Horticultural crisis due to Coronavirus

Garden centres to reopen
  • The ornamental horticultural industry is facing a crisis point which will severely impact the availability of British grown seasonal plants and flowers
  • Due to the plunge in demand following the UK shut down, the value of lost plant sales in the UK will be £687 million by the end of June and if it continues £1.2 billion by the end of December
  • The perishability and seasonality of plants means that the sector potentially faces total stock write off unlike that of any other industry
  • Hundreds of UK growers face complete loss of income, cannot afford to take on the debt of a government loan and many may not even be eligible

Industry worth £1.4 billion

Family businesses up and down the country are facing a horticultural crisis due to COVID-19. They form a major part of the UK’s gardening industry worth £1.4 billion which could be destroyed following the UK coronavirus shutdown, claims the Horticultural Trades Association (HTA).

Peak season has only a matter of weeks left for the horticulture sector which has formed an essential part of British life for over 350 years. It includes the ornamental crop sector, which grows bulbs, bedding plants, cut flowers, pot plants and stock mostly sold through garden centres, supermarkets, florists and DIY stores.

Around 650 businesses across the UK produce ornamental crops, which contribute £1.4 billion in total to the country’s GDP annually and employ over 15,000 people directly and almost 30,000 indirectly. Many of these jobs form a vital lifeline for rural communities.

The perishability and seasonality of plants means that an estimated £200 million of seasonal plants will have to be scrapped across the ornamental horticulture industry.

Since Mother’s Day weekend when demand is typically high but people were beginning to self-isolate, sales dwindled dramatically, while lockdown means that there is unlikely to be any sales through to the May bank holiday, the busiest trading period of the year.

Stock losses on rising scale

HTA Chairman James Barnes says: “We have hit a perfect storm in the UK. The seasonality and perishability that is unique to our industry means that growers are potentially facing stock losses on an ever-rising scale as each day passes. Stock is one of the biggest components of asset value in the sector – stock write offs will destroy the balance sheets of many and make it impossible for them to continue.

“We are calling for the government to work with the HTA, as the industry’s representative body, to come up with a financial support scheme to help those businesses which have had to scrap perishable stock and are facing a huge financial crisis.

“For those that can stay in business, there are also significant longer term issues as growers may not have time to plant next year’s crop, leading to a two year supply hit on the whole industry including retail, which will severely impact the availability of British grown seasonal plants and flowers.”

The HTA claims that while the government’s financial measures related to the agriculture and horticulture firms are welcome, in many cases they are not suitable for ornamental businesses. Investment in stock means that many nurseries do not have the reserves to take on the debt of a government loan, and often fall out of the scope of any support scheme due to EU state aid rules.

Loss of income due to coronavirus

The HTA estimates that a minimum of a third of UK ornamental producers may fail in a matter of weeks, leading to a loss of around £250m in direct GDP contribution to the UK economy annually. Allowing for a 2.4% per annum growth factor, the value of this lost contribution to GDP over five years would be £1.34 billion.

Around 70% of bedding plant sales are made between March and the end of May. Many of these growers are facing huge difficulties and a near complete loss of income due to the coronavirus.

Horticulture not only provides a great deal of grow your own produce but also contributes to positive physical and mental wellbeing and serves some 23 million gardeners in the UK.

The longer-term impact from the failure of the UK businesses will be significant. The wipe out of British commercial growers will increase the volume of imported plants, raising the risk of Britain being hit by plant pests and diseases – undermining efforts by the garden industry and the government to manage the nation’s biosecurity strategy.

Alan Titchmarsh MBE adds to the HTA plea to the government.

 “Hundreds of nursery owners and growers are facing huge losses of plants and revenue simply because the stock they have spent many months nurturing for the spring market – their peak season – will have to be destroyed since garden centres and other outlets are closed for business. This means not only a loss of billions of pounds to the UK economy and of thousands of jobs but, more than this, it will decimate an industry that will be unable to recover for the foreseeable future.

“I urge the government to put in place a rescue package which will enable British horticulture to survive. Without it, our gardens and open spaces – a vital source of solace and nutrition to those at home – will suffer irreparable damage.”