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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
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