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The Economics of Production and Marketing of Greenhouse Crops in Alberta

 
 
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 Introduction
The greenhouse industry in Alberta has gone through several adjustments, therefore, the need was felt to develop costs and returns based on current conditions so the industry can change accordingly. Because of changing economic conditions, previously compiled information on the greenhouse industry in the late nineties had become more or less obsolete. The cost of natural gas, electricity and other greenhouse supplies became major concerns during the fall of 2000 and early 2001. This study based on actual costs and returns from 43 greenhouse operators across the province, provides more current data on costs and returns for major greenhouse crops. Full text of the 49 page report is available in pdf format.

Objectives of the study
The major objectives of the study were:

  • Determination of the structure of the greenhouse industry in Alberta.
  • Estimation of greenhouse production costs and returns by major crops.
  • Identification of the main factors influencing production and marketing of greenhouse crops in Alberta.
  • Identification of major problems experienced by greenhouse producers in Alberta.
The study sample
A questionnaire specifically designed for greenhouse operations was used to obtain the required information from the selected sample of greenhouse operators across the province. Forty three greenhouse operators were interviewed to obtain production costs and returns information on bedding plants/ornamentals, cucumbers, peppers, tomatoes and tree seedlings for the 2005-2006 crop year.

Method of analysis
After completion of the questionnaire, raw data were reviewed to make sure that no information was missing before entering it for analytical purposes. In the past, we used a mainframe computer program "SPSS" (Statistical Package for the Social Sciences) to analyze both the individual farm reports as well as computing group averages. However, for the 2005-2006 crop year, a Paradox 9 program (micro-computer database) was used to analyze the greenhouse data. This program is very versatile and allows changes and updates in many of the cost allocations.

Each greenhouse operation was analyzed separately. The study sample was divided by crop groups. In order to preserve confidentiality of the data obtained, no group averages were developed for greenhouse crops with less than four participants.

For more information please contact:
Nabi Chaudhary
Senior Economic Analyst - Crops
Economics Unit
Ph: (780) 422-4054
Fax: (780) 427-5220
Email: nabi.chaudhary@gov.ab.ca

Source: Agdex 821-59. October 2006.

 
 
 
 
For more information about the content of this document, contact Nabi Chaudhary or Agriculture Information Services.
This information published to the web on June 18, 2002.
Last Reviewed/Revised on October 1, 2006.