NURSERY PAPERS Greenlife Market Analysis Report

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NURSERY PAPERS Greenlife Market Analysis Report
NURSERY
PAPERS                                                                                                                                   JUNE
                                                                                                                                         2021

Greenlife Market
                                                                                                          BACKGROUND &
                                                                                                          METHODOLOGY
                                                                                                          The report was developed by

Analysis Report
                                                                                                          applying the PESTLE technique
                                                                                                          to nursery value chains to identify
                                                                                                          the key drivers and barriers. Each
                                                                                                          component of the value chain was
                                                                                                          analysed to identify the key Political,
The greenlife industry is a multi-billion dollar industry,                                                Economic, Social, Technological,
employing thousands of Australians and contributing                                                       Legislative and Environment
to healthy people, homes, urban spaces and the                                                            themes through:

natural environment.                                                                                      • desktop analysis (including
To support strategic decision-making for the industry, the Greenlife Market                                 identifying current R&D projects
Analysis Report was developed by ACIL Allen as part of the Nursery                                          underway)
Industry Statistics Project 2019-20 (NY17008). The analysis pulls together                                • analysis of the data initiative
insights from a range of stakeholders, including production and retail                                      results across all years
nurseries, government bodies, industry associations and Hort Innovation.
                                                                                                          • engaging industry/key informants
The report covers six key industry issues including: demand trends,
                                                                                                            in developing the report using
productive workforce, plant biosecurity and water/climate. The issues of
                                                                                                            a modified Delphi approach.
government support and technology were also covered as lower priority,
but still important, issues                                                                               This Market Analysis Report has been
The issues identified were reviewed through the PESTLE framework                                          developed alongside the current
(Political, Environmental, Social, Technological, Legislative and                                         2019/2020 greenlife data collection.
Economical) to enable a broad assessment of the influences on industry.                                   This has allowed the report to be
                                                                                                          launched alongside the latest industry
The resulting market analysis is a great starting point for nursery
                                                                                                          profile and benchmarking tool in
businesses looking to inform strategic decision making, while providing
                                                                                                          autumn 2021.
direction for the broader greenlife industry.
                                                                                                          This report has been funded under
                                                                                                          NY17008 Nursery Industry Statistics
SUMMARY                                                                                                   and Research which is a project
• The Greenlife Market Analysis Report indicates the clear areas of focus                                 funded by Hort Innovation, using the
  and aspirations for greenlife industry and businesses.                                                  Nursery research and development
• The analysis pulls together insights from a range of stakeholders,                                      levy and contributions from the
  including production and retail nurseries, government bodies, industry                                  Australian Government.
  associations and Hort Innovation.
• The report covers six key industry issues and highlighting the following
  four: demand trends, productive workforce, plant biosecurity and
  water/climate.
• Collaboration between growers and the broader greenlife value chain
  will be critical in addressing the issues raised in the analysis.
• Levy-payers are strongly encouraged to access the Greenlife Market
  Analysis Report to help inform business decisions.

                                                    This communication has been funded by Hort Innovation
                                                       using the nursery research and development levy and
                                                              contributions from the Australian Government.
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NURSERY PAPERS Greenlife Market Analysis Report
KEY ISSUES FOR INDUSTRY
THE ANALYSIS UNCOVERED SIX KEY ISSUES                                        Recognising that all of these issues
FOR THE INDUSTRY:                                                            are important, stakeholders from
                                                                             across the supply chain were asked
Key issues      Questions to think about for nursery                         which issues are at the forefront
                production businesses                                        of successfully growing nurseries
                                                                             production business and the greenlife
DEMAND          How can I manage this volatile demand?                       industry as a whole.
TRENDS          Where are my opportunities across the demand channels?
                                                                              The four top-ranked
GOVERNMENT      Am I taking advantage of these supports and programs          industry issues are:
SUPPORTS AND    before they change?
PROGRAMS        Do I know how to do this: how to find out information
                                                                              1. DEMAND TRENDS: capitalise
                and support?
                                                                                 on and sustain the recent
                                                                                 demand surge
PRODUCTIVE      Can I hire and keep the qualified employees I need?
WORKFORCE       Where & how do I source this labour – locally & overseas?     2. PRODUCTIVE WORKFORCE:
                                                                                 attracting, developing and
PLANT           Is my business-as-usual approach sufficient for this risk?       retaining
BIOSECURITY     Are the approaches my supply-chain partners take
                sufficient?                                                   3. WATER SECURITY: ensure
                                                                                 for business and industry
WATER AND       Do I have water security?
CLIMATE         Am I resilient and adaptable to climate-related risks         4. PLANT BIOSECURITY: maintain
                and extreme events?                                              and continue high standards

TECHNOLOGY      Can I enable the best use of technology?
                Is it worth it to invest (how quick will the return on       DEMAND TRENDS
                my investment be)?
                                                                             Expected demand in the short‑term
                Can I access government funding support?
                                                                             remains high especially from
                                                                             household, community and green
                                                                             infrastructure consumer segments.

