Articles
A NET PRESENT VALUE AND FINANCIAL FEASIBILITY ANALYSIS OF CONVERTING FROM PLASTIC POTS TO DEGRADABLE PAPER POTS
Article number
930_17
Pages
135 – 140
Language
English
Abstract
This study estimates and compares the production costs and economic profitability of a greenhouse business adopting a sustainable floriculture production practice in their operation.
We hypothesized that the adoption of this production system would result in increased profits for the business.
Sustainable production practices that reduce or eliminate the use of plastic are very important in the floriculture industry due to increased concerns about plastic waste created by the industry, as well as increased oil and transportation costs.
Using Net Present Value (NPV), financial feasibility and internal rate of return analysis, we determined that purchasing an Elleguard machine and converting to paper Ellepots instead of conventional plastic pots would be a profitable activity for this operation.
We also compared the profitability of substrates, in terms of added value, and found that using the current substrate was the most profitable option.
This study may provide greenhouse growers with a tool to help make better business decisions when considering a capital intensive addition to their operation.
We hypothesized that the adoption of this production system would result in increased profits for the business.
Sustainable production practices that reduce or eliminate the use of plastic are very important in the floriculture industry due to increased concerns about plastic waste created by the industry, as well as increased oil and transportation costs.
Using Net Present Value (NPV), financial feasibility and internal rate of return analysis, we determined that purchasing an Elleguard machine and converting to paper Ellepots instead of conventional plastic pots would be a profitable activity for this operation.
We also compared the profitability of substrates, in terms of added value, and found that using the current substrate was the most profitable option.
This study may provide greenhouse growers with a tool to help make better business decisions when considering a capital intensive addition to their operation.
Authors
T.J. Hall, J.H. Dennis, R.G. Lopez, T.L. Cannady
Keywords
ellepots, greenhouse, sustainable floriculture
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