The economic efficiency of the irrigation development from S.C. Livada de mere Itesti Bacău

Abstract

The evaluation of the investment regarding the arrangement of the irrigation system within SC Livada mere de Iteşti SRL is made by calculating the economic efficiency. This is a fairly modern concept, that helps to substantiate decisions within the firm, in order to use resources as favorably as possible. The decision to invest in a complex set of measures, meant to bring production increases, as is the case with the irrigation system, was taken after an analysis of the evolution of the economic situation of the company. Any irrigation method used in a crop or plantation has the role of reducing the risks of the agricultural business. Therefore, especially in times of drought, crop yields and quality increase, creating additional incomes and, implicitly, profit. The economic efficiency assessment was calculated for the 2020 and 2021 crop years, because the plantation is young and has entered fruition in year 2 of planting. Important production increases were obtained, obtaining a 5% higher profit rate in year 4 of planting, compared to an nonirrigated orchard, which is in full fruit.