This article is written to provide information for establishing a fresh cut flower greenhouse farm for “Roses” at 01 acre of land. The land for the proposed farm is recommended to be purchased at an appropriate location as identified in the geographical potential section. In 01 acre of proposed land four green / poly sheds with each having ‘200 by 48’ feet dimensions will be installed. The basic function of a green / poly house is to protect the plants from severe climatic conditions and provide favorable environment that is required for optimal production of the crop.
The basic structure of green / poly house is made of ‘Galvanized Pipes’ which is covered by ‘Green Shade Net’ in summer and ‘Polythene Sheets’ in winter. Galvanized Pipes have a useful life of 10 years, whereas ‘Green Shade Net’ and ‘Polythene Sheets’ have useful life of 05 years and 01 year, respectively.
The farm will have 12 thousand rose plants having productive life of 10 years. On average, maximum yield of one plant is approximately 180 flowers per year. Accordingly, the farm will have a total production capacity of 2.16 million flowers per year, however, for the first year farm productivity is assumed at 40%. The cut flowers will be sold in the wholesale markets of the respective districts / metropolitan cities. Moreover, based on quality of flowers and efficient management of supply chain, export potential of cut rose flowers will also be tapped. The cost of this project is Rs. 7.64 million, with Rs. 0.33 million for working capital and remaining Rs. 7.32 million as capital cost.
It is pertinent to highlight that picking of the flowers is the most important process as it plays vital role for determining the price of flowers. Following steps should be followed:
- Picking should always be done early in the morning.
- After picking wash the flowers in clean water.
- Flowers should be treated with life enhancing solutions to increase their life.
- Dry flowers with natural air after the use of preservatives.
- Inspect each flower for its quality then pack in wooden / cardboard boxes.
- Ready for delivery / distribution.
Areas for Greenhouse Rose Farm in Pakistan
Although Kasur and Sheikhupura districts of Punjab, Matiari & Jhirk in Sindh and Swat and Quetta valley have developed some expertise in this field. However, as Pattoki still serves as the hub for floricultural trade in Pakistan, it is therefore considered the most appropriate location. All major cities of the country with comparable land and atmospheric conditions can be selected for establishment of this kind of business.
Four green / poly houses will be constructed for one-acre land with useful life of 10 years. On average there are 12,000 rose plants, which will be producing 2.16 million flowers per year, with adequate pruning, picking and delivery arrangements. However, 20% of the total production goes to rose petals, hence, quantity available for sale, as rose petals would be 1,080 kgs from 432,000 flowers.
Capacity utilization during first year of operation is assumed to be at 40%, whereas capacity utilization growth rate for subsequently years will be considered 20%. The maximum capacity utilization is worked out at 80% in the 3rd year of operation. This production capacity is estimated to be economically viable and justifies the capital as well as operational costs of the project.
Space Requirements for Cut Flowers (Roses) Farming in Pakistan
A one-acre plot would be required for the proposed green / poly house farm. For growing of rose flowers, four green / poly sheds with each having ‘200 by 48’ feet dimensions will be installed, whereas a small storage room (around 250 sq. ft.) will also be constructed in the same plot. Although land is available on lease, but considering the amount of investment required for setting up a green / poly house it is better to own your own land. For this pre-feasibility study, the cost of 01-acre of land is estimated as Rs. 2,200,000.
Installation of Green / Poly House in Pakistan
Installation of green / poly houses are the crucial inputs of this project. Green / poly house will have useful life of 10 years and it will provide controlled environment to rose plants. Green shade net can be used for all weather conditions, however polythene sheet is used only during winter season. Useful life of green shade net is 5 years while polythene sheet has 1-year useful life. Major components of a green / poly house are:
- Galvanized Pipes
- Connecting Joints
- Installation Material (Cement, Crush, etc.)
- Green Shade net
- Polythene Sheet
- Water Pump with Water Tank
In this particular pre-feasibility study, it is recommended to install four green / poly houses on the acquired land; having the dimensions of “Length = 200 ft”, “Width = 48 ft” and “Height = 13 ft”. The proposed dimensions of green houses are easy to build and operate at small levels. The estimated costs of installation of green houses as well as rose sapling and land tillage costs starts from Rs. 3.9 million. For detailed financials, please refer to the pre-feasibility study of cut flower greenhouse of roses in Pakistan by SMEDA.
Factors for Success of Roses Greenhouse Farming in Pakistan
The proposed project has following factors critical to success:
- Entrepreneur’s knowledge, background and expertise in floriculture.
- Ability to identify and procure quality saplings from certified nurseries, preferably developing an in-house backup nursery.
- Availability / selection of suitable land and irrigation systems.
- Availability of trained farm labor for crop management and harvest.
- Forward linkages with the bulk buyers, and appropriate storage & transportation services.
Target Markets for Cut Flowers in Pakistan
Potential markets for cut flowers (roses) are as under:
- Flower market such as Patto Mandi and Begumkot Mandi at Pattoki and Sheikhpura districts, respectively.
- Retail flower shops at major urban centers.
- Direct supply to corporate and institutional customers.
- Wholesales; bulk sales for social, cultural and religious events.
Financial Requirements for Cut Flower (Roses) Greenhouse Farming in Pakistan
Total investment required to setup rose farm in Pakistan is approximately Rs. 8 million. All the figures in this financial model have been calculated for estimated sales revenue of Rs.1.88 million in the year one. The capacity utilization during year one is worked out at 40% with 20% increase in subsequent years up to the maximum capacity utilization of 80%. The internal rate of return, payback period and net present value of the rose farming business can be studied in the feasibility study of rose farming in Pakistan by SMEDA.