Growers collaborate to address challenges

Members of the Maumee Valley Growers board of directors include (from left to right): Theresa Hoen, Hoen’s Greenhouse and Garden Center, secretary; Wade Smith, Whitehouse Daylily Farm, board member; Bill Dearing, Dearing Greenhouse, board member; Jeff Creque, Creque’s Greenhouse, board member; Walter Krueger, Lakewood Greenhouse, president-elect; Dick Bostdorff, Bostdorff Greenhouse Acres, president; and Diane Hill, Waldo & Associates Inc., treasurer.
Photo by Daniel Miller, University of ToledoFor several decades the greenhouse industry in northwest Ohio has faced a variety of competitive threats. These include increasing international competition and rising energy costs and a changing marketplace.   The industry is also saddled with older production facilities, dated production technology, the lack of a distinguishable market identity and the challenges of generational succession.
 
At the same time, there are a number of strengths and opportunities that can help the industry remain competitive. Opportunities include latent market demand, new market development and the opportunity to utilize alternative energy sources.
 
To effectively seize these opportunities, however, the industry needs to leverage its strengths in new and innovative ways. Strengths to be leveraged include a large number of knowledgeable, experienced and passionate growers, a significant regional production capacity and access to local university, extension and USDA-Agricultural Research Service expertise.
 

Collaborative effort
In 2003, the University of Toledo received funding from USDA to identify and implement a sustainable model of economic competitiveness for the northwest Ohio greenhouse industry. The model chosen by university researchers was one based on the concept of a cluster-based economic development strategy.
 
In a cluster-based approach the northwest Ohio growers work collaboratively with other industry partners (e.g. suppliers) and are able to call upon the support and expertise of local universities and local community and government stakeholders such as Toledo Botanical Gardens, the Toledo Choose Local organization, garden clubs, the Toledo Farmers Market, city governments, USDA-Agricultural Research Service personnel and local media.

Addressing challenges
Since 2004, over 60 greenhouse owners in a six-county region in northwest Ohio have been working together to address industry-wide challenges. They have been guided and supported in their efforts by faculty experts from the University of Toledo and Bowling Green State University.
 
Growers meet monthly to discuss challenges facing their industry and to identify and implement solutions. The first challenge addressed by the group was the lack of a distinctive market presence. With the help of a locally-based branding firm the growers developed a unique brand identity, Maumee Valley Growers.
 
Since its adoption, the Maumee Valley Growers brand has become the basis for a comprehensive marketing campaign designed to enhance consumer awareness of the products that are grown at local greenhouses and to encourage consumers to purchase locally-grown plants. The Maumee Valley Growers logo and tagline “Choose the Very Best” can be seen in local television ads, in the local newspaper, on t-shirts, coffee cups, refrigerator magnets, calendars and even in the form of a bus wrap on a Toledo Area Regional Transit Authority (TARTA) bus. 
 
The logo and tagline are also available to individual greenhouse operations that can use them in their own advertising. Growers have also come together and done joint advertising promoting the Maumee Valley Growers brand.
 
A key component of establishing a prominent market presence was the creation of a consumer-oriented website. The site, which was established in 2004, provides information for local consumers, including specifics on local greenhouses and seasonal gardening tips.
 
This year’s Maumee Valley Growers advertising campaign focuses on “Growing the local economy, one flower at a time”. The program includes the joint marketing efforts of 34 greenhouses and garden centers featuring full page advertisements in the Toledo Blade and neighboring newspapers, Val Pak coupon mailings, cable and HGTV commercial spots along with representation at the Toledo Home Builders and Remodelers Show. All of the marketing efforts encourage consumers to log on to the Maumee Valley Growers website for additional information, which has resulted in nearly 2,500 daily visits.

Cutting natural gas costs
A major collaborative initiative undertaken by northwest Ohio growers was to work with a local energy consultant to develop a pooled-purchasing natural gas program. Under this program, participating growers pool their natural gas purchases, thereby achieving economies of scale, which results in lower per unit natural gas costs.
 
During 2006, the first year of the natural gas program, growers saved between 12-15 percent on their gas costs. The program was so successful that, in 2007, it was made available to growers throughout Ohio. 
 
In 2009 the program was extended to growers in southeastern Michigan. There are currently 93 growers participating in the program. The actual savings ($450,000) for 2009 was less than what had been projected because natural gas prices were 2½ times higher than in 2008.
 

Benefits of collaboration
Since its inception Maumee Valley Growers has enabled the northwest Ohio greenhouse industry to more effectively address its competitive challenges. A recent survey of its members revealed that nearly 40 percent of growers felt that their membership had helped them control production costs.
 
Over 55 percent said that their membership had helped them attract new customers.
 
Nearly 60 percent were more optimistic about the future of their own business as a result of Maumee Valley Growers.
 
Nearly 80 percent of growers said that their interaction with other growers had increased as a result of the organization. 

 
For more: Maumee Valley Growers, (419) 530-3591; Paula.Ross@utoledo.edu; www.maumeevalleygrowers.com.

Neil Reid is director, Urban Affairs Center, University of Toledo, (419) 530-3593; neil.reid@utoledo.edu.