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 Acknowledgement
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Business analysis of foliage nurseries in Florida
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Permanent Link: http://ufdc.ufl.edu/UF00026340/00004
 Material Information
Title: Business analysis of foliage nurseries in Florida
Series Title: Economic information report
Portion of title: Foliage nurseries in Florida
Physical Description: 4 v. : ; 27 cm.
Language: English
Creator: Perkins, George R
Almeter, Carolyn A
Dasse, Frank A ( Frank Arthur ), 1933-
Gunter, Dan L
University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Dept., Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville Fla
Creation Date: 1976
Publication Date: 1975-1977
Frequency: annual
regular
 Subjects
Subjects / Keywords: Nurseries (Horticulture) -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Foliage plant industry -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: 1973-1976.
General Note: Title from cover.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 000408266
oclc - 08153514
notis - ACF4734
System ID: UF00026340:00004
 Related Items
Succeeded by: Business analysis of foliage nurseries in central Florida
Succeeded by: Business analysis of foliage nurseries in south Florida

Table of Contents
    Historic note
        Historic note
    Front Cover
        Front Cover
    Abstract
        Abstract
    Acknowledgement
        Page i
    Table of Contents
        Page ii
        Page iii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
    Copyright
        Page 21
    Back Cover
        Page 22
Full Text





HISTORIC NOTE


The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






Copyright 2005, Board of Trustees, University
of Florida




Economic Information


Report 82


Business


Analysis of Foliage


Nurseries in Florida, 1976


lod and Resource Economics Department
iricultural Experiment Stations and
Operative Extension Service
stitute of Food and Agricultural Sciences
diversity of Florida, Gainesville 32611


October 1977


L. Gunter














ABSTRACT

This publication presents average costs and returns information for
17 foliage nurseries in Florida for the 1976 tax year. The value of own
plants sold averaged $620,871, resulting in a return to capital of
$102,742 which is a 20.41 percent return. The sales per square foot of
bed and bench space averaged $3.54 in 1976 while the costs averaged
$3.41.

Key words: foliage plant nurseries, value of own plants sold, cash
costs, non-cash costs and return to capital.















ACKNOWLEDGMENTS


This report was made possible by the foliage nurserymen who partici-

pated in the nursery business analysis program and made their accounting

and production records available on a confidential basis. Appreciation

is expressed to Bruce Barmby, Louis Daigle, DeArmand Hull, Marlow.Iverson,

Charles Lowery, and Larry Sistrunk, county extension agents of Orange,

Dade, Palm Beach, Manatee, Collier, and Lake counties, respectively,

for their assistance with the data collection. The tabulations for this

report were enthusiastically completed by Carolyn Almeter. Rachael

Schwieger and Darlene Hutson typed this report. As always any errors in

content or interpretation of the data remain the responsibility of the

author.














TABLE OF CONTENTS


Page

ACKNOWLEDGMENTS . . . . ... .... i

LIST OF TABLES. . ... . . ..... ii

INTRODUCTION. . . . . . .. 1

PROCEDURE . . . . ... .. .1

DEFINITIONS . . . . . . 2

RESULTS AND DATA PRESENTATION .. . . . ... 3


LIST OF TABLES


Table
1 Size of business, five large and twelve smaller volume
foliage plant and potted flowering plant nurseries
in Florida, 1976 . . . . 5

2 Rates of production, five large and twelve smaller
volume foliage plant and potted flowering plant nur-
series in Florida, 1976. . . . 6

3 Labor efficiency, five large and twelve smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1976. . . . . . 7

4 The use of space, five large and twelve smaller volume
foliage plant and potted flowering plant nurseries
in Florida, 1976 . . . . ... .. 8

5 Efficiency in use of capital, five large and twelve
smaller volume foliage plant and potted flowering
plant nurseries in Florida, 1976 . . . 9

6 Average costs per nursery for various categories of
expense, five large and twelve smaller volume foliage
plant and potted flowering plant nurseries in Florida,
1976 . . . . .. . . 10







