Abstract:
It was analized the economic outcome of 9 horticultural species, that had different periods of production (some of them) for the area of Rosario, Argentina (at 33 degrees South latitude). These horticultural species were: Spring Production Tomato and Autum Tomato; Pepper; Eggplant; Melon; Spring Production Cucumber and Autumn Cucumber; Autumn Production Sweet Basil and Spring Sweet Basil, Strawberry, Celery and Snap Bean.
Two alternatives were evaluated: a) Hired hand labour (payment of wages) and b) Hand labour contributed by sharer cropper (some percentage of the production). A sensibility was carried out according to different average sale prices and it was determined the minimum price under which the NPV (8%) was negative.
The measures of economic estimates were: Gross Margin (G.M.) Net Income (N.I.), Net Profit (N.P.), Return on Capital (R.C.) and Net Present Value (N.P.V.).
The a) alternative with average prices showed the greatest Return on Capital.
When the average prices were reduced to 25%. both alternative offered the same economic outcome.
The minimum prices of the b) alternative are significantly lower than those of the a) alternative.
The crops of Pepper, Celery, Strawberry and Spring Tomato showed the highest G.M. Since the first two are annual crops, the celery is the one which presented the highest Return on Capital. the best combination of crops was the Celery and the Autumn Tomato.
The Autumn Sweet Basil, Spring Sweet Basil, Autumn Pepper ans Snap Bean were the ones showing the lowest Return on Capital.
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