Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region
Abstract
:1. Introduction
2. Materials and Methods
2.1. Study Region
2.2. Data Analysis
3. Results and Discussion
3.1. Area of Cultivation and Crop Distribution
3.2. Structure Cost: Initial Investment and Regular Expenses
3.2.1. Initial Investment
3.2.2. Fixed Costs
3.2.3. Variable Costs, Production and Intakes
3.2.4. Variable Costs, Production and Intakes
3.3. Financial Indicators: Shutdown and Breakeven Points and Apparent Productivity of Water (APW)
3.4. Financial Profitability of Three Different Investment Alternatives: Desalinated, Ground and Tertiary Water
3.4.1. Net Present Value (NPV)
3.4.2. Internal Rate of Return (IRR)
3.4.3. Payback Period (PP)
4. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Crop | Cultivated Area (Hectares) | Production (Tons) | Farmers’ Income Value (Million Euros) |
---|---|---|---|
Tomato | 9555 | 888,389 | 582.783 |
Pepper | 11,125 | 785,043 | 604.483 |
Watermelon | 10,524 | 548,677 | 160.214 |
Zucchini | 7439 | 459,420 | 245.33 |
Cucumber | 4677 | 527,352 | 266.313 |
Aubergine | 2164 | 190,614 | 112.272 |
Melon | 2589 | 121,344 | 55.818 |
Green Bean | 290 | 4347 | 7.081 |
Campo de Dalias | Almeria | Bajo Andarax | |||
---|---|---|---|---|---|
Crop | Surface Area | Crop | Surface Area | Crop | Surface Area |
Pepper | 30% | Tomato | 75% | Tomato | 87% |
Zucchini | 16% | Watermelon | 10% | Cucumber | 12% |
Cucumber | 14% | Melon | 7% | Pepper | 3% |
Watermelon | 12% | Cucumber | 3% | Zucchini | 3% |
Melon | 11% | Zucchini | 3% | Green Bean | 2% |
Tomato | 9% | Pepper | 2% | Watermelon | 2% |
Aubergine | 5% | Melon | 1% |
Initial Investment | EUR |
---|---|
Structural Elements | |
Windows | 11,200 |
Corridors | 4000 |
Storage construction | 9000 |
Walls | 8000 |
Wiring | 3000 |
Tillage and Levelling | 8000 |
Greenhouse Construction | 82,000 |
Retrofit | |
Topsoil Contribution | 15,000 |
Sanding | 18,000 |
Treatment installation | 2000 |
Manure | 5000 |
Irrigation System | |
Watering head | 9000 |
Watering distribution system | 6500 |
Irrigation pond building | 10,000 |
Total | 190,700 |
Annual Fixed Costs | EUR |
---|---|
Solarisation | 1600 |
Bleaching | 500 |
Maintenance of Structures | 500 |
Plastic | 3800 |
Manure | 1000 |
Pond | 350 |
7400 |
Tomato “Larga Vida” | Pepper “California”/ Melon “Galia” | Cucumber “Almería” /Zucchini | |
---|---|---|---|
Salaried-worker labour | 12,770 | 12,470 | 16,160 |
Seeds + Seedbed | 3460 | 12,940 | 7440 |
Fertilizers | 3970 | 2650 | 5910 |
Plan-protection (insects included) | 5580 | 4770 | 4570 |
Energy | 2200 | 1430 | 2090 |
Supplies | 800 | 700 | 900 |
External Services | 800 | 800 | 300 |
Water (groundwater) | 1800 | 2295 | 2100 |
Total | 31,380 | 38,055 | 39,470 |
Tomato “Larga Vida” | Pepper “California”/Melon “Galia” | Cucumber “Almería” /Zucchini | |
---|---|---|---|
Efficiency (kg/he) | 130,000 | 130,000 | 175,000 |
Water (m3/he) | 6000 | 7650 | 7000 |
Labour (working days/he) | 432 | 339 | 471 |
Income (€/he) | 65,780 | 80,000 | 83,475 |
Gross Margin (€/he) | 17,465 | 25,010 | 27,070 |
Selling Price | APW | BP | SP | |
---|---|---|---|---|
Tomato | Min: 0.196 | 4.25 | −2.22 | −0.68 |
