IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v7y2015i8p10521-10533d53714.html
   My bibliography  Save this article

Evaluation of Economic Efficiency of Apple Orchard Investments

Author

Listed:
  • Dorin Badiu

    (Department of Horticulture and Landscape Architecture, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Manastur Street, 400372 Cluj-Napoca, Romania
    These authors contributed equally to this work.)

  • Felix H. Arion

    (Department of Economic Sciences, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Manastur Street, 400372 Cluj-Napoca, Romania
    These authors contributed equally to this work.)

  • Iulia C. Muresan

    (Department of Economic Sciences, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Manastur Street, 400372 Cluj-Napoca, Romania
    These authors contributed equally to this work.)

  • Ramona Lile

    (Department of Economics, Faculty of Economic Sciences, "Aurel Vlaicu" University of Arad, 77 Bdul. Revolutiei, 310130 Arad, Romania
    These authors contributed equally to this work.)

  • Viorel Mitre

    (Department of Horticulture and Landscape Architecture, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Manastur Street, 400372 Cluj-Napoca, Romania
    These authors contributed equally to this work.)

Abstract

The tree-growing sector is considered to be an important supplier of food and raw material for industry worldwide. Increasingly competitive decisions regarding international investment in orchards depend on business analysis. This study compares three apple orchards situated in Cluj-Napoca, on the Eastern limits of the Transylvanian Plain, Romania. While the climatic and soil conditions are relatively consistent among the three orchards, the technical and economic results (expressed in hectares) vary due to the use of three different technological systems of apple production: extensive, intensive, and super-intensive. The study compares the life cycle, starting with age of fructification, production level (quantity and quality), costs (investment and production costs—divided into material costs, mechanical costs, human costs, and overhead costs), income, profit (including rate of profit), and investment efficiency: Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP). It was observed that the most economically efficient technological system in terms of investments is the super-intensive one, with a higher production level, a higher share of Extra Class apples, and a younger age of initial fructification. However certain inconveniences of this system—such as a more expensive investment, a higher cost of running the business throughout the year, and a reduced life cycle—cannot be ignored.