LIST OF TABLES (Continued)


Table Page

7 Percent of total costs for various categories of expense,
five large and twelve smaller volume foliage plant and
potted flowering plant nurseries in Florida, 1976. ... 11

8 Average costs per square foot of total bed and bench space,
five large and twelve smaller volume foliage plant and
potted flowering plant nurseries in Florida, 1976. ... 12

9 Average costs per square foot of propagating and finishing
bed and bench space, five large and twelve smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1976. . . . .. .. 13

10 Average costs per dollar of sales with sales adjusted for-
plant inventory change, five large and twelve smaller
volume foliage plant and potted flowering plant nurseries
in Florida, 1976 . . . . ... 14

11 Average costs per dollar of sales without sales adjusted
for plant inventory change, five large and twelve smaller
volume foliage and potted flowering plant nurseries in
Florida, 1976. . . . .. .. 15

12 Income summary, five large and twelve smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1976. . . . ... .... .16

13 Seven factors associated with level of profit, nine high
profit and eight lower profit foliage plant and potted
flowering plant nurseries in Florida, 1976 . .. 17

14 Degree of association between cost and efficiency factors
and level of profit, 17 foliage plant and potted flowering
plant nurseries in Florida, 1976 . . .. 18

15 Range of figures on profit and the seven cost and efficiency
factors associated with profit, 17 foliage plant and potted
flowering plant nurseries in Florida, 1976 . ... 19

16 Comparative business analysis for the same 11 foliage
plant growers in Florida who furnished figures for the
years 1970, 1971, 1972, 1973, 1974, 1975, and 1976 .. 20













BUSINESS ANALYSIS OF FOLIAGE NURSERIES IN FLORIDA, 1976


Dan L. Gunter


INTRODUCTION


This business analysis report presents information on sales, costs,
and production efficiency aspects of foliage nurseries in Florida for
1976. For this report, a foliage nursery is defined as a nursery pro-
ducing plants primarily for interior or patio use.
The purpose of the business analysis report is: (1) to furnish nur-
serymen various physical and economic measures that may be used in eval-
uating the efficiency of individual foliage nurseries; (2) to supply
cooperating nurserymen data so that they may make more informed management
decisions; (3) to provide individuals considering entering the wholesale
foliage production business an estimate of input requirements and revenue;
and (4) to provide the Florida extension personnel data which can be used
in educational programs with.nurserymen.

PROCEDURE


Data for this report were collected from the accounting and produc-
tion records of 17 nurserymen. The nurseries supplying information
are located in Collier, Dade, Lake, Lee, Orange and Palm Beach counties.
Orange county has the largest number of the program participants. The
nurserymen provided the data voluntarily and do not represent a
statistically selected sample. However, the foliage nurserymen partici-
pating in the business analysis program are thought to represent some
of the more efficient nurseries in the state.


DAN L. GUNTER is an extension production economist.





2


The data pertain to the individual growers' 1976 tax year which, in
some cases, does not conform to the 1976 calendar year. In those nurser-
ies which do not pay the operator a salary, an estimate of the value of
the operator's time is collected and used in the analysis. Additionally,
an interest cost of eight percent is charged on the depreciated book
value of the owned capital. Any interest paid by the individual nursery-
man is excluded from the costs shown in this report.
The data from individual nurseries are averaged and presented in a
tabular form. The tables depict average values for all 17 nurseries,
five "large" nurseries and twelve "smaller" nurseries. For this report,
smaller nurseries are those that have plant sales of less than $700,000,
while large nurseries are defined as those with a value of plant sales
greater than $700,000.


