Abstract
Enterprise budgets that could be served as a guide to the local entrepreneurs are estimated for seven popular greenhouse vegetable crops grown in Saudi Arabia. The selected crops are tomatoes, cucumbers, green peppers, eggplant, okra, beans, and squash. The estimated enterprise budgets are based on the best and most accurate estimates on returns and costs available in the year 2000 for some specialized greenhouse vegetable enterprises in Saudi Arabia. Breakeven analysis for prices and crop production is applied on the selected crops to show the possible range of reduction in prices per ton and crop production in which the enterprises are to breakeven. Results of the study showed a desirable enterprise environment of the selected crops in Saudi Arabia. Tomatoes and cucumbers are the most profitable greenhouse enterprises, generating about 160.9 thousand SR/ha. for tomatoes and about 155.5 thousand SR/ha. for cucumbers, whereas, okra and eggplant generate the least net returns out of the selected crops, about 5.3 and 9.6 thousand SR/ha. respectively. Results showed, also, the wide range of reduction in prices per ton and crop production in which the enterprises are to breakeven, ranging between a minimum of 4% for okra and a maximum of 51% for cucumbers.
Highlights
Greenhouse use in agriculture is a favorable and promising investment in Saudi Arabia
Realizing its potential productivity and efficient water use, Saudi Arabia pays a great attention towards expanding the use of greenhouse in agriculture
Tomatoes and cucumbers are the leading greenhouse vegetable crops grown in Saudi Arabia, representing more than 85 % out of the overall greenhouse production in 1999 (Ministry of Agriculture and Water, 2001a,b)
Summary
Greenhouse use in agriculture is a favorable and promising investment in Saudi Arabia. Tomatoes and cucumbers are the leading greenhouse vegetable crops grown in Saudi Arabia, representing more than 85 % out of the overall greenhouse production in 1999 (Ministry of Agriculture and Water, 2001a,b). The main objective of this paper is to estimate enterprise budgets of some popular greenhouse vegetable crops in Saudi Arabia, namely, tomatoes, cucumbers, green peppers, eggplant, okra, beans, and squash, and this could work out as a guide to the local entrepreneurs. Enterprise budgets represent estimates of returns, costs, and net returns associated with the production activities of crops and livestock enterprises. Such information is highly valued to farm producers and entrepreneurs, extension specialists, governmental agencies, and decision makers. The enterprise budgets should reflect average or typical conditions when working on national or regional level (Kletke, 1989)
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