Annona Species Monograph.pdf - Crops for the Future

Chapter 12. Economic Information
In Spain, a cherimoya grower, who owns the land under the orchard, can
expect an average yield of 13 t/ha and an average price of US$ 0.70/kg of
fruit, which gives a gross income of US$ 9,100 in 2003. Comparing the gross
income obtained in 1996 with the income of 2003 there is a decrease of
49%. However, using a simple analysis, subtracting the cost of production
(US$ 5,800/ha) from the gross income, there is still a profit of US$ 3,300 per
hectare, which is an acceptable income per hectare for any fruit grower.
In Brazil, cherimoya is harvested from February to the end of October, and
production in 1999 was estimated at 50,000 boxes of 4 to 5 kg, representing a
total of 200-250 t of fruit. For a seven year-old cherimoya orchard of the
‘Fino de Jete’ cultivar, with 417 trees/ha and an average yield of 33 kg/tree
(Richardson and Anderson, 1993; Bonaventure, 1999), a Brazilian grower
could obtain a gross income of US$ 24,800, when the mean price of fresh
fruit was US$ 1.80/kg (Bonaventure, 1999). Although there is no up-to-date
information on cherimoya prices in Brazil, the increase in cultivated area
surely increases fruit supply and reduces the fruit price in the Brazilian
market, which is similar to the situation in Spain.
Today, agricultural production is not discussed in terms of "absolute
advantage" or "comparative advantage", but "competitive advantage".
Competitive advantage comes mainly from the creativity of adding "value" to
the product, for instance, by harvesting fruit out of season when prices are
higher in the market. Since cherimoya production occurs mainly between
September and November, Spanish growers should use chemical pruning
(see Chapter 10) to promote late harvesting (January to February), and get
better prices for their fruits. Growers can also add value to their products by
processing. By selling their fruits as frozen pulps, jellies and sweets, the 15%
due to losses from fruit perishability described by Requena (1998) are
eliminated. Both of these ideas might help to slow erosion of fruit prices in
producing countries.
The available data on production of soursop and sugar apple in the Cauca
Valley, Colombia, and in the central and north-eastern regions of Brazil
(Torres and Sánchez, 1992; Pinto and Silva, 1994; Kavati and Piza Jr., 1997)
suggest that the most important cost in the first year is the purchase of the
irrigation system (18%). Other inputs, such as the cost of producing or
buying grafted plants and purchasing fertilizers, are also important during
this year, which corresponds to the period of orchard establishment (Pinto
and Silva, 1994). Therefore, soursop growers should expect to have no
positive net income during the first two years of cultivation; by the third year,
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