Search
Search Results
-
Investment appraisal of a plantation establishment for intensive apple production
17-20.Views:163For 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.
-
Economic aspects of applying hail protection nets in apple plantations
99-101.Views:174The up to date intense apple growing in Hungary is capable to produce yearly about 500-1000 thousand Ft/ha income, which means that the investment of 4 000–5 000 thousand Ft is returned by producing 10-20% net income. The economic balance may, however, be upset by the damage caused by hail, quantitative and qualitative, with an apparently increasing frequency experienced in each third or fourth year. Estimates prove that each hail causing 50% damage may reduces the income proportionately to the capital by 1.5–2.0 percent points, which means a serious threat for the economy of apple production. According to calculations, a plantation producing 30–40 t/ha yields would not be able to raise incomes compensating the investment of 7.0–10.0 million Ft/ha, let alone the frequencies of hail damages. Consequently, 50–60 t/ha yields are needed to become successful, and in planning of new plantations those high yields are aimed with hail nets. An additional difficulty is represented by a lack of financial resources to install hail protection nets.
-
Feasibility of investments in Hungarian grapewine sector
37-42.Views:168Investments 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.
-
Conditions of rentability in the apricot industry of Hungary
127-129.Views:166Total investment costs of an up to date apricot plantation requires about 5000 thousand HUF/ha. Modern
plantations yield under normal conditions 15–20 t/ha with 80% quality for fresh consumption. Consequently, taking the life span of a plantation (15 years), the internal rate of return of 15–17% per year (IRR), that means that the costs of investment will be regained in the 9–10th year, which is considered to be satisfactory. However, weather hazards (frost, hail) may occur at a probability of 20–25%, therefore, maintaining the quality (80% for fresh consumption) and yields (15–20 t/ha) are badly needed to speak about rentability. This level of yields maintains the option of feasibility up to 20–25% losses. -
Effect of postharvest on the economic viability of walnut production
28-38.Views:333In 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.
-
Utilisation of subsurface waters for soilless vegetable forcing in the Southern Great Plain region of Hungary
43-45.Views:146For soilless vegetable production of the Southern Great Plain region in Hungary, there is enough water available, however, the origin and chemical composition of it are decisive from the point of view of practicability. The ground water is everywhere accessible, although its sodium and chloride content is almost always significant, moreover, human pollution may occur (e.g. nitrates and phosphates). A further unfavourable moment is the seasonal variation observed within the area of the same community. The abundant supply of water in the Quaternary strata are located in more than half of the cases within the upper 50 m region. As by the expected changes of the climate, a strategic increment of the importance of subsurface waters is anticipated. Their composition is relatively stable, and the prognoses are reliable for the same settlement. Salt content of the majority of water resources bearing hydrocarbonates is low, however, streaming of the subsurface waters tend to increase their sodium content and to diminish their calcium and magnesium, whereas the pH increases (mainly by ion-exchange). Water quality is decisive not only because of the interaction with the plants but also from the point of view of the distribution of water. Some micro-elements, mainly iron and secondarily manganese may cause problems, therefore, irrigation water ought to be prepared carefully. Production technology should be completed by a technical equipment using aeration for the elimination of ironinfluence 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.
-
Investment analysis of Hungarian apple-orchard and fruit storage projects
157-162.Views:219There are profound, long-term changes in world apple production and trade. The former hegemony of Europe in apple production doest not exists any more, among the most important apple exporters the emerging economies have a growing importance. The globalising apple market means new challenges of traditional producers. This is especially true for Hungary, which has been the most important apple exporter in terms of quantity thirty years ago, but now its production hardly covers the domestic demand. A necessary precondition of the modernisation is the re-construction of plantations and the cold-storage system. Analysing the economic effi ciency of apple production and cold storage, it is obvious, that a necessary precondition for the modern, competitive apple production is the availability of cold-storage facilities. Neither the apple-production, nor the cold-storage can not evaluated separately from each other. Under current Hungarian conditions there is a need for active state support for the establishment of cold-storage facilities.
-
Experimental results of the effects of Hungarian climatic conditions to German disease-resistant industrial apple varieties
53-56.Views:117In the recent years, several disease-resistant apple varieties appeared through the modern breeding technologies. These varieties can be grown with low usage of pesticides, which mean not only environment friendly fruit growing, but the production costs are also lower. In Eastern-Hungary — it is one of the main apple growing regions — a new apple growing structure started to form by the investment of the German Wink Ltd. — several resistant apple varieties were brought from Germany. 'Resistant' refers genetic resistance that usually transferred from the genome of wild apple species. But the fruit of these apple species is not only resistant to diseases, but its quality is poorer, too. In Germany the Re-apples are grown only for the processing industry. Due to climatic circumstances in Eastern Hungary, the first experiences showed better parameters during laboratory measurement, the fruits have more beautiful view, shape and inner characters than usual industrial apples.
