A new survey of Queensland’s greenlife growers shows 57 per cent reported a decline in profit in the December quarter due to soaring input costs and a subdued economy, and almost half of the industry’s operators expect their profits to decline further over coming months.

Nursery & Garden Industry Queensland (NGIQ) released the figures today (24 Feb 2025) to coincide with the opening of the “Better Together” National Greenlife Conference being held in Brisbane.

The survey highlighted that growers are currently facing significant supply-side and demand-side challenges.

Queensland horticulture is worth around $1 billion annually, making it one of the largest parts of the agriculture sector, but many operators are struggling as the cost of running a nursery continues to rise.

Production and retail nurseries are mostly small businesses operators, with many lacking the capital and systems to navigate an increasingly dynamic trading environment. After a few years of high demand through COVID, growers are now confronted with a very different environment where demand has plateaued, while the cost of some inputs have grown by up to fifty percent.

Growers nominated falling consumer spending and high interest rates as reasons why two thirds saw revenue flatline or fall during the December period. At the same time, the survey shows large numbers of producers facing major or critical cost increases in transport (49%), energy and water costs (45%) and insurance (40%).

Despite 45% of respondents expecting their profits to decrease further over the next three months, it seems most are intent on weathering the high-cost environment. A clear majority report they intend to maintain current employment levels (71%) and capital expenditure (57%).

Plant prices may be about to increase however, as growers pass on business costs to consumers. Over a third of respondents (34%) say they will increase their selling prices in the March quarter.

The survey also quizzed the respondents on which policies the new Queensland Government should implement to make life better for greenlife businesses. Out of the 11 options put to them, they nominated bringing down the cost of power, cutting red tape and more effective action on fire ants as the policies which would have the most positive impacts.

Nursery & Garden Industry Queensland is the state peak body representing the professional nursery industry in Queensland, incorporating production nurseries, retail nurseries, garden centres, and agents for allied products. It was formed in 1934 as a professional body for growers and sellers of quality plans and celebrated 90 years of supporting the industry last year.