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(Left) A modern fernery near
Seville, Fla. (Below) FernTrust produces a variety of specialized foliage products ready for sale in supermarket floral departments. (photos courtesy FernTrust) |
FernTrust Inc.
Seville, Florida
Co-op type: Agricultural marketing co-op engaged in harvesting, packing, marketing and sales of a wide range of cut ferns and other foliage for floral use. Formed in 1986.
Geographical area served: FernTrust sources its core products from member acreage in two north-central Florida counties. The co-op also acquires complementary foliage products from the Pacific Northwest, Central and South America and Italy.
CEO: William M. Dellecker, executive vice president.
Number of plants/locations: FernTrust members produce ferns and other foliage on 328 acres in Florida. (The state supplies some 80 percent of the cut foliage used by U.S. florists.) When the foliage is harvested, it's processed in the co-op's central packing facility in Seville. In 1994, FernTrust renovated a historic citrus packinghouse and converted the 24,000 square-foot building to a state-of-the art facility for cut foliage processing. The building features a system of special coolers to condition foliage for maximum post-harvest life. This Fern-Cool process is unique to FernTrust.
Annual product volume/sales revenue: In 1998, FernTrust processed nearly 4 million bunches of cut foliage, representing $4.5 million in sales.
Number of members: 14.
Number of employees: 100.
Markets: In addition to a diverse floral customer base throughout North America, FernTrust generates nearly 40 percent of its sales through exports to Great Britain, the Netherlands, Saudi Arabia and the Netherlands Antilles.
What's unique about this co-op: "The fern industry is characterized by many small, independent growers, and relatively few large grower-shippers," says Dellecker. "FernTrust ranks among the larger companies and is the only marketing cooperative of its type in the industry." FernTrust has distinguished itself by establishing grades and standards for cut foliage and by offering custom packing services.
Biggest changes/trends taking place in the fern industry? Distribution and buying in the United States and international floral markets are consolidating as regional wholesalers join together. Very significant national consolidations have taken place within the last year. "Additionally," says Dellecker, "supermarkets are steadily becoming a much bigger factor in the floral industry as they move beyond simply offering pre-made flower bouquets." At a producer level, higher cultivation and labor costs have squeezed margins since market pricing has remained stagnant or even declined in some cases due to market pressure from large wholesale buyers.
Philosophy that drives this co-op: "FernTrust's grower-members bring together a cooperative trust of acreage, assets, talents and efforts," Dellecker says. "This base supports a continuing commitment to earning their customers' trust by providing floral products of exceptional quality and value, backed by dedicated customer service."
Plans to keep viable in the 21st century: To concentrate on continued
development of its value-added services directed to the needs of different
market segments. Also, to work in partnering relationships with existing key
customers and potential new ones. "These efforts are aimed at creating
market recognition and stimulating demand for FernTrust's products rather than
having them perceived only as commodities in a market that's historically been
dominated by this view," Dellecker says.
FernTrust also is studying opportunities for achieving further consolidation
at a producer level to present an even stronger source of production to the
larger consolidated buying and distribution groups emerging in the floral
industry. "Such producer consolidations should also help growers restore,
and then maintain, satisfactory margins," says Dellecker. 
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