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- Author or Editor: Carlos E. Carpio x
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%.
In Honduras and El Salvador, coffee (Coffea arabica) is one of the leading agricultural exports, and the share of specialty coffee is growing each year. However, despite the importance of specialty coffee production and exports, there is a knowledge gap regarding its cost structure and profitability, particularly those associated with labor costs. The specific objectives of the study were to determine the cost structure of specialty coffee in Honduras and El Salvador and to estimate the costs and profitability of producing specialty coffee in these countries. A semi-structured survey instrument was administered to 14 farmers in Honduras and El Salvador selected as a convenience sample to represent different farm sizes, regions, and specialty-conventional and organic production systems. Specialty-conventional refers to high-quality coffee with or without certifications. Then,cost-profitability models were developed using an economic cost approach, which considered cash, noncash cost, and the opportunity costs of inputs. The results showed that although both countries are neighbors and economically and culturally similar, the cost structure of producing specialty coffee differed significantly. Costs were lower and profits were higher in Honduras than in El Salvador, and the specialty-conventional coffee production system was more profitable than the organic production system.