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Increasing Profitability of Small Scale Orchard Producers through Optimizing Replacement Rate: The Case Study of Ghana AgEcon
Mahrizal; Nalley, Lawton Lanier; Dixon, Bruce L.; Popp, Jennie S. Hughes.
This study sets out to empirically estimate the optimum annual replacement rate and age of cocoa trees in order to maximize the net present value of four common cocoa production systems. The study examines the costs and returns of four common cocoa production systems in Ghana associated with changes in cocoa prices, fertilizer prices, inflation rates, and labor prices. While this study focuses on cocoa, the methodology is applicable to any perennial crop. This study uses empirical yield curves and cost of production data from Ghana to determine when and what percentage of a cocoa orchard should be replaced annually to maximize net present value of revenues over time. Successive versions of the model are solved to determine how input and output price...
Tipo: Presentation Palavras-chave: Cocoa; Replacement Rate; Net Present Value (NPV); Production Economics; Q01; Q15; Q32.
Ano: 2012 URL: http://purl.umn.edu/119777
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