ECONOMIC-FINANCIAL ASSESSMENT OF A BUSINESS PLAN FOR DRIED DAMIANA
DOI:
https://doi.org/10.29298/rmcf.v4i16.443Keywords:
Production chain, damiana, financial feasibility, business plan, Turnera diffusa Willd. ex Schult., internal return rateAbstract
Damiana (Turnera diffusa) is appreciated by the practitioners of naturopathic and herbal medicine. It is attributed healing and aphrodisiac properties, and the variety that grows in the state of South Baja California is considered to be the best. This paper assesses the feasibility of a business plan for the sale of damiana by the producers, associated as a “production chain”. Harvests are very variable and often scarce due to the irregularity of the rainfall patterns; however, harvesting also depends on the demand and on the price offered by the intermediaries. The main markets for the damiana grown in the state are those locations with the largest numbers of industrial users, such as Mexico City, the State of Mexico, and Guadalajara. This business is highly profitable, with a breakeven point entailing a 65% reduction of the production planned for 10 years; likewise, the baseline scenario has an internal return rate of 99%. Nevertheless, the profitability of the business depends on the substantial improvement of price and volume of annual sales from the third year of operation, both of which depend in turn on the producers’ management and negotiation skills for selling directly and on an ongoing basis to the big national buyers.
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