The financial implications of specific citrus production practices in the Boland
| dc.contributor.advisor | Hoffmann, Willem | en_ZA |
| dc.contributor.author | Botha, Petrus Johannes | en_ZA |
| dc.contributor.other | Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics. | en_ZA |
| dc.date.accessioned | 2024-03-05T15:36:52Z | |
| dc.date.accessioned | 2024-04-26T18:35:56Z | |
| dc.date.available | 2024-03-05T15:36:52Z | |
| dc.date.available | 2024-04-26T18:35:56Z | |
| dc.date.issued | 2024-03-05 | |
| dc.description | Thesis (MAgric) --Stellenbosch University, 2024. | en_ZA |
| dc.description.abstract | ENGLISH SUMMARY: As global agriculture faces ongoing environmental changes, the profitability of farming is under threat, particularly in specialised regions like the Boland of South Africa. Historically, this region was dominated by grape and cash crop cultivation. This study explores the potential of citrus cultivation as an alternative to not only diversify risk but also enhance overall profitability. The primary objective of the study is twofold: first, to determine the profitability of specific citrus production practices with a focus on orchard establishment, and secondly, to evaluate the financial implications of different production practices at the whole-farm level in the Boland. The overall question addressed the profitability of citrus cultivation in this region, weighing the financial growth potential against reduced production risks. The importance of considering costly production decisions, with a specific focus on establishment choices is emphasized in the study. Citrus production includes a wide array of varieties and rootstock options that demand specialised knowledge. Integrating discipline-specific knowledge from horticulture, consulting, agricultural economics, and practical farming is deemed crucial. Given the scarcity of citrus farms in the Boland, a simulation model was constructed to evaluate the financial implications of specific production practices, focusing on their effects on the entire farm. Financial analysis utilised standard budgeting techniques and accounting principles for comparability across time and different areas. Scientific measurements conducted for a newly established citrus orchard were integrated into a practical farm’s financial model, capturing horticultural evidence through equations. Three distinct production practices, biochar, controlled released fertiliser (CRF), and compost were examined for their potential to optimise orchard establishment and enhance performance over a 25-year period. The Internal Rate of Return (IRR) was used as the criterion for profitability, revealing that CRF and compost outperformed biochar, mainly due to the latter's high investment costs. Cash flow assessments incorporating borrowed capital at different ratios highlighted challenges in meeting financial obligations. Despite these challenges, all practices exhibited promising expected IRRs of at least 6% in good years and 3% in average years. The study stresses that while diversifying income is beneficial, long-term financial sustainability should be the primary focus. Citrus production, despite high establishment costs causing initial hesitancy among producers, emerges as a lower-risk investment in the long run, reducing price volatility through access to diverse markets. To summarise, this study underscores the potential of citrus cultivation in the Boland, offering a less risky path to financial stability. Recommendations include expanding cultivar trials, conducting similar studies in other production areas, and exploring additional production practices within citrus cultivation. The study acknowledges the limitations associated with geographic specificity and emphasizes individualised judgement for the financial feasibility of crop conversion based on each farm's unique circumstances. | en_ZA |
