Economic Assessment of Two Managerial Strategies for HLB Resistant Plants in Persian Lime Representative Groves in the Mexican State of Veracruz Under 2012 Scenario

Abstract

This paper's purpose is to assess the economic viability (economic, financial and net cash flow) for two agricultural management strategies to control Huanglongbing (HLB) in Persian Lime Representative Production Units (URP) in the Municipality of Martinez de la Torre. The panel’s technique was used to build four URPs with 26 citrus growers’ collaboration. They gave all the key technical and financial information to calculate production costs, net income, total income and breakeven prices. VRLP3.5 URP was selected to model the two scenario strategies for managing HLB through improved varieties and use of a vaccine. Under the conventional scenario the URP got a positive net income, under financial, net cash flow and economic production costs. The breakeven prices are covered by the selling price in the estimated optimistic, pessimistic and most likely yield scenario. Therefore, the URP will be in business safely, for the short run, and very likely for the long run. The average yields per hectare in diseased citrus are estimated 40% less than the healthy orchards: Planting improved varieties and using the vaccine is able to recover the loss in average yields in about a year according to researchers in IPN. In both managerial strategies for controlling HLB, the increase in costs does not compensate the increase in yields. Net income is just positive applying financial costs. Breakeven prices are not covered at all applying the vaccine against HLB strategy, Therefore, adopting either the improved varieties strategy or the vaccine strategies are uncertain. To encourage the strategies implementation among producers, adopting a foster program with financial assistance for growers to pay the uncovered costs is required. Otherwise, strategies adoption for most of the growers would be unlikely.