Conditions of rentability in the apricot industry of Hungary

Fruit production is one of the main economic activities of Hungarian agriculture. A considerable fraction of human resources and billions, 8–10% of gross income of agricultural production and of technical capacity is represented by that branch (Z. Kiss, 2003). An important role of fruit growing is the utilisation of less fertile land and underdeveloped countrysides (Papp, 1999). The shrinking tendency of the branch is partly due to the deterioration of the conditions and technical tools of production. In addition to those negative tendencies, a new impetus started about a half decennium with new commercially advantageous varieties and intense technologies being successful and are promising marketable fruits all over Europe (Mihályka, 2004). The present Hungarian conditions do not approach the possibilities offered by the new technologies yet (Lux, 2005). If we consider the tendencies in recent fruit growing practices, we should be prepared to meet diffi culties in marketing, declining safety and producer’s prices, which require increasing performance and reserves to bridge over the intermissions and consequences of hazards. Apricot production is also subject to these phenomena. We attempt to fi nd answers to the question, what are the conditions of an economically sustainable apricot producing enterprise to be maintained. An investment for an apricot plantation is planned for a 15–20 year-long period. Therefore, the success of the investment cannot be recognised from the data of a single, nay, of a few year’s economic evaluation. The data for one year do not represent all the cares and costs, which are necessary for the plantation especially when the income of the fi rst years is still lacking, and the balance of inputs and outputs will vary over years within wide intervals. Therefore, our aim is to consider the whole cycle, i.e. life span of an investment.