Economic aspects of the production and marketing of hardy nursery stock

Abstract

A census of the Nursery Stock industry, carried out in autumn 1997, valued the sales of plants produced by the industry in 1996 at £18.8m. In the period since a previous census in 1994 field production of nursery stock expanded by 17% while the production of container plants shifted towards the greater use of protected cultivation. Employment in the industry rose by 28% to 912 full time equivalent jobs. Kildare was predominant in the production of containerised plants while Tipperary was the most important county for field production. Together, these two counties produced nearly half the value of the industry. Together with Cork, Dublin, Kilkenny and Wicklow they accounted for three quarters of the value of the industry. The industry was concentrated in that the largest 10% of the nurseries produced 59% of the value of the industry. As nursery size increased, the value of sales output per person rose sharply. Larger nurseries were also more productive per unit area. Exports were valued at £3.45m and imports at £2.22m. The main lines exported were ornamental shrubs followed by liners and deciduous trees. Two thirds of the exports were destined for Great Britain with the remainder going to Northern Ireland. Exporting was even more concentrated than production with the largest 10% of the nurseries providing 83% of the exports. The main imports were deciduous trees and liners. Two thirds of the imports originated from the continent and the remainder were from Great Britain. Small nurseries reported that capital and profitability were the principal factors limiting expansion of their nurseries. Larger nurseries however placed the availability of suitable staff as the main limiting factor. The most common difficulty reported by exporters was the cost of transport and a number of problems relating to the difficulties that individual nurseries or small groups have in supplying a large, discerning and relatively distant market. This underlined the need for increased co-ordination and co-operation in the future.