forty countries
Plants and trees from Alicante are thriving worldwide, supporting nurseries in the region as they weather rising costs and a national recession. Ornamental horticulture exports have surged by about 80 percent over the last decade, propelled by a strong focus on product quality and solid yields. Even so, inflation and anticipated cuts to the Tajo-Segura transfer could threaten the survival of some businesses.
The ornamental horticulture sector is often miscast as a minor player in agriculture. Yet the production value and export earnings from this segment frequently exceed those of many other agricultural sectors. In the last ten years, Spain has grown into the second-largest flower, plant, and tree exporter to Europe after Germany, signaling substantial growth potential at the continental level.
When looking at national data, the picture is positive, and in Alicante the trend is even brighter. In 2021 exports totaled 62.3 million euros, up from 39.5 million the year before. That jump of more than 50 percent placed Alicante second nationally, behind only the Valencia region. Alicante nurseries account for around 11 percent of Spain’s total horticultural exports, underscoring the weight of this industry in the area.
Considering the pivotal role of exports for the province’s sapling activity, the importance becomes even clearer. About 85 percent of flowers, plants, and trees grown abroad cross borders to reach more than 40 countries, with major markets in the European Union such as France, the Netherlands, Portugal, Germany, Italy, the United Kingdom, and Belgium. Markets like Japan, China, South Africa, and the United Arab Emirates are growing in significance too.
Alicante nurseries specialize in cultivating and rejuvenating Mediterranean species like olive and palm trees to meet the needs of large retail chains, gardeners, and wholesale distributors. Industry players invest heavily in logistics to reach customers quickly and continuously seek new formats. Companies have boosted skills and training, empowering their teams to deliver top products.
Most of the regional sector is organized under the Association of Nursery Crops Producers, known as VAME, which focuses on boosting competitiveness, coordinating fair participation for its members, and facilitating direct and reverse business missions to explore new technologies and markets for member products.
Water tank irrigation in a Camp d’Elx nursery illustrates the practical side of this industry. The image captures a moment from the field and is credited to Axel Alvarez.
Internationalization has helped growers cope with a period of significant challenges. Paco Agulló, head of VAME and owner of Viveros Planta Viva, notes a rebound after the pandemic period as many households turned to plants to enhance homes and gardens. This shift drove a notable rise in exports last year.
Yet this year has brought more normalization, with a stagnant domestic market and foreign sales continuing to grow, albeit at a slower pace of about 7 percent. Agulló emphasizes that while sales remain solid, costs have climbed sharply. Phytosanitary products and fertilizers have doubled in price, and diesel and plastics have also risen. The real concern is that these cost increases did not affect factories in a way that would erode competitiveness in international markets, which would have harmed sales abroad.
Transfer
Another threat on the radar is the ongoing discussion about cuts to shipments from the Tajo-Segura transfer, a lifeline for nurseries in Camp d’Elx and Vega Baja. If the flow diminishes, fields may have to be reduced, triggering a risk to the viability of many businesses. Uncertainty remains whether planting will adjust in 2023, a scenario that has people anxious amid political disagreements that influence planning and investment.
José Luis Maciá of Viveros Ferriol describes a similar situation: domestic orders may be steady, but input costs and shipping have risen dramatically, squeezing margins. He notes that exports remain the sector’s main driver since national sales carry less weight for their business. The water issue is a major worry, with desalinated water costing around three times more than current supplies, complicating production planning and costs.
Irineo López of Viveros Iris describes a mid to long-term challenge: costs are climbing, so price increases become necessary. Firms continue to supply, yet the future remains uncertain. Alfredo Cano from Vivero Florales Alicante explains that price rises have helped preserve customer relationships, but inflation and housing costs loom large. The industry relies on its own reservoir systems to maximize water use when appropriate.
The sector seeks sustained administrative support to expand international markets. The national federation FPEx notes that strong foreign trade results have been achieved without formal support measures, despite intense competition from third countries and other EU producers. A key goal is to enroll more companies in export activity with government backing to promote the Spanish offer and secure long-term development.
Labor shortages also worry the sector. Irineo López highlights a lack of agricultural workers, including engineers, which hampers capacity to grow. The root cause appears to be a misperception of agriculture as unglamorous work, even as gyms see crowded memberships, suggesting a disconnect between workforce interests and the industry’s realities.