Estimated Costs and Investment Analysis of Producing and Harvesting Muscadine Grapes in the Southeastern United States
2008
Carpio, Carlos E. | Safley, Charles D. | Poling, E Barclay
This study estimates and compares the production costs and profitability of muscadine grape (Vitis rotundifilia) production under the single-wire (SW) and the Geneva double curtain (GDC) trellis systems with and without drip irrigation. Profitability analysis revealed that muscadine grape production can be a profitable venture. Irrigated muscadine grape vineyards were shown to be more profitable than nonirrigated vineyards. The comparison of the GDC trellis system and the SW trellis system indicates that the GDC trellis system is more profitable. Returns to land and management from muscadine grapes grown under the GDC system were found to be less sensitive to changes in prices and yields than the returns from muscadine grapes grown under the SW trellis system. Net returns from irrigated systems were also found to be less sensitive to variations in prices and yields than nonirrigated systems. The estimated total costs of establishing (Years 0-3) a muscadine grape vineyard were between $9783/acre and $15,065/acre depending on the production system used. For the GDC production system, which was the most profitable production system, the estimated return to land and management was $447/acre. Cash flow analysis demonstrated that the payback period for this system can be achieved in the 10th year, whereas the net present value of the investment was estimated at $4484 and the internal rate of return was estimated at 9.6%.
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