Economic viability of ‘Niágara Rosada’ grape production in the north and northwest regions of Rio de Janeiro

Abstract

Abstract The ‘Niágara Rosada’ grape (Vitis labrusca) is the main table cultivar produced in the North and Northwest Regions of the Rio de Janeiro State. This cultivar presents greater rusticity and lower production cost than the cultivars of fine grape (Vitis vinifera L.) because it is more resistant to diseases and the absence of some cultural treatments. The research aimed to determine the economic affordability of the production of ‘Niágara Rosada’ grapes in the north and northwest regions of Rio de Janeiro state, by calculating the Net Present Value (NPV) and the Internal Rate of Return (IRR), and to identify the risk of viticulture, through the sensitivity analysis and the use of the Monte Carlo method. To collect the data, questionnaires, and interviews were applied directly to the wine producers on the technical coefficients and respective production costs of the grape in 1 ha. The results highlighted that viticulture could be a good alternative for the regions, with satisfactory profitability. The variables with the most significant effect on profitability were the sale price of the product, the cost of labor, and the price of packaging. The probability of winegrowers to obtain a negative NPV is 33.32%, considering an attractiveness rate of 6% per year.

Keywords

• production costs
• tropical fruit growing
• Monte Carlo Simulation
• viticulture