Economic viability of cultivating Niagara Rosada grapes

Meyriele Pires de Camargo and Caroline Rabelo Costa

Revista IPecege, 2017, vol. 3, issue 2

Abstract: The state of São Paulo is the third largest grape producer in Brazil and the largest national producer of table grapes, with the Niagara Rosada variety ( Vitis labrusca ) being the most planted in the state. The objective of this study was to verify the economic viability of cultivating Niagara Rosada. The project was designed for an area of ​​3 hectares located in the municipality of Piracicaba, SP. The plants were trained in a trellis system at a density of 5000 plants ha⁻¹ . The cash flow was projected for a period of 13 years. The costs for vineyard establishment and maintenance, bank financing, payment of the Rural Worker Support Fund [Funrural], and the opportunity cost of the land were estimated. The minimum attractive rate of return [MARR] was set at 11.45%, and the calculated economic indicators were Net Present Value [NPV], Internal Rate of Return [IRR], simple payback, discounted payback, and benefit-cost ratio. Positive NPV (R$ 398,951.36) and cost-benefit ratio (1.81) values ​​were obtained. The IRR was estimated at 27.34%, higher than the MARR. The simple and discounted payback periods were 5 years and 6 years, respectively, indicating that the payback time for the initial capital invested was shorter than the project period. The estimated economic indicators confirmed the financial viability of the project under analysis.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Date: 2017
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