What follows are a number of interesting links on the www and some comments about each:
http://www.pureproducegreenhouse.com/
Has links to a variety of supplier of products – sort of a catalog of catalogs.
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http://www.ppgvanisle.com/
Appears to be a site “advertising” Pure Produce Van Isle, Inc. to prospectibe investors. Contains a good bit of background info. Uses “Nutrient Film Technique” and “Hydronic Radiant Heating.” The latter uses water heated by biomass combustion or from geothermal sources. They appear to have ambition to offer a wide variety of products.
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http://www.ppgcanada.com/
Seems to be a “parent” to Pure Produce Van Isle above. Essentially the same web site except for a different entity.
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http://www.oppyproduce.com/world_greenhouse.cfm
Web site of a large scale Canadian grower and distributor of produce – some of which is grown in greenhouses. In their greenhouse they grow several varieties of tomatoes, , peppers, and butter lettuce.
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http://goliath.ecnext.com/coms2/summary_0199-1233284_ITM
An article titled Greenhouse: the future of produce? Greenhouse produce is already a hit with consumers. Just wait until its national marketing programs are in full swing at retail.(Focus on Fresh) published in Dec 2003 for sale by Goliath Business news for $4.95. A teaser quote is "Modern hydroponic greenhouses are among the most technologically advanced facilities in modern agriculture, costing upward of half a million dollars per acre to construct."
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http://pubs.caes.uga.edu/caespubs/pubcd/B1182.htm
An article titled “Greenhouse Vegetable Production” with a
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http://www.orgilgreenhouses.com/main.shtml
Web site advertising a green house manufacturer.
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http://www.orgilgreenhouses.com/images/environment_benefits.pdf
An article titled “Controlled Environment Agriculture: Environmental Benefits”
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http://ucce.ucdavis.edu/files/datastore/234-447.pdf
An extensive report titled “Greenhouse Tomatoes Change the Dynamics of the North American Fresh Tomato Industry” dated April 2005.
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http://www.productcenter.msu.edu/documents/Working/Hydroponic%20tomatoes%20market.pdf
A recent report (June 2006) titled “The Market for Greenhouse-Grown Tomatoes” Has useful references.
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http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/agdex1443
A report titled “Commercial Greenhouse Vegetable Production” that describes itself as “The purpose of this fact sheet is to introduce greenhouse vegetable production as a potential business opportunity. The focus of this profile is on the key management issues associated with producing and marketing greenhouse vegetables in Alberta. This overview is not intended to be a substitute for individuals making their own thorough assessment of all the key factors that would influence the success of their individual operation.” Despite that disclaimer the article provides a lot of information.
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http://aggie-horticulture.tamu.edu/greenhouse/hydroponics/index.html
A portal to much information on hydroponics gardening by a Professro at Texas A & M. An example of an article of great relevance is “Greenhouse Vegetable Production Economic Considerations, Marketing, and Financing” about which it is said Taken from a paper "Greenhouse Vegetable Production Economic Considerations, Marketing, and Financing" presented and published in the proceedings of the "Hydroponics Worldwide: State Of The Art In Soilless Crop Production" conference by the International Center for Specials Studies, In Hawaii during December 1985. The paper was completely reviewed in 1991, found to be still current and retained unchanged. Since then, it has been reviewed several times. Whereas some of the values (input costs and output value) are up about 15 percent as compared to the last complete review in 1991, the production systems and financial relationships are not so far out of date.
Dr. Jose Peña, Texas Cooperative Extension, May, 2005
In summary:
Conclusions
General Observation
Although the greenhouse vegetable industry is again expanding, the competitive position of firms remain at a disadvantage. Increased competition from alternate supply sources and increased greenhouse production costs under a relatively elastic demand situation appears to be the cause of the competitive disadvantage. The intensity of greenhouse culture is unlike anything else in crop production. It requires substantial managerial skills, patience, and hard work from a grower. Opportunities do exist for someone willing to devote the time to establish marketing channels and manage the many facets of the business. It is a scientific, demanding, and intensive form of agriculture. Sales outlets and production costs are important considerations. With field grown tomato production costs averaging $.25-$.35/lb ($.55-$.77/kg), compared to over $.57/lb ($1.27/kg) for greenhouse tomatoes, promoters and prospective operators should carefully evaluate the market before investing in the business.
Some general implications from the analysis of the basic 2880 ft2 (268 M2) module used in this report were:
1. Construction costs ranged from $2-$30/ft2 ($43-$323/M2) of floor space, but a substantial number of excellent units are being built for $6/ft2 ($64.58/M2). It would be wise for prospective entrant to shop around before buying.
2. Since operating costs are relatively inflexible, the financial success of greenhouse tomato production is highly dependent on yields and market prices. This means the need for gross returns of approximately $4/ft2 ($42/M2) to come out even, or a minimum average production of 19.4 lbs (8.8 kgs) per plant space if the market price averages $.80/lb ($1.76/kg). If a grower wants compensation for risk, opportunity costs, and management labor, he will need to produce approximately 20.5 lbs (9.3 kgs) per plant space to provide labor returns that approach minimum wage, assuming again that the tomatoes are sold for at least $.80/lb ($1.76/kg). It requires skill to achieve this level of production.
3. A viable marketing program is a ìmustî since a premium price is essential to economic survival.
4. Greenhouse tomato production is labor intensive. If located in a high labor cost area, returns from a greenhouse tomato production operation would be marginal if adequate labor was not available at wage rates which approximate minimum wage and substantial amount of hired labor was necessary.
5. Fuel costs represent almost 40% of production costs. The uncertainty of future prices necessitate an aggressive program to conserve fuel or the use of solar energy to keep this expense at a manageable level.
