As we head into a new year with uncertainty about issues related to the economy, energy and homeland security, I expect there will be fewer floriculture growers filling out the USDA-National Agricultural Statistics Service Floriculture Crops Summary in January. After the devastating hurricanes in August and September that pummeled Florida and other East Coast states, some growers won't have the resources and/or desire to continue their businesses. Other growers won't be able to continue because rising costs related to fuel and labor and low margins have taken a financial toll that they won't be able to overcome.
In 2003, according to the Floriculture Crops Summary, the number of U.S. growers in all sizes of production operations decreased from the previous year. In 2003, the number of growers (11,913) with $10,000 or more in wholesale sales dropped 8 percent from 12,916 growers in 2002. Those with $100,000 or more in wholesale sales fell from 4,974 in 2002 to 4,741 in 2003. When the 2004 floriculture crops survey results are released in April, expect more of the same.
Automation is part of the answer
So how can a grower avoid becoming a negative statistic? One way is to use technology to help make a profit. In October and November, Peter Konjoian of Konjoian's Greenhouses and Lloyd Traven of Peace Tree Farm conducted OFA outreach seminars related to automation for small- and medium-size growers. Too often growers hear the word automation and immediately think they can't afford it or their operations are too small, not sophisticated enough or too antiquated to implement it.
Konjoian advised growers not to stress out over technology. When it comes to incorporating automation, Konjoian and Traven agreed that growers need to first determine how much do they need it vs. how much do they want it.
Konjoian said growers need to rank and prioritize their automation projects. Since few growers can afford to do everything at once, evaluate these projects by cost and by return on investment -- that means knowing your costs.
Konjoian said growers should look at technology as a ladder with each rung representing a step up to better efficiency and profitability. Many of these steps are affordable and available to all size growers. Konjoian said too few growers are taking advantage of infrared film, what he calls the poor man's energy blanket, which can result in 10- to 20-percent fuel savings. Other practical energy management tips growers should consider are installing insulation and high-efficiency heaters.
Traven said growers cannot afford not to automate. This fall, Traven completed construction of a 30,000-square-foot state-of-the-art greenhouse facility that more than doubled the size of his operation. He said automation pays for itself every day because, once the payment is done, the automation pays you. He said nothing pays for itself faster than automating irrigation.
One of the best ways to improve profits, Traven said, is to reduce shrinkage. Automation can reduce costs by taking out the human factor -- no insurance, no sick days and no personal problems. He said growers need to tailor their production to customers' needs, not theirs.
Before making a technology investment, Traven said a grower should answer these questions:
1. Who or what does the job you're looking to automate?
2. Does it fit the greenhouse or can you change the greenhouse to make it fit?
3. Does it really make the job simpler?
4. Do I need it, or do I want it?
5. Where's the money to pay for it coming from?
Traven said the last question is the biggest hurdle for most growers -- they usually choke on the price. He said growers need to get over the sticker shock of automation and just do it.