Thursday February 1, 1:20 pm Eastern Time

Press Release

SOURCE: The California Cut Flower Commission

Flower Growers Strive to Keep Lights - and Heat - on for Greenhouse Crops

WATSONVILLE, Calif., Feb. 1 /PRNewswire/ -- California cut flower growers are turning down the thermostat, switching to alternative fuels, and reducing crop load to combat the soaring energy costs that have hit the state in recent months. Substantial volumes of natural gas are used to heat greenhouses which shelter major crops such as roses and lilies. To assure flower development, growers must maintain about 60 degrees warmth during winter months for some hothouse beauties.

Spiraling energy costs are akin to a major natural disaster for California's cut flower industry. In December 2000, natural gas costs averaged $2 per therm, compared with an average 33 cents per therm in December 1999. The six-fold increase in energy is jeopardizing the profitability of many businesses in an industry already squeezed by offshore competition and the strictest environmental regulations in the world.

Growers are exploring every avenue to cut energy use and overall production costs. Watsonville Nursery, in Watsonville, heats its greenhouse of roses every other night instead of every night, reducing production more than 20 percent. Owned for generations by the DiCicco family, the nursery saw its energy bill shoot up to $90,000 last December, up from $37,000 for the same period the previous year.

Other growers are setting greenhouse thermostats at very low temperatures, joining buying co-ops, or converting to diesel. Some have been forced to layoff workers or reduce salaries and employee benefits. High natural gas prices might even prove fatal for some businesses, shuttering greenhouses forever.

Because of energy costs, California greenhouse production could be down by about 15 percent, estimates Lee Murphy, president of the California Cut Flower Commission in Watsonville. However, Murphy says the supply of cut flowers for Valentine's Day will be ample.

``California product makes up about 18 percent of the total roses sold in the U.S., so there will still be plenty of flowers,'' says Murphy, ``and because California competes with other producers, prices will not be higher.''

Heating usage usually declines in spring and summer to about half the winter use, however the cash outlay for energy is expected to continue to exceed what growers can afford throughout the coming year. One proposal to help the industry cope with this latest crisis is a government rebate program. The program is similar to one in Holland that grants Dutch greenhouse growers rebates of 80 percent for energy saving investments.

Sun Valley Floral Farms, in Arcata, Calif., a producer of lilies, iris, and tulips, has implemented a computerized climate control system for about 1.5 million square feet of heated greenhouse. At night, insulating curtains create a very effective seal that reduces the amount of warm air escaping through glass and cracks. Even so, with these renovations, Sun Valley's heating costs have skyrocketed by more than 500 percent.

In California about 200 commercial cut flower growers, many of them family businesses for generations, produce more than 60 percent of all domestically grown fresh cut flowers. The California Cut Flower Commission represents the state's cut flower and cut greens growers in the areas of generic promotion, marketing, production research, and governmental relations.

SOURCE: The California Cut Flower Commission

-- Swissrose (cellier@azstarnet.com), February 01, 2001