Profitability of Pitahaya as an Alternative Crop in the Southern Region of the State of Mexico

Resumen

Objective: The objective of this study was to evaluate the economic profitability of pitahaya (Hylocereus spp.) production in southern State of Mexico through a financial analysis of representative production units, under the hypothesis that this crop represents a viable regional agricultural alternative by generating positive and sustainable financial indicators.

Design/methodology/approach: We utilized a financial analysis approach focusing on 0.25-hectare units, which is the average area managed by producers in the region. This scale was chosen to avoid distortions caused by economies of scale and to provide a more accurate reflection of local conditions. The analysis focused on the third year after crop establishment, when production stabilizes, and income and expense flows become clearer. Costs, revenues, and key profitability indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), Break-even Point, and Benefit-Cost Ratio (B/C) were integrated.

Results: The study yielded a Net Present Value (NPV) of $127,850 pesos, an Internal Rate of Return (IRR) of 27.1%, and a Benefit-Cost Ratio (B/C) of 2.175, indicating solid profitability. The break-even point was reached with the sale of 1.17 tons per cycle. The sensitivity analysis showed that the project remains viable even with a 27% reduction in income or a 38% increase in costs.

Limitations on study/implications: The analysis is based on data collected from a specific region, which may limit its applicability to other contexts.

Findings/conclusions: Pitahaya cultivation represents a profitable, resilient, and sustainable alternative for diversifying agricultural production in the southern region of the State of Mexico.