INVESTMENTS IN DURABLE MEANS OF PRODUCTION : MAKING A CHOICE FROM THE VARIOUS GLASSHOUSE TYPES

J.K. Nienhuis
For a grower to decide which glasshouse he is going to build depends on many factors. For all these factors (variables) data will have to be available which can be used in the calculations.

A distinction can be made between technical and economic variables. Technical variables are holding-dependent and include such factors as light transmission percentage of the glasshouses to be built, whether or not it will be equipped with a thermal screen, the light loss percentage of the screen, the light-yield ratio, the capital expenditures, etc. Economic variables, on the other hand, are holding-independent, such as expectations about the gas price developments, about the market rate developments, about the product yields (monetary and in volume).

Apart from the specific holding factors such as cropping plan, gas consumption, yields, etc., the period over which the investment alternatives are being calculated should also be indicated.

The above list clearly indicates that the selected starting points may strongly influence the final results. Both technical and economic variables show differences in value and in a number of them there is uncertainty about the weight and development of the values. This necessitates closer study of the sensitivity for the investment calculation by means of an approach in which several starting points are set side by side.

A method for weighing future pros and cons against each other is the cash value method. Thus an investment alternative can be evaluated in a 'simple' way. The balances of the assets and liabilities to be expected annually can be made comparable by making the balances cash for the moment of investment. Comparison of the final sum of the cash made balances with the amount to be invested points out whether the investment will be profitable (the net cash value). By comparing the different net cash values for the different investments the glasshouse can be built which turns out to be the best.

For the above purpose a computer programme has been developed in cooperation with the Agricultural Economics Research Institute. On the basis of the poster a selection from different glasshouse types with different variables will be worked out.

Nienhuis, J.K. (1989). INVESTMENTS IN DURABLE MEANS OF PRODUCTION : MAKING A CHOICE FROM THE VARIOUS GLASSHOUSE TYPES. Acta Hortic. 245, 577-582
DOI: 10.17660/ActaHortic.1989.245.78
https://doi.org/10.17660/ActaHortic.1989.245.78

Acta Horticulturae