If profits appear feasible, a carefully prepared study with pro-forma cash flow and financial statements that indicate a potential profit will be required to attract investment capital. There is no better method for securing funding since lending institutions have shown reluctance to finance greenhouse ventures. A potential entrant to the industry must not delude himself into forecasting a profit when the facts do not bear this out. The present situation appears full of risk and uncertainty. The present economic situation must be stabilized before greenhouse vegetable situation can be properly evaluated.
Economics of Production
One of the primary factors contributing to the weakened economic position of the greenhouse vegetable industry has been the disproportionate cost/price situation during recent years. Production costs have continued to increase steadily, while farm prices for greenhouse vegetables have remained relatively unchanged. The quantity and quality of field grown tomatoes during the winter months has increased substantially during the past few years. Consequently, growers have tried to maintain net returns by minimizing production costs and increasing yields. This objective sounds familiar since it is the object of almost all agricultural ventures. Greenhouse vegetable producers have had to switch from glass houses to the more economical polyethylene construction materials. More work is needed to cut production costs since greenhouse tomatoes are highly vulnerable to product substitution at the retail prices.
Demand for Greenhouse Vegetables
Although the demand for greenhouse vegetables has been increasing over the years, such increases are primarily a function of population expansion, not increased per capita consumption. This trend will likely continue, as greenhouse vegetables are characterized by a relatively elastic demand curve with a high potential to ìremain on the shelfî if the price is too high or if similar quality substitutes are available.
Recommendations
Managerial Considerations
Each situation must be evaluated separately. If profits from greenhouse vegetables do not appear feasible, there are alternative crops which may be profitable, e.g., bedding or foliage plants and flowers. Any particular operation may hold surprises each situation is unique.
A manager should maintain close contact with research agencies and the industry to take advantage of the most efficient growing techniques. Researchers recognize that the only way that greenhouse vegetable growers will be formed into a viable industry is to increase efficiency to the point where greenhouse vegetables compete with field grown vegetables imported from the microclimatic winter growing areas. They visualize that as the price of fuel increases, it will be far cheaper to grow fresh fruit at a close proximity to a population center and eliminate long distance transportation costs if we reduce the greenhouse dependence on fossil fuels for heat. To accomplish this objective, solar energy and other fuel conservation techniques must be incorporated into future production systems. The growing systems must be redesigned to increase efficiency, yields and reduce costs. A wise manager would begin by taking these essential steps into account in forecasting future operations.
Profit Maximization and Space Utilization
A typical greenhouse tomato production operation only utilizes approximately 60% of the floor space of a greenhouse during the preparation phase and it takes 90-120 days from seed to first harvest. Substantial greenhouse space is available in sufficiently long periods of time to intercrop short duration ornamental plants. Intercropping and/or diversification into the following crops may be an economically viable alternative:
Lettuce Cucumbers
Bedding plants Foliage plants
Seasonal crops Ornamental tomato baskets
Custom growing for flower or specialty shop
Production of Oriental vegetables provides a wide
new horizon of expectations
Marketing
Marketing the crop is the area in which most greenhouse operators fail. A thorough understanding of the marketing channels available is a necessity when promoting any form of greenhouse operation. Among the usual option are wholesalers, retailers, roadside or farm stands, and door-to-door routes.
Produce wholesalers complain that in order to handle a product, a steady supply must be available. Individual greenhouse tomato growers frequently cannot guarantee this; thus, wholesalers may not want to add the item to their inventories. Therefore, growers should visit several wholesalers before assuming any wholesaler will buy the crop.
Small producers might well consider selling direct to retailers. Surveying produce managers in local supermarkets is highly recommended for those choosing this option. Marketing through local stores has the advantages of not requiring distant delivery, and smaller quantities are usually preferred by the store.
Direct selling to the public is a frequently chosen method. In considering this method, sales costs should be considered, both in real terms, and in lost opportunity time for other endeavors.
A combination of sales outlets can also be employed. Whichever is chosen, the additional costs of selling must be considered. These include transportation, time and any storage required.
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http://attra.ncat.org/attra-pub/ghveg.html
This is already on tripark site as a PDF
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http://www.agf.gov.bc.ca/busmgmt/bus_guides/green_guide.htm
Contains business planning guide using Greenhouse Vegetable Example. Prepared by Government of British Columbia.
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http://www.omafra.gov.on.ca/english/crops/facts/greenbus.htm
Starting a Commercial Greenhouse Business - information from Ontario Ministry of Agriculture, Food and Rural Affairs. A lot of facts and good advice.
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http://www.hydroponics.com.au/index.html
An on-line (and print) publication titled Practical Hydroponics & Greenhouses which is described as “Practical Hydroponics & Greenhouses is a bi-monthly magazine for existing and intending commercial growers, equipment & installation suppliers, industry consultants & service providors, researchers & educators, horticulture students, and anyone else with an interest in hydroponics, aquaponics and greenhouse technology. Each issue is packed with the latest industry news, new product developments, grower application and how-to articles, the latest industry research & developments, and technical issues affecting commercial growers worldwide.”
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http://www.uaf.edu/salrm/gbg/botanicallinks/ghmanage.html
A site with reenhouse management links – sponsored by University of Alaska Fairbanks
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http://www.utextension.utk.edu/hbin/HBIN-Greenhouse.htm
Horticulture Business Information Network – a portal with links to massive amounts of information!
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http://www.attra.org/attra-pub/ghwebRL.html
Greenhouse and Hydroponic Vegetable Production Resources on the Internet An ATTRA portal web site
Friday, February 23, 2007
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