IDEAS home Printed from https://ideas.repec.org/p/ags/ifma99/346536.html
   My bibliography  Save this paper

Investment Decisions and the Product Life Cycle the Case of "Sunrise" Grapefruit in Israel

Author

Listed:
  • Regev, Arie
  • Kachel, Yael
  • Brosh, Peretz

Abstract

One of the major developments in Israeli citrus growing in recent years has been the increase in production of Sunrise grapefruit. This process entailed massive capita! investment from private as well as public resources during a time period of about 20 years. Fxport quantities of Sunrise are still increasing while prices declined substantially since the mid-80's. We are evaluating the investment decisions by comparing the investment in planting Sunrise to keeping an existing grove of white grapefruit. Our main findings are- (1) About one third of Sunrise plantations planted in the first part of the two decade period gained a positive and high Net Present Value, while the other two thirds planted later may end up with a very low or even negative NPV; (2) A variation of the product life cycle concept is identified in the development of Sunrise export sales. In the basic PLC concept sales volume and profits develop more or less parallel over lime, while in Sunrise exports the time series of sales is delayed in comparison to profits; (3) These findings are explained by the perennial nature of citrus production with its long time lag from investment til! the start of production.

Suggested Citation

  • Regev, Arie & Kachel, Yael & Brosh, Peretz, 1999. "Investment Decisions and the Product Life Cycle the Case of "Sunrise" Grapefruit in Israel," 12th Congress, Durban, South Africa, July 18-24, 1999 346536, International Farm Management Association.
    • Handle: RePEc:ags:ifma99:346536
    DOI: 10.22004/ag.econ.346536
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/346536/files/IFMA12_028.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.346536?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
    ---><---

    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:ags:ifma99:346536. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifmaaea.html .

    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.