The bottom line: an investment appraisal of two apple production systems
1994
Gordon, R.J. (New South Wales Agriculture, Tumut (Australia))
Provides an assessment of the relative profitability of two apple production systems: the traditional semi-intensive, and the new intensive, production systems. The assessment of profitability has been made by simulating the development of a 10 hectare orchard over 12 years, with gross margins being constructed to give an indication of variable costs and returns for a single year. The project concludes that the intensive production system is the more profitable, due to a higher assumed yield, a higher packout, and higher earlier yields providing a quicker cask flow. Intensive systems are more capital intensive though, and require a greater level of management.
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