Programming the financial and capital development of a horticultural property : a thesis submitted in partial fulfilment of the requirements for the degree of Master of Horticultural Science in the University of Canterbury [Lincoln College]

Abstract

A case study of a New Zealand horticultural property is used to show that realistic forward plans can be formulated to provide practical solutions to management problems facing horticultural managers.

The planning process and alternative planning models are presented. Budgeting, incorporating the use of linear programming to determine the optimal cropping programme, is used to determine the best development path for maximization of return on shareholders' funds, consistent with the manager's other objectives.

Several optimal cropping programmes derived by parametizing monthly labour constraints, allowed the manager to select the one most suited to his requirements. The selected programme provides the basis for four development budgets testing the effect on return to shareholders' funds of: (i) adopting the optimal cropping programme, (ii) continuing the existing cropping programme, (iii) reinvesting surplus cash generated by adopting the optimal cropping programme , and (iv) the strawberry yield failing to reach the estimate.

The projected plans were adjudged successful in providing realistic results to satisfy the company's objectives, by the manager's ready acceptance of the results and his willingness to implement the optimal cropping programme.