Understanding Profitability of Georgia Blueberry Growers Adopting a Stochastic Approach

Saurav Raj Kunwar, Esendugue Greg Fonsah and Octavio Ramirez

Journal of Food Distribution Research, vol. 52, issue 01

Abstract: We use a stochastic approach to assess the returns from blueberry production regarding observed blueberry price and yield variability. We extend the deterministic budget to stochastic by using triangular distribution and using Monte Carlo simulations. We use net present value (NPV) to assess and compare the returns. We observed disparity in the expected NPVs from two budget systems, and the chance of getting positive NPV studied under the stochastic budget was too low (23.85%–30.24%). This result shows the need for a stochastic approach to analyze growers’ profit, which helps making investment decisions. Moreover, this study is useful for farmers and farm risk analyzers.

Keywords: Crop Production/Industries; Research Methods/ Statistical Methods (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlofdr:313450

DOI: 10.22004/ag.econ.313450

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