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Profitability Estimates of Using Wine Grape Harvesters In The Western Cape Province of South Africa

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  • Perel, O'Brien
  • Bahta, Yonas
  • Mokhatla, P.

Abstract

Few studies have applied cost-benefit analysis, net present value, and internal rate of return to determine the profitability of wine grape harvesters in sub-Saharan Africa in general and the Western Cape Province of South Africa in particular. This study applied these analyses to secondary data obtained from the South African Wine Industry Information System and VinPro. Results showed that farmers had to harvest at least 100 ha with a grape harvester to be profitable. This implied that more than 65% of the farmers in the study area did not have farms larger than 100 ha. Thus, farmers were more profitable harvesting grapes using manual labour than mechanical harvesters. This study will aid decision-makers, government, and farmers in investing in wine grape harvesters by considering the socio-economic and institutional situation of farmers in the study area.

Suggested Citation

  • Perel, O'Brien & Bahta, Yonas & Mokhatla, P., 2024. "Profitability Estimates of Using Wine Grape Harvesters In The Western Cape Province of South Africa," 24th Congress, Saskatoon, Canada, 2024 400153, International Farm Management Association.
    • Handle: RePEc:ags:ifma24:400153
    DOI: 10.22004/ag.econ.400153
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    References listed on IDEAS

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    1. O’Mahoney, Amy & Thorne, Fiona & Denny, Eleanor, 2013. "A cost-benefit analysis of generating electricity from biomass," Energy Policy, Elsevier, vol. 57(C), pages 347-354.
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