Avocado (persea americana mill) industrialization as a regional sustainability development strategy

Abstract

Avocado production is a profitability and competitiveness business, is a job generator and is a healthy food. Food habits and tendency consumption is looking for nutraceutical and heathy products. There is an interest to get avocado oil for human consumption because its highly non- saturated fatty acids and the benefits in human health. The objective of this study was to evaluate the technical, financial and economic viability of an oil avocado plant. Information was obtained from 82 avocado producers belonging to three avocado local Associations. The study was carried on between 2015 and 2016. Productive and post-harvest productive chains methodology was used as a diagnosis tool and for the construction of SWOT matrix. Financial evaluation was determined with a five-year horizon. The commercial strategy, technical and financial design was integrated considering contributions from the partners, subsidies and financing. Finally, a risk analysis was carried out based on Net Present Value (NPV), Internal Return Rate (IRR), Cost-Benefit Ratio (CB/R) and Period recovery (PR) indicators, based on product sales prices. This analysis reported low uncertainty in contrast to the Minimum Return Rate of 13%, being the financial indicators: NPV of $ 217,448 USD; IRR of 25.4% and CB/R 2.26, PR of 3.0 years. The sensitivity analysis showed that the project can support a reduction in the sale price of up to 0.55 USD.