May 1995
Back in the mid-1970's, Horticulture students (then) James Baden and Jim Orband assisted me with greenhouse tomato research projects, keeping time-on-tasks records, as well as assisting with harvests and yield/quality data collections. We worked with both spring and fall planted crops, using the data to develop a budget handout for growers.
Since that time, prices for greenhouse-grown off-season vine-ripe tomatoes have soared at retail compared to prices received most summer seasons for field-grown tomatoes in this area. We do not have an early season market window here compared to the eastern shore, but often see favorable prices for fall tomatoes field grown in this area. However, for greenhouse-grown fruit ripened on the vine, sold at retail or near-retail directly to consumers and restaurants willing to pay for taste and flavor, from late November through May, often later if we have a cool, wet,late spring, producers have been receiving a dollar per pound for ungraded fruit, and upwards to over $2. per pound size/ripeness graded for retail or near-retail sales and delivery to restaurants and direct marketed to consumers.
Wholesale prices are a whole 'nother story, usually dictated by how low a volume buyer can bid down prices of field-grown Mexican or Florida winter tomatoes, pure financial carnage in times of field gluts in supply from those winter producing areas. Solution: Start small, stay retail, grow only with retail demand for your proven product! Tobacco float-bed greenhouses could easily be used for fall crops using peat-lite mix in the ground troughs. Plants must be set in the house in early August, harvests run from late October through Christmas.
Obviously, these figures below negate the old 40 cents/pound wholesale prices used in the mid-1970's. Greenhouse fuel costs, however, were actually higher in the mid-'70's compared to the mid-1990's due to the aftermath of the Middle East oil embargo during those days.
Unit: 24' x 100' double layer plastic covered greenhouse
Income: 600 plants (4 sq. ft. per plant) x 7 lbs. marketable
tomatoes per plant x .40 cents per lb. = $1,680 in
1975, wholesale value.* In 1995, direct marketed at
$1.00 per lb. 4200 lbs. = $4,200.
*Fall crops in VA rarely exceed 7 lbs. marketable fruit/plant before short days reduce flowering.
Costs:
1. 10 year pro-rated life, pipe-frame greenhouse and
heating-ventilating equipment @$2. per
square ft. = $4,800/ 10 = 480. annual cost/ 2 annual
crops = $240.
2. Fuel costs (based on propane, Blacksburg, Hort. Research Farm Vegetable Research Greenhouse, VPI&SU, fall crop, 1974), @ .25 cents per square foot, floor space, or $1. per plant, = $600.
3. Plant production costs, 600 @ $.03 = $18.
4. 6 crops, for crop-growing media, soilless peat-lite, pro-rated life, 15 cu. yards, @ $35. per cu. yd., including lime & initial nutrients, = $525. / 6 = $87.50.
5. Electricity, Aug. 1 - Dec. 20 = $50.
6. Tissue Analysis, 2 samples @ $10. = $20.
7. Spray materials and smoke bombs (termil), 10 applications @ $1. each = $10.
8. Twine, trellising, baling, $10.
9. 10 year pro-rated life, trellis wire, $60./10 = $6./2 = $3.
10. Marketing costs, including hauling, 20 harvests over 10 week period @ 2 per week, @ 5 cents per lb. = 4200 x $.05 = $210.
11. Pro-rated annual costs of 2 layers plastic covering, 40' x 100', 6 mil. u. v. ray inhibited,@ $125. per cover = $250./2 years = $125/2 crops = $62.50.
12. C. L. F. (constant liquid feed) nutrients, 50 lbs. x $.40 per lb. = $20.
TOTAL PRODUCTION COSTS = $1,331.
NET to labor, management, and other fixed costs, for 4 1/2 months total time span = $349.
Returns per hour to labor = $0.92 in 1975.
NET to 379 hours labor, management, fixed costs in 1995 = $2,969, $7.57 per hour.
Labor Requirements:
| OPERATION | HOURS |
|---|---|
| Covering house with plastic, pro-rated per crop | 7 |
| Producing transplants | 25 |
| Constructing and filling troughs with peat-lite mix, pro-rated for 6 crops = 50 hours/6 = | 8 |
| Soil testing, adjusting pH and nutrient levels, and transplanting | 8 |
| Stringing twine | 12 |
| Pruning and training | 50 |
| Applying pesticides | 15 |
| Watering and feeding @ 2 hours/week x 18
weeks, drip irrigation system | 36 |
| Pollinating, 1 hour every other day x 63 | 63 |
| Harvesting, 20 times x 2 hours | 40 |
| Grading and boxing, 20 times x 1 hour | 20 |
| Marketing, 20 times x 4 hours | 80 |
| Cleaning up | 15 |
| HOURS LABOR | 379 |
Costs: Essentially same as fall crop except for following items: #3 (on fall crop lists): Plant production costs @ $.04 each = $24. #10 marketing costs, higher, 7,200 lbs. x $.05/lb. = $360.
TOTAL PRODUCTION COSTS = $1,487
**In spite of claims made by some greenhouse manufacturers, 12 pounds of marketable fruit per plant on the spring crop is average for our Virginia conditions.
Net Income: To labor, management, and other fixed costs = $2,880.00 - $1,487. = $1,393.00 for 5 month time span in greenhouse in 1975. $7,200 - $1,487 = $5,783 net income in 1995.
Labor requirements similar, or comparable to fall crop, except a little more time for marketing:
In 1975: $2,880. - $1,487. = $1,393. Net to labor, divided by 379 hours = $3.67 per hour. In 1995: $7,200 - $1,487 = $5,713 divided by 379 hours = $15.07 per hour. CAUTION: Arrange markets BEFORE planting. Also consider direct marketing to retail clients and upscale restaurants @ $2.00 or more per lb.
FOR FURTHER INFORMATION:
1. Jimmy Mullins, Extension Horticulturist, Greenhouse Crops, VA State University, Box 540, Petersburg, VA 23803-2095 (804) 524-5960
2. J. Mullins. 1993. How to Grow Greenhouse Tomatoes Using the Hydroponic System. 20 p. Coop. Ext. Pub. Office, Box 540, VA State Univ., Petersburg, VA 23803-2095.
3. Textbook covering ALL Production Systems: S. H. Wittwer and S. Honma, 1979. Greenhouse Tomatoes, Lettuce and Cucumbers. Michigan State Univ. Press, from Meister Pub. Co., 3773 Euclid Ave., Willoughby, OH 44094. 225pp. $20.00.
4. R. Snyder. 1993. Greenhouse Tomatoes. Mississippi State Univ., CES Pub. 1828, P. O. Box 231, Crystal Springs Res. Station, Crystal Springs, MS 39509. 25pp.
5. Vegetable Crops Division. 1991. Greenhouse Veg. Crops Production Guide, CES Pub. SP 48, $9. Univ. of Florida Publications Office, IFAS Bldg. 664, P. O. Box 110011, Gainesville, FL 32611-0011. 98pp.