DEFINITIONS


Most of the terms used in this report are self-explanatory. Defini-
tions which may be less familiar are as follows:
Value of own plants sold.--Represents the total plant sales minus
the cost of plants purchased for immediate resale. Plants purchased for
growing-on are not deducted.
Value of own plants sold per square foot of bed and bench space.--
This value is derived by dividing the value of own plants sold by the
square feet in bed and bench space.
Value of own plants sold per employee.--This value is derived by
dividing the value of own plants sold by the number of full-time equiva-
lent employees.
Owned capital turnover annually.--A ratio which is derived by
dividing the value of own plants sold by the value of the growing plant
inventory.
Total gain.--Represents total nursery income from plant sales, value
of plant inventory changes, supply inventory increases, and miscellaneous
cash income.
Net nursery income.--The residual when total costs less operator's
salary and interest cost are deducted from total gains.






Return to capital.--Total gain minus cash costs, depreciation costs,
and supply inventory value decreases or net nursery income less operator's
salary.
Percent return to capital.--Return to capital divided by total owned
capital.

RESULTS AND DATA PRESENTATION


The data in Tables 1 through 12 relate to the size of the business,
rates of production, labor efficiency, capital efficiency, space ef-
ficiency, costs and returns, and other efficiency factors. Analyses
relating to profitability are shown in Tables 13, 14, and 15. Table. 16
denotes profit indicators for 11 nurseries which have been included in
the study since 1970. Where information in the tables is rounded-to the
nearest whole number, addition errors due to rounding may be noted.
During 1976, the 17 participating nurseries had an average gross
revenue, value of own plants sold, of $620,871 (Table 1). The nurseries
averaged 175,184 square feet of bed and bench space. The square feet in
bed and bench space reflects net growing areas; roads, aisles or other
non-productive areas have been deducted from the gross square footage in
the greenhouse or growing areas. The nurseries averaged just over 27 full-
time equivalent employees. For this report a full-time equivalent repre-
sents 2,080 annual manhours or 40 hours for 52 weeks. The employees
include the operator and office staff where applicable. A convenient way
to calculate the number of full-time equivalent employees is to divide
the total payroll hours by 2,080 and then add any unpaid family or manage-
ment labor.
The average capital investment was $503,486. This amount reflects
the depreciated book value of the buildings, improvements, and machinery
and equipment. Growing plant inventory accounted for $193,861 of the
$503,486 capital investment, and investment in land accounted for $17,651.
Growing plants are usually valued at a price lower than the wholesale
price since not all plants are of saleable size. Each nurseryman in the
analysis may value the growing plants differently. However, 50 to 60 per-
cent of the wholesale price is commonly used to value each plant. The







land is valued at the original purchase price.
The capital managed averaged $552,139. The capital managed reflects
the capital investment plus the rental value of buildings, equipment, or
land rented.
The value of own plants sold per square foot in bed and bench space
averaged $3.98 for the large nurseries and $3.10 for the smaller nurseries
(Table 2). The cost per square foot of bed and bench space avaeraged just
over $3.81 for the large and just over $3.00 for the smaller nurseries
(Table 8). Labor accounted for almost $1.40 of the cost per square foot
in the large nurseries and $.81 per square foot in the smaller nurseries.
Labor is the single largest cost item for the foliage nurseries represent-
ing 37 percent of the total cost of the large operations and 27 percent
of the costs of the smaller nurseries (Table 7).
The 17 nurseries averaged a return to capital of $102,742 which was
just over 20 percent of the capital owned in 1976. The smaller nurseries
averaged 19.61 percent return to capital while the large nurseries earned
21.04 percent (Table 12). Other differences between the large and smaller
nurseries can be seen by examination of the various efficiency parameters
presented in the tables.
The information in Table 16 is of particular significance. The value
of own plants sold for the 11 nurseries which have been participating
continuously since 1970 was 10.5 percent higher in 1976 than in 1975, and
342 percent higher than in 1970. The percent return to capital was 22.31
percent in 1976, up from the 1975 low of 18.82 percent for the seven year
period. The value of own plants sold per square foot in bed and bench
space averaged $3.92 for the 11 continuing nurseries which is $.85 above
1975 level of sales. In general, the 11 continuing nurseries showed im-
proved efficiency over the 1975 production year as well as improved
financial performance.
Employing the definitions provided above, nursery managers can utilize
this report by completing the column--"Your nursery." By doing so, managers
may be able to locate areas in their own operation where production effi-
ciency can be improved.






