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HGSA’s Summer Meeting went virtual in 2020 due to the pandemic, with three round table discussions on consecutive days. While we missed the experience of visiting Vancouver—this will happen in 2021!—the meeting topics were timely and informative, and the exchanges of information and ideas were helpful to all involved. 

Here is a recap on the issues we discussed:

September 9: Will There Be A Seed Shortage in 2021? 

  

Patty Buskirk led this examination the various consequences of the huge demand for garden seeds in 2020, not just in the US but internationally as well. Unprecedented demand caused disruptions in order filling and, as a result there were delays in shipping throughout the industry. Supplies of some seed packets ran out completely. She pointed to a number of factors:

  1. Consolidation: The home garden seed market continues to consolidate, as seed company owners looking to retire and sell their businesses to larger entities. When consolidations occur the home garden seed market is at risk. Wholesalers are buying more and more of the market share, and the number of varieties on the market is shrinking. 

  2. Shipping:  Members noted that not only was shipping less reliable and slower in 2020, it is also getting increasingly costly. The seed industry is a global market, with seed produced in 30 + countries in both hemispheres.

  3. Tariffs and other factors that affect production: Beginning in 2018, a 10% tariff was imposed on imports from China. As of August 2020, it was up to 25%. As a result, production from China is way down. Labor shortages caused by the pandemic and other factors are also affecting seed production. Note: With more overtime pay, price increases are inevitable. (Europeans pay a lot more for packet seed)

  4. Phytosanitary Program: Because of a 2018 Memorandum of Understanding, all seeds in the Solanaceae family that are shipped from overseas must be tested for numerous viroids and viruses. Each lot is tested for up to 10 different pathogens. As a result, smaller seed lots are likely to be dropped because of the increased costs of testing—another factor that causes fewer varieties available to consumers. The upside of this is that it could be an incentive for US growers, particularly smaller growers, to produce more domestic seed.

Forecast for 2021: Planning for seed sales starts years in advance. Each company has its own method of forecasting, with some looking at 5 years of sales to forecast the upcoming year(s), others less. It is likely that the increased demand will continue to some degree. Supplies of some items, particularly biennial crops that take longer to produce, will most likely be short in 2021.  There may be other shortages of particular varieties, but overall, plenty of seed choices. 

The silver lining: Seed companies may not have exactly what shoppers want, but will have something they will want. Increased flexibility is a good challenge!

September 10: Will They Go Fishing?


Renee Shepherd led a discussion of how gardeners, particularly new gardeners, will act in future years, and how the industry can keep these new seed buyers involved in gardening. The group examined several facets:

Who are these new seed buyers?

    • Gardeners who typically bought their seed at garden centers but turned to mail order suppliers when garden centers closed in March.

    • People who found themselves unexpectedly spending more time at home because they were working from home, or furloughed, or let go from jobs.

    • Moms who were looking for outdoor activities to do with their kids when schools closed in early spring.

    • Long-time gardeners who expanded their gardens because they had the time.

    • Panic buyers who saw that favorite seeds were in short supply.

Will they return? Everyone agreed that many of them will continue gardening. But it will settle down some. The trend of people working more from home will most likely continue. Expect a lot of early orders, due to the experience of 2020, with suppliers running out of certain varieties. Mike Lizotte from American Meadows categorizes these early buyers as “planners.”

What trends did seed sellers detect in the 2020 buying “surge?”

    • Gardeners bought more vegetable than flower seed.

    • Flowers were also popular, due to the much publicized interest in pollinators.

What should the message be and how can companies promote it? Gardening is an enjoyable activity, accessible to all. We need to offer guidance, encouragement, and support:  

    • Emphasis on great how-to videos

    • Fun instagram stuff

    • Offer starter kits for beginning gardeners

    • To maximize retention: good how-to information, great service, good products. Setting realistic expectations is important, but aiming for fast shipping is also important.

How are these new customers different? The demographic is younger than in past years, and many have kids. Because they are younger, they are likely more used to online buying. The stimulus checks received in spring may have been a factor in the buying surge.

Wrap-up: What can HGSA do to help seed companies retain these new customers? Customer satisfaction is of utmost importance. To maintain this, companies must provide good service and good support for new gardeners. They must not only have a reputation for good seed quality, they must also communicate it. Quality seed factors are: trueness to type; good germination; seed purity; freshness. Maintenance of stock seed is important. 

September 11: Business In the Time of COVID-19

Mike Lizotte and John Wahlert led this lively discussion about problems and solutions during this pandemic season. Company owners/managers talked about what worked for them. A repeated refrain: Rules set out must be followed both at home and at work, as one affects the other.  

  • Mary Gomane, Condor Seed: Official company policy made masks mandatory. Extended overtime was helpful in taking care of the surge in business. Keeping people safe in a small office space was a challenge. A couple of people worked from home, easing the congestion.

  • Patty Buskirk, Seeds by Design: Weekly to bi-monthly communications went out to all employees, updating them on COVID related company policies. Employees were reminded to be vigilant at work and at home. Hand sanitation stations were installed, and the cleaning schedule and protocols were stepped up. Warehouse doors were kept raised to increase air circulation. Five employees at the ranch tested positive.

  • Robb Baumann, Mountain Valley Seed: Because of the surge in business all advertising and third party channels were cut off. This was echoed by others.

  • Renee Shepherd, Renee’s Garden: The home web page was updated frequently so people would know to expect shipping delays and possible sell-outs. In the office, everyone worked remotely. 

  • Mike Lizotte, American Meadows: Most of the staff, excepting those who worked in the warehouse, worked remotely.

  • Venelin Dimitrov, Burpee: Employees worked remotely for 2 ½ months. This changed in late June.

  • Jessi Black, JBM Packaging: At first, everyone worked remotely. Now account managers rotate, with one in the office at a time. Finding people to work has been much more difficult than usual. 

  • Jeannine Bogard, Syngenta Seed: Because Syngenta is an international company, overseas managers knew early on what to expect. Management focused on the mental health of employees and offered support in the form of weekly check-ins and training sessions. Many employees worked from home, and the company showed leniency and support. They let everyone know that it was ok for kids, pets, etc, to barge in on company meetings.

  • Josh Kirschenbaum, PanAmerican: The company set up an online ordering system for efficiency, however, customers still prefer to order by phone or email.

  • Jim Walther, Applewood Seeds: The company added two industrial air filters in workspaces. Office and warehouse were kept totally separate, and spaces are cleaned constantly. Company meetings are held every other week.

A discussion of travel policies followed. 

  • Trade shows have gone virtual. Might this be the norm in the future?

  • Some CA trials (Seeds by Design, e.g.) were not held, with many in the industry questioning their value if traffic does not come.

  • CA trials are for the benefit of the industry. Travel is necessary for people to attend. This has been a difficulty.

  • PanAmerican 2021 flower trials will be in June, in line with Week 24 trials held in Europe. Veg trials will be in August, 2021. 2020 Trials had 50% traffic. Josh believes that trials are important and people will ultimately come back.

  • In the Northeast, trials were held and they were well attended. Venelin went to Geneva and Landisville, PA – no problem. Penn State trials were planted, but closed to visitors. Instead, they held virtual field days.

Attendance for these three HGSA roundtable ranged from 48 to 59 attendees. It has been requested that HGSA consider additional virtual round tables continued into 2021. Please forward a topic of your choice for our next industry event.