IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v57y2011i12id104-2011-agricecon.html
   My bibliography  Save this article

Evaluation of economic efficiency of orchards investment project with respect to the risk

Author

Listed:
  • Zlata SOJKOVÁ

    (Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, Slovak Republic)

  • Izabela ADAMIČKOVÁ

    (Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, Slovak Republic)

Abstract

Continuous elimination of the acreage of orchards in Slovakia has a negative impact on the overall fruit production. Improvement of the conditions could be achieved by introducing new technological systems into orchards and supporting the measures motivating farmers. Three investment strategies for planting apple orchards are presented in the paper: slim spindle, high density and extended orchards. Economic efficiency of the systems is evaluated through the return of investment, net current value and inner profit percentage. Within the assumption of the objective evaluation of input parameters, we can expect an acceptable economic efficiency of the investment only in the "slim spindle" technological system. The simplified deterministic evaluation of economic efficiency is further deepened with the identification of the relevant risk factors, followed by its quantification by the simulation processes. Taking the risk into account leads to a significant decrease of the economic attractiveness of investments.

Suggested Citation

  • Zlata SOJKOVÁ & Izabela ADAMIČKOVÁ, 2011. "Evaluation of economic efficiency of orchards investment project with respect to the risk," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(12), pages 600-608.
    • Handle: RePEc:caa:jnlage:v:57:y:2011:i:12:id:104-2011-agricecon
    DOI: 10.17221/104/2011-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/104/2011-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/104/2011-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/104/2011-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:57:y:2011:i:12:id:104-2011-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.