Table l.--Size of business, five large and twelve smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1976


Average Average Average
Item Unit all 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery


The one best measure
Value of own plants sold $

Other useful indicators
Value of own plants sold
adjusted for plant in-
ventory change $
Total bed & bench space Sq. ft.
Bed & bench space for
propagating & finishing Sq. ft.
Bed & bench space for
stock plants Sq. ft.
Total area in prod. bldg.
& other prod. areas Sq. ft.
Acre equiv. of prod.
bldgs. & other areas Acres
Employees during
year (full-time equiv.) No.


Capital owned:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land
Supplies
Total owned

Capital managed:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land
Supplies
Total managed


620,871 1,195,895


649,743
175,184

127,510

47,674

204,951

4.71

27.32


193,861
172,403
84,202
17,651
35,370


381,278


1,240,474 403,605
300,711 122,881

187,227 102,628

113,484 20,253

353,584 143,021

8.12 3.28

60.09 13.66


321,203
312,261
200,325
17,962
100,433


140,801
114,129
35,818
17,521
8,260


503,486 952,184 316,529


193,861 321,203 140,801
214,756 456,261 114,129
84,202 200,325 35,818
23,951 37,462 18,321
35,370 100,433 8,260
552,139 1,115,684 317,329


aThe five large volume
ceeding $700,000.


nurseries had annual sales of own plants ex-






Table 2.--Rates of production, five largea and twelve smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1976


Average Average Average
Item all 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery

- Dollars - - -


The one best measure
Value of own plants sold
per sq. ft. total bed &
bench space

Other useful indicators
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. total bed & bench
space
Value own plants sold per
sq. ft. of bed & bench
space used for propagat-
ing & finishing
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. of propagating &
finishing bed & bench
space
Value own plants sold per
acre in production
Value own plants sold
adjusted for plant in-
ventory change per
acre in production


3.54


3.71


4.87




5.10


3.98


4.13


6.39




6.63


3.10


3.28


3.72




3.93


131,959 147,329 116,126



138,095 152,821 122,926


aNurseries with annual sales exceeding $700,000.





Table 3.--Labor efficiency, five largea and twelve smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1976

Average Average Average
Item Unit all 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Value of own plants sold
per employee $ 22,726 19,902 27,912

Other useful indicators
Value of own plants sold
adjusted for plant in-
ventory change per
employee $ 23,783 20,644 29,547
Total bed & bench space
per employee Sq. ft. 6,412 5,004 8,996
Propagating & finishing
bed & bench space per
employee Sq. ft. 4,667 3,116 7,513
Total prod. space per
employee Sq. ft. 7,502 5,884 10,470


aNurseries with annual sales exceeding $700,000.






Table 4.--The use of space, five largea and twelve smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1976

Average Average Average
Item Unit all 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery


Best measures

For intensity in use of
space
Plant inventory value
sold annually

For efficiency in use of
space
Bed & bench space which
was vacant

Other useful indicators
Area in production bldgs.
& other production areas
Area total bed & bench
space
Production bldgs. &
other production areas
in bed & bench
space
Area of bed & bench
space used for propa-
gating & finishing
Bed & bench space
used for propagating
& finishing
Area bed & bench
space used for stock
plants
Bed & bench space
used for stock
plants
Area of bed & bench
space vacant


320


3.70


Sq. ft. 204,951

Sq. ft'. 175,184



% 85.48


Sq. ft. 127,510


% 72.79


Sq. ft. 47,674


27.21


Sq. ft. 6,475


3.72


3.67


353,584 143,021


300,711


85.05


122,881


85.92


187,227 102,628


62.26


113,484


37.74

11,196


83.52


20,253


16.48

4,508


aNurseries with annual sales exceeding $700,000.






