Agroeconomia Croatica, Vol. 1 No. 1, 2001.
Preliminary communication
Economics of Integrated Walnut Production in North-East Slovenia
Jernej Turk
; Faculty of Agriculture, University of Maribor, Vrbanska 30, 2000 Maribor, Slovenia
Črtomir Rozman
; Faculty of Agriculture, University of Maribor, Vrbanska 30, 2000 Maribor, Slovenia
Abstract
Fruit production is considered a viable farm business option especially in those areas where the abandonment of agricultural production has become a major agricultural policy issue and concern. Due to high self-sufficiency levels in apple production and owing to low self-sufficiency levels in other fruit sorts in the Slovene food market, an immanent increase in the diversification level of fruit production would be a good opportunity for small-scale fruit growers. Walnut is just one of many fruits which could be grown in marginal areas. However, the farmers would require reliable information on the economic viability of walnut production before any orchard establishment (in¬vestment) has actually taken place. A static simulation model was developed in this study to enable comparative cost analysis of integrated walnut production. Because the integrated fruit production is currently a prevailing trend in the Slovene fruit growing, its corresponding production technol¬ogy was utilised in building up the model. The estimated total costs represent a basis for the calcu¬lation of break-even price and break-even yield. The impact of different yields on the break-even price is evaluated by employing the sensitivity analysis. Using the information on the production costs calculation model, the average yearly cash flows are estimated. By applying a cost-benefit analysis methodology, the net present values and internal rates of return are ultimately computed to evaluate the financial aspects resulting from a specific investment project in walnut production.
Keywords
walnut production; farm management; simulation modelling
Hrčak ID:
179169
URI
Publication date:
1.2.2001.
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