Horticultural exports from Guernsey last year reached nearly £52million, an increase of almost 10 per cent on the 2002 total.

It is expected that when the 2004 statistics become available, they will present a similar rise towards £56 million.

Should this forecast prove correct, it will be the fourth consecutive year that the industry has shown real growth.

This will represent a value greater than the reflected export value in 1996 of £54 million.

The size of the industry in Guernsey has shrunk considerably over the same period, so this news is encouraging and shows that specialising in new lines of production has generated increased returns.

The commerce and employment department of the States of Guernsey has just issued its horticultural and economic and statistical report for the year 2003. As expected, the greatest growth was in plant exports, which this year should reach £39 million - 70 per cent of the total export value of the industry.

The leading breeders and propagators of high-value, young plants for export to final producers are Guernsey Clematis Nursery, Delamore Nurseries and Channel Island Plants.

Seed and young-plant-fulfilment firms Thompson & Morgan, Sutton Seeds and Mr Forthegil Seeds have also made significant contributions to the export rise.

The report suggests that many more plants could be exported from Guernsey if the industry was organised to serve this sector. However, it is only likely to be suitable for specialist businesses prepared to invest in the necessary equipment, skills, training and quality management systems.

A spectre looming is the rise of postal charges. Such charges are not threatening this sector yet, but the report stresses it is important for all the export groups to work together with the Guernsey Post Office to examine all the potential options for fulfilment delivery.

Postal flowers showed an increase of just over £7million, with just under 407,000 boxes exported during the year under review. This year they are expected to total 415,000 boxes, although there might be a fall in the average price of just under £15 a box.

Here again, because of higher UK postal charges, there is concern this could reduce growth opportunities in the sector.

Cut-flowers remain the largest volume exports from Guernsey with just under 275,000 boxes exported during the period. However, exports are on a declining trend and now represent only 11 per cent of the industry by value.

This sector is expected to reduce further over the next five years as competition in UK markets is strong and quality standards exacting.

In the edible sector only a few specialist growers remain producing quality niche crops for the UK multiples - sweet peppers, vine-ripened tomatoes and cherry tomatoes. These crops should bring in around £3.5 million this year, but the season has not proved as good as last year for tomato exports.

There are now just 424 acres of glass in production scattered across the island and the report expresses concern about the low level of investment in glasshouse structures. Employment opportunities in he industry have been declining, with 5,275 full-time equivalents in 1966 to 592 full-time equivalents last year. The report states, however that the industry is achieving higher value exports on a steadily reducing labour requirement - a favourable trend.

In 2003, there were still 145 businesses operating in the glasshouse industry, and the report suggests that there are opportunities to develop profitable firms and expand production.

The report forecasts increasing sales and value for the top 20 businesses at present trading, probably around a third of the production base declining or ceasing trading, but with new opportunities for high value sectors of the industry to continue to prosper and develop in the island.

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