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An Analysis of Optimal Production Scales by Greenhouse Types using Long-run Average Cost in Controlled Tomato

비닐하우스 토마토의 온실유형에 따른 장기평균비용을 고려한 적정 생산규모 분석

  • Rhee, Zae-Woong (Department of Agricultural Economics, Kyungpook National University) ;
  • Hong, Na-Kyoung (Department of Agricultural Economics, Kyungpook National University) ;
  • Kim, Tae-Kyun (Department of Agricultural Economics, Kyungpook National University)
  • Received : 2015.04.21
  • Accepted : 2015.08.20
  • Published : 2015.09.30

Abstract

The optimal greenhouse scales for controlled tomato should be studied because the increase of oil price and labor costs following the shortage of workforce makes greenhouse cultivation hard to gain profits. The purpose of this study is to estimate optimal production scales by greenhouse types for controlled tomato. The translog cost function is estimated based on the production cost survey data. The results can be summarized as follows: First, the average production cost of controlled tomato per kg decreases as the production scale increases. Second, according to the tomatoes farm of standard farming income data of RDA, the minimum production scale is 23 ton. Third, the estimated output of single-span greenhouse considering production scale with minimum average cost is 345 ton and production cost per kg is 1,476 won. The corresponding figures of multi-span greenhouse are 415 ton and 936 won, respectively. The study results can be used as basic materials for efficient decision making of tomato farmhouses and novice farmers. Also, the study shows that multi-span greenhouse should be encouraged to be built, since it requires lower marginal cost than single greenhouse. The results of this paper will help increase the income of farmhouses and cut expenses for the coming years.

Keywords

References

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