Source: TENNESSEE STATE UNIVERSITY submitted to NRP
THE GREEN INDUSTRY OF TENNESSEE: MARKETING, ECONOMIC IMPACT, AND STRATEGIES TO ENHANCE PARTICIPATION OF SMALL AND LIMITED RESOURCE FARMERS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
EVANS-ALLEN
Reporting Frequency
Annual
Accession No.
0198956
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jan 1, 2004
Project End Date
Sep 30, 2006
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
TENNESSEE STATE UNIVERSITY
3500 JOHN A. MERRITT BLVD
NASHVILLE,TN 37209
Performing Department
AGRI SCIENCES
Non Technical Summary
The green industry is very important to the economy of Tennessee. Cash receipts from sale of Tennessee's nursery and greenhouse products increased by 53rom $135.54 million in 1990 to about $207.44 million in 2000. This project assesses the relative size of selected green industry segments, estimates the economic impacts on local and state economies, identifies, examines, and evaluates marketing and merchandising channels for any problems. The project also identifies factors affecting the demand for green industry products and landscape services in Tennessee.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60361103010100%
Knowledge Area
603 - Market Economics;

Subject Of Investigation
6110 - Economy of the United States and sectors thereof;

Field Of Science
3010 - Economics;
Goals / Objectives
This project analyzes the current structure of the green industry in Tennessee, examines current marketing channels used by wholesalers and retailers of nursery products and services, and assesses available opportunities for small, limited resource farmers interested in participating in the industry. Finally, the project examines the risks faced by targeted current participants in the industry. Information on structure and performance of the industry, impact generated, and prospects for long-term growth of the industry are collected and analyzed. The project collects and disseminates information that could be used in facilitating economically sound decisions by industry participants and stakeholders. Issues facing small, limited resource producers in the industry are examined. Specifically, the project (1)assesses the size of selected segments of the green industry and estimates the economic impact of the industry on selected local communities and the economy of the state, (2) determines factors affecting consumer demand for nursery products and landscape services in the state and assesses the short, medium and long-term growth prospects for the industry, (3) identifies, and evaluates marketing channels, marketing/merchandising practices, and investigates presence of barriers to development of domestic and international markets for industry products, (4) assesses opportunities for small, and limited resource farmers to participate in the state's nursery and greenhouse industry, and (5) examines risks facing small and limited resource farmers desiring to diversify into the industry, and develops strategies to enhance their participation for potential income enhancement.
Project Methods
Primary and secondary data are needed for accomplishing the objectives of this project. Secondary data from Census reports, various agencies of the USDA (Economic Research Service, National Agricultural Statistics Service, Foreign Agricultural Service, and Agricultural Marketing Service, among others) will be used in conjunction with published and unpublished data from the industry, county, extension reports, and state departments of agriculture. Primary data will be collected and used in complementing the secondary data collected for this project. Structured questionnaires using trained personal interviews will be used in collecting data from nursery and greenhouse growers across Tennessee. Appropriate statistical methods will be used in selecting businesses to be included in the interviews. Random, stratified random, systematic or cluster sampling techniques will be used, where appropriate, in selecting nursery/greenhouse firms or specific producers/marketers to be included in the survey. The questionnaire to be administered to nursery and greenhouse operators/mangers will collect socioeconomic information, information on advertising, markets and marketing practices, channels used in marketing and advertising, price determination, generation and maintaining of sale contacts, methods of shipping, and the level of involvement in e-commerce, business-to-business (B2B), or business-to-consumer (B2C) strategies used in the industry. This project will investigate the research needs and priorities for mangers of nursery operations. Issues related to expansion, market opportunities, information on sales by state, foreign shipping methods, and alternative shipping methods will be explored from from information collected from producers and other industry participants. Where there is limited previous information, focus groups will be used in acquiring additional information. IMPLAN, a software to establish the impact of the industry on the economy, will be utilized. The software, developed by the US Forest Service, and used to estimate input-output models, will be used to estimate the direct and indirect impacts of the industry on the overall economy of Tennessee. Overall economic impacts relative to employment, income and value-added will be used in estimating industry impact. This approach represents a better was of estimating the multiplier effects of the industry sectors under consideration. Short, medium, and long-term growth prospects of the industry will be simulated based on results obtained from the input-output model to be estimated. Price and quantity information, and socioeconomic variables such as age, income, taste, and important buyer attributes (type, value, distance from garden center, and location of residence) will be gathered from surveys to be conducted. Demand for specific landscape services will be estimated from information collected. Estimates of price and income elasticities to be estimated from constructed demand functions will be used in providing information that will assist nursery growers and landscape managers in adopting pricing strategies that will help maximize profits.

