Horticulture Principles and Practices

Texas whereas cut flowers are produced on the larges scale in California (69 percent),
which, along with Florida, Washington, Hawaii, and Oregon, together account for over
80 percent of the total crop. On the world scene, the Netherlands and Colombia
account for about 70 percent of the cut flower production.
U.S. vegetable production has traditionally been concentrated near population centers,
especially in the northeastern region. However, as transportation improved and energy
costs soared, the industry was forced to move to the southern states. Adequate light is a
key factor to successful greenhouse production. Consequently, the Southwest is ideal for
greenhouse vegetable production, especially in the winter months when tomato and
cucumber prices are at a premium. Some production occurs in the Northeast, but the
region is disadvantaged by relatively stabilized population and harsh climate, whereas
the south and west have favorable climate for more cost-effective production, in addition
to the proximity of expanding markets.
Unfortunately the southwestern greenhouses have challenges of their own.
The summer heat makes cooling expensive for producing high-quality crops. Further, the
expanding winter production in Mexico threatens to reduce greenhouse tomato prices
and increase the competitive pressure on year-round production by U.S. producers.
13.3 THE ROLE OF IMPORTS
Modern delivery systems comprised of efficient transportation (jet) and storage facilities
make it easy to transport fresh flowers across continents in a short period. Further,
production costs are relatively lower in certain areas with appropriate climates. In
terms of greenhouse production, the Netherlands has the largest number of these
climate-controlling units. Cut flowers imported into the United States include carnation
(80 percent), mum (57 percent), and rose (42 percent). Other plants involved in
the import trade include astroemeria, tulip, daffodil, freesia, potea, and cut palm.
Major exporters of floricultural products to the United States are the Netherlands,
Spain, Italy, Israel, Kenya, Turkey, Brazil, Colombia, Costa Rica, Ecuador, Mexico,
Peru, and Japan. Colombia is the main producer of cut flowers sold in the United
States, especially roses, carnations, spray chrysanthemum, and Astroemeria. Second
after Colombia in export to the United States is Ecuador, a major supplier of roses,
Delphinuims, asters, and Gysophila (baby’s breath). These two countries account for
about 90 percent of roses, 98 percent of carnations, and 95 percent of chrysanthemums
sold in the United States. To decrease the competition from imports, U.S. producers
will have to reduce production costs (e.g., through improved and more efficient management
of the enterprise, marketing, high-quality products, and increased productivity
for a steady supply of flowers).
440 Chapter 13 Greenhouse Production
13.4 PRODUCTION COSTS
The cost of greenhouse production depends on many factors, the major ones including
local climate, cost of labor, cost of materials, marketing costs, method of production, and
scale of production. The costs associated with these factors may be grouped into direct,
indirect, and marketing costs.
13.4.1 DIRECT COSTS
1. Materials. Cost for materials includes that for seeds and other planting materials,
chemicals (including fertilizers, pesticides, and hormones), growing media, and
containers (e.g., pots, trays, and flats).