Narcissus and Daffodil

Economics of bulb production 137
BENEFITS OF INTRODUCING BULBS INTO THE ROTATION
Many farmers would welcome a new crop to grow, particularly on a contract,
where, price is guaranteed for produce of acceptable quality. Potato and vegetable
cropping are, however, becoming increasingly concentrated in the hands of
specialists who are prepared to invest heavily in crop handling and storage
equipment. The returns from these crops are also unpredictable, particularly
if irrigation is not available. Further, in the UK, sugar beet production is
effectively a closed shop, due to the requirement for quota from the British Sugar
Corporation.
Recent changes in the relative profitability of combinable crops and alterations
to support payments under the CAP have generated additional interest in
alternative crops. Reform of the CAP has been necessary due to the need to
compete more effectively in world markets, to reduce the cost of agricultural
support and to discourage accumulation of large food surpluses produced to the
detriment of the environment. A major series of negotiations in early 1999
known as ‘Agenda 2000’ brought agreement to revisions to the CAP which
progressively reduced commodity support from the year 2000 onwards. As a
result, EU farmers will be exposed to the volatility of world markets and the
realities of global competition.
Potential bulb producers can be grouped into two classes, those who already
grow bulbs, onions, carrots or potatoes, and those who do not grow any of these
crops. The reason for this division is the existing investment in equipment
which, members of the first group are already likely to have undertaken. The
equipment required for bulb handling, storage, drying and hot-water treatment
is described below, and such investment would not be undertaken lightly by a
new grower. Farmers in the first group are likely to possess, or have access to,
the necessary equipment. They will, therefore, have the higher fixed cost
structure associated with these crops and, in the case of potato growers, the
narcissus crop would have the following considerable agronomic and financial
advantages:
1 An additional high-value crop to incorporate into the rotation (there should
be a minimum of 5 years between potato crops).
2 Labour and machinery requirements dovetail well with the potato enterprise:
Harvesting of bulbs will be complete, except where early potatoes are grown.
Irrigation will have some overlap, but is generally earlier and for less time for
bulbs.
Bulbs can be in and out of store before potatoes go in.
3 No major pest or disease problems are common to both crops.
BUDGET CAPITAL COSTS FOR NARCISSUS PRODUCTION
The capital costs, at 1999 levels, for the establishment of a 10 ha narcissus bulb enterprise
are presented in Table 5.5. It is assumed that total bulb yields of 350 tonne