TECHNICAL
Figure 1 2D Jugala
Apple growing systems – innovation central Has there ever been a time when the apple industry has been planting new orchards on so many different growing systems? Don’t think so. By Jack Hughes : Fruition horticultural consultant The creative energy and diversity are great. It does beg a question – is there one system that’s better than the rest? Or with the right management, can any of them excel? In this article, I will discuss the fundamentals that will determine the answer to this question. To kick off, I have assumed that the fundamentals are: 1 Economic efficiency – the time value of money, 2 The rate of yield accumulation and the level of
peak yield,
3 Labour efficiency, 4 The ease of maintaining of balanced canopies.
Let’s explore these inter-related factors. 56
The ORCHARDIST : NOVEMBER 2021
Economic efficiency The internal rate of return calculation (IRR) is one of the best ways to compare the return on an investment. It considers the net present value of all cash flows (both positive and negative) from an investment (in this case a growing system). IRR is a good measure because it combines all the inputs and outputs into one number – making comparing different options easy. It’s also good because it accounts for a fundamental reality: the time value of money. The more that is spent early on either, as capital development or labour, the greater the impact on IRR. This hard reality can be interpreted in different ways. A glass-half-full approach says it’s ok to invest big in systems that require a lot of infrastructure and tree training because
