Abstract
Our main objective in this present study is to evaluate the profitability and efficiency of sour cherry production by a complex economic analysis of its technological process. We concluded that the per kilogram prime costs range between 80 to 90 HUF/kg in case of sour cherry for industrial purposes. On this basis, it is clear that the 50 to 90 HUF/kg regular selling prices of previous years do not make profitable production possible. Under the present market conditions even considering per hectare average yields of 10 to 15 tons the establishment of sour cherry orchards is not economical, the internal rate of return is below the interests of money-market and the recovery will not be happened even during the whole life-time of the orchard. In this way the domestic enterprises should not only raise the yields but realize technological changes (e.g. mechanic harvesting) in order to decrease the production costs in a significant way and to maintain a profitable sour cherry production. It is expected that the enterprise farming on great land (several ten hectares), being settled for mechanic harvesting (subordinating everything to this), reaching yields of 15 to 20 tons per hectare, producing on high technological and input levels, having specialized knowledge will stay on the sour cherry market far in the future.
Highlights
Sour cherry production has not belonged to the success branches of the Hungarian horticulture since last years
The present Hungarian sour cherry branch is characterized by low purchase prices, much lower than the prime cost, yields left on the trees because of lack of market, hundreds and thousands of neglected and uncared orchards and bitterness of sour cherry producers
Under these condition it is hard to say or do something wise but by analyzing the cost and profit conditions of the production we try to have a deeper look into the evolved situation, and make it see, because it is sure that the basis of competitiveness is profitability
Summary
Sour cherry production has not belonged to the success branches of the Hungarian horticulture since last years. The present Hungarian sour cherry branch is characterized by low purchase prices, much lower than the prime cost, yields left on the trees because of lack of market, hundreds and thousands of neglected and uncared orchards and bitterness of sour cherry producers. Under these condition it is hard to say or do something wise but by analyzing the cost and profit conditions of the production we try to have a deeper look into the evolved situation, and make it see, because it is sure that the basis of competitiveness is profitability. Competitiveness is primarily determined by the efficiency of the production (Felföldi, 2007), as a consequence farm economic analysis focusing on this is the most important task in these orchards as well
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