March 2005 Archived News  . . .

Warehouse plan for its suppliers draws plenty of response
Our story last Newsletter about the Warehouse’s plans to cut its supplier numbers by half and asking the remainder to reduce prices by 10 percent, drew a strong response from readers. We didn’t know there was such depth of feeling out there.
Our purpose in running the Warehouse story was not to criticise that company, but simply to point out that, because the Warehouse carries a lot of garden products, our industry would be hurt by its new policy.

No comment yet
We did ask the Warehouse to comment on how its new supplier policies might affect garden product suppliers. Warehouse plant buyer Stephen Dunshea said he was not able to comment specifically on the moves which had required supplier responses by March 1.
These will be collated and then we’ll hear back, he said.
The calls I’ve received from suppliers indicate most are looking at the bigger picture and are prepared to work through the situation.
We have to do things better and this strategy is just part and parcel of doing that.
For our Warehouse story and some of your comments, click on Comm Hort Magazine then the We Said -- You Said button.
If you’d like to read more on this subject see Mass Marketers Here to Stay at the bottom of this news column.

Mass Marketers are here to stay
Further to our Warehouse story above . . .
We believe cut-price mass-marketers, be they the Warehouse or any of a dozen others, will be a fact of life for the foreseeable future and are going to continue to hurt traditional businesses competing with them.
We also believe, however, that like everything else, they will have their day. Already, many have come off their peak.
In Australia, Bunnings, which the traditional garden trade in Aus blames for many of its troubles, is reportedly struggling with garden sales.
At the recent Aussie NGIA Conference, nursery consultant John Stanley said in Britain big box chain Tesco is only accepting nursery stock into its new stores on a consignment basis for sale or return and the grower is to be responsible for looking after it while in the stores.
John said Wal-Mart in the US was planning to swap to a system where it pays for stock only as or after it is scanned over its checkouts.
These moves seem to be an admission by the boxes that they are not good at looking after nursery stock in their stores and they’re solving their problems of excessive waste by shifting the burden back to their suppliers.
Meanwhile in NZ, Vegfed President, Brian Gargiulo, writing in Grower magazine says there are rumours the giant cut-price European Aldi chain may set up in NZ, as may Wal-Mart. These are huge companies. Wal-Mart has a turnover of $US 270 billion, three times our national GDP. It has 1.5 million employees and is opening stores at the rate of 240 per year.
Brian Gargiulo tells his Vegfed members, Like it or hate it, internationalism is a fact of life and you ignore the new standards and values that this process sets at your peril.
“When you deal with these companies, or growers who supply them, you have to play by their rules. You have to learn how they think, what their values are because they are different. They don’t necessarily act as we do . . . they might have local management at an operating level but those managers will be working to values set overseas and expectations that are different to those we have come to regard as normal.
That’s not a message of hope, we know, but it is probably the truth.

COMMHORT THIS MONTH
Our March Commercial Horticulture Magazine also features:
Personality of the Month 10 years ago David Fletcher decided he’d had enough of being a builder, bought Moores Valley Nursery and leapt into horticulture.
A look at Flora ‘n’ Flora (sic) garden centre in Dannevirke and its seedling-eating rabbit.
Wairere Nursery succulents supreme. Two seafarers, home from the sea, started this specialist nursery deep in the Waitakeres
What’s hot across the Tasman  reports by Demelza Watts of Nga Rakau Nursery on seed trials she visited in Melbourne
Kentia.co.nz that’s the simple name for a new kentia specialist nursery set up on the outskirts of Whangarei
Gardening and the elderly reports of UK research and local experience of the changing wants and needs of the older gardener
Nursery Consultants we profile four specialist consulting companies and the special services they offer
Understanding how plants really work the first in a new series by botanist Fiona Eadie and the basics of what plants are.

. . . and much more.
If you’d like to subscribe to CommHort, just click the Comm Hort Magazine button above.

Graeme Platt vents his feelings on restrictions on new plant imports
March Comm Hort carries a Letter to the Editor from plantsman Graeme Platt of the NZ Botanical Institute, Albany. Here are some extracts:
After reading the report on Peter Cave’s Bank’s Lecture in the February 2005 edition in Commercial Horticulture (in which Peter argued for the rights of New Zealanders to import new plants) I find it very difficult to understand how Peter is able retain his normal polite demeanor when discussing the useless free-loading gits at MAF who have so deviously empowered themselves with the authority to stifle the life out of our industry and jeopardise the economic future of all New Zealanders . .
The selection and development of crops from nature is not only a fundamental human right, it is the very foundation stone of human civilization.
Every tree, plant, animal, fungi and fish that has ever been domesticated was the fruitful vision of an individual who first recognised its potential to provide food, fibre, fuel, medication, building materials, dyes and oils, to sustain himself and his family. These domesticated plants and animals today collectively provide for the sustenance of all humanity.
When they outlaw growing trees only outlaws will grow them. When they outlaw the harvesting of trees only outlaws will harvest them. When they outlaw the introduction and development of new trees only outlaws will introduce and develop new trees. When they outlaw burning firewood only outlaws will burn firewood . . .
There’s more from Graeme, page 12 March Comm Hort

Mike Geenty
The industry was saddened to learn of the passing, on Feb 26, of respected plantsman Mike Geenty. 200 people attended the funeral, held at Hamilton Gardens, Mike’s workplace for 28 years.
A full obituary will be in Comm Hort April issue

