ISHS Acta Horticulturae 536: XIVth International Symposium on Horticultural Economics
THE INVESTMENT ANALYSIS OF CEA HVDROPOXIC SYSTEM GROWING BOSTON LETTUCE |
| Authors: | G. Ilaslan, R.W. Langhans, G.B. White |
| Keywords: | economic evaluation, hydroponic production, Boston lettuce, sensitivity analysis |
| Abstract:
Boston lettuce, Lactuca Sativa cv. 'Vivaldi', grown under CEA (Controlled Environment Agriculture) conditions achieves the same quality and quantity of product every day of the year. The CEA system creates many advantages, providing efficient use of nutrients, water, and labor while assuring better control of the plant development that results in earlier production, higher yields, and better quality than competing products. The product, hydroponic lettuce, will be marketed as great tasting, fresh, locally-grown, safe (HACCP) and pesticide-free. These features, combined with year-round constant quantity and quality production, indicate potential for success. In the introductory stage of this CEA technology, it is crucial to determine the economic feasibility of the system, as it requires a large capital investment and sophisticated technical knowledge to operate. This study assessed production costs and economic viability of the production system in nine different US locations under different climatic conditions. A commercial-sized CEA demonstration greenhouse constructed in Ithaca, NY, is used as a reference for input data. A net present value analysis (NPV) is performed to determine the profitability of the system. The effects of various inputs, including product price, electricity, and heating costs, on economic feasibility are also evaluated. | |
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