Table 5.--Efficiency in use of capital, five
foliage plant and potted flowering
1976


largea and twelve smaller volume
plant nurseries in Florida,


Average Average Average
Item Unit all 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery


The one best measure
Owned capital turnover
annually

Other useful indicators
Managed capital turn-
over annually

Capital owned:
Per employee
Per acre

Capital managed:
Per employee
Per acre

Managed capital per em-
ployee in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land

Managed capital per acre
in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land

Percent of capital man-
aged in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land
Supplies

Total


% 123.31



% 112.45


18,429
107,010


20,210
. 117,351


7,096
7,861
3,082
877


41,203
45,644
17,896
5,090


35.11
38.90
15.25
4.34
6.41


% 100.00


125.60



107.19


15,846
117,305


18,567
137,447


5,345
7,593
3,334
623


39,571
56,209
24,679
4,615


28.79
40.90
17.96
3.36
9.00


100.00


120.46



120.15


23,172
96,405


23,231
96,649


10,308
8,355
2,622
1,341


42,884
34,760
10,909
5,580


44.37
35.97
11.29
5.77
2.60


100.00


aNurseries with annual sales exceeding $700,000.






Table 6.--Average costs per nursery for various categories of expense,
five large and twelve smaller volume foliage plant and potted
flowering plant nurseries in Florida, 1976

Average Average Average
Item all 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery
- - Dollars - - -

Cash costs
Operator's salary 32,320 47,539 25,978
Other wages & salaries 194,349 420,861 99,968
Plants & seeds to grow on 90,626 109,949 82,575
Pots, growing containers 37,034 69,512 23,502
Fuel oil for prod. heat 19,236 38,904 11,042

Peat, soil, shavings, etc. 14,617 24,387 10,547
Fertilizer and lime 5,463 10,555 3,342
Pesticides & other chem. 4,293 7,467 2,971
Packing boxes & supplies 22,372 48,986 11,283
Other prod. supplies 14,860 33,776 6,979

Repairs & maintenance 13,806 29,938 7,085
Equipment operating costs 8,134 13,332 5,968
Travel & entertainment 3,468 7,704 1,703-
Insurance 10,765 20,861 6,559
Telephone 4,636 8,939 2,843

Electricity 6,767 13,057 4,146
Taxes, licenses, bonds 3,487 6,669 2,162.
Advertising 1,827 3,458 1,147
Rent; land and/or bldgs. 8,387 22,114- 2,668
Other cash expenses 25,767 57,345 12,610
Total cash costs 522,216' 995,354 325,075

Non-cash costs
Depreciation mach. & equip. 18,078 44,476 7,078
Depreciation bldgs., etc. 16,809 30,129 11,259
Inventory decreases, supplies 0 0 0
Interest on capital @ 8% 40,279 76,175 25,322
Total non-cash costs 75,166 150,780 43,660

Total all costs 597,382 1,146,133 368,735


aNurseries with annual sales exceeding $700,000.







Table 7.--Percept of total costs for various categories of expense, five
large and twelve smaller volume foliage plant and potted
flowering plant nurseries in Florida, 1976


Average Average Average
Item all 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery

- - Percent - - -
Cash costs
Operator's salary 5.41 4.15 7.05
Other wages & salaries 32.53 36.72 27.11
Plants & seeds to grow
on 15.17 9.59 22.39
Pots, growing containers 6.20 6.06. 6.37
Fuel oil for prod. heat 3.22 3.39 2.99

Peats, soil, shavings,
etc. 2.45- 2.13. 2.86
Fertilizer & lime .91 .92 .91
Pesticides & other chem. .72 .65 .81
Packing boxes & supplies 3.75 4.27 3.06
Other prod. supplies 2.49 2.95 1.89

Repairs & maintenance 2.31 2.61 1.92
Equipment operating cost 1.36. 1.16 1.62
Travel & entertainment .58 .67 .46
Insurance 1.80 1.82 1.78
Telephone .78 .78 .77

