Horticultural exports from Guernsey fell by £3.7 million to £48.88m in 2005, as the island fails to arrest its recent years of decline.
According to an economic and statistical report issued by the Department of Commerce and Employment, this year’s estimated export figure is at £50.96 million - one per cent of Guernsey’s gross national product.
Plant exports - at £38 million this year - represent 74 per cent of the value of the industry. Cut flowers remain the largest volume of exports from the Island at just over 140,382 boxes last year, but represent only five per cent of the value. Flowers by post showed an increase of £6.75m in 2005, however, although volume exports are expected to increase further, intense competition is driving prices down.
Guernsey is competing with lower cost production centres like Colombia and Turkey for carnations, and Africa and India for roses.
In the edible sector, export value rose slightly to £3.7m in 2005 and a slight downturn is forecast for this year.
Employment figures have naturally fallen with the decline of certain sectors. In 2005 there were 457 full time equivalent posts - a reduction of 73 on the previous year. In 1966 the industry employed 5,275 full-time equivalents. The industry is achieving higher value exports on a steadily reducing labour requirement.
There is a reduction of horticultural businesses, numbering 111 last year. Smaller businesses are closing down being no longer economic to operate on a full-time basis. The report states that taking the business forecast along with the anticipated decline in crop production, a clear picture emerges for the immediate future of the industry. This is for increasing sales and value for the top few (10 per cent) businesses currently trading. Just less than 50 per cent of the industry remaining, but with little growth forecast, and over a third declining or ceasing trading.
While there continues to be a reduction in the number of horticultural businesses and in the area of traditional crops, there is potential for high value sectors of the industry to continue to prosper.
The report has been prepared by John Ogier and Caroline Creed and contains a number of graphs to further illustrate the situation within the industry.
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