Economic aspects of phalaenopsis production under protected facilities are presented in this paper. The size of greenhouse or protected facilities of phalaenopsis production varies significantly ranging from less than 0.1 hectare to more than 2 hectares per farm. By using higher bio-technology and capital intensive cultivation, profitability and efficiency of phalaenopsis production are very high; total gross receipts per farm is NT$11.61 million, and farm income per farm is NT$3.66 million. The benefit-cost ratio and rate of farm income per farm are 0.40 and 27.18% respectively. Total costs of production per farm are also very high, reaching NT$7.96 million. Factor productivities and elasticity of substitution between capital and labor in phalaenopsis farming are very high. Capital-using technology has been considerably utilized in phalaenopsis farming in Taiwan.
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