Economical viability of two plum ( <em>Prunus domestica</em>) production systemsin a hailstorm-prone region

Abstract

Botucatu, a region of the state of São Paulo, Brazil, is characterized by a mild climate with temperatures adequate for growing precocious plum varieties. This has led several farmers of that region to start plum producing programs. On the other hand, Botucatu is a region in which hailstorms are likely to occur, causing severe damage to the fruits. The objective of this research was thus to evaluate the economic viability of producing plum providing a net to protect the trees from hailstones in comparison with the conventional system in which no protection from hailstones is provided. The study considered hailstorms of three levels of severity. The economical analysis was based on the evaluation of the following variables: Net present value (NPV), internal rate of return (IRR), Equivalent annual value (VAE), Income-cost relation (RBC), and discounted Payback (PBE). The results indicated that, under the less severe level of hailstorm, the conventional system was that one with the best results. But, under more severe levels of hailstorms, it was found that the use of the net system is worthwhile being adopted by the farmers albeit its demanding high initial investment. Additional keywords - plum production; production system; economic viability.