Cost and profit analysis of sour cherry production for industrial purposes in Hungary

Our main objective in this present study is to evaluate the profitability and efficiency of sour cherry production by a complexeconomic analysis of its technological process. We concluded that the per kilogram prime costs range between 80 to 90 HUF/kg in case ofsour cherry for industrial purposes. On this basis, it is clear that the 50 to 90 HUF/kg regular selling prices of previous years do not makeprofitable production possible. Under the present market conditions even considering per hectare average yields of 10 to 15 tons theestablishment of sour cherry orchards is not economical, the internal rate of return is below the interests of money-market and the recoverywill not be happened even during the whole life-time of the orchard. In this way the domestic enterprises should not only raise the yields butrealize technological changes (e.g. mechanic harvesting) in order to decrease the production costs in a significant way and to maintain aprofitable sour cherry production. It is expected that the enterprise farming on great land (several ten hectares), being settled for mechanicharvesting (subordinating everything to this), reaching yields of 15 to 20 tons per hectare, producing on high technological and input levels,having specialized knowledge will stay on the sour cherry market far in the future