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Resource Book on Horticulture Nursery Management

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Increasing cost of labour and raw material: Poor planning and anticipati<strong>on</strong> of<br />

labour and inputs may lead to higher cost of labor and raw material. The unavailability of<br />

labour and increasing cost of various nursery inputs like riverbed soil, plastic material,<br />

moss etc can also cause losses.<br />

Poor technical knowledge: <strong>Nursery</strong> enterprise requires sound technical knowledge<br />

and skills for producti<strong>on</strong> of seedlings and graft as per demand. This requires adequate<br />

training and professi<strong>on</strong>al knowledge of producti<strong>on</strong> technology of nursery plants.<br />

� Profitability in a <strong>Nursery</strong> Enterprise<br />

<strong>Nursery</strong> enterprise is based <strong>on</strong> assumpti<strong>on</strong>s of demand of plants and availability of<br />

various producti<strong>on</strong> inputs like raw material and labour. The enterprise is therefore<br />

dependent <strong>on</strong> c<strong>on</strong>siderable risk factors as stated above. Various other risk factors like<br />

scarce or shortfall in rains, deviati<strong>on</strong> in Government subsidy schemes, higher costs and<br />

poor income and increasing illegal activities pertaining to sale of nursery plants affects<br />

the profitability of a nursery enterprise.<br />

Some important points to be c<strong>on</strong>sidered for bringing nursery enterprise into a<br />

profitable venture are as follows:<br />

1. Producti<strong>on</strong> of plants in a nursery is a commercial business activity and is to be seen<br />

from the point of view of ec<strong>on</strong>omics of expenditure and returns.<br />

2. There is need to balance the technical aspects and practical feasibility of producti<strong>on</strong><br />

and sale of plants in a nursery.<br />

3. The nursery enterprise may not start yielding profits from the first year <strong>on</strong>wards but<br />

may require minimum five to six years for planning and executi<strong>on</strong> of operati<strong>on</strong>s and<br />

bringing the nursery business into profit.<br />

4. Maintenance of records of expenditure and income need to be carried out regularly to<br />

ascertain the profitability or loss in the business. A critical analysis of such record<br />

may provide soluti<strong>on</strong> for overcoming the problem of poor returns.<br />

5. M<strong>on</strong>itoring of daily activities in nursery activities can provide immediate answers to<br />

the problems faced during the producti<strong>on</strong> and sale in nursery.<br />

6. There needs to be coordinati<strong>on</strong> am<strong>on</strong>gs three important aspects of nursery enterprise<br />

which are producti<strong>on</strong> of plants, rearing of plants and sales of plants.<br />

7. Increasing the sales through aggressive marketing, publicity and advertisement in<br />

newspaper, magazines and other mass media, participati<strong>on</strong> in exhibiti<strong>on</strong>s can enhance<br />

the sales in nursery enterprise to a c<strong>on</strong>siderable extent.<br />

10.3 Glossary<br />

Advance <str<strong>on</strong>g>Book</str<strong>on</strong>g>ing: A priority booking of plants for timely supply<br />

After Sales Service: A service rendered after sale and supply of plants for the care of<br />

plants<br />

Aggressive Marketing: A strategic marketing that is thrust up<strong>on</strong> buyers so as to compel<br />

them to purchase the respective brand am<strong>on</strong>gst its competitors.<br />

<str<strong>on</strong>g>Resource</str<strong>on</strong>g> <str<strong>on</strong>g>Book</str<strong>on</strong>g> <strong>on</strong> <strong>Horticulture</strong> <strong>Nursery</strong> <strong>Management</strong> : 260

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