                                                                             • Between March and September
                                                                               2020 during the COVID-19
                                                                               pandemic, consumers generally
                                                                               spent more time gardening, likely
                                                                               due to longer periods of time
                                                                               spent at home under lockdown
                                                                               and travel restrictions.

                                                                             • Local councils operate
                                                                               an important role in the
                                                                               ‘streetscaping’ of their suburbs
                                                                               but there are inconsistencies in the
                                                                               approaches taken across different
                                                                               local councils in Australia.

                                                                             • Urban greening and green
                                                                               infrastructure interest from

 2   NURSERY PAPERS   June 2021
NURSERY PAPERS Greenlife Market Analysis Report
government and commercial                  strategy and represents the              The major sources of risk to the
  developers, and strongly                   industry’s interests across several      nursery industry are:
  supported through the Hort                 committees within Skills Impact
                                                                                      • The diversity of the industry
  Innovation Nursery Fund, offers            – a non‑for‑profit operating
                                                                                        with over 30,000 species/
  an opportunity for growers.                national to benchmark learning
                                                                                        cultivars in cultivation and the
                                             and skills standards.
COVID-19 resulted in an increase                                                        natural complexity of host-pest
in demand with sales increasing            • The Hort Innovation Nursery Fund           relationships.
in 4 out of 5 production nurseries           has invested in three major projects
                                                                                      • Highly connected national supply
reporting associated increases in            developing a career roadmap for
                                                                                        chains and logistics across
sales. However, a dip is expected to         the industry, promoting careers
                                                                                        Australia.
occur after COVID-19, the extent of          and engaging leaders in the
which remains unknown.                       industry on this issue.                  • Multiple supply chains servicing
                                           • In partnership with the National           ornamental, landscape, fruit,
Supply-side constraints around skilled
labour, water security and technology        Skills Commission, the JobTrainer          nut, vegetable, forestry and
need to be resolved if demand is to          Fund is subsidising over 300,000           regeneration greenlife clients.
be fully met.                                training places. Some courses that       • More travel and trade: 50 per cent
                                             relate to the greenlife industry           increase in containers, 27 per cent
                                             are eligible such as Certificate III
PRODUCTIVE WORKFORCE                                                                    increase in air cargo and 93 per
                                             in Nursery Operations.                     cent increase in passengers by

                                                                               i
The nature of the labour is diverse
                                                                                        2025 (DAWE).
and complex across greenlife
businesses                                                                            • Reduced capacity and capability
                                            Check out the Greenlife Industry            in plant biosecurity agencies
Attracting and retaining labour with
                                            Australia Careers Hub for resources to      in Australia.
relevant qualifications and skillsets in
                                            support your businesses recruitment
the Industry is a common issue across                                                 • Management in production
                                            and retention strategies
production nurseries in Australia                                                       nurseries capable of
revealing longstanding problems             https://www.greenlifeindustry.com.au/       identifying risk and skill
that require long-term solutions.           greenlife-careers-hub/greenlife-careers     levels within a predominantly
Around 24 per cent of employees                                                         permanent workforce.
in the greenlife industry have a
                                           WATER SECURITY                             • Low recognition and value placed
tertiary qualification.
                                                                                        on the importance of biosecurity
                                           Water access and use is a critical
The greenlife industry offers a                                                         across participants in the
                                           input for production nurseries
progressive career pathway through                                                      supply chain.
                                           and enables consumers to get the
the business like many other
                                           full benefit of greenlife products.        • Continuous high standards of
agricultural businesses, however
                                           Water security reduces the risk              prevention and management
anecdotally many growers experience
                                           for business and drives growth               measures during normal and
a labour ‘drain’, where workers shift
                                           and development.                             crisis periods mean the industry
to other horticulture and landscape
                                           Drought, uncertain water                     thrives and provides additional
sectors before advancing to higher
                                           restrictions and policy across Australia     benefits for Australia with
level management positions in
                                           are threats and barriers to the growth       improved food security and
the business.
                                           and development of the industry.             a protected environment.
Promotion is critical to developing
and retaining a productive workforce
in greenlife businesses. Some current
strategies include:
                                           PLANT BIOSECURITY
                                           Plant pest incursions cause significant,    NIASA and BioSecure HACCP
                                                                                                                             i
• Both Greenlife Industry Australia        sudden but lasting damage to the            certification can help bolster industry
  (GIA) and Hort Innovation include        industry. Detection, eradication and        defence against current and future
  career promotion and development         management is a continuous and              pests and disease
  in their Strategic Plans.                costly effort, shown by recent cases
                                                                                       https://nurseryproductionfms.com.au/
                                           of brown marmorated stink bugs, fall
• GIA is currently working on
                                           armyworm and serpentine leafminer.
  a Nursery Careers Pathway