Electricity 1.13- 1.14 1.12
Taxes, licenses, bonds .58 .58 .59
Advertising .31 .30 .31
Rent; land and/or bldgs. 1.40 1.93 .72
Other cash expenses 4.31 5.00 3.42
Total cash costs 87.42 86.84 88.16

Non-cash costs
Depreciation mach. &
equipment 3.03 3.88 1.92
Depreciation bldgs., etc. 2.81 2.63 3.05
Inventory decreases, sup. 0 0 0
Interest on capital @ 8% 6.74 6.65 6.87
Total non-cash costs 12.58 13.16 11.84

Total all costs 100.00 100.00 100.00


aNurseries with annual sales exceeding $700,000.




12
Table 8.--Average costs per square foot of total bed and bench space, five
large and twelve smaller volume foliage plant and potted flowering
plant nurseries in Florida, 1976


Costs per sq. ft.
of total bed & bench space
Item
All 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery

- - -.- Cents - - - -


Cash costs
Operator's salary 18.45
Other wages & salaries 110.94
Plants & seeds to grow on 51.73
Pots, growing containers 21.14
Fuel oil for prod. heat 10.98


Peat, soil, shavings, etc. 8.34
Fertilizer & lime 3.12
Pesticides & other chem. 2.45
Packing boxes & supplies 12.77
Other production supplies 8.48


Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decreases, sup-
plies
Interest on capital @ 8%
Total non-cash costs


Total all costs


7.88.
4.64-
1.98
6.15
2.65


3.86
1.99
1.04
4.79
14.71


15.81
139.96
36.56
23.12
12.94

8.11
3.51
2.48
16.29'
11.23

9.96.
4.43
2.56
6.94
2.97

4.34
2.22
1.15
7.35
19.07


21.14
81.35
67.20
19.13
8.99

8.58
2.72
2.42
9.18
5.68

5.77
4.86'
1.39
5.34
2.31

3.37
1.76
.93.
2.17
10.26


298.10 331.00 264.54


10.32' 14.79 5.76
9.60 10.02 9.16 .

0 0 0
22.99 25.33 20.61
42.91 50.14 35.53


341.00


381.14


300.07


aNurseries with annual sales exceeding $700,000.


2





Table 9.--Average costs per square foot of propagating and finishing bed and
bench space, five large and twelve smaller volume foliage plant
and potted flowering plant nurseries in Florida, 1976


Costs per sq. ft. of propagating
& finishing bed & bench space
Item
All 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent; land/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decrease, sup-
plies
Interest on capital @ 8%
Total non-cash costs


Total all costs


- - - Cents


25.35
152.42
71.07
29.04-
15.09

11.46 -
4.28
3.37
17.55
11.65.

10.83
6.38.
2.72
8.44
3.64-

5.31
2.74,
1.43
6.58
20.21


25.39
224.79
58.73
37.13
20.78

13.03
5.64
3.99-
26.16
18.04

15.99,
7.12-
4.11
11.14
4.77

6.97
3.56
1.85
11.81
30.63


25.31
97.41
80.46
22.90
10.76

10.28
3.26
2.89
10.99
6.80

6.90.
5.82
1.66
6.39
2.77

4.04
2.11
1.12
2.60
12.29


409.55 531.63 316.75


14.18 23.76 6.90
13.18 16.09 10.97

0 0 0
31.59 40.69 24.67
58.95 80.53 42.54


468.50


612.16


359.29


aNurseries with annual sales exceeding $700,000.






