Economic assessment of sicilian loquat orchards

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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.
Lingua originaleEnglish
pagine (da-a)33-36
Numero di pagine4
RivistaACTA HORTICULTURAE
Volume1092
Stato di pubblicazionePublished - 2015

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orchards
economics
Eriobotrya japonica
economic sustainability
cost benefit analysis
production costs
labor
income
farmers
markets
coasts
methodology

All Science Journal Classification (ASJC) codes

  • Horticulture

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title = "Economic assessment of sicilian loquat orchards",
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.",
keywords = "Cost-benefit analysis, Economic convenience, Eriobotrya japonica, Horticulture, Sensitivity analysis",
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T1 - Economic assessment of sicilian loquat orchards

AU - Sgroi, Filippo

AU - Tudisca, Salvatore

AU - Di Trapani, Anna Maria

PY - 2015

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N2 - 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.

AB - 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.

KW - Cost-benefit analysis

KW - Economic convenience

KW - Eriobotrya japonica

KW - Horticulture

KW - Sensitivity analysis

UR - http://hdl.handle.net/10447/159329

UR - http://www.actahort.org/members/showpdf?session=14118

M3 - Article

VL - 1092

SP - 33

EP - 36

JO - ACTA HORTICULTURAE

JF - ACTA HORTICULTURAE

SN - 0567-7572

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