Indiana Horticulture Congress

“Starting a Greenhouse Business”

Indiana Horticulture CongressIndiana Horticulture Congress

““Starting a Greenhouse BusinessStarting a Greenhouse Business””

Overview of the GreenhouseOverview of the GreenhouseBusiness in IndianaBusiness in Indiana

Allen HammerAllen HammerDept. of Horticulture and LandscapeDept. of Horticulture and Landscape

ArchitectureArchitecturePurdue UniversityPurdue University

The greenhouse businessThe greenhouse business

Fresh flowersFresh flowersFlowering potted plantsFlowering potted plantsGreen (foliage) plantsGreen (foliage) plantsBedding plantsBedding plantsVegetable (food)Vegetable (food)

The greenhouse marketThe greenhouse market

Conventional floristConventional floristGarden centerGarden centerRetail greenhouseRetail greenhouseMass market (grocery stores)Mass market (grocery stores)Mass market (big box stores)Mass market (big box stores)

Myth #1Myth #1Indiana greenhouse growers areIndiana greenhouse growers are

making great profitsmaking great profits

Reality #1Reality #1

Indiana greenhouse growers areIndiana greenhouse growers aregenerally making a good livinggenerally making a good living

Myth #2Myth #2If Indiana greenhouse growers growIf Indiana greenhouse growers grow

plants, consumers(wholesale andplants, consumers(wholesale andretail) will buy themretail) will buy them

Reality #2Reality #2

Indiana greenhouse growers mustIndiana greenhouse growers mustwork very hard to find markets to sellwork very hard to find markets to sell

their plants for a profittheir plants for a profit

Myth #3Myth #3Indiana greenhouse growers cannotIndiana greenhouse growers cannot

compete for market sharecompete for market share

Reality #3Reality #3

Indiana greenhouse growers canIndiana greenhouse growers cancompete for market share - bothcompete for market share - both

established markets as well as creatingestablished markets as well as creatingnew niche marketsnew niche markets

Myth #4Myth #4A year-round greenhouse business isA year-round greenhouse business is

required for successrequired for success

Reality #4Reality #4

A part-time or part-year greenhouseA part-time or part-year greenhousemay in some cases be most profitablemay in some cases be most profitable

State of the IndustryState of the Industry30 years ago cut flowers were important in30 years ago cut flowers were important in

Indiana Indiana (37 acres of greenhouse roses in(37 acres of greenhouse roses inRichmond)Richmond)

Year round potted plants Year round potted plants (less demand, greater(less demand, greatercompetition)competition)

Bedding plants - poinsettias Bedding plants - poinsettias (more bedding(more beddingplant greenhouse space than market forplant greenhouse space than market forpoinsettias)poinsettias)

State of the IndustryState of the IndustryGreenhouse margins are smallGreenhouse margins are smallCompetition for market is fierceCompetition for market is fierce

U. S. Floriculture

0

1

2

3

4

5

6

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Year

$ value of production (billions)

U. S. Floriculture

0

2

4

6

8

1 0

1 2

1 4

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Year

number of growers

0

2 ,000 ,000

4 ,000 ,000

6 ,000 ,000

8 ,000 ,000

10 ,000 ,000

12 ,000 ,000

14 ,000 ,000

2000 2001 2002 2003

Year

population

Indiana Illinois Ohio Michigan

$ 0

$50 ,000 ,000

$100 ,000 ,000

$150 ,000 ,000

$200 ,000 ,000

$250 ,000 ,000

$300 ,000 ,000

$350 ,000 ,000

2000 2001 2002

Year

wholesale value

(floriculture)

Indiana Illinois Ohio Michigan

$ 0

$20 ,000 ,000

$40 ,000 ,000

$60 ,000 ,000

$80 ,000 ,000

$100 ,000 ,000

$120 ,000 ,000

$140 ,000 ,000

$160 ,000 ,000

$180 ,000 ,000

2000 2001 2002

Year

wholesale value

(annual bedding plants)

Indiana Illinois Ohio Michigan

$ 0

$10 ,000 ,000

$20 ,000 ,000

$30 ,000 ,000

$40 ,000 ,000

$50 ,000 ,000

$60 ,000 ,000

2000 2001 2002

Year

wholesale value

(perennials)

Indiana Illinois Ohio Michigan

$ 0

$2 ,000 ,000

$4 ,000 ,000

$6 ,000 ,000

$8 ,000 ,000

$10 ,000 ,000

$12 ,000 ,000

$14 ,000 ,000

$16 ,000 ,000

2000 2001 2002

Year

wholesale value

(poinsettia)

Indiana Illinois Ohio Michigan

0

5 0 0 , 0 0 0

1 ,000 ,000

1 ,500 ,000

2 ,000 ,000

2 ,500 ,000

3 ,000 ,000

3 ,500 ,000

4 ,000 ,000

4 ,500 ,000

5 ,000 ,000

2000 2001 2002

Year

number of pots

(poinsettia)

Indiana Illinois Ohio Michigan

U. S. Floriculture

0

5 0 0

1 0 0 0

1 5 0 0

2 0 0 0

2 5 0 0

3 0 0 0

3 5 0 0

4 0 0 0

$10 , 000 - 1

9 , 999

$20 , 000 - 3

9 , 999

$40 , 000 - 4

9 , 999

$50 , 000 - 9

9 , 999

$100 , 000 - 4

99 , 999

>$500 , 000

Gross Value of Sales

numbero f

gowers

1 9 9 71 9 9 81 9 9 92 0 0 02 0 0 12 0 0 2

The Future Indiana GreenhouseThe Future Indiana GreenhouseIndustryIndustry

LetLet’’s look at a few Dutchs look at a few Dutchexamples!examples!

Greenhouse Roses Greenhouse Roses

Cut GerberaCut Gerbera

Potted PlantsPotted Plants

There are opportunities forgreenhouse production in Indiana