Louisiana’s commercial ornamental horticulture industry has been impacted by the effects of Hurricane Gustav.
Initial statewide estimates are very rough at this point but it seems to indicate the wholesale nursery crop loss is in the range of $5 million. Most damage seems to be in the field-growing operations that produce trees and shrubs. Plants have been lost due to blow-over, and some remaining plants in the field were damaged, which will result in a quality loss once plants are of salable size.
In addition, structural damage, facility damage, container-yard damage, irrigation-system repairs, cleanup costs and labor involved in pre-storm preparation and post-storm recovery will add to economic losses for wholesale growers. Probably $3-4 million in damage to structures occurred, with this primarily being confined to greenhouses, shade-growing structures and storage buildings.
Damage around the state is primarily confined to the western portions of the southeast region of the state and the south central and central Louisiana areas. Forest Hill is the largest nursery production area in Louisiana and suffered the most damage. Only minor damage to plants and structures were reported in the eastern area of the Florida Parishes, another major nursery-production area in the state.
To make matters worse, wholesale nursery growers in Louisiana and across the Southeast have faced a significant market slowdown in the last year, with wholesale sales decreasing by some estimates of up to 20% from previous years. Wholesale production sales have generally increased 2-3% annually since 2000 compared to double-digit annual increases in the 1980s and 5-10% annual increases in the 1990s. It is anticipated that an economic turnaround for the industry will begin in late 2009 or early 2010.
Retailers across a 30-parish region were adversely affected by Hurricane Gustav. Many lost electricity, most had damage to shade structures and outdoor garden areas, and damage to plants in display areas was significant. Unfortunately, Hurricane Gustav also arrived at the beginning of the fall season for garden centers, which generally runs from the Labor Day weekend through Thanksgiving. Consumers will be less likely to spend resources on gardening items until cleanup is completed later this fall.
Wholesale ornamental plant sales annually in Louisiana are estimated at about $150-170 million with another $100-150 million in plant inventory. Louisiana’s total commercial ornamental horticulture industry -- which includes wholesale nursery growers, landscape contracting and maintenance along with retail garden center sales -- contributes more than $2.2 billion annually to Louisiana’s economy and employs 57,000 individuals.