ISHS Acta Horticulturae 155: VIII Symposium on Horticultural Economics
VEGETABLE CROPS FOR CANNING AND THEIR INFLUENCE ON FARM INCOME |
| Author: | F.J. Cavero |
| Abstract:
The influence of vegetables for canning on farm income is very strong. This paper quantifies the effect of this type of production on the income of irrigated farms of 10 ha and 2 man-year. The gross margin of these farms is 89 % higher than that of extensive farms of similar characteristics which do not grow these crops. The income of vegetable farms is heavily dependent on changes in prices of vegetables and farm inputs. Thus, although the nominal increase in the gross margin of these farms between 1978 and 1982 can be estimated at 17.5 %, the real increase was negative due to the increase in living costs. Input prices increased more than product prices. If we take pepper - a product with a strong influence on farm income - as a reference, its increase in price can be estimated at 30 %, while the price of the compound fertilizer 8-24-8 increased in 224 % and that of diesel fuel in 536 % in the same period, 1978–1982. These considerations clearly indicate that the oscillation of vegetable prices will have a strong effect on the income of these farms. | |
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