.O. Box 3650, 95 Stone Rd. W, Guelph, ON N1H 8J7
Phone: 519-767-6256 Fax: 519-767-6240 Email: pdc@lsd.uoguelph.ca
www.uoguelph.ca/pdc

| Top of Page |