Production costs, risks and return expectations of the garlic agribusiness in the South of Brazil

Abstract

This article analyzes the production costs, the risks and return expectations associates to the garlic agribusiness for three levels of productivity (8, 10 and 12 ton/ha) in the south region of Brazil. The investments, production costs, yields and risks are detailed. The methodology used for the viability analysis consists of the generation of two sets of indicators. The first set (Net Present Value, Yearly Present Value, Benefit/Cost Ratio and Additional Return on the Investment) objectives to improve the perception of the return, while the second set (TMA/TIR Ratio, Pay-back/N Ratio, Management Risk, Business Risk and %Break-even Point) objectives to improve the perception of the risk. The results showed an expressive yield and average risk for the three levels of productivity. Optimum performance occurs with the biggest level of productivity (12 t/ha) that presented yield of 45,39%/year beyond that would be gotten with the application of the investment capital at12%/year.