The Economic Analysis of Blueberry (Vaccinium corymbosum L.) Cultivation in Eastern Black Sea Region of Turkey

Abstract

It is very important to determine the profitability of agricultural investment for a selected product in rural areas in which there is not enough land suitable for agriculture and agricultural product diversity is therefore limited due to agro-climatic factors. This study was aimed to conduct an economic analysis of blueberry ( Vaccinium corymbosum L.) cultivation. The study included blueberry cultivation areas in Artvin, Giresun, Rize, and Trabzon provinces in the Eastern Black Sea Region of Turkey. The methodology of the study included the data collected from face-to-face interviews conducted with blueberry cultivators and various corporate records in the study area. The collected data were used for cost and price analysis, and the economic analyses on the investments were conducted based on the Net Present Value (NPV) and Internal Rate of Return (IRR) criteria. It was determined that the NPV per unit field values for the 25-year blueberry investments in the Eastern Black Sea Region were US$ 64,079.13/acre, US$ 36,427.99/acre, and US$ 28,198.03/acre based on the interest rates of 4%, 8%, and 10%, respectively. The total regional NPVs for the past 25-year blueberry cultivation based on 4%, 8% and 10% interest rates were US$ 7,207,843.22, US$ 4,136,060.14 and 3,228,915.61, respectively. The highest IRR was determined as 107% in the region. It was determined that this IRR was observed in the 10th year and remained constant after this year. Based on the economic analysis criteria used in the study, it was determined that the investments in blueberry orchards were economically feasible, contributed to the regional economy, created employment, and could be used as an important instrument in rural development.