Progress 01/01/04 to 09/30/06

Outputs
After input from researchers and scientists, a consumer nursery questionnaire was developed and sent to the University's human subject committee for approval. Although not used in collecting consumer information during this reporting period, the questionnaire was approved. The questionnaire which was designed for collecting consumer information, was shared with a limited number of consumers for input. For this reporting period, however, the producer survey data collected earlier on in this project was analyzed. Face-to-face interviews were used in collecting information from one-hundred and twenty-three producers of nursery products in Tennessee. A bulletin presenting information collected from the producer survey is currently in preparation. Scientists attended and interacted with nursery producers during the Tennessee Green Industry field day held at the Tennessee State University Nursery Crop Research Center in McMinnville on August 22, 2006. Scientists attended and participated in seminars offered by experts invited to the Field Day events. The event was sponsored by the Tennessee Nursery and Landscape Association and the Institute of Agricultural and Environmental Research at Tennessee State University. Scientists also attended and presented poster at the 2006 annual conference of the Southern Nursery Association held August 9 - 10 in Atlanta, Georgia.

Impacts
Students were trained in data entry, coding and analysis using Microsoft Excel spreadsheet and the Statistical Package for the Social Science, SPSS. Students acquired skills also in the use of Microsoft PowerPoint presentation software on how to prepare posters and presentations for professional meetings. Research scientists collaborated and provided input in the questionnaire designed in 2006. Two posters were developed from related research and presented at the 2006 Southern Nursery Association meeting in Atlanta in August: (1) Safdar Muhammad, Fisseha Tegegne, Enefiok Ekanem, and Surendra Singh. 2006. Production and Price Analysis of Selected Floriculture Crops: Implication for Nursery Growers, and (2) Safdar Muhammad and Crystal A. Doss. 2006. Evaluating Nursery and Greenhouse Industry in Tennessee: Census 2002 Data.

Publications

  • Muhammad, S., Tegegne, F., Ekanem, E. and Singh, S. 2006. Production and Price Analysis of Selected Floriculture Crops: Implication for Nursery Growers. SNA Research Conference, Vol. 51.
  • Muhammad, S. and Doss, C.A. 2006. Evaluating Nursery and Greenhouse Industry in Tennessee : Census 2002 Data. SNA Research Conference Vol. 51.


Progress 01/01/05 to 12/31/05

Outputs
After input from researchers and scientists, the questionnaire survey to be used for data collection was finalized and will be sent through the University human subject committee for approval before use. Data collection will start in March 2006. The sampling frame has been developed and a strategies for the administration and implementation of the mail surveys has also been completed. Work on the models to be used for data analysis was concluded; however, the models are still being tested and evaluated for appropriateness and robustness.

Impacts
The project continues to provide training for students in data entry, coding and analysis using Excel spreadsheet and the statistical package, SPSS. Students have acquired skills that have enhanced their SPSS knowledge, poster preparation skills using power point, and data management using the Excel and SPSS software. Research scientists on the project collaborated and provided input in the drafting of the final version of a questionnaire survey to be used in collecting data.

Publications

  • Ekanem, E., Tegegne, F., Muhammad, S. and Singh, S. 2005. Changes in Market Value of Nursery and Greenhouse Crop Sales: An Examination of Available Historical Data. SNA Research Conference, Vol. 50.


Progress 01/01/04 to 12/31/04

Outputs
The project continued with the analyses of producer survey data collected earlier. The development of conceptual framework for economic modeling of consumer preferences/choices have been initiated. Work on the development of additional surveys for collecting needed information from consumers of green industry products and landscape services are also in progress. The sampling frame to be used in collecting data is currently being developed for the forthcoming consumer surveys. The surveys will be fully developed by the end of Summer/early Fall 2005, with data collection starting in late Fall 2005. A bulletin, using secondary data to set the stage for exploring increased opportunities for paricipation of small and limited resource farmers in the nursery business, was published.

Impacts
Findings from secondary and primary data analyses were disseminated through presentations at a regional conference of the Southern Nursery Association in Atlanta, Georgia. The dissemination of findings have also been accomplished through research and industry publications. By working with research scientists on the project, students' computer use, data collection and data analysis skills, using statistical software packages, have been greatly enhanced. Students have also benefited from acquiring important writing, analytical and communication skills. Development of these skills are important for success in future career pursuits.

Publications

  • Ekanem, E., Muhammad, S., Tegegne, F. and Singh, S.P. 2004. Factors Affecting Nursery and Floriculture Crop Sales: An Aggregate Economic Analysis. SNA Research Conference, 49: 511- 513.
  • Muhammad, S., Ekanem, E. and Fisseha T. 2004. Factors Affecting Growth of Nursery Businesses in Tennessee. SNA Research Conference, 49: 514 - 517.
  • Catanzaro, C. and Ekanem, E. 2004. Home Gardeners Value Stress Reduction and Interaction with Nature. Acta Hort, 639: 269 - 275.
  • Singh, S.P., Ekanem, E., Tegegne, F., Muhammad, S. and Catlin, C. 2004. Increasing Diversity of the Farm Population in the South: An Analysis of Trends and Prospects for Black Farmers. IAgER Research Bulletin No. TSU-04-0070(A)-3-532200 (September). Nashville, Tennessee: TSU, IAgER.