Peach

costs analysis and crop profitability in Uruguay

Abstract

Peach crop area in Uruguay has seen a reduction over the last years. A possible reason for this is a decrease in return. Consequently, this paper aims at studying whether or not peach growing is a profitable activity for growers. Data supporting this study came from Mercado Modelo of Montevideo and the Ministry of Livestock, Agriculture and Fisheries. Results show that higher productivity in early harvested peaches is necessary to meet the break-even point. Indeed, current cultivar assortment in Uruguay, according to harvest period, prevents peach from being a profitable activity. Consequently, improvements are suggested in order to increase returns. That is the case of selecting cultivars with high production per hectare along with high quality characteristics. In addition, fruit thinning times and methods as well as number of pickings during the harvest season should be revised in order to decrease harvest costs. Furthermore, peach growers should choose technologies that allow an increase of labor efficiency in pruning, thinning and harvest. Therefore, higher number of plants by hectare should be fostered along with implementing training and pruning systems that reduce final size of plants. All the mentioned adjustments would help to decrease costs of production.