APIP Agricultural Policy Implementation Project
APIP Agricultural Policy Implementation Project
APIP Agricultural Policy Implementation Project
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ANNEX 2<br />
NOTES TO ENTERPRISE BUDGET COST ESTIMATE FOR SELECTED FLOWERS<br />
PRODUCTION/REVENUE ASSUMPTIONS<br />
Planting density and yields<br />
These are based on visits to farms and production recommendations from<br />
Chott Meriem. It is assumed that each hectare, which is<br />
plastic<br />
10,000 m2,<br />
greenhouse<br />
will have<br />
sections<br />
20<br />
of 500m2 each. The actual surface area in production<br />
is three-quarters of the covered area, or 7,500 m2, which allows<br />
between<br />
for space<br />
rows. For roses, the planting density refers to the number of rose<br />
bushes per square meter. For carnations and gladiola, it refers to the number<br />
of cuttings per square meter.<br />
Producer prices<br />
These are based on visits to Rungis Market. The wholesale price for<br />
Moroccan roses are used as the reference price for Tunisian roses. Prices<br />
reported were 24FF per bunch of 20 stems, or 1.2FF per stem (200 millimes per<br />
stem using an exchange rate of 6FF = 1DT). Airfreight costs are approximately<br />
6FF/kg. airfreight). This includes handling, packing, shipping , unloading, and<br />
insurance. Estimates of carnations and gladioli are similarly rough, but<br />
conservative estimates. Assumptions on prices received by grower are based on<br />
the existing market prices in France minus air transportation costs to establish<br />
an FOB price. Transport and handling charges were subtracted from the FOB price<br />
to calculate prices paid to growers.<br />
Labor<br />
Labor costs are based on time estimates shown in Exhibit 4.1-4.3 which were<br />
developed by a floriculture specialist at Chott Meriem and wage rates based on<br />
interviews with growers.<br />
Cuttings/Bulbs/Seeds<br />
The estimated cost for rose plants is 2-4 DT per plant, and the productive<br />
life of the plants varies from 7 to 10 years. For purposes of analysis, it was<br />
assumed that costs were 3 DT per plant, with a productive life of 7 years. Roses<br />
plants, once in production will produce 12-30 flowers per year for 7-10 years<br />
before they must be replaced.<br />
Fertilizer Costs<br />
Fertilizer costs are based on (1)application rates and schedules developed<br />
by a specialist at Chott Meriem and (2) suppliers' prices in Tunis.<br />
Pesticide and Fungicide Costs<br />
See Annex 2-A for explanation of assumptions used for calculation of<br />
pesticide application rates and costs.<br />
Irrigation Costs
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