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Keywords	Techno-economic analysis, Hydroponic systems, Internal Rate of Return
Abstract	Hydroponics is a new form of agriculture that has started implemented on a commercial basis in Cyprus only after 1996, mainly for the production of floriculture and vegetables cultivated on substrates. Besides the existing research on hydroponic systems there is still need for further research due to the developing interest on hydroponics deriving from the producers, the market trend and the new directives guided by the E.U. towards implementing the Good Agricultural Practice Code. The spread of hydroponics systems throughout the island is considered imperative, following the impressive results from the pioneers of hydroponics in Cyprus. EU accession and the increased competition which the local agri-products face, has brought up the need for structural changes in many sub sectors of agriculture. Most of the sub sectors that were heavily supported in the pre accession period need to be improved in order to become competitive against low price agri-products. Many farm units in problematic sub sectors that are not economically viable are obliged to abandon traditional crops or production methods used in the past and adopt new production approaches, like hydroponics, due to the advantages they offer and the fact that they are environment and consumer friendly. Adopting hydroponics is an expensive investment with high risk and consequently high establishment cost. Rothenberg (1980) said once for the hydroponics: “high cost-high output-high risk”. For such an investment it is very crucial to posses the necessarily economic and technical data to make the right decision. High risk investments decision making must be based on exact data. This study represents the first formal data recorded for hydroponics in Cyprus and considered to be an abutment in decision making for the producers and a very precious tool in the hands of policy makers. The results of this study have indicated that tomato hydroponic cultivation lead to the reduction of production cost, achieved by; the accurate and controlled nutrition of plants on substrates; the optimum fertigation; and the reduction of pest protection expenses due to controlled conditions in greenhouses. The establishment cost is very high because of the infrastructure (greenhouse) and the technological equipment (hydroponic systems) needed. The Internal Rate of Return has been found to be very high both for cut flowers and the tomato, while their economic results are increased compared to the respective conventional cultivation results.
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Name	Affiliation	Home page	e-mail	Total pubs
Markou M	Agricultural Research Institute, Ministry of Agriculture, Natural Resources and, P.O. BOX: 22016, 1516 Nicosia, Cyprus			1
Neocleous D	Agricultural Research Institute, Ministry of Agriculture, Natural Resources and Environment, P.O.Box 22016, 1516 Nicosia, Cyprus		d.neocleous@arinet.ari.gov.cy	2
Papadavid G	Agricultural Research Institute, Ministry of Agriculture, Natural Resources and, P.O. BOX: 22016, 1516 Nicosia, Cyprus		: papadavid@arinet.ari.gov.cy	1