Industry gears up for organic growth

Saturday, 24 March 2007

Organic lawn and garden products are becoming more mainstream, prompting many retailers to re-evaluate their merchandise mix.

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it is assistant editor, Garden Center Magazine, and contributor to the Open Register and Project: Green Industry blogs.

Market research from Packaged Facts shows sales of organic fertilizers and growing media will take off over the next five years. Organics are a $360 million market. The report projects organics will see double-digit growth for each of the next five years, eventually reaching $670 million in 2011.

The growing popularity of organics has even spurred a nascent industry movement. Last month, SafeLawns, a coalition of for-profit and nonprofit organizations, launched a campaign to promote organic lawn care and resources conservation in 2007.

The group is spreading the word about organic products and gardening methods through television, radio and print publications. A series of how-to videos have also been posted on the coalition’s Web site, www.safelawns.org.

Efforts like the SafeLawn movement have the industry talking about sustainability. Some businesses already foresee a time when customers will demand organic options for everything -- including bedding plants and nursery stock.

Green goods go organic

There is a lot of buzz surrounding organic fertilizers and the like. But organic green goods seem to be getting less recognition. Pros and cons surrounding organic vegetables dominate the consumer media. However, organic cut flowers and bedding plants are slowly becoming more prevalent, gaining a foothold in the marketplace.

Organic Bouquet Inc., a company growing and marketing organic cut flowers, has been in the spotlight recently. The company featured its line of 5- to 6-foot roses on a float in the Tournament of Roses Parade in January. Meanwhile, Organic Bouquet’s more diminutive offerings are catching the eyes of shoppers online and at specialty stores like Whole Foods.

The company estimates by Valentine’s Day 2012, the U.S. market for environmentally-friendly roses and flowers will exceed $100 million. This rosy prediction reflects increased interest in organic live goods. But it’s a drop in the bucket when you look at the overall billion dollar cut-flower industry.

It’s a similar situation in the horticultural world. Organic plants -- mostly vegetable starts -- are a small but steadily growing segment of the industry. It’s a realm that’s been dominated by local niche growers like Sweetwater Nursery in Santa Rosa, Calif.

Sweetwater Nursery grows USDA certified organic vegetable starts, herbs, perennials and cottage garden annuals. The company also distributes EcoForms, a line of containers made from renewable grain husks and natural binding agents.

Elise Loveday-Brown, co-owner of Sweetwater Nursery, said organic plants have enormous potential. The challenge is educating and engaging customers.

“Customers are clamoring for identification and stories to feel connected to what they’re doing,” she said. “Our program is not only organic, but it’s a nice product mix that honors the customer.”

Marketing is the biggest challenge to organics’ growth, according to Loveday-Brown.

“It’s up to us as growers to do our marketing,” she said. “And, quite honestly, we’re under-funded. We’re not a big corporation. But there are ways of doing it.”

Loveday-Brown encourages retailers to post photos of the growing operation near the point-of-purchase -- a method Whole Foods sometimes uses to tell stories behind organic produce.

Big players get in the game

Larger companies are beginning to explore the organic market. Organiks, a division of Plug Connection in Vista, Calif., introduced a line of certified organic herbs and vegetables this year.

“People who’ve come in contact with it are very excited about it,” said Tim Wada, owner of Plug Connection.

The Organiks line includes herb, pepper and tomato collections. It’s also offering plants tailored for hanging baskets and urban patios. This year, products will be available for nationwide distribution to members of Garden Centers of America.

Ball Innovations, a new division of Ball Horticulture Co., continues to grow its Circle of Life sustainable horticulture program. The program has organic elements, but does not offer certified organic products.

“It connects with organics very much,” said Greg Trabka with Ball Innovations. “But it’s a much broader approach. It takes into consideration social welfare. Organic is great. We promote organic. I don’t think organic solves everything.”

Circle of Life growers rely on beneficial soil microbes and organic-based fertilizer. Natural pest and disease treatments are preferred to chemicals. And plants are grown and sold locally, which benefits the community. Circle of Life products are produced in biodegradable, compostable containers made from rice hulls.

Trabka thinks the market for organic and sustainable-horticulture plants is promising. Circle of Life launched in 2005 and doubled in size in 2006. Trabka expects it to double again this year. But he echoes concerns of smaller growers, like Loveday-Brown.

“I think our biggest obstacle is defining the message that connects with consumers,” Trabka said.

Employee education is the best way to reach customers, Trabka said.

“Garden centers that tend to train employees and staff enough see better acceptance,” he said.

For more: Sweetwater Nursery, 1919 Dennis Lane, Santa Rosa, CA 95403; (707) 566-8133; www.ecoforms.com. Organiks, 2627 Ramona Drive, Vista, CA 92084; (760) 631-0992; www.plugconnection.com. Ball Innovations, 622 Town Road, West Chicago, IL 60185; (630) 231-3600; www.ballhort.com.