Suggested Citation

  • Dorin Badiu & Felix H. Arion & Iulia C. Muresan & Ramona Lile & Viorel Mitre, 2015. "Evaluation of Economic Efficiency of Apple Orchard Investments," Sustainability, MDPI, vol. 7(8), pages 1-13, August.
  • Handle: RePEc:gam:jsusta:v:7:y:2015:i:8:p:10521-10533:d:53714
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/7/8/10521/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/7/8/10521/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mouron, Patrik & Scholz, Roland W. & Nemecek, Thomas & Weber, Olaf, 2006. "Life cycle management on Swiss fruit farms: Relating environmental and income indicators for apple-growing," Ecological Economics, Elsevier, vol. 58(3), pages 561-578, June.
    2. Andrea Baudoin Farah & Almudena Gómez-Ramos, 2014. "Competitiveness vs. Sustainability: An Assessment of Profitability as a Component of an Approach on “Sustainable Competitiveness” in Extensive Farming Systems of Central Spain," Sustainability, MDPI, vol. 6(11), pages 1-27, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qin Zhang & Yutao Peng & Jingxin Wang & Longcheng Li & Danjun Yao & Aihua Zhang & Wenhua Wang & Shengjian Kuang & Heng Liao & Qing Zhu & Bangxi Zhang, 2021. "Improving Ecological Functions and Ornamental Values of Traditional Pear Orchard by Co-Planting of Green Manures of Astragalus sinicus L. and Lathyrus cicera L," Sustainability, MDPI, vol. 13(23), pages 1-11, November.
    2. Riccardo Testa & Salvatore Tudisca & Giorgio Schifani & Anna Maria Di Trapani & Giuseppina Migliore, 2018. "Tropical Fruits as an Opportunity for Sustainable Development in Rural Areas: The Case of Mango in Small-Sized Sicilian Farms," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    3. Jasinska-Biliczak Anna & Malik Krzysztof, 2020. "Measuring the Integrated Effectiveness of Regional Development: Directions for Regional Government," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 389-403.
    4. Spiegel, Alisa & Severini, Simone & Britz, Wolfgang & Coletta, Attilio, 2020. "Step-by-step development of a model simulating returns on farm from investments: the example of hazelnut plantation in Italy: The example of hazelnut plantation in Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 9(1), April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christopher Lominac & Amitrajeet Batabyal, 2009. "An approach to the management of orchards that are vulnerable to attack by invasive species," Letters in Spatial and Resource Sciences, Springer, vol. 2(2), pages 123-131, October.
    2. Oriana Gava & Fabio Bartolini & Francesca Venturi & Gianluca Brunori & Angela Zinnai & Alberto Pardossi, 2018. "A Reflection of the Use of the Life Cycle Assessment Tool for Agri-Food Sustainability," Sustainability, MDPI, vol. 11(1), pages 1-16, December.
    3. Nina Repar & Pierrick Jan & Thomas Nemecek & Dunja Dux & Martina Alig Ceesay & Reiner Doluschitz, 2016. "Local versus Global Environmental Performance of Dairying and Their Link to Economic Performance: A Case Study of Swiss Mountain Farms," Sustainability, MDPI, vol. 8(12), pages 1-19, December.
    4. Nemecek, Thomas & Dubois, David & Huguenin-Elie, Olivier & Gaillard, Gérard, 2011. "Life cycle assessment of Swiss farming systems: I. Integrated and organic farming," Agricultural Systems, Elsevier, vol. 104(3), pages 217-232, March.
    5. Oriana Gava & Fabio Bartolini & Francesca Venturi & Gianluca Brunori & Alberto Pardossi, 2020. "Improving Policy Evidence Base for Agricultural Sustainability and Food Security: A Content Analysis of Life Cycle Assessment Research," Sustainability, MDPI, vol. 12(3), pages 1-29, February.
    6. Nemecek, Thomas & Huguenin-Elie, Olivier & Dubois, David & Gaillard, Gérard & Schaller, Britta & Chervet, Andreas, 2011. "Life cycle assessment of Swiss farming systems: II. Extensive and intensive production," Agricultural Systems, Elsevier, vol. 104(3), pages 233-245, March.
    7. Mercedes Beltrán-Esteve & José Gómez-Limón & Andrés Picazo-Tadeo & Ernest Reig-Martínez, 2014. "A metafrontier directional distance function approach to assessing eco-efficiency," Journal of Productivity Analysis, Springer, vol. 41(1), pages 69-83, February.
    8. Thomassen, M.A. & Dolman, M.A. & van Calker, K.J. & de Boer, I.J.M., 2009. "Relating life cycle assessment indicators to gross value added for Dutch dairy farms," Ecological Economics, Elsevier, vol. 68(8-9), pages 2278-2284, June.
    9. Joanna Domagała, 2021. "Economic and Environmental Aspects of Agriculture in the EU Countries," Energies, MDPI, vol. 14(22), pages 1-23, November.
    10. Zimmerer, Karl S. & Olivencia, Yolanda Jiménez & Rodríguez, Laura Porcel & López-Estébanez, Nieves & Álvarez, Fernando Allende & Olmo, Rafael Mata & Ochoa, Carolina Yacamán & Pulpón, Ángel Raúl Ruiz &, 2022. "Assessing social-ecological connectivity of agricultural landscapes in Spain: Resilience implications amid agricultural intensification trends and urbanization," Agricultural Systems, Elsevier, vol. 203(C).
    11. Goossens, Y. & Annaert, B. & De Tavernier, J. & Mathijs, E. & Keulemans, W. & Geeraerd, A., 2017. "Life cycle assessment (LCA) for apple orchard production systems including low and high productive years in conventional, integrated and organic farms," Agricultural Systems, Elsevier, vol. 153(C), pages 81-93.
    12. Aleksander Grzelak & Jakub Staniszewski & Michał Borychowski, 2020. "Income or Assets—What Determines the Approach to the Environment among Farmers in A Region in Poland?," Sustainability, MDPI, vol. 12(12), pages 1-20, June.
    13. Lipeng Li & Apurbo Sarkar & Xi Zhou & Xiuling Ding & Hua Li, 2022. "Influence and Action Mechanisms of Governmental Relations Embeddedness for Fostering Green Production Demonstration Household: Evidence from Shaanxi, Sichuan, and Anhui Province, China," IJERPH, MDPI, vol. 19(19), pages 1-25, September.
    14. Trigo, Ana & Marta-Costa, Ana & Fragoso, Rui, 2023. "Improving sustainability assessment: A context-oriented classification analysis for the wine industry," Land Use Policy, Elsevier, vol. 126(C).
    15. Marlena Gołaś & Piotr Sulewski & Adam Wąs & Anna Kłoczko-Gajewska & Kinga Pogodzińska, 2020. "On the Way to Sustainable Agriculture—Eco-Efficiency of Polish Commercial Farms," Agriculture, MDPI, vol. 10(10), pages 1-24, September.
    16. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
    17. Michal Pohludka & Hana Stverkova & Beata Ślusarczyk, 2018. "Implementation and Unification of the ERP System in a Global Company as a Strategic Decision for Sustainable Entrepreneurship," Sustainability, MDPI, vol. 10(8), pages 1-16, August.
    18. Aubron, C. & Noël, L. & Lasseur, J., 2016. "Labor as a driver of changes in herd feeding patterns: Evidence from a diachronic approach in Mediterranean France and lessons for agroecology," Ecological Economics, Elsevier, vol. 127(C), pages 68-79.
    19. Laura Piedra-Muñoz & Emilio Galdeano-Gómez & Juan C. Pérez-Mesa, 2016. "Is Sustainability Compatible with Profitability? An Empirical Analysis on Family Farming Activity," Sustainability, MDPI, vol. 8(9), pages 1-15, September.
    20. Xiaochen Wang & Yaqun Liu, 2024. "Enhancing Agricultural Ecological Efficiency in China: An Evolution and Pathways under the Carbon Neutrality Vision," Land, MDPI, vol. 13(2), pages 1-17, February.

    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:gam:jsusta:v:7:y:2015:i:8:p:10521-10533:d:53714. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.