Viability of Controlled Environmental Agriculture for Vegetable Farmers in Sri Lanka Sharmini K. Kumara Renuka Weerakkody S. Epasinghe Research Report No: 179 January 2015 Hector Kobbekaduwa Agrarian Research and Training Institute 114, Wijerama Mawatha Colombo 7 Sri Lanka 1 First Published: January 2015 © 2015, Hector Kobbekaduwa Agrarian Research and Training Institute Final typesetting and lay-out by: Dilanthi Hewavitharana Coverpage Designed by: Udeni Karunaratne ISBN: 978-955-612-178-0 II FOREWORD Faced with the limitations of agricultural land, decreasing crop production, climate change and declining biodiversity, and ever increasing population which has led to quadrupling demand for food, protected agriculture has offered a new dimension to produce more in a limited area. Presently a number of tropical countries, including Sri Lanka, has faced a multitude of constraints which has affected crop production in open fields. Main among them are the unpredictable rainfall distribution patterns, causing severe crop failures and yield losses affecting both consumers and the producers who suffer the twin evils of seasonality in production and price fluctuations. Introduced to Sri Lanka in 1987 protected agriculture has gradually gained a foothold in today’s agricultural system. Protected agriculture has a potential for expansion as is associated with large profits, quality products and produce availability at all times of the year. This study provides a detailed description of protected agriculture in Sri Lanka in which crops are grown under different types of protective covers such as the polytunnel, rain shelter and net houses. The report discusses the socio-demographic features of the three different types of operators, crops grown, scale of operation, harvesting, packaging, marketing of vegetables and costs and returns for the profitable crops grown in these structures. The study finally highlights the future interventions necessary to attract and expand the number of operators to this sector. It is hoped that this report would be beneficial to a vast number of stakeholders who could gain knowledge and understanding of protected agriculture in Sri Lanka. Director i ACKNOWLEDGEMENTS The research team would like to thank all the stakeholders from the four districts of Kandy Matale, Nuwara Eliya and Badulla who took time from their busy work schedules to help us understand protected agriculture in the Sri Lankan context. The researchers are most grateful and thankful to Mr. Lalith Kantha Jayasekera former Director HARTI for his unstinting support during the study and Mr. Haputhanthri Dharmasena present Director HARTI for the support given to publish the report. We are indebted to the graduates who worked as casual investigators and helped us to collect reliable and descriptive data and information from the four districts. We also wish to thank Ms. A. Hettiarachchi, Statistical Assistant HARTI for her work in the field and the data processing and analysis. A thank you is due to the secretarial staff Ms. K.G.D.K.S. Karunaratne and Ms. G.M.V. Padmini of the division for their help in typesetting and assistance given to us during the course of the study. A thank you to Ms. Suharshani Perera for the editing of the report and the Publication Unit for the final typesetting and page setting of the report. Finally we wish to thank HARTI staff for their support which was extended to us in various ways until the report was finally published. Sharmini K. Kumara P.R. Weerakkody S. Epasinghe ii EXECUTIVE SUMMARY Protected Agriculture (PA) is explained as cultivation of crops under a protective cover for various reasons. Production of vegetables under protective covers gained ground in Sri Lanka due to four main reasons: Ensuring a sustained supply of vegetables against seasonality of production, maintaining a farmer income which is not affected by erratic weather conditions and pest problems, circumventing land and labour scarcity in agricultural production, promoting modern technology as a means of crop diversification and attracting youth to the sector. This study attempted to characterize vegetable farming under protective covers in terms of above aspects while identifying the issues and constraints faced by the farmers. It was evident from the study which was conducted in the four districts of Nuwara Eliya, Badulla, Matale and Kandy that in Sri Lanka, there are three types of protective covers for vegetable production: poly tunnels, net houses and rain shelters. The number of crops grown in polytunnels is limited but shows a variation across the districts. Bell pepper and Japanese cucumber are popular crops among farmers in Badulla and Nuwara Eliya while local tomato varieties were popular in Badulla and Kandy districts. Other