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Executive Summary
The project was undertaken by the Department of Agriculture after the industry peak body in Western Australia had identified it as an important need for the industry. There has been very little work with growers of flowers to determine their profitability and efficiency.

A literature review of benchmarking showed there were no applicable previous examples. There were many examples in other horticultural crops that could be utilised as examples and provide the basis for the project methodology.

The risk management analysis in the planning stage of the project identified lack of availability of growers to participate in the study/learning process as the most likely risk to fully complete the project. In the final analysis this turned out to be the case despite many direct and indirect approaches.

The project worked with waxflower, protea and exotic growers in Western Australia and Queensland and achieved a useful indication of the factors that impact on profitability.

Each of the flower commodity areas had very profitable and loss making examples. There were indications for significant improvements that most growers can adopt to increase profitability. No one product or area stood out. However, good managers showed the highest probability of being profitable.

There are many outside factors that impact on prices growers receive. The ability to be well informed on the cost structure of the enterprise allowed timely management decisions.

The project has created the opportunity to present the benefits of benchmarking and associated tools to many growers and has followed up by reporting findings to conferences and workshops. Five hundred growers have attended presentations, another 600 have had regular updates prior to the end of this project. Growers will benefit from the publication of a manual in late 2003/2004.

 The project makes a number of recommendations:

1. R and D to identify intensive labour activities in flower production
2. R and D work to reduce labour needs of the industry
3. Encourage R and D projects funded by RIRDC to embed importance of financial management as a message
4. Encourage conferences and workshops to include financial management as a core issue
5. In projects of this nature ensure growers have signed on and are committed to take part.
 

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Last updated: August 2004
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http://www.rirdc.gov.au/reports/NAP/03-036sum.html