Economic viability analysis of sour passion fruit including the value of using water resources

Abstract

Passion fruit cultivation in Brazil has been in constant expansion, and most of the time it occurs within the family in small properties of up to 5ha, it is a fruit tree that allows rapid and continuous economic return. As Brazil is a country with a predominantly tropical climate, the fruit finds adequate climatic conditions for its development, thus cooperating for the growth of national fruit production, which is directly linked to the adhesion of technologies, genetically improved varieties of cultivars, and the different states and regions, however the IBGE 2020 reports that the average yield of passion fruit in the country is around 14 t ha, most of all fruit produced here is consumed in natura (60%). Another factor addressed is the use of water, considering that it is a precise and essential good for life. The objective of the research is to evaluate the economic viability of the cultivation of sour passion fruit including the value of the water resource in a rural property in Tangará da Serra - MT. As specific objectives, estimate the cost of water use in irrigation, raise conventional costs and revenues, and develop cash flows through different scenarios. Data were collected in loco, monthly and submitted to the Net Present Value (NPV) analysis tools; Internal Rate of Return (IRR), Time of Return on Capital (Payback) and Cost-Benefit Analysis (ACB). The project proved to be viable, from an economic point of view, as it had a positive NPV and an IRR above the required TMA. When the cost of water (R$ 3.16 per year) is included, the indicators showed negligible differences.