APIP Agricultural Policy Implementation Project

The depreciation schedule derived from this is as follows:
Depreciation: Equipment/Vehicles:
Equipment Cateaorv New Cost Life of Product Annual Cost
Irrigation: 5,700/ha. 5 years 1,140
Greenhouses:
-- Plastic 8,000/ha. 2 years 4,000
-- Frames 27,000/ha. 15 years 2,467
-- Accessories 1,000/ha. 3 years 333
Machinery &
Implements 10,000/ha. 5 years 2,000
Packing/Cooling Rooms 10,000/ha. 7.5 years 1,333
Vehicles 5,000/ha. 5 years 1,000
Management and Staff Salaries
TOTAL 12,273 DT
It is assumed that the management costs (salaries for a manager and
assistant) average 1,500 DT/month, including taxes and social security. Staff
salaries, including secretaries and one or two other staff persons, are assumed
to average 700/month. Therefore, the annual costs are 26,400 DT per operation,
or 8,800 DT per hectare for a three-hectare operation. Promotional expenses,
which would include constributions to the flower growers association, are
estimated to be $3,000, or $1,000 per hectare. Administrative fees (mail, minor
taxes, accounting fees, etc.) have been budgeted at 500 per month, 6,000 per
year, or 2,000 per hectare.
Land and Building Costs
Land and building costs are estimated to be 4,000 DT for a three hectare
operation, or 1,350 per hectare.