Certificate sears stock

Here are five issues we can expect to see come to fruition or become more important in the coming year.

THE year 2004 held plenty of challenges for the floriculture and nursery industry. From a second introduction of Ralstonia to an investigation into the way plants are sold at retail, the year was, needless to say, eventful. And it certainly set the stage for another big year in 2005.

Global Impact

The past two years, more than a thousand growers were quarantined for a strain of Ralstonia on USDA's Bioterrorism Select Agents & Toxins List. The target crop has been vegetatively produced geraniums, but other crops are potential hosts. Since 1999, the major geranium producers have been, working closely with the Society of American Florists (SAF), the American Nursery and Landscape Association (ANLA) and USDA to develop and implement clean stock production protocol to keep Ralstonia and other pathogens out. Through USDA, a certification program has been developed and put in place for offshore farms. In order to import vegetative material from these farms, producers must have a phytosanitary certificate from the country of origin, assuring a clean bill of health at their respective operations.

In September, Greenhouse Grower worked with SAF and ANLA to publish a special report, "Ralstonia: A Call To Action," to mobilize the industry to lobby USDA and members of Congress to take Ralstonia off the Bioterrorism List. The 2002 List of Select Agents and Toxins was up for review, and was to be revised by December 2004. At press time, it was as yet unclear if any progress had been made to take Ralstonia off the list. To see the complete report, visit www.greenhousegrower.com/ralstonia.

The industry also endured a quarantine of nursery stock and plants due to Phytophthora ramorum, the fungus that causes Sudden Oak Death. By late June 2004, Sudden Oak Death had been found in 14 states, 13 of which received plants from a single i California nursery. Researchers have completed a genetic blueprint of Phytophthora ramorum, according to a June story in the Miami Herald. Researchers will go through thousands of genes to find which one gene, or combination of genes, is deadly.

Beyond Ralstonia and Sudden Oak Death, USDA is working with SAP and ANLA to overhaul outdated quarantine regulations and strengthen plant protection systems. Proposed changes include:

* More certification programs for offshore farms.

* A new import entry category (excluded unless approved) for plants that have not already entered the United States and those where there is reasonable indication of pathway for an invasive pest or is an invasive plant.

* Improving data collection to determine the types of plants imported origin and volume.

* Incorporating all "plants for planting" into one regulation.

In early December, USDA's Animal and Plant Heath Inspection Service (APHIS) sent a letter to its stakeholders, soliciting pubic comment on whether and how it should amend the regulations that govern the importation of nursery stock, also known as plants for planting. Under current regulations, all plants for planting are allowed to enter the United States if they are accompanied b a phytosanitary certificate and if they are inspected and found to be free of plant pests. This is unless the plants' importation is already specifically prohibited or further restricted by the regulations.

USDA-APHIS is considering several potential changes to its current approach and will consider all public comments before March 10, 2005. You may submit comments by postal mail or e-mail. Go to www.aphis.usda. gov/ppd/rad/webrepor.html.

Retail Repercussions

We can count on one hand the number of giant retailers that sell large volumes of plants - The Home Depot, Wal-Mart, Lowe's and Kmart. What happens with those retailers will have a dramatic impact on on the growers who serve them.

The big news leading into 2005 is The Home Depot's implementation of pay by scan. While this has been tested on a limited basis with key growers like Bonnie Plant Farms, the program will be expanded on a much larger scale this spring. With pay by scan, growers assume full risk for the product and do not get paid for that product until it is scanned through the cash register. While many growers have been preparing for this day by hiring merchandisers to refresh displays in the stores and increase sell through, the retailer still had to pay for shrink. Growers feel they need to be rewarded for this higher level of risk and investment in service by getting more for their products. Look for more news on pay by scan in upcoming issues of Greenhouse Grower.

A technology mandate, radio frequency identification (RFID), led by discount giant Wal-Mart has begun to affect grower suppliers. But before the RFID craze even begins, it could get short shrift from supply issues. Large manufacturers that produce the small chips are waiting for new specifications to come out before beginning production, and the current two manufacturers may not be able to meet demand. Initially Wal-Mart had required its Top 100 vendors to implement RFID tracking by this month, but the retail giant has now backed down on that stance because of the potential supply issues, according to Internetweek.com.

Other big headlines at the end of 2004 included Kmart merging with Sears and Franks Nursery closing for good. The Kmart merger should give growers short-term assurance because the retailer is making money selling real estate; yet a strong retail strategy is needed. And while the loss of Franks Nursery as the largest retailer in specialty lawn and garden is a big blow to the industry, the silver lining is that independent garden centers and growers are planning to buy some of the former Franks locations.

Container Caution

A white paper was released before the end of 2004 to clarify container labeling guidelines for the horticulture industry. The white paper was written by the industry taskforce charged with researching weights and measures laws to provide guidance to industry retailers and their suppliers on the minimum information required by law in selling "packaged products," including containerized plants. The guide summarizes the law and regulations about what types of information are required and how the information must be presented.

The guide also offers specific suggestions on how businesses in the horticulture industry can meet the requirements that have been in the law for a number of years, but are just now coming to attention.

The Pennsylvania container weights and measures issue started in 2003 when a grower in Pennsylvania complained to the state's Department of Agriculture that a 10-inch hanging basket at a chain store was too small to measure up to its advertised size. Since then, the issue has grown to become a nationwide concern, with a taskforce, made up of representatives of ANLA, SAF and OFA, approaching a nonregulatory federal weights and measures agency called the National Institute of Standards and Technology for guidance.

Since enforcement of the rule began in Pennsylvania in April 2004, not one retailer has been fined for having inaccurate measurements. Many retailers prior to the April 1 deadline in Pennsylvania removed all mention of size from pots on display to conform to the initial demands.

And while retailers are the only ones who would actually face penalties, growers, wholesalers and even pot manufacturers have a vested interest in adhering to the law. If a retailer is fined for a problem that is not his or her fault, for instance if a pot was mislabeled at the grower level, that fine will surely find its way back to the initiator.

To download a complete "Industry Guide To Marketing Container Plants," visit www.anla.org.

Labor Pains

Since the mid-90s, industry advocates like ANLA and SAF have been leading the quest for labor and immigration reform legislation. In 2004, the floriculture and nursery industry made historic progress, according to ANLA's Senior Director of Government Relations Craig Regelbrugge. But, he says, "Congress ultimately failed to act on our legislation, known as AgJOBS."

The AgJOBS legislation would:

1) Fix the 50-year-old, broken H-2A agricultural guest worker program to provide a workable, affordable safety net when labor shortages exist.

2) Grant a limited legalization opportunity to allow businesses to retain trusted workers, and have a chance to transition over several years to greater reliance on seasonal guest workers.

Regelbrugge says the approach, dubbed earned adjustment, "allows experienced workers the chance to earn the right to permanent residency through law-abiding behavior and significant future work in agriculture."