Abstract
The research question addressed in this paper is whether the standard papaya production practices in the Philippines maximize profits given the existing seasonality in prices. We use a dynamic simulation model to identify the profit-maximizing production cycle of the crop under varying price and crop yields for each variety, including a genetically modified version of the Solo papaya. Our simulation results show that if prices are constant throughout the year, the planting month is irrelevant, but the length of a production cycle affects the total net returns over a finite planning horizon. However, if seasonal prices vary significantly within a year, both the planting month and the cycle length do matter in terms of farmers' net incomes.
Original language | English (US) |
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Pages (from-to) | 155-170 |
Number of pages | 16 |
Journal | Quarterly Journal of International Agriculture |
Volume | 48 |
Issue number | 2 |
State | Published - 2009 |
Keywords
- Decisions
- Dynamic simulation
- Genetically modified papaya
- Optimal replanting
- Philippine papaya varieties
ASJC Scopus subject areas
- Geography, Planning and Development
- Development