ISHS Acta Horticulturae 55: IV Symposium on Horticultural Economics
THE EFFECT OF ENERGY PRICES IN HORTICULTURE |
| Author: | D. Meijaard |
| Abstract:
The marked increase in energy prices will have a retarding effect on the growth of prosperity in Western Europe. It is improbable that the factors influencing the development in the demand for horticultural products will change fundamentally. Increasing urbanization, less need for foodstuffs with a high calorific value, more leisure time and a growing desire for improvement of the environment are lasting forces which, together with the development of incomes, will determine the composition of the demand for horticultural products. The volume of demand may perhaps increase less than in the past. A change of direction in the development with regard to the composition of the demand is less likely. If, as expected, energy prices will not be further increased in an extreme manner in the future, the direction followed by adjustments of the business structure will not change drastically either. This proceeds on the one hand from the expectation that the development with respect to the composition of the demand will not change greatly. On the other hand, a considerable improvement of production is still possible as a result of the intensification and yield-increasing cultivation techniques, whereby energy consumption may increase still further. However, this is still conditional on the relatively expensive products being able to withstand qualitative competition. In addition, the possibilities of uniform presentation, service and regular supplying of the market must be such that the existing share of the market is maintained. The glasshouse sector will have to adjust to the increased costs by limiting production. A restriction of 15 to 20% seems necessary to prevent further narrowing of the profit margins if the competitive supply remains the same. In this connection research into development of new products that do not compete at consumer level with the existing products, and thus can partly take the place of the traditional products, is of great importance. This will facilitate the process of adjustment. | |
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