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• Investment appraisal of a plantation establishment for intensive apple production

  17-20.

  F. Apáti

  J. Felföldi

  Views:

  200

  For fruits, establishing intensive apple-orchards requires the highest amount of investment cost, while the returns depend on many factors. Based on farm and bibliography data we appraised an investment in a model in some variations that are the most used in practice (100% owner's capital and 55% owner's capital +45%o subsidies). The profitability of the investment has been analysed using the methods of NPV (Net Present Value) and DPP (Dynamic Payback Period). The essence of our analysis is a sensitivity analysis with the optimistic, pessimistic and realistic combinations of the yield and the market price. Plantation establishment financed by only own (corporate's) sources turns into profitable over 7-10 years in average and favourable cases, but the opposite is the case in unfavourable circumstances. By subsidy of 45% for investments, it is highly possible to return by the fifth or sixth year after the year of establishment, but it can return by the twelfth year even in unfavourable case.

• Economics of sea buckthorn production and processing in Hungary

  21-25.

  A. D. Erdős

  L. Szőllősi

  Views:

  290

  This study focuses on the business management-related advantages and disadvantages of sea buckthorn production and processing based on economic analyses. It is the main objective of the authors to identify the expected economic findings in a high standard plantation with different average yields. A deterministic model calculation was performed on the basis of technological processes, using the primary data collected from enterprises dealing with sea buckthorn production. The calculation is based on the assumption of a 10 hectare plantation with intensive production technology (high soil quality (golden crown value: 32 GC per ha), irrigation, high plant density per hectare). The cost and income relations and the long-term return of the plantation were examined in the case of different average yields (12 t ha^-1, 18 t ha^-1 and 24 t ha^-1). Under the economic circumstances of 2016, the planting cost of an intensive plantation is around 4-4.1 million HUF ha^-1. In the years following the fruit-bearing stage, direct production costs are between 2.5-3.9 million HUF ha^-1, depending on the given average yield. On the contrary, 5.6-11.1 million HUF ha^-1 revenue can be reached based on the current market prices, resulting in a gross margin of 3.1-7.1 million HUF ha^-1. Under the modelled circumstances, return is realised on the plantation’s costs in 6-8 years. The net present value (NPV_r=3.24%) calculated for the 15-year-long life cycle of the 10-hectare plantation is between 151-466 million HUF, while the internal rate of return (IRR) is between 23-45%. From the business management aspect, the advantage of sea buckthorn production is that it provides better income and return at a planting cost which is similar to that of other small fruits and berries. At the same time, the disadvantage of sea buckthorn production is the fact that yields are harvested every two years due to the technological characteristics of harvesting. The negative impact of this bi-yearly yield on liquidity can be eliminated with the so-called delayed planting.

• Farm economic evaluation of elderberry production

  57-60.

  F. Apáti

  Views:

  269

  In this present study the efficiency as well as the farm economic advantages and disadvantages of elderberry production are examined. Our objective is to determine the fact that under what conditions the elderberry production may be profitable regarding the present economic and market situations. Our analysis was carried out by a simulation model based on a farm-level data gathering in production enterprises. The total investment cost of an up-to-date, elderberry orchard of traditionally cultivated without irrigation is between 1000 to 1700 thousand HUF per one hectare and turning to productivity is expected within 4-5th years. These orchards are able to produce yields of 8,0 to 9,0 tons per one hectare in the average of the productive years, which makes reaching a revenue of 800 to 1000 thousand HUF possible regarding a per kg average selling price of 80 to 110 HUF. By this a net profit of 200 to 400 thousand HUF may be realized in case of a per hectare production cost of 600 to 700 thousand HUF. At the end of the lifetime of the orchard (12-15th year) an internal rate of return of 10 to 4%, an NPV of 1500 to 2000 thousand HUF per one hectare are typical in an average case, and the payback may be expected in the 6th to 8th year. From the farm economic aspect the elderberry may be considered as an extensive sector, which advantages are low capital and labour need, early recovery, good-acceptable profit on capital and cost to profit ratios, but its disadvantage is low per hectare profit comparing to intensive fruit species and orchards. In this way in general farms of capital-extensive and avoiding risks choose elderberry production.

• Effect of postharvest on the economic viability of walnut production

  28-38.

  F. Apáti

  E. Kovács

  M. Kocsis

  Views:

  389

  In this study we were studying the question whether walnut production under domestic natural and economic circumstances shall be considered a profitable activity or not. Our partial objective is to determine, what level of natural inputs and production costs are required for walnut production, what yield level, selling price and production value can be attained, what level of profitability, rentability and efficiency may production have, is the establishment of a walnut orchard profitable on the entire lifespan of the plantation, and the production of which is more efficient: the dry shelled walnut production requiring postharvest activity or the raw, shelled walnut without postharvest activities. In this study, comparison of two systems is conducted. First version: producer establishes a walnut plantation and sells walnut raw and shelled. Second version: producer also invests into a drying facility, and in this case the end product is the dry, shelled walnut. If the producer sells walnut right after harvest in a raw bulk, total production costs in productive years reaches 974,011 HUF/ha. Attainable yield is 2.63 t/ha with 396.3 HUF/kg selling price, therefore the profit is 138,258 HUF/ha with 14.19% cost-related profitability. In the case when the producer sells dried, shelled walnut, production costs are 25% higher compared to that of raw walnut due to the cost of drying. By calculating with the postharvest loss, average yield is 1.84 t/ha, however, its selling price is way higher (882.84 HUF/kg), therefore the profit per hectare reaches 475,496 HUF with 39.01% cost-related profitability. Thus it can be stated that walnut production in an average year may be profitable even without postharvest, but efficiency is improved significantly when the producer sells the products dried. Investment profitability analysis revealed that production of raw, shelled walnut is not economically viable, since the plantation does not pay off on its entire lifespan (30 years), while walnut production with postharvest is efficient and rentable, since both net present value (NPV) and internal rate of return (IRR) showed more favourable values than in the previous case, and the orchard pays off in the 21th year after establishment.