An Economic Analysis of Two Grafted Tomato Transplant Production Systems in the United States

The grafting of herbaceous vegetables is an emerging development in the United States. This report provides an estimate of the variable costs of grafting within U.S. tomato (Solanum lycopersicum) transplant production systems. Grafted and nongrafted plants were propagated at two commercial farming operations in Ivanhoe, NC (NC) and Strasburg, PA (PA) and the farm in NC produced certified organic transplants. Detailed economic production sequences were generated for each site, and grafted and nongrafted transplant production costs were $0.59 and $0.13 in NC, and $1.25 and $0.51 in PA, respectively. Direct costs associated with grafting (e.g., grafting labor, clips, chamber, etc.) accounted for 37% to 38% of the added cost of grafting, and grafting labor was 11.1% to 14.4% of the cost of grafted transplant production. Seed costs represented 52% and 33% of the added cost of grafting at the two sites, and indirect costs (e.g., soil, trays, and heating) accounted for 10% and 30% of the added cost of grafting. Our findings suggest that under current seed prices and with similar production practices, the feasibility of grafting in the United States is not disproportionately affected by domestic labor costs. Additionally, the economic models presented in this report identify the cost of production at various transplant stages, and provide a valuable tool for growers interested in grafted tomato transplant production and utilization.