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Climate change impacts and product lines
Published January 3, 2010

This paper summarizes the main effects of extreme weather events on agricultural production and demonstrates their economic consequences. For cost-benefit analysis of economic impacts and for determination of risk levels simulation models are needed that contains the relationship between product line levels and elements. WIN-SIM model is develo...ped for this goal, specialized for wine production. The model is suitable to analyze the market share, the cost and income relations as well as the relation structure of the product lines. The four levels of the model (site, vine growing, wine production and wine market levels) have individual values added from the aspect of end product, where the product line sets out from the site level and gets through the levels up to the consumer segments. Theoretically, all elements can be connected to any element of the next level and sublevel, but there are “prohibited contacts” because of professional, regulation or production practice reasons.

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Effect of postharvest on the economic viability of walnut production
Published June 10, 2018

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 valu...e 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.

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