Horticulture Principles and Practices

2. Labor. The size of the labor force depends on the level of automation. Some activities
are hard to automate and hence must be done by humans. These activities include
spraying, preparation of the growing media, setting up containers on benches,
harvesting, and cleaning.
13.4.2 INDIRECT COSTS
Indirect costs are generally described as overhead costs and include equipment depreciation,
utility fees (e.g., water, fuel, and electricity), taxes, and administrative costs. Overhead costs
may be about 25 to 40 percent of total production costs.
13.4.3 MARKETING
A major marketing cost is transportation. Others are packaging and advertising. Certain
floricultural products require special packaging before marketing. Distribution and
marketing costs may vary between 5 and 15 percent of total production costs.
13.5 PRODUCTION AND MARKETING STRATEGIES
Greenhouse producers operate one of three types of floricultural businesses. One group of
producers (growers) limit their enterprise to producing plants, leaving the selling to others
such as wholesalers. They usually concentrate on the production of one or a few types
of plants. Some producers (grower wholesalers) produce some of their products but also
purchase from other growers and sell on a wholesale basis. In addition to plants, they may
also sell floricultural production accessories such as containers and wrappers. The third
category of growers (grower retailers) market their products through a network of outlets.
They may sell to other retailers or wholesalers. Brokers acting as sales agents arrange
sales between growers and wholesalers. Flowers may also be auctioned. Full-service
retailers add value to the fresh products through professional arranging (Chapter 24) or
wrapping potted plants and tying with a bow, the function of the traditional florist. Florist
prices are high because of their overhead costs. Floricultural products may be sold by the
mass marketing strategy of selling in high-traffic locations (e.g., malls, airport terminals,
street corners, and bus terminals). Prices at these locations are usually low.
13.6 THE CONCEPT AND APPLICATION OF DIF
Growing plants in a greenhouse offers opportunities for growers to manipulate the growing
environment to control plant growth and development. Traditionally, greenhouse
producers grow plants at a lower (cooler) nighttime temperature than daytime temperature,
the rationale being that a cooler night temperature reduces respiration, thus
conserving carbohydrates. For example, on a clear, sunny day, the nighttime temperature
may be 15.5°C (60°F) while the daytime temperature would be about 24°C (75°F); a
15°F difference. On a cloudy day, indoor temperature is usually lower during the
daytime (about 21°C or [70°F]), the night temperature remaining 15.5°C (60°F). This
high-day–low-night temperature regime allows plants to photosynthesize and grow
(stem elongation) more during the daytime and less at night.
Scientists have discovered that going against tradition and growing plants at a lower
temperature during the day than at night is an effective strategy for controlling plant height
(reduced growth or reduced stem elongation). This concept is called DIF, the difference
between daytime and nighttime temperatures; that is, DIF-day temperature–night
temperature. A positive DIF indicates a lower nighttime than daytime temperature
Greenhouse Production 441