Economics Evaluation of Apple Production Systems

Summary

With economic indicators from the full cost account and the cash flow statement it is possible to identify the return-risk profile for the organic and the integrated apple production in Switzerland. The full cost account and the cash-flow time line are composed with the managerial-economical software-tool Arbokost. Due to higher (more than 100%) prices in the organic production, growing organic satisfies more return-oriented producers than growing certified integrated. However, the higher return in the organic production is bound to a higher risk. With the certified integrated production (IFP), return and risk are lower.
‘Arbokost’ is an economic farm management software tool for fruit growers. Per orchard it reflects a full cost account, the cash flows collected during 15 years, the earned income for each year and other different key data which are important for certified integrated and organic apple production in Switzerland. Also, the cost differences between Swiss organic and certified integrated apple production can be calculated.