In our paper we discuss the results of sensory (consumer) tests, carried out in Eastern Hungary and in the Budapest-region the data analysis of systematic storing experiments (refraction, flesh firmness, weight loss, etc.) and profile analysis of fresh and stored Re-apples. (In the profile analysis the ProfiSens software [4,5] has been used.)
-
Cost-effective plantlet production and wintering method of virginia fanpetals (Sida hermaphrodita L. Rusby)
137-141.Views:198The main goal of this research was to work out programmable, cost-effective and industrial scale technologies of mass propagation from the seeds of rootstock nurseries of undomesticated American populations of Sidahermaphrodita. During our previou`s seed treatment experiments, it was concluded that around 60% of the Virginia fanpetalsseeds collected during the four cropyears can be considered as high quality, infection-free, normally imbibing and germinating seeds (Kurucz et al., 2013a,b). The experiments performed with the nurse-in-tray method developed by us showed that the summer-autumn nurse-in-tray plantlet production and unprotected wintering of Virginia fanpetals with properly pre-treated and fractioned seeds is a promising new method. No weeds appear between the plants, but only on the side of the cases during plantlet production. The investment cost of the method is minimal. There are no heating costs and this phytotechnique can be easily and properly mechanised. Plantlet production can be performed near the large-scale plots. After exploring the root and shoot system, it was concluded that the nurse-in-tray method is suitable for producing plantlets with hardened and strong roots. Scheduled plantlets can be produced in an industrial scale volume by the time of early spring (March) plantlet planting. The excavateof plantlets can be flexibly adjusted to the needs; they may even grow in the plantlet cases for a whole year. We think that these innovative plantlet production and wintering methods which are suitable for large-scale use will make Virginia fanpetals a proper feedstock for the constant supply of the Biomass Supply Chain both in Hungary and in European countries which are in the same climate zone. The comparative analysis of the costs of this procedure calls for further research.
-
The necessity and possibilities of irrigation in fruit growing under conditions of Hungary
93-94.Views:207Climatic and soil conditions are highly suitable for most temperate fruit species and promise profitable yields with good quality. An accurate choice of the growing site is, however, decisive because of the wide range agro-climatic variation an soils within the country. One of the most important factors is the annual precipitation which does not exceed, in general, 700 mm. The aims of irrigation practices are, succinctly speaking, the improvement of quantity and security of yields and the guarantee of quality. The relative importance of those criteria changes according to the fruit species. In up to date apple, pear and cherry production, micro-irrigation systems are mainly considered. According to recent experiences, the micro-jet type of water distribution should be preferred to the dripping system. In cherries, the choice of the method is motivated by the need to prevent fruit cracking. Most of the peach and apricot plantations are located on the dry and moderately dry regions of the country. Because of the late freezes, the improvement of security is crucial. There the investment of irrigation systems should concentrate to the possibility of anti-freeze sprays. High water requirements of plums are met in Hungary by irrigation where the method should be decided at the plantation and adapted to the harvesting procedure which could be mechanised or (in high density plantations) picked by hand. Sour cherries are perhaps the less dependent on watering under Hungarian conditions. Yields in small fruits: currents, gooseberries, raspberries and strawberries could be increased by irrigation to 40-50 % and may improve quality too. In those cultures the system of moving flexible wing tubes are considered to be the best irrigation technique.
-
The Hungarian peach production risks
85-89.Views:158Hungary possesses very good agroecological conditions even in a European comparison. Agriculture and food production is highly important despite its decreasing relative economic significance, since providing high quality and affordable food for the population is a basic social necessity and one of the decisive factors in quality of life. The development of vegetable and fruit production is of great importance both from a healthy nutrition as well as from a comparative advantage (cheap labour, expertise, production traditions, favourable climate) point of view.Vegetable and fruit consumption per capita is lower than in developed countries, which is a decisive indicator of healthy nutrition, but improvement is continuous and desired. Appropriate quality and quantity in production is a requirement to meet customers’ needs in a highly competitive market from one year to the next. Hungary can only be competitive if production results are improved while risks are reduced. Fruit production is a sector with high capital requirements, risk assessment is very important from a production, investment as well as from a national economy point of view. Our examinations will focus on production risk, which is present in the annual fluctuation of average yields, especially as a result of extreme weather factors.
-
Farm economic evaluation of elderberry production
57-60.Views:208In 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.
