METHODS Methodology for Estimates of Wholesale the value of the

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METHODS Methodology for Estimates of Wholesale the value of the Powered By Docstoc
					   Methodology for Estimates of Wholesale            the value of the products as they enter the
      Values and Retail Expenditures                 marketing channels. Domestic production is
                                                     valued at the grower level and is estimated by
Estimates for wholesale values and equivalent        subsector for all fifty states based on total grower
retail expenditures for the floriculture and         cash receipts published by ERS. Imports are
environmental horticulture sector shown in table     c.i.f. values (cost, insurance, and freight at port
13 are based upon a series of calculations           of entry) reported by U.S. Customs Service
explained below. Wholesale values are                expanded to represent the value of the products
calculated for cut flowers and cut greens by type    as they enter the marketing channels, usually at
of flower or cut green for comparison with           shipping points. The expansion factor used is
quantity estimates and to view total market use.     one and half times the c.i.f. value. This
These estimates are shown in tables 22 and 23        expansion represents a margin between c.i.f.
for cut carnations, 25 and 26 for cut roses, 28      values and selling prices at shipping points
and 29 for cut chrysanthemums, 31 and 32 for         which is based on surveys conducted by the
cut gladioli, 34 and 35 for cut orchids, and 42      Florida Association of Floral Importers and other
and 43 for cut cultivated greens. Retail             industry data.
expenditures are not calculated by type of cut
flowers or cut greens nor are they calculated for           Estimates of Retail Expenditures
the various kinds of nursery crops, turfgrass, cut
Christmas trees, bulbs, and other crops.             Retail expenditures are based on wholesale
                                                     values expanded to an equivalent retail value
       Calculations of Wholesale Values              representing estimated sales through all outlets
                                                     such as retail florists, retail nurseries, home and
Estimates of U.S. grower cash receipts (value of     garden centers, grocery stores, other retail
domestic production) are provided for the            businesses, landscapers, interiorscapers,
following subsectors: cut flowers, cut greens,       government and other institutions, and all other
potted flowering plants, potted foliage plants,      users. The retail expenditures are the retail value
bedding and garden plants, and environmental         of the green goods including the value of closely
horticulture crops. These cash receipts are based    associated products and accessories sold
on annual estimates released by the Economic         accompanying the green goods including the cost
Research Service (ERS), USDA for the entire          of services such as delivery, installation,
floriculture and environmental horticulture          landscaping, and other service activities.
sector; annual estimates of the wholesale value
of floriculture crop production released by the      The retail expenditure estimates provide the
National Agricultural Statistics Service (NASS),     industry and other data users with information on
USDA (estimates for crop subsectors are only         the size of the markets in the United States, year-
for growers with $100,000 or more in                 to-year changes in total and per capita
floriculture sales in 36 major states); and the      consumption (use) and import shares of the
U.S. Census of Agriculture data collected every      market, and overall trends stemming from
five years (1997 is the latest Census year).         supply, demand, and U.S. economic conditions.
Estimates of grower cash receipts are revised and    The margins between wholesale values and retail
released annually in September by ERS, USDA          values represent the added value of the products
and will be revised following the release of the     at retail to consumers and other purchasers.
1998 Census of Horticultural Specialties by          These margins vary significantly by product type
NASS, USDA.                                          and are based on several sources of information
                                                     including U.S. Census of Retail Trade, U.S.
Wholesale values represent the value of domestic     Census of Wholesale Trade, U.S. Census of
production plus an expanded value of imports         Service Industries, economic analysis conducted
minus the value of exports, f.a.s. basis (free-      by ERS, USDA, private sources, industry
along-side ship). These estimates approximate        groups, universities, and others.

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