Economic Efficiency of Greenhouse Farming

Roin Tateshvili

Doctor of Economics, Professor, Samtskhe-Javakheti State University

rointateshvili@gmail.com

 

Nana Jgharkava

Doctor of Economics, Associated Professor, Samtskhe-Javakheti State University

nana.jgarkava123@gmail.com

 

Abstract

Greenhouse farming is one of the most dynamically developing directions in the modern agricultural sector, enabling efficient use of land resources, optimization of climatic conditions, and enhancement of food security. Global experience shows that integrating technological innovations significantly increases productivity, reduces energy and water consumption, and lays the foundation for sustainable development. This study builds on these international trends and aims to assess the economic efficiency of greenhouse farming in the context of Georgia.

Small and medium-sized greenhouse farms in Georgia face numerous challenges, including limited financial resources, lack of modern technologies, and insufficient knowledge. These factors directly affect farmers’ competitiveness and the country’s export potential. Alongside analyzing these issues, the research focuses on opportunities linked to the adoption of innovative approaches, such as energy-efficient systems, sensors, automated climate control, and hydroponics.

Special attention is given to the concept of establishing greenhouse laboratories within universities as platforms for integrating academic and practical knowledge. Such laboratories promote student and researcher engagement in real-world experiments, strengthen international partnerships, and foster the development of new business models. The study demonstrates that the involvement of educational institutions in technological innovation is critical for transforming the agricultural sector.

Methodologically, the research employs both quantitative and qualitative approaches, incorporating primary and secondary data analysis, SWOT analysis, financial modeling, and pilot project simulation. Comparative analysis with the experiences of the Netherlands, USA, and Japan reveals that innovative technologies significantly boost yields, reduce energy costs, and minimize environmental impact.

The ultimate goal of the study is to develop a model that enhances the competitiveness of Georgian greenhouse farming in international markets, ensures ecological sustainability, and supports the high-quality training of young professionals. Establishing a greenhouse laboratory within a university will serve as a center for testing innovations and conducting research, fostering new forms of collaboration between academia and the business sector.

Keywords:  Greenhouse Farming; Economic Efficiency, Climate-Smart Technologies, Intelligent Greenhouses.

JEL:  Q16; Q12; O13

DOI: 10.52244/c2025.32

The article is in Georgian.

References

FAO. (2023). Greenhouse horticulture: Strategies for sustainable production. Food and Agriculture Organization.

European Commission. (2022). Greenhouse gas emissions in horticulture and energy efficiency improvements.

Geostat.(2024). Agriculture (სოფლის მეურნეობა). Retrieved from https://www.geostat.ge/ka/modules/categories/196/soflis-meurneoba

Smith, J., & Brown, K. (2020). The role of IoT and AI in greenhouse farming.

World Bank. (2022). Agricultural development in emerging markets.

Ministry of Environmental Protection and Agriculture of Georgia (2024). Retrieved from https://mepa.gov.ge/ge/reports

EU Organic Farming Report. (2023). Sustainable agriculture and organic greenhouse farming in Europe.

Janssen, S., & van Ittersum, M. (2021). Advanced technologies in greenhouse farming: A systematic review. Agricultural Systems Journal, 187, 103026.

UNDP. (2023). Innovative approaches to climate-smart agriculture: A focus on greenhouse farming.

Transboundary Alliance for Climate-Smart and Green Agriculture in the Black Sea Basin Countries. (2024). Feasibility study. Retrieved from https://shorturl.at/bkDTq

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