economic aspect of phalaenopsis production under protected facilities present 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 hactares per farm. By using higher bio-technology and capital intensive caltivation, profitability and efficiency of phalaenopsis production arevery high; total gross recipts per farm in 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 aslso 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.