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Costs and financial viability of blueberry production in Pelotas

Author

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  • Oliveira, Icaro Pedroso de
  • Marques, Léo Omar Duarte
  • Belarmino, Luiz Clovis
  • Mello-Farias, Paulo
  • Canever, Mario Duarte

Abstract

Blueberry cultivation is a recent economic activity in Brazil. The productive and commercial systems still need improvement, especially to maintain the regularity of quality and productivity and the transparency of costs and prices. There is no study dedicated to analyze the economic viability of blueberry production under Brazilian conditions. Therefore, the objective of this study is to survey the costs and analyze the economic and financial viability of this crop in a farm located in Pelotas, state of Rio Grande do Sul (RS), Brazil. The data collection and analysis followed the procedure adopted by the Policy Analysis Matrix, and the viability indicators were net present value (NPV), internal rate of return (IRR) and payback period. The results showed a production cost of US$ 7,394.61 per hectare or US$ 2,310.88 per ton and financial viability for production, since the NPV for the 10-year period was US$ 26,214.81, the IRR was 26.36%, the net income was US$ 7,180.25 hectare/ year-1, and the payback was 4.9 years. Therefore, blueberry production in southern RS is profitable, and the production chain can receive new investments given the technological and market conditions of this study.

Suggested Citation

  • Oliveira, Icaro Pedroso de & Marques, Léo Omar Duarte & Belarmino, Luiz Clovis & Mello-Farias, Paulo & Canever, Mario Duarte, 2022. "Costs and financial viability of blueberry production in Pelotas," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 60(2), January.
    • Handle: RePEc:ags:revi24:340977
    DOI: 10.22004/ag.econ.340977
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    1. Sheng, Yu & Zhao, Shiji & Nossal, Katarina & Zhang, Dandan, 2015. "Productivity and farm size in Australian agriculture: reinvestigating the returns to scale," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(01), January.
    2. Yu Sheng & Shiji Zhao & Katarina Nossal & Dandan Zhang, 2015. "Productivity and farm size in Australian agriculture: reinvestigating the returns to scale," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(1), pages 16-38, January.
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