Production cost analysis of organic and conventional vegetable seedlings

Abstract: This study investigated the economic differences between organic and conventional seedling production of vegetables in Louisiana (US) during 2018. Broccoli, cabbage, and cauliflower organic and conventional seeds were used. Cost analysis was conducted for organic and conventional seedling production, including trays, containers (100 count flats), seeds, substrate, fertilizers, water used for fertilizer treatment, and irrigating the crop, labour, and greenhouse space utilized. Calculations were based on total production cost and net returns for 1 flat, 100 flats, for the production of 100 flats in 3 repetitions, and for the space of 100 m² in the greenhouse. After seedlings reached suitable growth for transplanting, a survey was conducted to determine potential demand for the production of organic and conventional vegetable seedlings for home gardeners. The total production cost of one plant/repetition equated to organic broccoli $0.31, organic cabbage $0.26, and organic cauliflower $0.30, whereas conventional seedlings equated to broccoli $0.15, cabbage $0.11, cauliflower $0.16. The net returns in the production of conventional seedlings for 100 flats 3x per year for broccoli $2,808.1, cabbage $3,498.1, cauliflower $2,760.7 was higher compared to organic seedlings: broccoli $1,201.01 (57.2 % lower than conventional), cabbage $2,118.06 (39.4% lower than conventional), cauliflower $1,572.1 (43 % lower than conventional). In the production of seedlings per 100 m², net returns were almost doubled for conventional seedlings compared to organic seedlings. Despite needing to recoup higher costs for organic vegetable transplants, more Louisiana consumers (65 %) prefer to pay a higher price to buy organic vegetable seedlings compared to conventional vegetable seedlings.