ISHS Acta Horticulturae 55: IV Symposium on Horticultural Economics
THE SIGNIFICANCE OF HIGH ENERGY COSTS ON THE GUERNSEY GLASSHOUSE INDUSTRY |
| Author: | E.T. Wall |
| Abstract:
Guernsey's glasshouse industry, being located on an Island and having an insignificant home market, incurs a substantial economic penalty in marketing costs. The scale and concentration of the industry enable production costs other than fuel to be kept in line with its main competitors. The mild winter climate provides a significant reduction in fuel requirements compared with other glasshouse areas of N.W. Europe, although this advantage is partly offset by higher average wind speeds which increase fuel consumption. Provided that there is no great imbalance in energy prices, Guernsey should not, therefore, face any serious disadvantage in unit area production costs. By comparison with other glasshouse production areas, the Island's has two important things in its favour. Firstly it has relatively good winter light conditions which allow production to be programmed for high price periods to give maximum margin over marketing costs. Secondly it has cool summer temperatures, which enable production to be sustained over a long season. Combined, these factors enable a high return to be achieved per unit of energy and other inputs. However, there is much to be done within the Island to exploit fully its potential advantages. For example in fuel utilisation alone by prudent choice of location and building multispan blocks instead of the traditional single 9m span houses a difference of 1/3 in fuel consumption can be gained or lost. This represents approaching 10% on all costs, inclusive of marketing. | |
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