Vol. 13 No. 1 (2007)
Articles

Feasibility of investments in Hungarian grapewine sector

Published March 19, 2007
Z. Lakner
Budapest Corvinus University, H-1118, Budapest, Villányi út 35-43
P. Márkusz
Budapest Corvinus University, H-1118, Budapest, Villányi út 35-43
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APA

Lakner, Z., & Márkusz, P. (2007). Feasibility of investments in Hungarian grapewine sector. International Journal of Horticultural Science, 13(1), 37-42. https://doi.org/10.31421/IJHS/13/1/692

Investments in the vine growing-wine making sector can be characterised by a high level of' risk, and an important role of time, because there is a considerable time gap between the decision on investment and its consequences, whereas the ecological and economical factors should be considered as stochastic variables. Based on a real—life, typical vine—plantation project, the article analyses the profitability of vine growing-wine making sector as a function of different ecological and economical conditions depending on the added value content of products. Results of the investigations highlight: (1) the importance of subsidy for establishment of vine plantations: (2) the considerable influence of yields on rate of return of investment; (3) the role of increasing of added value content of products. Importance of the utilisation of alternative channels of distribution and the formation of producers' cooperatives are underlined, being based on calculation of return of investment.

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