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An Economic Study of Vegetable Protected Hydroponics On Small Farms (A Case Study On Vegetable Protected Hydroponics In Giza Governorate)

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Last updated: 04 Jan 2025

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Abstract

The study examines the potential of hydroponic agriculture in protected greenhouses as a means to enhance food security in regions with limited water resources. It involved personal interviews with vegetable farm owners and technical experts, and conducted an exploratory study of 12 hydroponic farms, focusing on a 360 m2 greenhouse as a case study. The research aimed to analyze production costs, returns, break-even points, and net added value to assess the efficiency of this technology in Egyptian agricultural conditions, as well as the obstacles preventing its widespread adoption.
In the case of the 360 m2 greenhouse, the total production costs for the first year were 945.7 thousand pounds/unit, decreasing to 545 thousand pounds/unit for subsequent production periods. Annual revenue was 760 thousand pounds/unit, resulting in a favorable return on investment (R/C ratio of 1.13) and profitability (B/C ratio of 1.22). The net present value was 586.37 thousand pounds, with an internal rate of return (IRR) of 81% and a payback period of 1.55 
years. The study also highlighted the need for expansion or the addition of new production activities to maintain profitability beyond the fifth year. Obstacles to the widespread adoption of hydroponic agriculture included the scarcity of skilled labor, high costs of nutrients and seed/seedlings, increasing energy and fuel prices, and competition 
with open-field crop production. In conclusion, the study demonstrated the economic viability and efficiency of hydroponic agriculture in protected greenhouses under Egyptian conditions, while also identifying key challenges that 
hinder its wider implementation.

DOI

10.21608/sjas.2023.247645.1359

Keywords

Protected hydroponics vegetables production, case study, Internal Rate of Return, Return on Investment, break-even point, payback period, Net Present Value, Net added value

Authors

First Name

Mona

Last Name

Arafat

MiddleName

Mohmed

Affiliation

Dept. Protected Cultivation Technology in Arid Land, Arid land Agricultural graduate studies and Research Institute (ALARI)., Ain Shams Univ., Cairo, Egypt

Email

monaarafat@alari.asu.edu.eg

City

Giza

Orcid

-

First Name

Thanaa

Last Name

Selem

MiddleName

Al-Noubi

Affiliation

Head of Agricultural Economic Departmen,Fac. of Agric., Ain Shams Univ. , Egypt

Email

dr.sanaaelnoby@gmail.com

City

cairo

Orcid

-

First Name

Mona

Last Name

Ryad

MiddleName

Kamal

Affiliation

Dept. Protected Cultivation Technology in Arid Land, Arid land Agricultural graduate studies and Research Institute (ALARI)., Ain Shams Univ., Cairo, Egypt

Email

mona_abdelkareem@agr.asu.edu.eg

City

giza

Orcid

-

First Name

Usama

Last Name

El-Behairi

MiddleName

Ahmed

Affiliation

Dept. Protected Cultivation Technology in Arid Land, Arid land Agricultural graduate studies and Research Institute (ALARI)., Ain Shams Univ., Cairo, Egypt

Email

usama_elbehairi@agr.asu.edu.eg

City

cairo

Orcid

-

Volume

5

Article Issue

4

Related Issue

44609

Issue Date

2023-12-01

Receive Date

2023-11-10

Publish Date

2023-12-01

Page Start

349

Page End

362

Print ISSN

2535-1796

Online ISSN

2535-180X

Link

https://sjas.journals.ekb.eg/article_335032.html

Detail API

https://sjas.journals.ekb.eg/service?article_code=335032

Order

335,032

Type

Original Article

Type Code

916

Publication Type

Journal

Publication Title

Scientific Journal of Agricultural Sciences

Publication Link

https://sjas.journals.ekb.eg/

MainTitle

An Economic Study of Vegetable Protected Hydroponics On Small Farms (A Case Study On Vegetable Protected Hydroponics In Giza Governorate)

Details

Type

Article

Created At

30 Dec 2024