Market Trends: Aug. 1998

A Wholesale Purchase

When it comes to purchasing irrigation supplies, contractors have a number of options available to them. One, however, is clearly the most popular irrigation component provider – the wholesaler/distributor. Better than 82 percent of 1,000 surveyed Lawn & Landscape readers offering irrigation services said they buy their irrigation products from a wholesaler/distributor, followed by supply houses (15.1 percent), catalogs (5.3 percent), local nurseries/garden center (3.3 percent).

Seed Growers Field A Full Lineup

SALEM, Ore. - It was nothing short of a seed lover’s paradise as producers of turf for the professional contractor and golf course markets held field days in the Pacific Northwest.

While the majority of the attention was on the companies’ research plots, attendees also had the immediate future on their minds.

The continuing story of acquisitions by AgriBioTech, Las Vegas, Nev., was a popular topic of conversation, with some turfseed farmers wondering how ABT plans to secure the necessary acreage throughout the Pacific Northwest.

Regulations against field burning are beginning to take their toll on farmers, who have seen post-burning yields drop and now have to plant new fields of crops about every three years, compared with every seven to 10 years before.

“Not being able to burn the fields costs us about 250 pounds of bluegrass seed per acre,” noted John Cornwall, a farmer for Jacklin Seed. “From my perspective, that means costs for seed have to go up.”

Most growers seem to project an average to moderately good 1998 crop yield, depending on the variety, although since recent weather conditions have depressed seed demand and driven inventories up, a smaller yield isn’t necessarily bad for the industry.

Acquisitions Continue

The industry’s giants continue to grow larger and continue the consolidation trend as TruGreen-ChemLawn, Memphis, Tenn., acquired Lifescapes, Atlanta, Ga., and Cook’s Landscaping, in Austin, Texas.

Lifescapes and Cook’s represent a total of approximately $14 million in 1998 revenues.

Meanwhile, The Brickman Group, Long Grove, Ill., announced that it entered the Denver market and continued its westward push with the acquisition of Allen Keesen Landscape, a $6-million firm.

The key personnel of the acquired companies are expected to stay on as employees of TruGreen-ChemLawn and Brickman, respectively.

Simplot Merges Turf, Fertilizer Businesses

BOISE, Idaho – The J.R. Simplot Co. merged its grass seed business with its professional turf and horticultural fertilizer businesses.

Jacklin Seed and the Best® brand fertilizer will now operate as Simplot Turf and Horticultural Products.

“We believe this will strengthen both product lines and make us more responsive to customers,” said Doyle Jacklin, president of the newly formed entity. Wayne Burk will continue to manage the Best operations as senior vice president and general manager of fertilizer products.

Steve Beebe, Simplot president, said the merger will not affect the brands, labels or production facilities for the products involved.

In an unrelated announced, Simplot signed letters of intent to acquire the assets of seed distribution companies – National of Illinois and National of New Jersey – which will become part of the new company.

PLCAA Redefines Foundation

MARIETTA, Ga. – The Professional Lawn Care Association of America renamed its educational foundation The Evergreen Foundation.

“Many of the foundation’s original objectives are no longer relevant,” noted Dale Amstutz, Foundation president. “Through a survey, members of PLCAA told us there’s no need for us to fund turf research.”

Instead, the Foundation will serve as a bridge between the industry and the green movement through efforts such as the promotion of green spaces for public use.

TreGreen-ChemLawn Technicians Decertified

ST. PAUL, Minn. - Thirty-eight technicians at a TruGreen-ChemLawn branch in Burnsville, Minn., had their certifications canceled by the Minnesota Department of Agriculture after a copy of the state’s closed book certification exam was found in the branch office.

According to the MDA, 28 of the applicators soon retook a modified version of the test and passed with significantly lower scores than they had previously.