Financial Viability of Business Models For Engineered Vertical Hydroponics Systems For Sustainable Onion Production in The Philippines
DOI:
https://doi.org/10.37385/jaets.v4i2.2040Keywords:
Sustainable Agriculture, Vertical Farming, Hydroponics, Onion Production, Financial Viability, Socio-Economic Benefits, Environmental BenefitsAbstract
This study aimed to explore the financial, socio-economic, and environmental benefits of sustainable onion production using vertical farming and hydroponic systems, and to identify key factors affecting the viability of these business models. Data were collected through a survey of onion farmers and producers in the Philippines, and analyzed using descriptive and inferential statistics. Results showed that sustainable onion production using vertical farming and hydroponic systems has the potential to generate higher income for farmers, increase employment opportunities, improve food security, enhance market competitiveness, and promote environmental sustainability. Key financial factors affecting viability included production costs, market prices, yield, labor costs, energy costs, capital costs, financing costs, taxes and regulatory costs, and maintenance and repair costs. Recommendations for optimizing financial viability include reducing production costs, diversifying income streams, and improving market competitiveness. Overall, this study suggests that sustainable onion production using vertical farming and hydroponic systems is a viable and promising approach to achieving socio-economic and environmental sustainability in the agricultural sector.
Downloads
References
Armas, Kenneth (2023), Engineering Technology Application and Commercialization through University-Based Business Incubator. International Journal of Applied Engineering and Technology 5(1), 54-59. Retrieved from: https://romanpub.com/ijaetv5-1-2023.php
Armas, Kenneth (2023). Development of a comprehensive economic enterprise development program in the Philippines. Asian Development Policy Review. DOI: 10.55493/5008.v11i2.4755. Retrieved from: https://archive.aessweb.com/index.php/5008/article/view/4755/7564
Bosland, P. W. (2019). Onion: Allium cepa L. In J. Janick (Ed.), Plant breeding reviews (pp. 157-242). John Wiley & Sons, Inc.
Brito, R., Almeida, T., Silva, F., & Ferreira, D. (2021). The potential of hydroponic systems in water use efficiency and nutrient uptake by crops. Sustainability, 13(8), 1-14. https://doi.org/10.3390/su13084419
Choudhary, D., Patil, R. S., & Bakshi, A. (2017). Economic and environmental analysis of a vertical farm for lettuce production. Journal of Environmental Management, 198(Pt 2), 354-360. https://doi.org/10.1016/j.jenvman.2017.04.050
FAO. (2018). Onion. Food and Agriculture Organization of the United Nations. http://www.fao.org/faostat/en/#data/QC/visualize
FAO. (2020). Philippines. Food and Agriculture Organization of the United Nations. http://www.fao.org/philippines/fao-in-the-philippines/philippines-at-a-glance/en/
FAOSTAT. (2021). Production of onions (dry) in 2019. Retrieved from http://www.fao.org/faostat/en/#data/QC
Folke, C., Hahn, T., Olsson, P., & Norberg, J. (2016). Adaptive governance of social-ecological systems. Annual Review of Environment and Resources, 41, 21-47.
Gul, M. K., Khan, M. A., Ullah, Z., & Khan, M. A. (2014). Hydroponic fodder production technology: its implications under arid conditions. Emirates Journal of Food and Agriculture, 26(7), 587-597.
Haapala, A., Kontturi, M., & Lehto, J. (2018). Risk analysis of hydroponic lettuce production. Journal of Cleaner Production, 174, 982-990. https://doi.org/10.1016/j.jclepro.2017.11.091
Jensen, M. H. (2019). The environmental case for vertical farming. Journal of Agricultural and Environmental Ethics, 32(1), 25-41.
Joshi, P. K., Pangapanga, P., & Lally, D. (2017). Consumers' willingness to pay for sustainably produced fruits and vegetables in Asia. Journal of Cleaner Production, 156, 127-137. https://doi.org/10.1016/j.jclepro.2017.04.157
Kim, C., Kim, H., & Kim, S. (2018). Economic feasibility of vertical farming in a small urban footprint: A case study of Brooklyn, New York. Journal of Cleaner Production, 174, 1312-1320. https://doi.org/10.1016/j.jclepro.2017.11.235
Kim, H. T., Hong, I., Kim, H. J., & Lee, J. H. (2020). Economics of hydroponic lettuce production in greenhouse and vertical farming. Sustainability, 12(10), 4089. https://doi.org/10.3390/su12104089
Kim, S. H., Kim, Y. H., Choi, Y. H., & Yoo, G. (2016). Analysis of the profitability of hydroponic lettuce cultivation using open and closed systems. Horticulture, Environment, and Biotechnology, 57(4), 389-398. https://doi.org/10.1007/s13580-016-0084-4
Klonsky, K., & Tourte, L. (2018). Sample costs to produce onions. University of California, Agricultural and Natural Resources. https://coststudies.ucdavis.edu/files/onion060118.pdf
Lang, M., & Shih, S. I. (2016). Crowdfunding for financing urban agriculture projects. Journal of Agriculture, Food Systems, and Community Development, 6(4), 179-195. https://doi.org/10.5304/jafscd.2016.064.018
Li, X., Qiu, X., Li, Y., Li, J., Zhang, J., & Hu, L. (2020). The carbon footprint of hydroponic vegetable production: A comparative analysis between soil and soilless cultivation in China. Journal of Cleaner Production, 259, 120897.
Li, X., Zhang, T., Fu, X., Zhao, Y., & Wang, Y. (2020). Analysis of profitability and cost-effective factors of vertical farming in Beijing. Sustainability, 12(10), 4276.
Ogoshi, Y. (2017). Economic analysis of a small-scale hydroponic lettuce system in Hawaii. HortTechnology, 27(6), 783-789. https://doi.org/10.21273/HORTTECH03539-17
Pathak, S. S., Mishra, D. K., Kumar, R., & Pandey, D. (2017). Economics of hydroponic lettuce production. Agricultural Economics Research Review, 30(2), 273-280. https://doi.org/10.5958/0974-0279.2017.00060.3
Samson, M., & Sajise, P. E. (2013). Philippine agriculture and globalization: A critical review. Philippine Institute for Development Studies. https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1319.pdf
Savvas, D., & Tsirogiannis, I. L. (2015). Hydroponic greenhouse production of high-quality vegetables and ornamentals. In S. A. Khan & R. Zaidi (Eds.), Developments in soil science: Soilless culture (pp. 199-250). Elsevier.
United Nations. (2015). Transforming our world: The 2030 agenda for sustainable development. Retrieved from https://sustainabledevelopment.un.org/post2015/transformingourworld
Van Os, E. A., de Kreij, C., & Straver, N. (2018). Hydroponics, soilless cultivation in greenhouses. Wageningen Academic Publishers.
Wang, Y., Lu, X., Sun, Y., & Qiu, X. (2019). Environmental sustainability assessment of vertical farming: A case study of lettuce cultivation in Beijing. Journal of Cleaner Production, 238, 117852. https://doi.org/10.1016/j.jclepro.2019.117852
Wijayawardhana, C., Tokunaga, K., Yonemura, S., & Nishina, K. (2018). Comparative analysis of profitability of onion farming using hydroponic and conventional systems in Japan. Agricultural Sciences, 9(8), 903-918.