Economics of Changing from Matted Row to Annual Hill System Strawberry Production

Abstract

The net present value (NPV) criterion was selected for comparing the monthly net cash flows over a 3-year period resulting from replacing matted row (MR) with annual hill (AH) strawberry ( Fragaria × ananassa) production. In the base analysis, AH culture was found to be a profitable alternative to the MR system. The time pattern of the yield response to AH culture (annual cropping) vs. MR (harvesting limited to years 2 and 3 only) is the major economic advantage of the AH system. Discounting at the end of yearly planning periods instead of on a monthly basis overstated the NPV of the AH system.