Costs, viability and risks of organic tomato production in a protected environment

Andrezza Da Silva Machado Neto,Niraldo José Ponciano,Geraldo De Amaral Gravina,Rogério Figueiredo Daher,Paulo Marcelo De Souza

doi:10.5935/1806-6690.20180066

Andrezza Da Silva Machado Neto, Niraldo José Ponciano + Show 3 more

Open Access

https://doi.org/10.5935/1806-6690.20180066

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Journal: REVISTA CIÊNCIA AGRONÔMICA	Publication Date: Jan 1, 2018
Citations: 4	License type: cc-by

Abstract

ABSTRACT The aim of this research was to evaluate the agro-economic performance of two table-tomato cultivars (Santa Clara and Siluet), under organic cultivation and in a protected environment. Through the analysis of production costs, economic viability and project risk, it was sought to generate a proposal for agricultural profitability having less socio-environmental impact on family farming. To achieve that, the Operating and Total Production Costs, Net Present Value (NPV) and Internal Rate of Return (IRR) were calculated. A sensitivity analysis and economic risk analysis were then carried out. Both cultivars under consideration presented satisfactory economic indicators for the period being analysed. Judging by the criterion of Net Present Value, almost all discount rates (except for the rates of 10 and 12% for the Santa Clara cultivar) were found to be economically viable, with internal rates of return higher than the annual rate of 6%, the minimum rate of financial attractiveness considered. The sensitivity analysis revealed that price received and productivity have the greatest interference on project profitability, followed by packaging and labour costs. The estimated economic risk was relatively low, with a probability of obtaining a negative NPV of 30.31% in the case of the 'Santa Clara', and 4.48% for the 'Siluet'. It is therefore concluded that the organic production of 'Siluet' and 'Santa Clara' tomatoes under protected cultivation is an economically viable activity, with emphasis on the agro-economic superiority of the Siluet cultivar.

Highlights

Present on the table of most Brazilians, the tomato (Solanum lycopersicum) stands out in economic importance among cultivated vegetables
In 2016, Brazil produced 3.47 million tons of tomatoes; the Southeast of the country participated with 48.2% of domestic production, including São Paulo with 20.2%, Minas Gerais with 18.8%, Rio de Janeiro with 5.1% and Espírito Santo with 4.1% (IBGE, 2016)
Two table-tomato cultivars were grown under organic management in a protected environment (144 m2 greenhouse), at the Research Support Unit (UAP) of the Darcy Ribeiro North Fluminense State University (UENF), in the district of Campos dos Goytacazes in the State of Rio de Janeiro (RJ), from July to November of 2011

Summary

Introduction

Present on the table of most Brazilians, the tomato (Solanum lycopersicum) stands out in economic importance among cultivated vegetables. It is seen as a great challenge to organic production, due to being a demanding crop in terms of nutrition and handling, and especially to its high susceptibility to pests and diseases. The tomato crop is an important income generator for small producers. From the socio-economic point of view, almost all table-tomato production comes from family farmers, providing them with employment and income. In 2016, Brazil produced 3.47 million tons of tomatoes; the Southeast of the country participated with 48.2% of domestic production, including São Paulo with 20.2%, Minas Gerais with 18.8%, Rio de Janeiro with 5.1% and Espírito Santo with 4.1% (IBGE, 2016)

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