California’s nursery and floral industry is the largest of all the states in the U.S. with sales totaling about $3.086 billion in 2001. When floral and nursery product sales are combined, the industry ranks second among all California agricultural products. It accounts for 10.6 percent of total California agricultural output. A regional economic model was used to trace the direct, indirect, and induced effects of California nursery and floral production and lawn and garden retailing through the California economy. Overall, nursery and floral production and lawn and garden retailing contributed more than $10.3 billion in output in California in 2001 and were responsible for almost 169,000 jobs. Total value added attributed to California nursery and floral production and lawn and garden retailing was $8 billion, while the labor income impact exceeded $4.9 billion.

Imported avocados, which accounted for less than 1.5 percent of total U.S. avocado supply during the 1970's and 1980's, increased their share to over 44 percent in 2002-03 and further increases are on the horizon. With inelastic demand, imports placed substantial pressure on domestic avocado prices, but demand increases due to generic advertising and promotion, higher consumer incomes and population growth helped offset increased avocado supplies and domestic prices were maintained. The new Hass Avocado Promotion and Research Order will continue to offset a portion of the price impacts of increased imports from Mexico, Chile and other suppliers.