Farm economic evaluation of elderberry production

In this present study the efficiency as well as the farm economic advantages and disadvantages of elderberry production areexamined. Our objective is to determine the fact that under what conditions the elderberry production may be profitable regarding the presenteconomic and market situations. Our analysis was carried out by a simulation model based on a farm-level data gathering in productionenterprises. The total investment cost of an up-to-date, elderberry orchard of traditionally cultivated without irrigation is between 1000 to1700 thousand HUF per one hectare and turning to productivity is expected within 4-5th years. These orchards are able to produce yields of8,0 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 possibleregarding 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 perhectare 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 to14%, 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 8thyear. From the farm economic aspect the elderberry may be considered as an extensive sector, which advantages are low capital and labourneed, early recovery, good-acceptable profit on capital and cost to profit ratios, but its disadvantage is low per hectare profit comparing tointensive fruit species and orchards. In this way in general farms of capital-extensive and avoiding risks choose elderberry production

Conditions of rentability in the apricot industry of Hungary

Total investment costs of an up to date apricot plantation requires about 5000 thousand HUF/ha. Modernplantations yield under normal conditions 15–20 t/ha with 80% quality for fresh consumption. Consequently, taking the life span of aplantation (15 years), the internal rate of return of 15–17% per year (IRR), that means that the costs of investment will be regained in the9–10th 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 yieldsmaintains the option of feasibility up to 20–25% losses

Effect of postharvest on the economic viability of walnut production

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 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

Farm economic evaluation of raspberry production

Hungary was considered as one of the most significant raspberry producers in the 1980’ies. The acreage and the producedquantity, however, reflected a decreasing tendency during the past two decades: the 7 000 hectares existing in the year of 1990 reduced to1 500 hectares, the current territory does not reach the 500 hectares. The annual yield is only 1 to 3 thousand tons. The level of domestic freshconsumption is very low, due to the fact that it is a relatively expensive fruit for Hungarian consumers. The requirement of the processingindustry is satisfied by raspberries from mainly Polish and Serbian import. These two countries belong to the biggest raspberry producingcountries in the world by producing raspberries of more than 50 thousand tons. Comparing to the Hungarian production costs and yields theyare able to transport their products here at a very low price, consequently they hold the prices at a low level. The profitability of the domesticraspberry production is rather unfavourable, production often shows a deficit even in orchards of good standard; furthermore the lack of labourcauses an extremely great difficulty, which is an important component of the decline of the production independently from cost conditions

Farm economic analyis of walnut production

In 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 toproductivity 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

The comparative economic analysis of Hungarian and German apple production of good standard

The profitability of the Hungarian apple production considering firms producing on high standard is not lagged behindsignificantly from that of German firms, moreover in certain cases it reflects a more positive situation. It is unfavourable, however, that thisstatement is true only for 8 to 10% of our whole apple plantation surface. The results of the investigations highlighted the fact that incomparison with Germany our farm business advantages manifest in three factors: in 70 to 80% lower wages, in 15 to 30% higher investmentand 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 continuouslyceased. 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 thelogistical background

Farm economic analyis of walnut production

In this present study the returning issues and profit conditions of domestic walnut production are investigated. Our objective isto determine the fact that under what conditions our walnut production may be competitive and maintained in an economic way regardingthe present economic and market situations. Our analysis was carried out by a deterministic model based on a farm-level data gathering inproduction enterprises. The total investment cost of an up-to-date walnut orchard is up to 3000 thousands HUF per hectare and turning toproductivity 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 anormal 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 endof 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 inthe 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 thelong-run in order to achieve the profitable and sustainable production in an economic way. This is managed to reach in only the most up-todateorchards

Farm economic evaluation of raspberry production

Hungary was considered as one of the most significant raspberry producers in the 1980’ies. The acreage and the produced quantity, however, reflected a decreasing tendency during the past two decades: the 7 000 hectares existing in the year of 1990 reduced to 1 500 hectares, the current territory does not reach the 500 hectares. The annual yield is only 1 to 3 thousand tons. The level of domestic fresh consumption is very low, due to the fact that it is a relatively expensive fruit for Hungarian consumers. The requirement of the processing industry is satisfied by raspberries from mainly Polish and Serbian import. These two countries belong to the biggest raspberry producing countries in the world by producing raspberries of more than 50 thousand tons. Comparing to the Hungarian production costs and yields they are able to transport their products here at a very low price, consequently they hold the prices at a low level. The profitability of the domestic raspberry production is rather unfavourable, production often shows a deficit even in orchards of good standard; furthermore the lack of labour causes an extremely great difficulty, which is an important component of the decline of the production independently from cost conditions

Economic aspects of applying hail protection nets in apple plantations

The 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

Economics of apple-storage I: Comparative time series analysis of apple producer prices in Germany and Hungary

Based on standard econometric methods the article analyses the time series of fresh apple producer prices in domestic markets of Germany and Hungary. In Germany, as a consequence of high storage capacities the quantity offered in different parts of the season is relatively stable, that’s why only a rather limited price increasing can be detected. In Hungary, as a consequence of the limited storage capacity this fluctuation is much more important. The modern methods of time series analysis (ARIMA models, stepwise regression) can be efficiently applied for forecasting of price movements