Comparative Analysis of Options for Investing in the Production of Table Grapes from Seed and Seedless Varieties

Year 2014, Volume: 1 Issue: Özel Sayı-1, 1112 - 1117, 01.03.2014

Daniela Dımıtrova Iliyan Sımeonov Valeriy Peykov Emil Tsvetanov Vladimir Dımıtrov

Abstract

The issue set by the World Health Organization concerning the healthy diet of the population highlights the need of increasing fresh fruit consumption, including table grapes. Achieving this goal is a challenge in Bulgaria, with a view of the constantly decreasing production and increasing market prices of the produce. Meeting the domestic market demands with table grapes of quality and price satisfying to the maximum level the tastes and preferences of consumers requires encouraging of investment activity in the sector. The specifics of the investment process in viticulture, resulting from the long period for the establishment of the vine plantation, the long operation life of the asset, the high need of capital and the considerable production and market risk, determine the complexity of investment choices. The evaluation of several possible investment decisions facilitates the choice of the production strategy. In this connection the object of the study is the effectiveness of investments in the production of table grapes from the seed varieties Bolgar, Alfons Lavale, Parvenets and Misket Hamburgski and the seedless Kishmish Moldovski, Byalo Edro Bez Seme, Kondarev 10, Kondarev 6 and Rusalka 1. The comparative economic analysis is based on the developed theoretical models of farms by net present value, profitability index and payback period. Comprehensive assessment of the economic viability of investment marks the highest values for the seedless variety Kondarev 6 and the seed variety Parvenets

Keywords

table grapes, investments, payback period, profitability index

Comparative Analysis of Options for Investing in the Production of Table Grapes from Seed and Seedless Varieties

Abstract

Keywords

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