Profitability and Cost Estimates for Producing Tropical Hibiscus: A Partial Budget Analysis

Tropical hibiscus (Hibiscus rosa-sinensis) is a bushy evergreen shrub or small tree that requires very high amounts of sunlight and is intolerant to temperatures below 50° F, so it is mostly grown in tropical and subtropical regions. Florida is an ideal climate for the commercial production of tropical hibiscus and is currently the largest domestic producer, with the majority occurring in South Florida. About 20% to 25% of plants sold from Miami-Dade County are hibiscus, where the market value of ornamental plants was $697 million (farmgate price) in 2017. Based on interviews with five hibiscus growers of different scales in South Florida, one of the largest impediments to optimal hibiscus production for Florida growers was pests. At the same time consumers are demanding plants that are grown with few pesticides, limiting growers’ options to control these pests. To understand the cost effectiveness of biological controls, we estimated the costs and returns for starting and operating a hibiscus nursery, and the cost differences between using conventional pesticides and biological controls. Our results indicate that unskilled labor, fertilization, and pest control are the largest costs for operating a hibiscus nursery, and that there is potential for the use of biological controls to minimize insecticide costs.