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Economies Of Scale Vegetable Forcing The Utilization Of Geothermal Energy

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  • Tégla, Zsolt

Abstract

One of the highest costs of vegetable forcing is energy including heating energy, whose rate can reach up to 25-35% of the total production costs. Our dependence on the import of fossil energy puts enterprises involved in vegetable forcing into a vulnerable position. With the utilization of domestic green energy and thermal energy this dependence could significantly be reduced. Hungary’s geothermal features in the region are excellent, the energetic utilisation of thermal water is suitable for heating modern horticulture greenhouses. However, due to the high investment costs primarily economies of scale plants are viable, which are also economical to operate from a logistical point of view. Hydroculture vegetable forcing offers excellent employment opportunities, allowing continuous employment, while permitting high incomes in proportion to farm size and revenue – owing to the technological intensity and the characteristics of the products. Considering the criteria of economies of scale vegetable forcing it can be stated that it is mainly 3 and 5 -hectare size farms heated with geothermal energy that are able to achieve a level of operating profit which can safely form the basis of the development of integrated hydroculture vegetable forcing. However, because of the high investment costs of the greenhouse and the geothermal wells and the technological intensity the investment/financial as well as the operational/production risks of these farms increase dramatically. Examining these risks is a key issue for future large greenhouse and geothermal investments. The problems expressed by the experts concerned the outdated greenhouses that act as barriers to increase earnings. The success of production is mainly determined by the climate during vegetable forcing. The prerequisite for this is to apply the proper cultivation apparatus which meets the requirements of the 21st century.

Suggested Citation

  • Tégla, Zsolt, 2015. "Economies Of Scale Vegetable Forcing The Utilization Of Geothermal Energy," Journal of Central European Green Innovation, Karoly Robert University College, vol. 3(Thematic ), pages 1-12.
    • Handle: RePEc:ags:hukrgr:229426
    DOI: 10.22004/ag.econ.229426
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