Articles
TECHNICAL AND ECONOMICAL DYNAMICS OF INNOVATIONS IN BELGIAN AZALEA PRODUCTION
Article number
536_32
Pages
277 – 284
Language
Abstract
The production of azaleas is a typical Belgian speciality.
This traditional production was characterised by a number of major innovations.
Technical and economical dynamics of these innovations were examined.
A first wave of innovations was introduced in the eighties, and these innovations introduced other innovations.
The switchover from grafted azaleas to cuttings reduced the cultivation period, and so there was a need to increase the glasshouse areas.
The switchover to cultivation in pots, during the whole production period offered opportunities for better mechanisation.
As a consequence the productivity of labour doubled and the size of the holdings increased.
At first the innovations led to a considerable increase in profitability.
But after some years, as production increased, the prices tell and profitability decreased.
A lot of holdings disappeared and in the beginning of the nineties the effect of the innovations was over and the sector had a bad time.
In recent years a second wave of innovations took place.
These innovations stressed ecologically sound production and better marketing.
This involved considerable investments and a new increase in scale of the holdings.
The case study of the Belgian azalea production indicated that innovations involved important technical and economical changes.
This is comparable to a life cycle were in the first stage there are positive effects and the sector is expanding.
After some years, however, the positive effects fade (increasing production leading to decreasing prices). Then new innovations are required to improve the situation of the sector and the cycle starts again.
This traditional production was characterised by a number of major innovations.
Technical and economical dynamics of these innovations were examined.
A first wave of innovations was introduced in the eighties, and these innovations introduced other innovations.
The switchover from grafted azaleas to cuttings reduced the cultivation period, and so there was a need to increase the glasshouse areas.
The switchover to cultivation in pots, during the whole production period offered opportunities for better mechanisation.
As a consequence the productivity of labour doubled and the size of the holdings increased.
At first the innovations led to a considerable increase in profitability.
But after some years, as production increased, the prices tell and profitability decreased.
A lot of holdings disappeared and in the beginning of the nineties the effect of the innovations was over and the sector had a bad time.
In recent years a second wave of innovations took place.
These innovations stressed ecologically sound production and better marketing.
This involved considerable investments and a new increase in scale of the holdings.
The case study of the Belgian azalea production indicated that innovations involved important technical and economical changes.
This is comparable to a life cycle were in the first stage there are positive effects and the sector is expanding.
After some years, however, the positive effects fade (increasing production leading to decreasing prices). Then new innovations are required to improve the situation of the sector and the cycle starts again.
Authors
D. Van Lierde
Keywords
life cycle, productivity, profitability
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