Energy Costs May Cost You Your Youtube And Your Flowers, Too

Article Presented by:
Wesley Berry, AAF

We're all struggling with rising energy costs. For some, that could mean giving up the luxuries we enjoy, like the Internet connection that allows us to use YouTube. But, for people in the flower business, the cost could be even higher.

Increasing energy costs are having an enormous impact on the floral industry. Running a greenhouse requires a great deal of energy for heating and other operations. Unfortunately, those costs have to be passed on to the consumer. And, since consumers are also struggling to pay their own energy bills, they have less money left over to purchase flowers.

According to the Floriculture and Nursery Crops Outlook report that was released on September 22, 2006, rising energy costs are having a similar affect on the flower industry as they are on the food industry. Alberto Jerardo, author of the report, wrote, "In 2005 and 2006, higher petroleum prices led to greater price inflation in the food and agriculture sector as costs rose for fertilizer, storage, processing, and transport, among others. Thus, as in 2005, demand in 2006 will be subdued despite abundant floral and nursery crops. As a result, prices of greenhouse and nursery crops will again be unable to rise enough to offset their higher production costs."

Other findings disclosed in the report are:

The value of imported fresh cut flowers is more than double the value of domestic fresh cut flowers sold. Domestic flowers had a value of about $385 million while imports had a $750 million value.

Flower growers in the Southern parts of the U.S. are enjoying the fastest sales growth, while those in the Midwest also experienced some increased sales. On the other hand, growers in the West and Northeast saw a decrease in sales.

Lilies are the most popular of major cut flowers. They have the highest per household consumption at 66 cents in 2006 compared to 34 cents for roses and tulips.

Domestically grown lilies, alstroemeria, and carnations had price increases this year, while imported cut flowers had no price increase.

Flowers have become such an important part of American culture that we can only hope rising energy costs won't result in people having to forgo the positive aspects flowers add to our lives. After all, for most of us, flowers would be a much greater loss than YouTube.


About the Author:
Wesley Berry is member of the American Academy of Floriculture (AAF) and President of Wesley Berry Flowers, a successful multi-million dollar floral business that was established in 1946. As a major sponsor of local-library.com and Localschoolfinder.com, Wesley Berry has worked hard on behalf of improving literacy. Visit Wesley Berry Flowers on the web at www.800wesleys.com.