Horticultural exports up 10%

HORTICULTURAL exports last year reached nearly £52m., an increase of almost 10%. It is expected that 2004 will see a similar rise, which would be the fourth successive year of real growth in exports.

The industry has slimmed down but specialising in new product lines has generated encouraging returns for some sections.

The greatest growth was in plant exports, which should reach £39m. this year - some 70% of the value of the industry - from companies such as Guernsey Clematis Nursery, Delamore Nurseries and Channel Island Plants.

Seed and young plant-fulfilment firms including Thompson and Morgan, Sutton Seeds and Mr Fothergill Seeds have also done well.

A report from the Commerce and Employment Department suggests that many more plants could be exported from Guernsey if the industry was focused on that sector.

But this would be likely to suit only specialist businesses prepared to invest in the necessary equipment, skills, training and quality management systems.

There are also concerns about postal charges. These are not seen as a threat to the sector, but the report stressed that it was important for export groups to work together with Guernsey Post to examine all delivery options.

Postal flowers showed an increase to just over £7m. Just under 407,000 boxes were exported during the year under review.

This year they are expected to total in the region of 415,000 although there may be a fall in the average price - around £15 a box. There is concern that higher UK postal charges could reduce growth opportunities in the sector.

Cut flowers remain the largest volume of exports. Just under 275,000 boxes were exported during the year, but exports are on the decline from a peak of nearly 1m. in the 1990s and are set to reduce further over the next five years. Competition in UK markets is strong and quality standards exacting.

Cut flowers should raise £6.5m. in income but it now represents just 11% of the industry by value.

Edible crops, including sweet peppers and vine-ripened and cherry tomatoes, should bring in £3.5m., but the season was not as good as the previous year.

There are now just 145 businesses running 424 acres of glass and the number of jobs in the sector has fallen below 600 full-time equivalents. In 1966 there were more than 5,000.

The report forecasts increasing sales and value for the top 20 businesses, with a third of the production base declining or coming out of the industry.