Abstract

A study was conducted at Technology Transfer Institute of PARC, Tandojam, Pakistan during 2006. The objective was to assess financial viability in establishing guava (Psidium guajava) orchards in Sindh province. A combination of analytical techniques were used for this purpose. The results revealed that guava production starts from third year after planting of tree and it reaches a maximum level during 12 year and remains constant upto 25" years. Return on investment (IRR) in guava orchards was determined as 26 percent against current rate of interest on agricultural loans. The pay-back period of guava orchards starts from three years. The data further indicate that 40 years is the optimum economic life of guava orchards, after that there is a declining trend of guava production. According to sensitivity analysis it was found that guava outcomes are more sensitive to variation in prices than cost of production. Hence, there is a need to put more emphasis on stabilization of guava prices by improving existing marketing system.