Operation efficiency in the fruit production chain – a study based on real cases

János Felföldi and Ferenc Apáti

Roczniki (Annals), 2014, vol. 2014, issue 4

Abstract: In our study, by simulating the model of an apple producing firm, we investigated how the availability of postharvest establishments influences the economic efficiency of production. The results of our analysis highlighted the fact that by possessing cold storage and introducing an extended selling period, a producing enterprise may make higher profits (NPV) of 40 to 50% during the lifetime of the investment than if without such postharvest mechanisms. In the investigated case, however, because of the huge capital requirement at the beginning, the internal rate of return (IRR) was somewhat unfavourable. However, in the case of own, ready and running postharvest establishments, better investment economic efficiency parameters (from 40 – 120 %) may be reached. Thus the capital need for investment is much lower for the producing enterprise, but the price advantage of the extended selling period remains.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2014
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/205156/files/16-4-Felfoldi.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:paaero:205156

DOI: 10.22004/ag.econ.205156

Access Statistics for this article

More articles in Roczniki (Annals) from Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().