-
Cultivars, marketing and integrated Production of apples in the Czech Republic
87-92.Views:108Development in apple production in the Czech Republic has been adversely effected during a few recent years by escape of capital investment from the agrifood industry (due to privatisation, restitution and transformation). On the other way round the competition on the domestic market is much higher than it was before because of unlimited import of subtropical and tropical fruit and some import of traditional fruit species as well. Therefore fruit growers are very much concerned in any possible means (which are not economically feasible) to be more competitive. One of the most common approach is the use of new cultivars bred in the country which are resistant or tolerant to diseases and offer better quality both for fresh market and processing. Another way for increasing competition ability for fruit growers is the join and mastering of integrated production which also considerably improve the quality of fruit as far as aspects of health are meant.
-
The comparative economic analysis of Hungarian and German apple production of good standard
79-85.Views:250The profitability of the Hungarian apple production considering firms producing on high standard is not lagged behind significantly from that of German firms, moreover in certain cases it reflects a more positive situation. It is unfavourable, however, that this statement is true only for 8 to 10% of our whole apple plantation surface. The results of the investigations highlighted the fact that in comparison with Germany our farm business advantages manifest in three factors: in 70 to 80% lower wages, in 15 to 30% higher investment and subsidy intensity and in the fact that at present we cannot neglect the ice safety system which is rather expensive. By the increasing wages, the narrowing subsidy opportunities and incidentally the appearing harmful weather phenomenon, these advantages may be continuously ceased. Our definite disadvantage appears in the level of marketing price, considering the fact that producers in Hungary realize 30 to 35% lower marketing price, which is in connection with the probably much lower level of organization among farmers, in the market and in the logistical background.
-
Comparative economic analysis of superintensive and intensive apple orchards
45-48.Views:185The objective of thsi study was to compare economic aspects of superintensive and intensive apple production.
According to our results, conclusions and recommendations regarding the establishment of superintensive orchards are the followings: A yield of 60 tons per hectare in the average of the mature years provide a quite late payback, in this way yield losses should be avoided in the plantation of such a huge capital requirement. When yield losses happen, which cannot be avoided or may be avoided only in a limited way, up to 65 to 70 tons per hectare yield should be reached even in good years, in order to yield the average 60 tons per hectare in the long run. In this case yield losses from production technological mistakes must not be arisen. Inputs and professional expertise should be used in a maximum way in order to reach yields ensuring profitable production. Investment subsidies may ensure safer return. The return of a superintensive orchard from totally own sources may be risky under the domestic marketing conditions and selling prices, it is strongly uncertain. -
Farm economic analyis of walnut production
71-74.Views:178In this present study the returning issues and profit conditions of domestic walnut production are investigated. Our objective is to determine the fact that under what conditions our walnut production may be competitive and maintained in an economic way regarding the present economic and market situations. Our analysis was carried out by a deterministic model based on a farm-level data gathering in production enterprises. The total investment cost of an up-to-date walnut orchard is up to 3000 thousands HUF per hectare and turning to
productivity is expected within 8-10th years. These orchards are able to produce a yield of 3 tons per hectare in the years of productivity in a normal year, thus in case of a medium-good selling prices a profit of 500 thousand HUF per hectare may be realized. As a result at the end of the whole lifetime of the orchard (30th year) an internal rate of return (IRR) of 10 to 12% may be calculated and the return is expected in the 20th to 22nd year, which may be considered as a very late return. Taking the 20 to 25% probability of harmful whether phenomena (frost, drought) into consideration, it may be concluded that in good years a performance reaching a yield of 4 tons per hectare is necessary in the long-run in order to achieve the profitable and sustainable production in an economic way. This is managed to reach in only the most up-todate orchards. -
Pre-scaling up evaluation of banana technology under irrigation conditions in Abergelle District, Wag-himra Zone, Ethiopia
39-44.Views:544The study was conducted to compare the improved banana technology against the local production technique to enhance demand-driven banana technology up-scaling and diffusion. Data were collected at the field and farmers' levels. Descriptive and inferential statistics, cost-benefit analysis and matrix ranking were employed for analysis. The result revealed that the average yield (38.40 ton ha-1) of improved banana technology had a significant yield advantage (47.24%) over the local practice (p<0.05). Despite the higher cost of production, its net return was by far higher than the local practice. The benefit-cost ratio also displays that 9.49 Ethiopian Birr (ETB) profit per 1.00 ETB investment in an improved technology package. The overall farmers' perceptions were laid under strongly agree and agree categories, and 95% of them believed that the improved banana technology was appropriate for their area and hence accepted with full confidence. The respective organizations working on rural livelihood improvement are therefore advised to up-scale the improved technology for the wider community based on the irrigation potential.