Articles
ECONOMIC ASSESSMENT OF SICILIAN LOQUAT ORCHARDS
Article number
1092_3
Pages
33 – 36
Language
English
Abstract
The majority of Italian production of loquat (Eriobotrya japonica) derives from the Palermo province, along the northern Sicilian coast.
However, this area is characterized by family orchards, traditional cultural techniques, and inadequate commercial organization.
These appear to affect negatively the production costs and reduce the farmers income, decreasing the competitiveness of Sicilian loquat orchards.
This study evaluates the economic viability of Sicilian loquat orchards by means of cost-benefit analysis (CBA). In particular, for the investment assessment some financial indicators have been calculated such as net present value (NPV), discounted payback time (DPBT), and internal rate of return (IRR). The results show a low return of investment due to both the current market conditions and the high labor required.
However, this area is characterized by family orchards, traditional cultural techniques, and inadequate commercial organization.
These appear to affect negatively the production costs and reduce the farmers income, decreasing the competitiveness of Sicilian loquat orchards.
This study evaluates the economic viability of Sicilian loquat orchards by means of cost-benefit analysis (CBA). In particular, for the investment assessment some financial indicators have been calculated such as net present value (NPV), discounted payback time (DPBT), and internal rate of return (IRR). The results show a low return of investment due to both the current market conditions and the high labor required.
Publication
Authors
F. Sgroi, A.M. Di Trapani, R. Squatrito, S. Tudisca, R. Testa
Keywords
cost-benefit analysis, economic convenience, Eriobotrya japonica, sensitivity analysis
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