Pakissan.com;
Pakissan.com Home Page Pakissan.com Urdu Edition Home Page
1
  The Web   Pakissan.com  
Main Page
 

 

Model Farming

 Home Model Farming

Return on date orchards in Balochistan 
By Syed Mohammad Khair

Pakistan is the fifth largest date producer in the world, with an area of 74.80 thousand hectares and production of 426.80 thousand tons. Balochistan produces 225 thousand tons of dates from an area of 42.3 thousand hectares and contributes 53 per cent to the total national output. Dates are second after apples in the area.

The Mekran division is producing 227 thousand tons of quality dates from about 20 varieties. Unfortunately, only a few thousands tons are marketed. Mekran is the second largest date producer area in the country after Sukkur. In the province, the Kech district share is 59 per cent.

The date orchard involves not only planting but requires ceaseless care and application of necessary inputs around the year. Growers have to choose whether they should assign their limited resources to plant date orchard or utilize these elsewhere. There is a lack of information about the financial feasibility in long-term investment in fruit orchards.

The investment appraisal analysis of date intercropped with Lucerne shows a negative cash flow during the first three years due to initial investment costs and the application of inputs and care each year. The cash flow becomes positive in the fourth year. The cash flow remains higher from year nine to year 20 due to a good return from the intercrop.

To calculate the net present value (NPV) of date orchard intercropped with Lucerne, the cash flow is discounted. The net present value (NPV) of Rs73,506 at 12 per cent discount rate and the internal rate of return (IRR) is 17 per cent.

The investment analysis of date intercropped with wheat and vegetables shows a negative cash flow during the first three years of date planting with intercrops due to the initial establishment costs of planting date orchard. The cash flow becomes positive in the fourth year and remains positive till the rest of production period.

To calculate the net present value (NPV) of intercropped date orchard the cash flow is discounted. The net present value (NPV) at Rs54,541 at 12 per cent discount rate and the internal rate of return (IRR) is 15 per cent.

Benefit-cost ratio analysis: A second discounted measure of project worth is the benefit-cost ratio. This is the ratio obtained when the present worth of the benefit stream is divided by the present worth of the cost stream. It is noted that the absolute value of the benefit-cost ratio will vary depending on the interest rate chosen. The higher the interest rate, the smaller the resultant benefit-cost ratio, and if a high enough rate is chosen, the benefit-cost ratio will be driven down to less than one. The decision rule of this technique is to accept those projects that at least the cost of the stream equals the benefit of the stream i.e., (1:1).

The maximum benefit- cost of date orchard intercropped with was obtained at 1:1.71. The analysis indicates that the revenue received makes the overall return from the same field more attractive for growers.

The benefit-cost ratio of date orchard intercropped with wheat 1:1.53 and is less than as compared to intercropping with Lucerne because Lucerne is a perennial crop and there is great demand for fodder in local market.

The return on investment in date orchard is estimated against the current rate of interest on agricultural loans, i.e. 12 per cent per annum.

Intercropping in young orchard is extensively acceptable among growers and economically profitable. The payback for dates stars from first year with intercrops. There were no orchards without intercrops because farmersí opinion in this regard is that the intercrops are a source of revenue all over the year.
 
dawn

Pakissan.com;

Main Page | News  | Global News  |  Issues/Analysis  |  Weather  | Crop/ Water Update  |  Agri Overview   |  Agri Next  |  Special Reports  |  Consultancies
All About   Crops Fertilizer Page  |  Farm Inputs  |  Horticulture  |  Livestock/ Fisheries
Interactive  Pak APIN  | Feed Back  | Links
Site Info  
Search | Ads | Pakissan Panel

 

2001 - 2017 Pakissan.com. All Rights Reserved.