The contribution margin as a management tool for irrigated mango production.
Araújo J. L. P., Araújo E. P., Correia R. C.
Author Affiliation: Embrapa Semi-Árido, C.P. 23, 56302-970 Petrolina-PE, Brazil.
Comunicado Técnico da Embrapa Semi-Árido : 4 pp.
Abstract : The contribution margin is the difference between the receipts from the sale of a given product and the variable costs and expenses used for its production. It is a quick and easy assessment of the economic and financial performance of each cultivated plot for a type of production. The paper provides an analysis of the contribution margins for 2 consecutive years of 4 irrigated mango plots in a farm located in the Submedio S˜ao Francisco region in Brazil. It shows that contribution margins can identify areas with greater potential as well as factors affecting economic results, for instance costs of packaging and fertilizers, and yield. Contribution margins appear therefore a very useful management tool.