A Profitability Analysis of Investment of Peach and Apple Growing in Turkey

Abstract

This study was conducted to determine profitability and feasibility of fruit farms by investment analysis in Tokat - Turkey. The criteria of Net Present Value (NPV ), Cost-Benefit Ratio (CBR) and Internal Rate of Return (IRR) were used for investment analysis. Three different discount rates (10%, 8% and 5%) were used to get the NPV and CBR for peach and apple. The NPV for peach were found to be positive (1113.6 $/da; 1454.7 $/da; and 2156.2 $/da). Also the NPV for apple were found to be positive (574.2 $/da; 805.4 $/da; and 1342.9 $/da). In addition to that, the CBR for peach were bigger than 1 (1.38; 1.43 and 1.51) and the CBR for apple were bigger than 1 (1.23; 1.27 and 1.33). The IRR for peach was 25.05 percent and 22.12 for apple. According to the results that were achieved by the study, it could be conducted that the investment is economically feasible. In the light of the findings of the present study, it can be perceived that the fruit farming can be one of the most important income sources for the farmers growing fruit in the research region in Turkey.