Peat Production Costs

Spring 2001 vol. 8/no. 2 Calculating Greenhouse Production Costs Grower Profile: Longfellow's Garden Center Peat Bog Restoration (Part 2): Harvesting Peat Peat Production Costs Product Update: PRO-MIX With 'Options' Upcoming Trade Shows

his year has been a challenge for all of us as petroleum prices have risen sharply. Many growers and manufacturers face the dilemma of where to cut costs and /or increase prices. We, too, face the same dilemma. Over the past few years we have had numerous cost increases but we were able to absorb most by improving automation and reducing production costs. For example diesel and gas prices have increased 75% and 38%, respectively. Heating oil, which is used to heat the factories and to expand or ‘‘pop’’ the vermiculite and perlite, has increased 150%. Bag prices have increased 38%. Transportation costs have increased from 4 to 7% over the same time last year and 10-14% since the fall of 1999. As fuel, heating oil, bag and transportation costs continued to rise we were obligated to adjust some prices. Fortunately, our price increases amount to only a few percentage points on most items. It is interesting to note that the price of peat and soilless media has gone up by less than 5% in the past 5 years. We thank you, our valued customers, for your continued support and look forward to a good season along with the anticipated stabilization of petroleum related costs.