Cost-benefit Analysis of Cherry Tomato Production in a Medium-Sized Greenhouse: A Case Study

Greenhouse cherry tomato production offers advantages such as controlled growing conditions and extended market availability; however, it also presents significant financial challenges. This study constructs an enterprise budget and evaluates the economic feasibility of greenhouse cherry tomato production, using a commercial greenhouse farm located in Florida as a case study. The cost-benefit ratio (CBR) and break-even points were calculated, and sensitivity analyses were performed. Results indicate that the average production cost amounts to $34.21/ft 2 per year in an 18,000-ft 2 medium-tech greenhouse. Projected revenue, based on an average selling price of $3.29/lb, totals $592,200 or $32.90/ft 2 per year, leading to a net loss of $23,624.50. The CBR of 0.962 and the break-even price of $3.42/lb indicate that the operation is currently operating at an economic loss. Sensitivity analysis further highlights the difficulty of achieving profitability, as even with increased sales volumes, revenue remains insufficient at the current market price. These findings suggest that greenhouse systems frequently face high production costs, underscoring the need to secure premium pricing, obtain subsidies, or reduce costs through efficiency improvements. To enhance financial sustainability, greenhouse producers may need to explore strategies such as reducing energy and labor expenses through higher-efficiency production systems, implementing value-added marketing, or targeting niche markets.