Conceptual Framework for Urban Farming (UF) Cost Components: The Application of Iceberg Total Cost of Ownership (TCO) Model

Abstract

Urban poverty has worsened in Malaysia and has been severely impacted by the pandemic. The B40 has been hit the hardest with debts, job loss and income, whereas their 'fixed costs' have been the same, especially in urban areas. As a solution on food security and poverty in urban area, the government initiate the ‘Pertanian Bandar’ as an assistance programmes under Department of Agriculture to help the urban poor which introducing Smart Urban Farming (UF). Smart UF is broad and involves a wide range of activities, from conventional UF and increasingly towards technological innovation in food growing. However, a poor choice could influence the phase of initial, management, maintenance, and harvest. A wise choice will benefit both the investor and the practitioner when the technology is ease of use and maintenance. As of now, Life Cycle Cost (LCC) is the ideal strategy for investors to use. Thus, through in-depth literature review, the paper aim to develop a conceptual framework for (LCC) in the context of smart urban farming, employing the Iceberg Total Cost of Ownership (TCO) model. The conceptual framework for Smart UF LCC component divided into acquisition cost and hidden cost based on Iceberg Total Cost of Ownership (TCO) mode. The component of LCC which is according to Smart UF practices might assist in decision-making by gaining a holistic view of the costs involved in a project or investment. It helps in identifying cost drivers, evaluating trade-offs between different options, and comparing the economic efficiency of alternative solutions.