THE EFFECT OF TREE ESTABLISHMENT COST AND PLANTING DENSITIES ON THE ECONOMIC PERFORMANCE OF WALNUT PRODUCTION

The walnut industry in Australia is entering a rapid expansion phase. The quest for earlier and higher yields has led towards a trend in planting higher density orchards. Higher tree densities make an earlier commercial yield possible. Economic performance was tested using an economic analysis, expressed as the Internal Rate of Return. The analysis was used to appraise the effect of tree density and establishment costs. The key indicators for economic performance were marketable yield and commodity price. Profitability of an orchard is maximised by establishing high quality trees at the lowest price. With a high degree of care higher density orchards may be more profitable provided financial and production risks are managed well.