ECONOMIC ANALYSIS OF MECHANIZED SYSTEM FOR A LARGE SCALE PINEAPPLE PRODUCTION ON MINERAL SOILS IN MALAYSIA

Pineapple is traditionally cultivated in peat soil in Malaysia but increasingly is also being cultivated in mineral soil. MARDI has been working hard to improve traditional agriculture practices by developing practices that are adaptable to the local industry but that also increase the income of local farmers. For pineapple production especially on mineral soil, MARDI has tested and evaluated a mechanization package that may help increase pineapple production. The machinery package includes a pineapple transplanter, an inter-row cultivator cum fertilizer applicator, a boom sprayer, a boom conveyor fruit harvester, pineapple leaf slasher and plant mulcher cum shredder. This study was conducted to evaluate the cost of the operation and also the potential productivity of the mechanized system. A study on the FIMA farm in 2008 to 2009 showed that the mechanized system in mineral soil achieved an average yield of about 44.7 t/ha/h, with about 18.9% loss due to product rejection. An economic forecast has been projected based on this result with some relevant assumptions, the viable acreage for the implementation of this mechanization a minimum of 40 ha with a payback period of 3.5 years, an Internal Rate of Return (IRR) of 36.7% and a Benefit Cost Ratio (BCR) of 1.05. The Nett Present Value (NPV) for the mechanization system on this particular acreage will be around RM 476,732.45.