Economic and financial viability of cactus pear (Opuntia ficus-indica) crop in Nopaltepec, Estate of Mexico

Abstract

The tuna, fruit of the nopal, is considered an icon of the Mexican culture, there is evidence of its production and consumption for more than 9 000 years. The objective was to estimate the economic and financial feasibility of tuna cultivation, two representative production units (URP) of different scales (EMNPT04) and (EMNPT25) were constructed in the community of San Felipe Teotitlán, Nopaltepec, Estado de México, in order to generate information to support decision-making. Through the panels technique, technical and economic information was obtained. Based on the methodology developed by the American Association of Agricultural Economists (AAEA), income and costs were estimated to determine economic, financial, and target prices. The estimated production cost is largely covered by the selling price. The net cash flow is positive in both URPs and allows producers to cover family expenses. Both URPs are financially viable. EMNPT04 is not economically feasible. The prices required to cover production costs, including production factors, are 3.92 and 2.37 pesos per kilogram, for EMNPT04 and EMNPT25, respectively. The economic situation of the smaller scale URP is vulnerable, its long term permanence is doubtful. The results are indicative of the URP situation with characteristics similar to those analyzed, in the studied region.