Economic viability of cultivating Niagara Rosada grapes

The state of São Paulo is the third largest grape producer in Brazil and the largest national producer of table grapes, with the Niagara Rosada variety ( Vitis labrusca ) being the most planted in the state. The objective of this study was to verify the economic viability of cultivating Niagara Rosada. The project was designed for an area of ​​3 hectares located in the municipality of Piracicaba, SP. The plants were trained in a trellis system at a density of 5000 plants ha⁻¹ . The cash flow was projected for a period of 13 years. The costs for vineyard establishment and maintenance, bank financing, payment of the Rural Worker Support Fund [Funrural], and the opportunity cost of the land were estimated. The minimum attractive rate of return [MARR] was set at 11.45%, and the calculated economic indicators were Net Present Value [NPV], Internal Rate of Return [IRR], simple payback, discounted payback, and benefit-cost ratio. Positive NPV (R$ 398,951.36) and cost-benefit ratio (1.81) values ​​were obtained. The IRR was estimated at 27.34%, higher than the MARR. The simple and discounted payback periods were 5 years and 6 years, respectively, indicating that the payback time for the initial capital invested was shorter than the project period. The estimated economic indicators confirmed the financial viability of the project under analysis.