@article{Gutierrez-Villarreal:259737,
      recid = {259737},
      author = {Gutierrez-Villarreal, Jorge  and King, Richard A.  and  Mathia, Gene A.  and Miller, Norman },
      title = {AN ECONOMIC ANALYSIS OF ALTERNATIVE INVESTMENT  OPPORTUNITIES IN APPLE PROCESSING},
      address = {1973-03-01},
      number = {1908-2017-2083},
      pages = {52},
      year = {1973},
      abstract = {The objective of this study was to evaluate the  profitability of several alternatives for processing North  Carolina apples. The investment alternatives include the  production of canned slices, sauce, frozen slices, juice,  vinegar, concentrate and essence, and butter. Small, medium  and large size plants operating for three different lengths  of season were evaluated in which only one of the products  was produced. Other plants were designed to process two or  more of the products. The plants wer e compared in terms of  the internal rates of return expected from each operation.  Many of the basic plants yielded rather high rates of  return although some lines were ruled out either because  they required a high proportion (greater than 18 percent)  of the total North Carolina crop or because output levels  represented a large proportion (greater than 10 percent) of  the national market for that product. The juice plant was  the most profitable. All the combined product plants were  profitable, yielding rates of return greater than 20  percent at base prices. The plant producing juice and sauce  was the most profitable combined-product plant. The  profitability of apple processing was very sensitive to  change in raw product and final product prices. The  conversion rate from raw to finished product also greatly  affected the profitability of each plant. Potential  investors in processing facilities should find this study  useful in planning their investment activities. Investment  costs, equipment designs and specifications, and operating  costs provide valuable background data for the industry.  This information will assist investors in choosing among  products and product combinations, sizes of plant, lengths  of season, and prices required to attract an adequate raw  product supply.},
      url = {http://ageconsearch.umn.edu/record/259737},
      doi = {https://doi.org/10.22004/ag.econ.259737},
}