Short Supply Affecting Industry
Steady demand, drought and early frosts are combining to reduce inventory levels in the sod production industry to a critical level. Growers are reporting that they are having to eat into their normal winter carryover to supply steady customers who need sod. New customers are being turned away in many instances.
2006 has not been a good year to grow turfgrass in Texas. Record heat and drought have made it difficult for grass to grow. Even though most growers can irrigate, they depend on a certain amount of rain to produce a steady supply. Southeast Texas growers escaped the drought but have not been able to keep up with demand. Early frosts have also limited growth even when moisture was available.
A survey conducted by Dr. Lawrence Falconer, an economist with Texas Cooperative Extension, showed that supplies of all species were on the short side. Zoysia was very short and other species were short to adequate at best.
In North Texas, Doug O’Connor of Trinity Turf said the drought dealt growers in that area a severe blow. He has tried to keep his regular customers supplied but is finding it difficult. He has had to use grass that he would normally carry over for next spring’s market. Early frosts have essentially shut down grass growth until next spring north of Dallas.
In the San Antonio area, David Doguet of Bladerunner Farms, says they are almost out of grass. He expects sod to be short for the next six months. “We have been selling grass like it was summertime,” he said. They also were severely affected by the drought.
Growers in the Rio Grande Valley are also seeing shortages. Jesse Russell of Russell Farms says they are getting a lot of calls from other growers looking to fill orders. He is concerned that new growers may try to get in the grass business. He has already had calls from some wanting him to plant grass for them to get started. The problem with new acreage is that established grass farms can recover quicker than new grass can become established. As regrowth occurs next year, the current short supply may turn to excess.
Aland Wittig of Wittig Grass Sales reports that they have gone up on prices they charge for grass twice and are considering another. “We had to go up due to cost of production. When I pay bills, they are not staying the same. They are not going up by a percent or two. They are going up fifteen or twenty percent. Grass is short and the market will have to realize that we need to increase prices,” he said. He sees a bigger shortage of grass next spring due to a very small carryover.
In talking with Lindy Murff of Murff Turf in the Crosby area, he indicated he still has grass but that several farms in the area are completely out. He is trying to keep his better customers supplied but is not taking any new customers.
Will the supply/demand situation cause prices to go even higher? Only time will tell but the basics indicate they should.