Table 10.--Average costs per dollar of sales with sales adjusted for plant
inventory change, five large and twelve smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1976


Costs per dollar sales with sales
adjusted for plant inventory change
Item
All 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery


- - - Cents -


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds-
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decreases, sup-
plies
Interest on capital @ 8%
Total non-cash costs


Total all costs


4.97
29.91
13.95
5.70
2.96

2.25
.84
.66
3.44
2.29-

2.12
1.25-
.53
1.66
.71

1.04
.54
.28
1.29
3.97


3.83
33.93
8.86
5.60
3.14

1.97
.85
.60.
3.95
2.72

2.41
1.07
.62
1.68
.72

1.05
.54
.28
1.78
4.62


6.44
24.77
20.46
5.82
2.74

2.61
.83
.74
2.80
1.73

1.76
1.48
.42
1.62
.70

1.03
.54
.28
.66
3.12


80.37 80.24 80.54


2.78 3.59 1.75
2.59 2.43 2.79

0 0 0
6.20 6.14 6.27
11.57 12.16 10.82


91.94


92.39


91.36


aNurseries with annual sales exceeding $700,000.







Table ll.--Average costs per dollar of sales without sales adjusted for
plant inventory change, five large and twelve smaller volume
foliage and potted flowering plant nurseries in Florida,
1976


Costs per dollar sales without sales
adjusted for plant inventory change
Item
Item All 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decreases, sup-
plies
Interest on capital @ 8%
Total non-cash costs


Total all costs


- - - Cents -


5.21
31.30
14.60
5.96
3.10

2.35
.88
.69
3.60
2.39.

2.22
1.31
.56
1.73
.75

1.09
.56
.29
1.35
4.15


3.98
35.19
9.19
5.81
3.25

2.04
.88
.62
4.10
2.82

2.50
1.11
.64
1.74
.75

1.09.
.56
.29.
1.85
4.80


6.81
26.22
21.66
6.16
2.90

2.77
.88
.78
2.96
1.83

1.86
1.57
.45
1.72
.75.

1.09
.57
.30
.70
3.31


84.11. 83.23 85.26



2.91 3.72 1.86
2.71 2.52 2.95

0 0 0
6.49 6.37 6.64
12.11 12.61 11.45


96.22


95.84


96.71


aNurseries with annual sales exceeding $700,000.






Table 12.--Income summary, five
and potted flowering


largea and twelve smaller volume foliage plant
plant nurseries in Florida, 1976


Average Average Average
Item Unit all 17 5 large 12 smaller Your
nurseries nurseries nurseries nursery


Value of production &
other gain
Value of own plants sold
Inventory change, own
plants
Inventory change for
supplies
Miscellaneous cash income
Total gain

Cash costs less opera-
tor's salary
Non-cash costs less
interest cost @ 8%
Total gross costs less
operator's salary and
interest costs @ 8%


Net nursery income
Value of operator's
salary
Net return
Return to capital
Return to capital


$ 620,871


28,872

8,014
2,088


1,195,895


381,278


44,579 22,328


25,364
4,502


784
1,082


659,845 1,270,340 405,472


489,896 947,815 299,097

34,887 74,605 18,337


$ 524,783

$ 135,062


32,320
62,463
102,742
20.41


1,022,420


317,434


247,921 88,037


47,539
124,207
200,381
21.04


25,978
36,737
62,059
19.61


aNurseries with annual sales exceeding $700,000.






Table 13.--Seven factors associated with level of profit, nine high profit
and eight lower profit foliage plant and potted flowering plant
nurseries in Florida, 1976


Average Average 9' Average 8
Factor Unit all 17 high profit lower profit Your
nurseries nurseries nurseries nursery

Level of profit
Net nursery income $ 135,062 214,066 46,182

Seven factors associ-
ated with profit

Size of business
Value of own plants
sold $ 620,871. 806,956 411,525 _

Level of costs
Cost per $ sales plus
plant inventory
value change $ 91.94 88.80 99.68

Intensity in use of
space
Plant inventory
value turnover
annually % 320 341 283

Production rate
Value own plants sold
per sq. ft. total
bed & bench space $ 3.54 4.60 2.35

Labor efficiency
Value of own plants
sold per employee $ 22,726 23,917 20,484

Efficiency in use of
capital
Owned capital turn-
over annually % 123.31- 125.13 119.50

