In “Michigan’s nursery and greenhouse industry – Part 1,” I summarized a 2015 survey performed by the National Agricultural Statistics Service (NASS) of Michigan greenhouse and nursery growers, including the number of operations in Michigan, the fuel type used for heating and its costs, and uses of supplemental lighting in the industry. With the input of the Michigan Floriculture Growers Council, additional questions on business challenges were also included in this survey.
According to the survey, the greatest proportion (32 percent) of floriculture growers in Michigan sold to re-wholesalers (brokers) followed by mass merchandizers (27 percent). Only 9 percent of Michigan ornamental plants were sold directly to landscapers or small garden center chains. The top five destination states for Michigan’s plant material were Michigan, Illinois, Indiana, Ohio and Wisconsin.
According to the survey, the top four business challenges facing the floriculture industry in Michigan were profitability, competition, labor costs and energy availability/costs (Figure 1). The rising production costs and relatively stagnant sales prices contributed to the decreasing margins on plant products. According to the survey, the least important challenges, as identified by the floriculture industry, were non-native pest information and water availability.
To read the rest of the story, please go to: Michigan State University Extension