                                                                                           NURSERY PAPERS        June 2021       3
NURSERY PAPERS Greenlife Market Analysis Report
CASE STUDY: Andreasens Green leverages
market insights for strategic planning
In order to continue to grow Australia’s greenlife industry it’s critical
that stakeholders are able to examine and reflect on the challenges and
opportunities that the industry faces on a holistic level.

That’s the opinion of Brett Sargeant,     The market report articulates some
CEO of Andreasens Green, and a            of the resources available to growers
contributor to the Greenlife Analysis     when it comes to water management
Market Report, a resource which pulls     and also highlights activities like
together insights from stakeholders       GIA’s sustainability framework and
from production and retail nurseries,     Hort Innovation’s R&D projects
government bodies, industry               which aim to shore up the industry’s
associations and Hort Innovation to       water security.
support strategic decision making,
                                          Biosecurity is another issue which       a key issue highlighted in the report,
at the individual business level and at
                                          is seen a priority by the panel of       was a focus for Andreasens.
the industry level.
                                          contributors and for Andreasens,         “As the report points out, the industry
“The market analysis report clearly       as increased global trade inevitably     is investing in activities that aim to
indicates the clear areas of focus        leads to more foreign pest incursions.   promote greenlife as a valued career
for the industry and businesses.                                                   choice,” he said.
                                          “Incursions can and will happen,
Collaboration between growers and
                                          and collaboration between greenlife      “But it’s up to individual businesses to
the broader greenlife value chain will
                                          businesses, industry and government      give apprentices a good experience
be critical in addressing the issues
                                          is going to be key in mitigating the     and treating them as future leaders of
raised in the analysis.”
                                          risk. Government has a key role in       the industry. At Andreasens we move
Water security is one of the issues       minimising the entry of pests and        our apprentices around across all
identified within the report which        diseases. Controlling entry at our       elements of the business from sales,
Brett acknowledges has been a major       border is the single most important      propagation, pre-grow and despatch
focus for his business in recent times.   Biosecurity measure that can be          in order to reinforce the varied career
                                          taken by government to protect our       pathways available to participants in
“One of our nurseries was surrounded
                                          industry” he said.                       the industry.”
in the recent bushfires but we didn’t
have enough water to pump for             The market analysis report               According to Brett, the market
firefighting efforts. It was only the     demonstrates the decline in              analysis report will be an invaluable
great work of the NSW Rural Fire          government investment but the            resource for industry stakeholders
Service that kept the property safe.      more active role Greenlife Industry      looking for a holistic picture of the
Water security is the highest risk for    Australia and Hort Innovation are        state of the nursery industry.
our business and we continue to work      playing in encouraging adoption in
                                                                                   “The analysis provides a high-level
on improving water conservation,          best management practices.
                                                                                   view of the industry and enables
recycling, storage and sustainability
                                          And whilst self-monitoring and           business owners and managers to get
measures. Our industry and our
                                          basic quarantining methods are           new perspectives on the challenges
communities need more support
                                          common, the uptake of formal             facing the industry.
from government to increase water
                                          accreditation through the BioSecure
security. This will enable consumers                                               “Importantly it showcases the areas
                                          HACCP program is recommended by
to gain the full benefit of greenlife                                              of focus for industry and government
                                          the report.
products, reduce risk for business                                                 and can help business owners
and drive sustainable growth and          Brett also indicated that shoring up     prioritise activities which complement
development for all.”                     the productivity of the workforce,       wider industry priorities."

LINKS TO RESOURCES

• Greenlife Market Analysis Report: https://www.greenlifeindustry.com.au/communications-centre/greenlife-
  market-analysis-2021

• PAST EDITIONS OF NURSERY PAPERS ARE AVAILABLE ONLINE on the GIA website:
  https://www.greenlifeindustry.com.au/communications-centre

4    NURSERY PAPERS      June 2021
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