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Economics of sea buckthorn production and processing in Hungary
21-25.Views:267This 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 (NPVr=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.
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Investment appraisal of a plantation establishment for intensive apple production
17-20.Views:162For 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.
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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. -
Utilisation of subsurface waters for soilless vegetable forcing in the Southern Great Plain region of Hungary
43-45.Views:144For 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.
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Feasibility of investments in Hungarian grapewine sector
37-42.Views:166Investments 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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Comparative economic analysis of superintensive and intensive apple orchards
45-48.Views:184The 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. -
Effect of postharvest on the economic viability of walnut production
28-38.Views:332In 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.
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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.
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Pre-scaling up evaluation of banana technology under irrigation conditions in Abergelle District, Wag-himra Zone, Ethiopia
39-44.Views:543The 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.
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Phyl-Gold: a product to diminish russeting of 'Golden Delicious' apples
131-133.Views:128Producing high quality apples in mature trees of the cv. 'Golden Delicious' is rather difficult because of the russeting of it's fruits, especially in seasons of high relative humidity and/or wetness.
Earlier experiments proved the possibility to decrease russeting by treatments of GA4.7 during a period after petal fall.
Phyl-Gold, a product of Phylaxia Co. (ai. 10 g1-1 GA4.7) was applied to inhibit russet formation in fruit skin of 'Golden Delicious' apples. Four consecutive sprays were carried out (with 10 ppm a.i.) in weekly intervals, starting at petal fall and tank-mixed with the current pesticides of the plant protection program.
Due to the GA4.7 application the russet formation decreased at a rate of economical importance. As for the side-effects of treatments, fruit set was reduced slightly in trees treated, however, there was no consequent influence on return bloom.
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Conditions of rentability in the apricot industry of Hungary
127-129.Views:165Total 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. -
Economic analysis of forced tomato production with regard to the intensity of production
15-21.Views:252We assessed the cost/income conditions of forced tomato production and return conditions of the growing technologies by investment-profitability analysis. Horticultural sectors generate significant added value and employ a large number of workers per unit area; however, these sectors cover only 4% of agricultural areas. Regarding the use of capital and labour, forced vegetables are the most intensive horticultures with several development potential and reserves to gain better quality and a more efficient farming. One of the most prominent forced cultures is table tomato produced under different types of forcing equipment in Hungary: traditional, low-height plastic tunnel; large-atmospheric, block-based plastic tunnels and various greenhouses. The prime goal of my thesis is to specify the economic efficiency of each type and to choose the most efficient one by the complex economic assessment of plastic tunnels, block-based plastic tunnels and greenhouses with the most advanced technologies. Results of the economic analysis suggest that the most efficient production method is the modern, Dutch greenhouse technology; however, this statement is not backed by every indicator: each type has its own advantages and disadvantages. Regarding the future, the installation of such types or even (in the technical sense) more modern growing technology may be considered as a prospect for capital intensive and larger businesses.
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Cost and profit analysis of sour cherry production for industrial purposes in Hungary
75-79.Views:246Our main objective in this present study is to evaluate the profitability and efficiency of sour cherry production by a complex economic analysis of its technological process. We concluded that the per kilogram prime costs range between 80 to 90 HUF/kg in case of sour cherry for industrial purposes. On this basis, it is clear that the 50 to 90 HUF/kg regular selling prices of previous years do not make profitable production possible. Under the present market conditions even considering per hectare average yields of 10 to 15 tons the establishment of sour cherry orchards is not economical, the internal rate of return is below the interests of money-market and the recovery will not be happened even during the whole life-time of the orchard. In this way the domestic enterprises should not only raise the yields but realize technological changes (e.g. mechanic harvesting) in order to decrease the production costs in a significant way and to maintain a profitable sour cherry production. It is expected that the enterprise farming on great land (several ten hectares), being settled for mechanic harvesting (subordinating everything to this), reaching yields of 15 to 20 tons per hectare, producing on high technological and input levels, having specialized knowledge will stay on the sour cherry market far in the future.
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Irrigation of pear (A review)
65-73.Views:176The plantation of intensive growing orchards and steady increase in yield is essential to return the growing cost by sale. Seasonal crop fluctuation of pear is increased by the frequently occurrence of drought and climatic changes. This study reviews genetic and growing factors determined the alternancy of pear and present the new knowledge concerning on water saving irrigation techniques. Use of dwarfing rootstocks, root pruning, branches pruning and new water saving irrigation make the changes in vegetative and generative growth that successfully improve the alternancy of pear growing. According to publications BA 29 of clonal quince rootstocks exhibited the best protection mechanism against to drought. Regulated deficit irrigation (RDI) applied during rapid shoot growth and slowly fruit growth result a decrease in shoot growth and 60% of water saving in pear orchard while there was no influence on harvested yield. Partial rootzone drying (PRD) microjet irrigation applied in pear orchard result 23-52% of decrease in water use, however concerning explorations are contradictory. Further investigations need to improve the efficiency of new irrigation technology adapted pear varieties based on monitoring of soil water status and measurement of stem water potential as stress indicators of plants.