TITLE

IMPORTING CHANGE: CANADIAN COMPETITION AND THE U.S. FLORICULTURE INDUSTRY

AUTHOR(S)
Reid, Neil; Smith, Bruce W.; Gatrell, Jay D.; Carroll, Michael C.
PUB. DATE
April 2009
SOURCE
Industrial Geographer;Spring2009, Vol. 6 Issue 1, p3
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
During the last century American agriculture has undergone a massive transformation from an industry dominated by a large number of small family-owned farms to an industry characterized by a fewer larger scale, heavily-capitalized enterprises. In this paper, we analyze the shifting geography of production with respect to the U.S. floriculture industry. The ongoing transformation of the floriculture industry is being driven by two interrelated phenomena. One is growing Canadian imports, particularly from Ontario. Canadian producers benefit from a fortuitous location with respect to major American markets, operate on a larger scale, enjoy a more favorable institutional setting, and until recently, profited from a favorable exchange rate. Another transformative process has been increasing sales of floricultural products by mass merchandisers in the U.S. The "big box" stores favor large scale operations, including Canadian exporters, due to larger scale demand and more complex sales agreements. As a result of these transformative changes, the U.S. floriculture industry will likely move to a dual market structure, consisting of large scale producers, who can supply the "big boxes" and compete effectively with foreign imports, and another segment of small scale producers who will have to carve out local markets based on higher quality customer service and/or being responsive to specialized consumer demands.
ACCESSION #
38024695

 

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