On the economics of growing citrus trees in the Cordillera Region [Philippines]
1993
Wesseler, J. (Universitaet Geottingen (Germany))
Fruit trees are considered as an important factor for the development of the rural areas in Northern Luzon [Philippines]. There are three projects, the Highland Agriculture Development Project, the Central Cordillera Agricultural Project and the Republic of the Philippines-German Fruit Tree Program promoting fruit tree growing. The expected benefits from fruit trees are: (a) increase in nutrition, (b) increase in income of farm households and (c) reduction in soil erosion. To value and compare these benefits is the traditional task of an economist. This paper concentrates on the second aspect: increase in income of farm households. Based on data gathered from citrus farmers in Northern Luzon, the author showed how to estimate the effect of growing citrus trees on farm income. The results show that prices of fertilizer and pesticides have a low, whereas yield, fruit prices and investment opportunities have a high impact on the average net return
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