Operation in Turkey

TABLE 5.4 Total Costs of a 1,035 Square Meter Hydroponic

Cucumber Production Operation in Turkey

Item Total cost ($)

Share of cost (%)

variable costs (1) 1,679 42.4 Fixed costs (2) interest on total initial investment costs 1,050 26.5 Annual initial investment costs 911 23.0 interest on total variable costs 118 3.0 Administrative costs 50 1.2 total 2,129 53.7

land rent (3)

Total costs (1+2+3) Per square meter

154 3.9

3,962 100.0 3.83

Source: Engindeniz 2004.

hydroponic food production methods, such as aeroponics. A commercial greenhouse that measures 279 m2 with complete heating, cooling, and ventilation systems costs between US$10,000 and US$30,000. Low-cost greenhouses, such as hoop houses and attached solar greenhouses, can be constructed for as little as US$500 to US$1,500 (Greer and Diver 2000). A modern greenhouse with a hydroponic plant growing system costs US$90 to US$100/m2 to build, excluding the cost of land. Glass panels for greenhouses can cost as much as US$140/m2 (Jensen and Malter 1995). Building multiple greenhouses would increase the total expenditure but reduce the cost per square meter (Engindeniz 2009). Table 5.5 shows the initial investment costs for greenhouse construction in Turkey.

Labor

Labor and energy are the main operating costs in colder climates. The labor costs can be mitigated in developing countries, where labor is much cheaper, and by using automated systems, which reduces the system’s reliance on manual labor. Moreover, hydroponics requires less labor after the system’s initial installation (Daly and Fink 2013).

People without a formal education can rapidly acquire the skills to operate hydroponics. Soil-grown produce has increased labor costs because of weeding, watering, and pesticide spraying requirements (Resh and Howard 2012). Field visits showed that labor costs are higher in more sophisticated hydroponic systems, which require more technical expertise to monitor and troubleshoot when problems arise. In industrial-sized hydroponics, growers must have technical skills in crop species, plant health, nutrient deficiency and toxicity, nutrient solutions, electricity, and water circulation systems. Therefore, it is