Development and Implementation of

 Greenhouse Operations

 A Case Study -

 Ricardo E. Gomez, Ph.D.
 Staff Leader, Plant & Pest Management Sciences
 Extension Service, U.S. Department of Agriculture
 Washington, DC 20250


 Intensive small-scale farming can be one of the better
avenues for agricultural development in the Caribbean area.
These farm operations can be targeted to local consumption to
replace imported goods or for export to major markets. In
either case there is an increase in the available foreign ex-
change to the country. Other benefits also accrue due to this
type of enterprise. Employment is enhanced although most of
the gain is indirect. There are many different approaches that
can be taken to initiate a greenhouse operation. First, a


feasibility study has to be undertaken which includes markets,
capital acquisition, costs, projections of returns, governmental
incentives and local involvement. There are worldwide and
other governmental agencies that can be tapped for help in
the development and implementation of a greenhouse opera-
tion. This is a description of a fictitious (but real) greenhouse
enterprise and the approaches used to enable the company to
start production in the Caribbean area.


 The Caribbean Basin Economic Recovery Act of 1983 has given
an extra impetus to the development and implementation of hor-
ticultural enterprises in this region. Starting at the beginning of
this year, January 1, 1984, the law provides for duty-free entry of
agricultural products into the United States for 12 years. To pro-
tect domestic (U.S.) producers the law has provisions for seeking
emergency relief if imports hurt their business.
 In September 23-27, 1984, more than 500 growers and agri-
industry personnel from the Caribbean area and the U.S. met in
Miami, Florida, during the Second USDA Marketing Workshop
for the Caribbean Basin. As mentioned by Waldo Heron, Presi-
dent, Food Processing Consultants Co., California, and member
of Secretary of Agriculture John Block's Agribusiness Promotion
Council, it takes more than a law and enthusiasm to bring an in-
dustry to fruition. It also requires time, effort, money, well
planned strategies and a thorough knowledge of U.S. markets.
 Horticultural crops are probably the best suited of the possible
Caribbean agricultural products to fit into the new U.S. law.
Horticultural crops are, of course, land and capital intensive; that
is, they are high value crops capable of being grown on relatively
small holdings. However, we should look at horticultural crops
not only for the U.S. market but also for internal consumption,
especially if the commodity has to be imported. The majority of
horticultural crops sold and bought fresh have a limited life after
harvest. It is in this aspect that local produce has a tremendous
advantage. It is a quality advantage to the consumer which in
turn can be a monetary advantage to the producer.
 Foreign exchange can be gained or retained. In the case of ex-
ports to the United States, countries may gain foreign exchange;
whereas if countries import less of one commodity due to local
production, foreign exchange is retained and made available for
other necessities.
 Tropical areas are very well suited for the production of a vari-
ety of food crops; however, in some cases certain crops cannot be
grown unless the environment is modified considerably. It is very
costly to substantially modify an environment. However, en-
vironmental modification may be economically feasible for pro-
duction of some specific high-valued crops.


118


 There are several steps in the development and implementa-
 tion of a horticultural or any other industry anywhere in the
 world. However, I am going to address the development steps in
 the creation of a new agri-industry in a Caribbean country. In-
 dustries start as an idea by individuals to provide goods or services
 where there is a demand or where a demand can be created.
 The case in study is a horticultural industry geared for local
 consumption. In the majority of the Caribbean countries there
 are several horticultural products which are imported fresh. Ex-
 amples are: apples, pears, strawberries, tomatoes, and lettuce.
 An individual looking at the potential for commercial production
 of most of these crops would discard all but tomatoes, and in
 some cases due to humid climatic conditions, even tomatoes
 could be discarded. However, most crops can be produced
 anywhere if the proper elements including climate are made
 available.
 In this case, the individual who first conceived the idea had no
agricultural background and, therefore, was not encumbered by
knowledge. This person arrived in the Caribbean area on vacation
and during the first days noticed that iceberg (crisp-head) lettuce
was served as a salad ingredient or as a garnish with every meal.
He asked several restaurateurs where they obtained lettuce. The
answer was, "In the United States, from California." Markets
were visited and revisited later. Two things were noticed: first,
the price, and second, the size. The price was about $1.40 per
head. The size varied daily as more and more outer leaves had to
be removed. At the end of a ten day period the head of lettuce
was slightly larger than a baseball. Of course, the lettuce was
wrapped in film, unwrapped to remove the spoilage and re-
wrapped over and over. During that same period the price did
not vary.
 Without disclosing any ideas or preliminary market evaluations
the entrepreneur visited some of the local government agencies
such as those dealing with labor, agriculture, commerce, customs,
and others to get as complete a picture as he could of the import
process, the minimum and customary wage scales, agricultural
production regulations, and marketing and socio-economic data
for the country.

 PROCEEDINGS of the CARIBBEAN FOOD CROPS SOCIETY-VOL. XX