Growth in sales and
inventory
Amount of increase
in sales & plants
inventory value
from previous year $ 65,479 81,959 46,939





18
Table 14.--Degree of-association between cost and efficiency factors
and level of profit, 17 foliage plant and potted flowering
plant nurseries in Florida, 1976


Number & percent of the 9
highest profit nurseries
Factor which were in the top 9
for each factor


Number Percent
Level of profit
Net nursery income 9 1" 00

Seven factors associated with
profit

Size of business
Value of own plants sold' 7 78

Level of costs
Costs per $ sales plus plant
inventory change 7 78

Intensity in use of space
Percent of plant inventory
value turnover annually 5 .56

Production rate
Value of own plants sold per
sq. ft. total bed & bench
space 7 78

Labor efficiency
Value of own plants sold
per employee 5 56

Efficiency in use of capital
Owned capital turnover
annually. 6 .67

Growth in sales and inventory
Amount of increase in sales
and plant inventory value
from previous year 5 56






Table 15.--Range of figures on profit and the seven cost and efficiency
factors associated with profit, 17 foliage plant and potted
flowering plant nurseries in Florida, 1976


Figures for the 3 best and
the 3 poorest nurseries on
each factor

Factor Unit Average for Average for Your
3 best 3 poorest nursery


Level of profit
Net nursery income $ 331,667 -2,167

Seven factors associ-
ated with profit

Size of business
Value of own plants
sold $ 1,431,956 153,314

Level of costs
Cost per $ sales
plus inventory
value change 81.50 115.99

Intensity in the use
of space
Plant inventory
value turnover
annually % 575 151

Production rate
Value of own plants
sold per sq. ft. of
total bed & bench
space $ 7.90 1.44 ,

Labor efficiency
Value of own plants
sold per employee $ 48,905 14,354

Efficiency in use of
capital
Owned capital .turn-
over annually % 235.05 70.55

Growth in sales and
inventory
Amount of increase
in sales & plant
inventory $ 194,781 -6,852







Table 16.--Comparative business analysis for the same 11 foliage plant growers in Florida who furnished figures for
the years 1970, 1971, 1972, 1973, 1974, 1975, and 1976

Average for the same 11 nurseries in
Factor Unit 1970 1971 1972 1973 1974 1975 1976


Profit
Net nursery income
Percent return to capital

Size of business
Value of own plants sold

Level of costs
Costs per $ sales plus
plant inventory value
change

Intensity in use of space
Plant inventory value
turnover annually

Production rate
Value of own plants sold
per sq. ft. total bed &
bench space

Labor efficiency
Own plants sold per employee
Efficiency in use of capital
Owned capital turnover
annually

Growth in sales and inventory
Increase in sales & plant
inventory value from
previous year

Efficiency in use of space
Bed & bench space in use
Bed & bench space vacant


43,657
20.46

179,758


t 92.26


% 203



$ 1.11

$ 9,888


128.91


25,258


sq. ft. 161,858
% 4.24


53,054 81,437 133,585 152,323 138,055 172,063
20.63 30.10 36.92 26.98 18.82 22.31

220,974 284,850 410,468 561,774 719,569 795,167


91.46


213



1.32


86.84 87.22


230



1.73


283



2.42


90.61


327



3.09


92.78


368



3.07


91.77


3.92


11,038 12,406 14,981 17,817 19,214 22,033


120.25 133.40 143.52 131.50 144.78 138.24


55,001 67,305 131,41.6


167,149 127,711 90,392


166,802 164,371 169,395 182,089 234,713 202,902
4.44 4.75 3.40 3.29 2.67 4.72

























This public document was promulgated at an annual cost of $1,072.00 or
$0.89 per copy to provide ornamental nurserymen and allied businesses
information on foliage plant production cost and production efficiency.





























University of Florida
Agricultural Experiment Station
Gainesville, Florida ;:261 1



DIRECTOR


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AGR 101

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