PRODUCTION OF APPLES AS A POSSIBILITY FOR FAMILY FARMS DEVELOPMENT

Abstract

The paper analyzes cost effectiveness of invested funds for apple orchard establishment on the family farm located in Rasina District in Central Serbia. It is assumed that the apple orchard establishment on the family farm can contribute to reducing unemployment in rural areas and increasing income of individual farms. As a primary source of information accounting calculations were used, technological table of apple orchard establishment, internal records and the pilot version of the business plan of apple producers at the family farm. For more accurate view and better monitoring of data domestic and foreign literature, internet web sites, available statistical data on the production of apples and publications related to apples production has been used. Methods used for the paper preparation were: calculation of plantation establishment, cash inflows and outflows for the period planned for orchard exploitation, and indicators of economic efficiency. Total cost of planting of apple orchard on the family farm amounts to € 16,080 for one hectare. All economic indicators show positive results. The production is efficient, since the ratio is greater than zero. Planned production is profitable, because profits participate with 71% in total production value. Calculating productivity, it was found that production of one tonne of apples required 822 hours of workers’ labour. Establishing apple orchard is certainly high-budget investment, but it can be concluded that the economic effects of raising apple orchards on the farm was economically justified and cost-effective, based on the analyzed result.