Smart Greenhouse Technology for Hydroponic Farming: Is it Viable and Profitable Business?

- Harniati, Wahyu Trisnasari, Tri Ratna Saridewi

Abstract


This study aims to analyze the profitability and sustainability of horticulture agribusiness using hydroponics with a smart greenhouse (SGH) technology. This study also evaluates the acceptability of SGH technology. This study investigates the impact of the COVID-19 pandemic on the supply chain of horticulture vegetables produced using SGH, semi-smart greenhouse (SSGH), and conventional technologies. The methods used in this study are a dynamic model, i.e., the causal loop diagram (CLD), the benefit-cost ratio (B/C), the revenue-cost ratio (R/C), and descriptive analysis. The results show that the feedback structure was complex and dynamic. The determinants of SGH-based agribusinesses were cost, income, and sustainability. The findings showed that business profitability and sustainability proxied by B/C and R/C were higher in SSGH than SGH and were the lowest in conventional. The regulated use of the technology in SSGH is more profitable and applicable in Indonesia. The acceptability of SGH technology was determined by profits, investment and operational costs, market segmentation, price factors, maintenance, and farmers’ skills. Meanwhile, the impacts of the COVID-19 pandemic on the supply chain of vegetable commodities vary in SGH, SSGH, and conventional farming. The differences were influenced by business scale, partnerships, production locations, markets, logistics (transportation), and digital marketing. The findings of this study contribute to the literature on smart farming technology, especially the regulated application of SSGH.

Keywords


Smart farming technology; agribusiness; socio-economic; the COVID-19 pandemic; supply chain

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DOI: http://dx.doi.org/10.18517/ijaseit.13.4.17916

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