Management Influence on Income Risk in an Apple Production System on Swiss Fruit Farms

This paper analyzes the management influence of apple growers to reduce income risk under homogenous production and market conditions. Statistical moments including mean, standard deviation, and skewness were employed to study the differences between farms referring to income variables based on full cost principle. The empirical results of 12 farms based on four-year period data of 445 orchard records suggest that farm management had a vital influence on all three statistical moments. On successful farms an increase of mean values was correlated with less negative asymmetry and significantly reduced variance of returns. High investment in preharvest labor hours was relevant for success in this perennial production system.