China

Running head: FUNDING GROTH IN ORGANIC PRODUCTS

Ceres Gardening Company

“The current economy has been especially hard on the floriculture and nursery industry,” said Carol House, NASS Deputy Administrator. This will vary from state to state depending on the variation of impact of the housing market bubble. In Texas for instance, despite the global economic and financial crisis and the start of the recession in 2008, the green industry shows a small increase. All sectors of the green industry as reported in the sales-related Scope Report published in the last issue of Green Magazine have been considered.

Within the horticultural sector, the environmental horticulture industry, often referred to as the “Green Industry”, is one of the fastest growing sectors of agriculture in the US. However, the green industry is facing many challenges including an economic downturn, stronger competition from less expensive imports, considerable price variation, and seasonal consumption patterns.

The U.S. green industry consists of wholesale nursery, greenhouse, and turfgrass sod growers; landscape architects, design/build contractors, lawn and landscape maintenance firms; retail firms such as garden centers, home

centers and mass merchandisers with lawn and garden departments; and various marketing intermediaries, such as brokers and horticultural distribution centers.

As is clearly indicated in the financial statements, Ceres Gardening, a horticultural company, benefited from the industry’s growth throughout 2002 through to 2006. Along with this steady industry growth, Ceres implemented a number of incentive programs to further stimulate growth particularly within their independent supplier and key dealer partnerships. They also focused heavily on growth within the retail channels and shifted gears to penetrate that sector with the provision of seedlings and live plants. With product line expansion and internal sales incentive...