Value of industry reaches $680 million, 6% higher
than the 2002 record.
August 22, 2002
Oregon's leading agricultural industry just keeps
on getting bigger. Gross sales figures just released by the Oregon Agricultural
Statistics Service show the state's greenhouse and nursery industry at $680
million in 2001– a six percent increase over the previous year's record
high.
"The growth of this industry parallels the very
strong growth and demand that is fueled by the housing market in this
country as well as commercial development," says John Aguirre, executive
director of the Oregon Association of Nurserymen. "Certainly, 2001
is on the books as a very good year for nursery operators."
The
increase in sales has been steady, if not meteoric, the past decade. In
1994, greenhouse and nursery sales totaled $385 million. The latest statistics
mark the eleventh straight year that the industry has established a record
high. Greenhouse and nursery products remain entrenched as the state's
top producing commodity, still far ahead of second place cattle and calves.
The industry continues to be Oregon's only agricultural commodity with
a value exceeding a half billion dollars.
"It just goes to show that Oregon is unique in
the kind of quality material it can produce at an economical price,"
says Aguirre.
What distinguishes greenhouse and nursery production
from many other sectors of Oregon agriculture is its location. The industry
is
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The increase in sales has been steady, if not
meteoric, the past decade.
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concentrated in the Willamette Valley. The top five
nursery producing counties are relatively close to the greater Portland
metropolitan area. Clackamas County remains #1 at $154 million in sales
last year-- a 4% increase. Marion County is #2
at $149 million (4% increase). Washington County is #3 at $142 million
(10% increase). Yamhill County is #4 at $101 million (2% decrease). Heavily
urbanized Multnomah County cracks the #5 spot at nearly $43 million (a
significant 23% increase in sales).
Aguirre believes there has been a fairly good and neighborly
relationship between the industry and the urban population. There has
also been a strong effort by nursery growers to be environmentally responsible.
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Oregon growers had 45,200 acres in production in
2001, up 10% from 1999, the last year in which acreage was surveyed.
The number of operations increased from 2,102 in 2000 to 2,139 in
2001.
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"The fact we are producing in close proximity to
Portland and other urban areas really demands that kind of stewardship
because we know people are looking over our back fence at how we do our
jobs," says Aguirre.
Although nursery production is concentrated west of
the Cascades, several eastern counties are doing significant business.
Klamath County recorded nearly $10 million in sales last year, Umatilla
County nearly $4 million, and Deschutes County nearly $3 million.
Along with the increased sales is increased acreage
of greenhouse and nursery production, now at 45,200 acres – 10% higher
than in 1999, when similar industry survey results were tabulated. That
increase is consistent with growth in sales, but it also reflects a bit
of a concern to the industry. With many other commodities not faring so
well, some producers are switching to nursery crops.
"There has been a substantial amount of acreage
coming on line to produce nursery products, both in Oregon and nationwide,"
says Aguirre. "One of the problems we see is that people will get
into this business without really understanding where they are going to
sell their product."
Aguirre says it takes time for the up front investment
in starting a nursery operation to begin paying off.
"This is not a venture that will necessarily save
the family farm," he says. "If you are financially distressed,
that is not a good position in which to move into nursery production."
While sales of nursery products are up, the latest statistics
also show expenses for operators are higher. Payroll expenses have increased
16% this past year and have jumped 203% for greenhouse and nursery operators
in the last decade. The skills required of workers command more money
than many other commodities.
Through inspection and certification services provided
by the Oregon Department of Agriculture, the state's greenhouse and nursery
industry has been able to maintain a high level of quality products. That
reputation is largely responsible for the wide array of customers that
receive Oregon nursery products.
About 27% of Oregon's nursery products are sold in state.
The northeast states, among them New York, New Jersey, and Pennsylvania,
account for about 14% of last year's sales. The upper Midwest states were
the destination for about 13.6% of all nursery products from Oregon in
2001 while the Atlantic states – stretching from Maryland to Florida –
accounted for 12.7%. Neighboring Washington and California accounted for
10.5% and 8% respectively. Only about 3.6% of Oregon nursery products
were sold internationally, with 3% heading to Canada.
Even as 2001 was another very strong year for Oregon's
greenhouse and nursery industry, it is hard to imagine its continued rate
of growth will be sustained.
"The past several years, there has been a nationwide
shortage of this plant material," says Aguirre. "It now appears
that supply is beginning to meet demand, in fact it may be exceeding demand
for the first time in quite a while. When the final numbers come out for
2002, I think we will see an industry that will struggle to maintain the
kind of growth we've seen in the past several years."
However, there is no denying the greenhouse and nursery
industry is at the top rung of Oregon's agricultural ladder. That's what
eleven straight years of record- setting sales will do.
For more information, contact Bruce Pokarney at
(503) 986-4559.
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