Flower industry shows signs of wilting
By: Andrea Koskey
Examiner Staff Writer
March 12, 2009
 |
| Feel rosy? Flower grower Steve Oku says he is trying to remain optimistic about his business even though he has felt the effects of the economic slowdown (Mike Koozmin/Special to The Examiner) |
San Mateo County’s flower industry is less bountiful than in years past, but some industry businesses are optimistic the county’s No. 1 agricultural crop will make it through the economic storm.
“Sales are down. The economy definitely is hurting me,” said Steve Oku, owner of Oku Inc., a large flower growing business in Pescadero that has been around for 30 years. Oku’s greenhouses grow a wide range of flowers, including roses, lilies, snapdragons, tulips and irises.
Cut flowers may be seen as a luxury item, but according to San Mateo Deputy Agricultural Commissioner/Sealer Ronald Pummer, flowers are “by far” San Mateo County’s top agricultural crop.
In 2007, $11.4 million worth of flowers were grown indoors and $27.6 million outdoors in San Mateo County. By comparison, vegetables produced $24 million worth of product during that same year.
San Mateo County ranks 33rd in agricultural production value among the state’s 58 counties, but it’s ranked in the top five for cut flowers. The majority of the county’s flower growers are located in San Mateo’s coastal areas, which benefit from a mild climate and rich soils.
Statewide, the cut-flower industry — bouquets and floral arrangements — produced $330 million in sales in 2007, according to the California Cut-Flowers Commission. The state’s cut flower farmers produce 75 percent of all domestically grown cut flowers in the United States, according to the commission.
When factoring in jobs, taxes and revenues, the industry contributed $175.7 million to San Mateo County’s economy in 2007, according to Kasey Cronquist, director of the commission.
State flower officials warn, however, that the industry has become increasingly competitive as a result of aggressive pricing of imported flowers from other countries along with as well as wholesaler and retailer consolidation.
Adding to the list of woes, flowers and nurseries, like many industries, are taking a hit with the economy, Pummer said.
The surplus of flowers is also creating price wars, Oku said.
“There is scaling back,” Oku said of clients’ purchases. “I’m trying to be the eternal optimist.”
Those who sell flowers are also feeling the economy’s pinch.
According to the Society of American Florists, 68 percent of florists nationwide reported that their December 2008 holiday sales were down compared to 2007. Florists also reported that they more aggressively promoted their shops and special deals in hopes of boosting Valentine’s Day sales.
Ed Sasounian, the owner of San Mateo Florist and Gifts on South El Camino Real, has been in business in the Bay Area for 32 years.
Despite financial pressures, he said he focuses on buying locally when he purchases flowers for his floral business.
“Sixty percent of our flowers are bought in the Bay Area,” he said. “When we can’t buy here, we look in Southern California before considering international [flower growers].”
Sasounian said his shop isn’t taking a hit as hard as some of his competitors because of his regular customers, but the financial downturn has still been felt.
“I can feel the difference in our customers,” he said. “Everyone’s going through hard times.”
Holiday purchases were down after Valentine’s Day, said Sasounian, adding that he hopes it won’t be the same case for Mother’s Day — another popular flower holiday.
“Everybody has to be nice and buy flowers for mom,” Sasounian said.
County’s biggest crop: San Mateo is among the top five counties in the state for cut flower production.
Flowering potted plants Ornamental nursery stock Cut flowers Potted foliage plants Mushrooms Source: California Farm Bureau Association San Mateo County's 23 growers produce more than 150 varieties of flowers, including: Sources: San Mateo County Farm Bureau, San Mateo County Department of Agriculture and Weights and MeasuresTop five crops in San Mateo County in 2007
$91,138,000
$20,350,000
$10,554,000
$8,174,000
$8,096,000A beautiful bouquet
