Greenhouse-grown Colored Peppers: A Profitable Alternative for Vegetable Production in Florida?

Abstract

The increase in U.S. demand for colored bell peppers ( Capsicum annuum ) has been satisfied with increased supplies from imports and increased domestic production. Greenhouse-grown peppers of red, orange, and yellow colors were imported during the period 1993–2002 at wholesale fruit market prices that were three to five times greater than field-grown fruits. With high market prices and a suitable environment for growing colored peppers under inexpensive greenhouse structures [<$40/m 2 ($3.7/ft 2 )], up to 14 ha (34.6 acres) of greenhouses produced bell peppers in Florida in the year 2002. To estimate the profitability of a bell pepper greenhouse enterprise, a budget analysis was used to calculate the returns to capital and management. Production costs of greenhouse-grown peppers were estimated assuming the use of current technology applied in commercial greenhouse crops in Florida and in experimental crops at the University of Florida. Production assumptions included a crop of nonpruned plants grown in soilless media in a highroof polyethylene-covered greenhouse [0.78 ha (1.927 acres)] located in north-central Florida. For a fruit yield of 13 kg·m –2 (2.7 lb/ft 2 ), the total cost of production was $41.09/m 2 ($3.82/ft 2 ), the estimated return was $17.89/m 2 ($1.66/ft 2 ), and the return over investment was 17.1%. A sensitivity analysis indicated that fruit yields should be greater than 7.8 kg·m –2 (1.60 lb/ft 2 ) in order to generate positive returns based on a season average wholesale fruit price of $5.29/kg ($2.40/lb). For this price, a range of possible fruit yields [5–17 kg·m –2 (1.0–3.5 lb/ft 2 )] led to returns ranging from –$9.52 to 30.84/m 2 (–$0.88 to 2.87/ft 2 ), respectively. The estimates indicate that production of greenhouse-grown peppers could represent a viable vegetable production alternative for Florida growers.