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Plants

Summary Analysis : Bush Tomato

Cultivation of Bushfoods, Economic Series 99.6

Department of Agriculture, Western Australia

Bush tomato: New investment - 20 year analysis

Discount Rate:

7%

Net Present Value of project

$369,592

Very Favourable Outcome

Internal Rate of Return

119%

Very Favourable Outcome

Benefit:Cost Ratio

1.60

Very Favourable Outcome

Sensitivity Analysis:

Net Present Value with:

Discount rate

5% NPV =

$ 445,320

Not sensitive

Discount rate

9% NPV =

$ 309,884

Not sensitive

Internal Rate of return with:

Returns decreased by

10%/96%

Sensitive

Total capital increased by

10%/110%

Not sensitive

Seasonal inputs increased by

10%/109%

Not sensitive


Threshold Analysis:

Net Present Value equals ZERO at standard discount rate with & (sic)

Returns decreased by

 

38%  

Outcome not sensitive to yield / price assumptions

Investment increased by

 

949%  

Outcome not sensitive to investment expenditure assumptions

Seasonal inputs increased by

69%

Outcome not sensitive to seasonal input assumptions

Breakeven Analysis:

The enterprise breaks even in year

4

Bush tomato: Additional investment - 20 year analysis

Discount Rate:

7%

Net Present Value of project

$361,104

Very Favourable Outcome

Internal Rate of Return

89%

Very Favourable Outcome

Benefit:Cost Ratio

1.58

Very Favourable Outcome

Sensitivity Analysis:

Net Present Value with:

Discount rate 5%

NPV =

$ 435,625

Not sensitive

Discount rate 9%

NPV =

$ 302,340

Not sensitive

Internal Rate of return with:

Returns decreased by

10%

75%

Sensitive

Growing costs increased by

10%

83%

Not sensitive


Threshold Analysis:

Net Present Value equals ZERO at standard discount rate with & (sic).

Returns decreased by

37%

Outcome not sensitive to yield / 

price assumptions

Growing costs increased by

67%

Outcome not sensitive to seasonal input assumptions

Breakeven Analysis:

The enterprise breaks even in year

  4

Bush tomato: YIYO Gross Margin

Income:

4,000 kg/ha @ $15/kg

$60,000

Variable costs:

 

$36,278

 

Gross Margin:

$23,722 per ha

Gross Margin/ha sensitivity to yield and price

Average price ($/kg)

$ 11.00

$ 13.00

$ 15.00

$ 17.00

$ 19.00

3900

$ 6,622

$ 14,422

$ 22,222

$ 30,022

$ 37,822

3950

$ 7,172

$ 15,072

$ 22,972

$ 30,872

$ 38,772

Average yield (kg/ha)

4000

$ 7,722

$ 15,722

$ 23,722

$ 31,722

$ 39,722

4050

$ 8,272

$ 16,372

$ 24,472

$ 32,572

$ 40,672

4100

$ 8,822

$ 17,022

$ 25,222

$ 33,422

$ 41,622