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The Oregon Grass Seed Industry

The Oregon Grass Seed Industry. “A Reality Check” Matt Herb, President OSTA, OSC, OSGL. October 23, 2009. DROP IN DEMAND . General economic conditions Uncertainty of future Unemployment Lower housing starts Different priorities Higher input costs for consumers Fuel Fertilizer

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The Oregon Grass Seed Industry

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  1. The Oregon Grass Seed Industry “A Reality Check” Matt Herb, President OSTA, OSC, OSGL October 23, 2009

  2. DROP IN DEMAND • General economic conditions • Uncertainty of future • Unemployment • Lower housing starts • Different priorities • Higher input costs for consumers • Fuel • Fertilizer • Chemicals • Labor • Lower tax revenues - lower spending on schools, parks, roadsides • Lower golf rounds • Lower beef cattle numbers, milk prices • Stronger dollar against foreign currencies

  3. Increase in Input Costs • Higher • Fuel • Fertilizer • Chemicals • Labor (Oregon is #2 for minimum wage) • More Legislation that increases cost • Burn ban • Bio-fuels • Taxes • User fees • Licenses

  4. PRODUCTION ACRES(in thousands)

  5. ANNUAL RYEGRASS 5 year average usage 253 million lbs. ‘08/’09 usage 228 million ‘09/’10 est. usage 228 million July 1, 2009 carryover 50 million ’09 est. crop 216 million July 1 2010 carryover 38 million 14 month supply

  6. PERENNIALRYEGRASS 5 year average usage 213 million lbs. ‘08/’09 usage 146 million ‘09/’10 est. usage 166 million (20 mill less for MN & CAN) July 1, 2009 carryover 100 million ’09 est. crop 154 million July 1 2010 carryover 88 million 18 month supply

  7. TALL FESCUE 5 year average usage 228 million lbs. ‘08/’09 usage 228 million ‘09/’10 est. usage 198 million (30 mill add MO K-31) July 1, 2009 carryover 120 million ’09 est. crop 210 million July 1 2010 carryover 138 million 20 month supply

  8. ORCHARDGRASS 5 year average usage 15 million lbs. ‘08/’09 usage 10 million ‘09/’10 est. usage 10 million July 1, 2009 carryover 3 million ’09 est. crop 13 million July 1 2010 carryover 6 million 19 month supply

  9. RED CLOVER 4 year average usage 5.5 million lbs. ‘08/’09 usage 3.5 million ‘09/’10 est. usage 3.5 million July 1, 2009 carryover 2 million ’09 est. crop 5 million July 1 2010 carryover 3.5 million 24 month supply

  10. WHITE CLOVER 4 year average usage 2.8 million lbs. ‘08/’09 usage 1.9 million ‘09/’10 est. usage 1.9 million July 1, 2009 carryover 1 million ’09 est. crop 4.5 million July 1 2010 carryover 3.5 million 34 month supply

  11. WHAT CAN WE DO? Reduce acres to match current demand Alternative crops Reduce inputs and input cost Reduce labor Explore programs- FSA, NCRS, ODA, etc. Develop a cropping plan Develop a marketing plan

  12. DECISIONS Decide to be profitable! Decide to think outside the box! Decide to control fear and greed! Decide to think “industry” instead of “self”!

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