Profitability and economic efficiency indicators of cv. Gala apple production in Maule Region, Chile
Profitability and economic efficiency indicators of apple (Malusdomestica L.) cv. Gala production of a farm located in theLinares area (35°51' S lat, 71°35' W long), Maule Region,Chile, were estimated. Technical parameters of the orchard wereobtained from historical farm records for different premises from the1994-1995 to 2003-2004 agricultural seasons. For the valuation of theinvestment in the orchard and production costs, the prices for the2003-2004 season were used. From the capital-asset-pricing model(CAPM), the weighted average cost of capital (WACC) was calculated,which was estimated at 8.71% annually. The profitability indicatorscalculated were net present value (VAN), internal rate of return (TIR),net present value index (IVAN) and cost benefit ratio (RBC), while theeconomic efficiency indicators were total mean production cost (CMET),unit margin (MU) and return on equity (RSC). The analysis was basedupon one hectare. For the standard situation the results obtained were:8,454 dollars per hectare VAN, 12.1% TIR, 0.43 IVAN, 1.51 RBC. Theminimum CMET were estimated at 0.08 dollars per kilogram, the maximumMU at 0.14 dollars per kilogram and RSC up to 23.6%. The mainconclusion, from an economic point of view, suggests that this activityis profitable for producers of cv. Gala apples.
Year of publication: |
2005-12-31
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Authors: | Lobos A., Germán ; Muñoz I., Tristán |
Publisher: |
Instituto de Investigaciones Agropecuarias, INIA |
Subject: | discount rate | net present value | internal rate return | return onequity | Malus domestica L | tasa de descuento | valor actual neto | tasa interna de retorno | rentabilidad sobre capital |
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