Med: 0.506 | 10.96 | 4.5 | 6.03 | |
Max: 0.763 | 16.53 | 10.07 | 11.6 | |
Cucumber/Zucchini | Min: 0.186/0.196 | 4.76 | −1.94 | −0.58 |
Med: 0.432/0.537 | 11.93 | 5.23 | 6.59 | |
Max: 0.927/1.446 | 28.74 | 22.04 | 23.4 | |
Pepper/Melon | Min: 0.444/0.358 | 6.98 | 1.04 | 2.31 |
Med: 0.705/0.472 | 10.46 | 4.52 | 5.78 | |
Max: 1.005/0.742 | 15.36 | 9.42 | 10.68 |
NPVGW (EUR) | NPVDW (EUR) | NPVTW (EUR) | |||||
---|---|---|---|---|---|---|---|
Selling Price | WP (EUR/m3) | 0.3 | 0.3 | 1 | 0.44 | 0.62 | |
Tomato | Min: 0.196 | −288,180 | −288,180 | −341,184 | −298,781 | −312,410 | |
Med: 0.506 | 29,710 | 29,710 | −23,294 | 19,109 | 5479 | ||
Max: 0.763 | 642,047 | 642,047 | 589,043 | 631,446 | 617,817 | ||
Cucumber/Zucchini | Min: 0.186/0.196 | −291,587 | −291,587 | −353,426 | −303,955 | −319,856 | |
Med: 0.432/0.537 | 150,926 | 150,926 | 57,348 | 138,558 | 122,657 | ||
Max: 0.927/1.446 | 1,826,695 | 1,826,695 | 1,764,857 | 1,814,328 | 1,798,426 | ||
Pepper/Melon | Min: 0.444/0.358 | −19,814 | −19,814 | −87,394 | −33,330 | −50,708 | |
Med: 0.705/0.472 | 124,929 | 124,929 | 89,087 | 111,412 | 94,035 | ||
Max: 1.005/0.742 | 788,882 | 788,882 | 721,301 | 775,366 | 757,988 |
IRRGW | IRRDW | IRRTW | |||||
---|---|---|---|---|---|---|---|
Selling Price | WP (€/m3) | 0.3 | 0.3 | 1 | 0.44 | 0.62 | |
Tomato | Min: 0.196 | - | - | - | - | - | |
Med: 0.506 | 6.6% | 6.6% | 3.4% | 6.0% | 5.2% | ||
Max: 0.763 | 26.4% | 26.4% | 24.2% | 26.0% | 25.4% | ||
Cucumber/Zucchini | Min: 0.186/0.196 | - | - | - | - | - | |
Med: 0.432/0.537 | 13.0% | 13.0% | 9.8% | 12.3% | 11.6% | ||
Max: 0.927/1.446 | 75.9% | 75.9% | 73.3% | 75.4% | 74.7% | ||
Pepper/Melon | Min: 0.444/0.358 | - | - | - | - | - | |
Med: 0.705/0.472 | 11.7% | 11.7% | 8.2% | 11.0% | 10.1% | ||
Max: 1.005/0.742 | 32.7% | 32.7% | 29.8% | 32.1% | 31.4% |
PPGW (Years) | PPDW (Years) | PPTW (Years) | |||||
---|---|---|---|---|---|---|---|
Selling Price | WP (€/m3) | 0.3 | 0.3 | 1.0 | 0.4 | 0.6 | |
Tomato | Min: 0.196 | - | - | - | - | - | |
Med: 0.506 | 9.1 | 9.1 | 14.4 | 11.5 | 12.3 | ||
Max: 0.763 | 3.7 | 3.7 | 4.1 | 3.8 | 4.0 | ||
Cucumber/Zucchini | Min: 0.186/0.196 | - | - | - | - | - | |
Med: 0.432/0.537 | 7.0 | 7.0 | 8.6 | 7.3 | 7.7 | ||
Max: 0.927/1.446 | 1.3 | 1.3 | 1.4 | 1.3 | 1.7 | ||
Pepper/Melon | Min: 0.444/0.358 | - | - | - | - | - | |
Med: 0.705/0.472 | 7.6 | 7.6 | 9.7 | 8.0 | 8.5 | ||
Max: 1.005/0.742 | 3.1 | 3.1 | 3.3 | 3.1 | 3.8 |
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López-Serrano, M.J.; Velasco-Muñoz, J.F.; Aznar-Sánchez, J.A.; Román-Sánchez, I.M. Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region. Agronomy 2021, 11, 2218. https://doi.org/10.3390/agronomy11112218
López-Serrano MJ, Velasco-Muñoz JF, Aznar-Sánchez JA, Román-Sánchez IM. Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region. Agronomy. 2021; 11(11):2218. https://doi.org/10.3390/agronomy11112218
Chicago/Turabian StyleLópez-Serrano, María. J., Juan F. Velasco-Muñoz, José A. Aznar-Sánchez, and Isabel M. Román-Sánchez. 2021. "Economic Analysis of the Use of Reclaimed Water in Agriculture in Southeastern Spain, A Mediterranean Region" Agronomy 11, no. 11: 2218. https://doi.org/10.3390/agronomy11112218