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Climate change impacts and product lines
79-83.Views:191This 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 developed 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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Economics of sea buckthorn production and processing in Hungary
21-25.Views:268This 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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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.