| dc.description.abstract | AFRIKAANSE OPSOMMING: Terwyl globale landbou aanhoudende omgewingsveranderinge in die gesig staar, word die winsgewendheid van boerdery bedreig, veral in gespesialiseerde streke soos die Boland van Suid-Afrika. Histories was hierdie streek oorheers deur druif- en kontantgewasse. Hierdie studie ondersoek die potensiaal van sitrusverbouing as 'n alternatief om nie net risiko te diversifiseer nie, maar ook om algehele winsgewendheid te verbeter. Die primere doel van die studie is tweevoudig: eerstens, om die winsgewendheid van spesifieke sitrusproduksiepraktyke te bepaal, met 'n fokus op boordvestiging, en tweedens, om die finansiele implikasies van verskillende produksiepraktyke op die plaasvlak in die Boland te evalueer. Die algehele vraag het betrekking op die winsgewendheid van sitrusverbouing in hierdie streek, waar die finansiele groeipotensiaal teenoor verminderde produksierisiko geweeg word. Die belangrikheid van die oorweging van koste-impakterende produksiebesluite, met 'n spesifieke fokus op vestigingskeuses, word beklemtoon in die studie. Sitrusproduksie sluit 'n wye verskeidenheid van kultivars en onderstokopsies in wat gespesialiseerde kennis vereis. Die integrasie van dissipline-spesifieke kennis vanaf hortoloe, raadpleging, landbou-ekonome en praktiese boerdery word as noodsaaklik beskou. Gegewe die skaarste van sitrusplase in die Boland, is 'n simulasie model opgestel om die finansiele implikasies van spesifieke produksiepraktyke te evalueer, met 'n fokus op hul effekte op die hele plaas. Finansiele analise het gebruik gemaak van standaard begrotingsmetodes en rekeningkundige-beginsels vir vergelykbaarheid oor tyd en verskeie areas. Wetenskaplike metings wat vir 'n nuut gestigte sitrusboord uitgevoer is, is in die finansiele model van 'n praktiese plaas geintegreer, waar hortologiese bewyse deur vergelykings vasgevang is. Drie onderskeie produksiepraktyke, naamlik biohoutskool, gekontroleerde vrygestelde kunsmis (GvK), en kompos, is ondersoek vir hul potensiaal om boordvestiging te optimaliseer en prestasie oor 'n tydperk van 25 jaar te verbeter. Die interne opbrengskoers (IOK) is gebruik as die kriterium vir winsgewendheid en het getoon dat GvK en kompos beter presteer as biohoutskool, hoofsaaklik as gevolg van laasgenoemde se hoe beleggingskoste. Kontantvloei-evaluasies wat geleende kapitaal by verskeie verhoudings insluit, het uitdagings in die nakoming van finansiele verpligtinge beklemtoon. Ten spyte van hierdie uitdagings het alle praktyke belowende verwagte IOK's van ten minste 7% in goeie jare en 4% in gemiddelde jare getoon. Die studie beklemtoon dat hoewel inkomsteduiversifikasie voordelig is, langtermyn finansiele volhoubaarheid die primere fokus moet wees. Sitrusproduksie, ten spyte van hoe vestigingskoste wat aanvanklik worsteling onder produsente veroorsaak, tree na vore as 'n laer-risikobelegging op die lang duur, wat pryswisselvalligheid verminder deur toegang tot diverse markte. Om op te som, beklemtoon hierdie studie die potensiaal van sitrusverbouing in die Boland en bied dit 'n laer risiko pad na finansiele stabiliteit. Aanbevelings sluit in die uitbreiding van kultivar-toetse, die uitvoer van soortgelyke studies in ander produksieareas, en die ondersoek van addisionele produksiepraktyke binne sitrusverbouing. Die studie erken die beperkings wat verband hou met geografiese spesifisiteit en beklemtoon die gebruik van individuele oordeel vir die finansiele lewensvatbaarheid van gewasomskepping gebaseer op elke plaas se unieke omstandighede. | af_ZA |
| dc.description.version | Masters | |
| dc.format.extent | vi, 132 pages : illustrations, includes annexures | |
| dc.identifier.uri | https://scholar.sun.ac.za/handle/10019.1/130465 | |
| dc.language.iso | en_ZA | en_ZA |
| dc.publisher | Stellenbosch : Stellenbosch University | |
| dc.rights.holder | Stellenbosch University | |
| dc.subject.lcsh | Citrus fruit industry -- Boland (South Africa) | en_ZA |
| dc.subject.lcsh | Citrus fruits -- Economic aspects -- Boland (South Africa) | en_ZA |
| dc.subject.lcsh | Citrus -- Boland (South Africa) | en_ZA |
| dc.subject.name | UCTD | |
| dc.title | The financial implications of specific citrus production practices in the Boland | en_ZA |
| dc.type | Thesis | en_ZA |
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