Characterization of production costs and economical viability of guava cultivation in the region of sub-middle São Francisco Valley

• Published in: Acta horticulturae no. 959; pp. 187 - 191
• Main Authors: Araújo, J.L.P, Lima, J.R.F. de, Flori, J.E
• Format: Journal Article
• Language: English
• Published: International Society for Horticultural Science 01-01-2012
• Subjects: business enterprises; crop management; farming systems; fruit crops; income; margin of safety; production costs; profitability; viability
• ISSN: 0567-7572; 2406-6168
• DOI: 10.17660/actahortic.2012.959.23

The guava is one of the main fruit crops grown in the region of the Sub-Middle São Francisco Valley where its cultivation is practiced mainly by family farming and small agricultural companies. Guava cultivation needs a high cost management, and therefore producers should have good knowledge on crop management techniques, administration of production costs and economical viability of all the activities. This study aimed at characterizing the costs and identification of economical profitability of the typical guava production system in the region of Sub-Middle São Francisco. The characterization of production costs was studied through partial budget model. The economical performance of guava cultivation was determined based on the following efficiency indexes: net income, leveling point, cost/benefit relationship, entrepreneur return rate and safety margin, real net value, internal return rates, modified internal return rates, profitability index, profitability rate, present annualized net value and discounted payback. The analysis of guava production costs in the region of the Sub-Middle São Francisco reveals that the expenses with services largely overcome the input expenses. The annual production guava cultivated in the region is considered a profitable activity because the analysis of the economical performance parameters registered satisfactory numbers in several studied situations.