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

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  • Felföldi, János
  • Apáti, Ferenc

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.

Suggested Citation

  • Felföldi, János & Apáti, Ferenc, 2014. "Operation efficiency in the fruit production chain – a study based on real cases," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2014(4).
    • Handle: RePEc:ags:paaero:205156
    DOI: 10.22004/ag.econ.205156
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    Keywords

    Agribusiness;

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