exotic vegetables such as beef tomatoes, zucchini and a variety of herbs were found only grown in Nuwara Eliya. The study reveals that though the initial investment is high small farmers have ventured into poly tunnel farming with funding assistance from various organizations. Despite the huge potential which exists for these vegetables both at the local and export market level production constraints from poor application of modern technologies, pest problems, low quality planting material and environmental constraints have failed to achieve the objectives. However cost benefit analysis confirmed that the production of bell pepper and Japanese cucumber cultivation is viable and proven to be financially profitable for poly-tunnel farmers. Success stories on large scale polytunnel farming are characterized by high tech diversified systems with assured markets. Means by which polytunnel farming could be improved is to strengthen supply chains in order to increase the market share of exotic vegetables, develop value chains encouraging quality production and assured marketing and improve market intelligence of potential exporters. In addition restructuring of training programmes for poly tunnel operators, research into low cost automated systems to attract young entrepreneurs and women and providing concessions for high quality raw material would attract entrepreneurs to poly tunnel farming. Promoted as a means to circumvent erratic weather conditions, rain shelters have proved to be a highly profitable venture in the Matale district specifically for onion seed production. The study reveals that while one third of operators had used the harvest as planting material the rest had sold over 50 percent of the harvest. Thus true seed production of onion operates both at subsistence and commercial scales. iii Whilst been a profitable alternative for the farmers to generate an income during the off season it is a means to make small farmers self-sufficient in planting material with high quality at a low cost. With demand outstripping the supply of onion seeds in the local market, the one impediment for small farmers to venture into this enterprise is the high initial cost of construction of rain shelters. As there is a huge potential for the expansion of rain shelters the provision of subsidies for construction and production plan to avoid marketing problem needs to be set in place. Net houses are PA structures promoted under the Divi Neguma programme in the Kandy district as a means of self-employment for plant nursery and vegetable cultivation. Vegetable cultivation in net houses is not as viable enterprise as poly- tunnel operations and true seed production of onion under rain shelters. Technical constraints, severe marketing problems combined with high initial cost of construction have discouraged net house farmers. However, as per the success case of tomato production, vegetable production in net houses cannot be disqualified as non-viable. What is required for the success of vegetable cultivation in net houses is the provision of subsidies for construction of net houses with the direction for farmers to cultivate in the off season. iv LIST OF CONTENTS Page No. FOREWORD i ACKNOWLEDGEMENTS ii EXECUTIVE SUMMARY iii LIST OF CONTENTS v LIST OF TABLES viii LIST OF FIGURES ix LIST OF ABBREVIATIONS x CHAPTER ONE Introduction 1 1.1 Study Background 1 1.2 Major Objective 2 1.2.1 Specific Objectives 2 1.3 Method of Study 2 1.3.1 Sample Survey 4 1.3.2 Data Analysis and Presentation 4 1.4 The Report 4 CHAPTER TWO Protected Agriculture Worldwide 5 2.1 Definitions 5 2.2 Use of Controlled Environmental Agriculture Technologies 5 2.2.1 World Scenario 5 2.2.2 Sri Lankan Situation 6 2.3 Advantages and Drawbacks of Protected Agriculture Systems 8 2.4 Economics of Protected Agriculture 9 2.5 Market Destinations of Poly-tunnel Products 10 CHAPTER THREE Vegetable Cultivation in Poly-tunnels 11 3.1 Introduction 11 3.2 Socio-demographic Characteristics of Poly-tunnel Farmers 11 3.3 Institutional Assistance to Popularize Poly-tunnel Farming 14 3.4 Nature and Scale of Operating Poly-tunnels 16 3.5 Crops Grown in Poly-tunnels 18 v 3.6 Use of Planting Materials and Other Cultural Practices of Poly-tunnel 21 Farming 3.7 Costs and Returns from Bell Pepper Cultivation in Poly-tunnels 27 3.8 Costs and Returns from Japanese Cucumber Cultivation in Poly- 30 tunnels 3.9 Costs and Returns from Different Crops Grown in Different Tunnel 32 Sizes 3.10 Constraints for Crop Production in Poly-tunnels 33 3.10.1 Poor Affordability of Small Farmers for Initial Investment on 33 Poly-tunnels 3.10.2 Shortage of Good Quality Planting Material 34 3.10.3 Produce Marketing Problems 35 3.10.4 Environmental Constraints 36 CHAPTER FOUR True Seed Production of Onion