Announcements

Job offersmore »

Tweeting Growers

Top 5 - yesterday

Top 5 - last week

Top 5 - last month

Exchange ratesmore »




Growing Media Association:

"Challenging year for growing media producers"

Rising costs and a poor harvest have created challenging trading conditions in 2017. Many manufacturers reported having only harvested 60-70% of their budgeted peat volumes. Despite dry weather in spring it has been followed by increasingly wet summer weather during July and August making harvesting more difficult than usual, driving the use of more expensive materials.

Growing Media manufacturers are also facing rising costs of supply at all stages. Production costs rise with labour costs, for example in Ireland costs are going up by 10.4% as the minimum wage increases are implemented.

Cost increases affecting all businesses
Plastic bags have been effected particularly by polymer (Platts) pricing rises, seeing record highs over the past 18 months and forecast to further increase during 2018. Environmental costs are on an upward trajectory with preparation for licencing under way in Ireland with new tougher targets on water quality.

Freight costs, which account for up to 30% of the cost of a bag of compost, are also rising. There is also ongoing uncertainty around Brexit, and weaker sterling is leaving a 22% difference between now and 2015 average Euro rate, and a 13% difference between current rate and the 10-year (0.80/1.25) Euro average.

Sheila Hill, General Manager of The Scotts Miracle-Gro Company, says, “We have experienced rising costs throughout our business and expect more significant increases in key raw materials for 2018 trading year. Specifically, raw materials such as peat and plastic packaging costs will increase by double digits. This is a significant challenge on top of the impact of currency we have absorbed this season.”

Steve Harper, chair of the Growing Media Association, adds, “Manufacturers are finding themselves under increasing pressure, during a period where costs have risen significantly and millions of pounds have been poured into developing new products and new diluents to reduce the demand for peat.”

For more information
Horticultural Trades Association
Horticulture House
19 High Street
Theale
Reading
West Berkshire
RG7 5AH
T: +44 (0)118 930 3132
Fax: +44 (0)118 932 3453
NGGV: +44 (0)118 930 2092
www.the-hta.org.uk

Publication date: 9/11/2017

 


 

Other news in this sector:

9/7/2017 RHP certification for AS Tootsi Turvas
8/31/2017 Choices in substrate for soft fruit crops
8/22/2017 Choosing a substrate for hydroponic production
8/9/2017 EU: Hydroponic cultivation no longer organic
8/9/2017 A mixing model to predict rooting media properties
8/8/2017 WUR: Electric substrate heating bears more strawberry fruit
7/21/2017 Botanicoir presents new growbag with unique open structure
7/13/2017 US: RainSoil debuts natural silicon-based liquid soil amendment
7/10/2017 Resilient over-winter growing in one simple step
7/10/2017 Bright & challenging future for the North American berry
7/6/2017 US: Organic Ellepots now available at CropKing
7/4/2017 5 easy steps to cultivate successfully in pots and troughs
6/30/2017 Be careful with loose substrates in hydroponic production systems
6/27/2017 Rethinking hydroponic berry production
6/20/2017 UK: Botanicoir releases 'game changer' at Fruit Focus
6/15/2017 German soft fruit growers are discovering Perligran substrates
6/15/2017 Green Products inaugurates new production line
6/9/2017 "Huge potentials in the emerging berry industry"
6/9/2017 Spain: Presentation of coconut coir suitable for organic agriculture
6/7/2017 Emerging microgreens sector demands smart substrates