EXPERIENCES WITH A MULTIPERIODIC INVESTMENT MODEL FOR PLANNING THE GROWTH OF VEGETABLE HOLDINGS

H. Storck, E. Schürmer
In many cases, investment decisions in horticulture are not based on any formal calculation. According to interviews carried out by Reuff (1969), only 50% of a sample of 195 investors in floriculture had an idea of the payback period for capital recently invested in glasshouses. Even less (15%) indicated that they had calculated any criteria estimating the profitability of the invested capital before they decided to expand the glasshouse area; this percentage was somewhat higher (30%) with labour saving investments. Mostly investment decisions are exclusively based on the amount of money at the disposal of the investor. During recent years, governmental investment aid for horticultural holdings has been linked with the obligation to draw up a formalized development plan for the firm in order to show that the planned investments will enable the holding to survive.

Though these plans may give a rough idea of the results of planned investments, they are by no means sufficient to aid the investor's choice between several alternatives. As investment decisions are most important in respect of long term development of the firm, we should aim to assist the investor in such decision-making by developing suitable techniques.

Storck, H. and Schürmer, E. (1974). EXPERIENCES WITH A MULTIPERIODIC INVESTMENT MODEL FOR PLANNING THE GROWTH OF VEGETABLE HOLDINGS. Acta Hortic. 40, 497-516
DOI: 10.17660/ActaHortic.1974.40.39
https://doi.org/10.17660/ActaHortic.1974.40.39
40_39
497-516

Acta Horticulturae