Would you like to exhibit at GLEE this year?
Expressions of interest are being sought from companies to be part of a proposed New Zealand stand at the big GLEE garden and leisure show in Birmingham UK September 18-20 this year.
The show is expected to draw about 28,000 visitors from around the world. There will be 1700 exhibitors from 70 countries.
Export development consultant, Joy Lamb, of NZ Origin Ltd, would organise a jointly funded stand if NZ companies are interested and help co-ordinate their efforts.
If you’re interested, send a note to joy@nzorigin.co.nz

Temporary reprieve on HSNO compliance
The ERMA has posted on its website a self-declaration form enabling people to declare themselves Transitional Approved Handlers of hazardous substances. This follows the introduction of the Hazardous Substances and New Organisms Act, which came into effect on 1 January 2005 and covers agrichemicals, sprays, pesticides etc, how they’re bought, transported, used, stored, and disposed of and carries big penalties.
For more on what the Act means to the nursery industry, click on Comm Hort Magazine, then Articles

Spring Trade Day 17 August
All previous Trade Day exhibitors will automatically be contacted when bookings open for Auckland August 17 Spring Trade Day. If you’d like to be an exhibitor, but haven’t exhibited before, please register your interest by sending an email to us: refpub@nursery.net.nz

Grower seminars
Both members and non-members of the NGIA are welcome to attend the Nursery Development Programme Seminars being run by the NGIA’s Ornamental Growers Sector Group in April.
The day-long seminars are scheduled for Auckland on Tuesday April 19; Palmerston North on Wednesday April 20; and Christchurch on Thursday April 21.
Topics to be covered include improving production yields through better hygiene; the latest on media and nutrition practices, and how to improve customer relationships and satisfaction.
Contact Kimberley Barr at the NGIA for more info. Ph 04 918-3511

Next year it’s all on in Tasmania
Next year, a joint Australia-New Zealand conference is scheduled for Tasmania, sandwiched between the Melbourne Flower Show and Easter. <br>
Registration opens on Sunday evening 9 April and the conference goes through until Wednesday 12 April. You could be home on the Thursday, then it’s Good Friday.
More detail will soon be available on the conference programme. There is also to be a package deal available which will include a trip to the Melbourne Flower Show

Aussie Conference
The Australian nursery trade met in Fremantle, Western Australia, in the week of March 12 for their annual conference. Called the Business Skills Summit 2005, it certainly provided plenty of information and help for business managers and owners as 25 specialist presenters held workshops and delivered papers.
The handful of Kiwis who made the trip from NZ (and there were several Aus-domiciled Kiwis on hand as well) included John Phillips of Greymouth Nurseries, Des Snell of Commercial Horticulture and the NGIA’s president Ross Bayliss, ceo Alan Criglington, and development manager Bob Wynyard, who was also judge of the Aus GC of the Year competition.
The Australian garden trade has been struggling over the past few years. Its problems are virtually the same as faced by the trade in NZ (box stores, changing consumer demographics and lifestyles, competing leisure activities), but it has severe government imposed water restrictions to contend with as well in many parts of the country.
To a Kiwi, it also appears more heavily shackled by regulation and red tape. Many of the conference speakers and papers were about what you have to do to comply with various regulations or codes of practice and much of this work would not help a company’s bottom line. <br>
We’ll be reporting on the conference in more detail in coming issues of Comm Hort.

Zenith closes its doors
Neville Chun’s Lower Hutt Zenith Garden Centre has closed its doors after 72 years as a family business. We’ll have more on this in April Comm Hort.

Market uneven, but Summer better than usual
Retailers in some parts of New Zealand report quieter trading since Christmas but demand is uneven.
In Christchurch trading has been steady with the usual drought conditions allayed thanks to good December rains.
Tree and shrub nurseries say they’re poised for a good Autumn as soon as it cools and there’s some rain - which was promised for Easter.
Retailers were in a reasonably buoyant mood at Auckland Trade Day too.
One North Island retailer notes that Summer brings a raft of leisure activities which can adversely affect weekend custom.

Trade Day great stock, bigger grades
Superb stock quality was on display at Autumn Trade Day in Auckland on March 2, and there also seemed to be a trend toward bigger grades, colour and foliage.
Although there were more than 100 stands (including 48 nurseries), numbers were slightly down this year, reflecting a tightening in the industry at large, particularly in the gift line supply area.
We have a full report with pics in March Comm Hort and also at this site. Click the Trade Day button, then Reviews

We Said, You Said . . .
Click on link below to read readership responses to the February Email Newsletter and the following article:
Warehouse sends out a shock
There was a nasty shock for many companies in late January when the Warehouse announced it was cutting its 3000 supplier numbers by half.
Furthermore, those remaining were summoned to meetings, reported the NZ Herald, and asked to drop their prices by 10 percent, improve quality and delivery. The policy is also to be implemented in Australia.
One supplier said: It’s been put down as non-negotiable. We’ve been told we have to reply by March 1.” There is a lot of garden-related product sold through the Warehouse, greenlife included, so presumably many companies in our trade will be hurt. Said one commentator: There’s no way the nursery industry can sustain a 10 per cent price cut – margins are just too tight already. Will the other mass-marketers follow the Warehouse lead with their suppliers? One to do so almost immediately was stationery retailer Paper Plus, but another, Farmers said it would not. It seems unlikely however that any mass-marketer would be happy long-term with its suppliers selling to rivals at 10 percent less.
So, at a time when the nursery trade should be pushing for higher prices for its products, the price pressures look to be moving the other way.

Click here to view reader response


Above is a synopsis of articles printed in one issue of Commercial Horticulture - Magazine of the Nursery Industry.

For information on Commercial Horticulture, including subscribing, please visit the Comm Hort Feature Page.

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