Economic Justification for the Expansion of Vegetable Production in Greenhouses in Saudi Arabia

Abstract

The main objective of this research is to analyze economic factors justifying the expansion of producing vegetables mainly tomato and cucumbers in an intensive capital technology environment. Such an environment is capable of producing vegetables with high yield, and water saving, compared to the traditional open farms. The paper analyzed food gap in tomato and cucumbers up to the year 2000. It also highlighted the Ginni Coefficient and the Lorenze curves, which describe the current distribution of greenhouse projects and production of tomato and cucumbers among different regions of the Kingdom. Results showed that tomato and cucumbers yield is estimated as seven and five times as much in the greenhouses as it is in the open farms respectively. Furthermore, water saving associated with greenhouse environments is about 85% compared to open farms, such a case is suitable for the Saudi Arabian Agricultural Environment. The study recommended that more projects should be established in Western, Eastern, Southern, and Northern regions respectively.