Murtilla (Ugni molinae Turcz.) husbandry as an alternative for diversifcation for small farms in the costal range of southern Chile

Abstract

Murtilla (Ugni molinae Turcz.) is a native shrub endemic in Chile, and the only wild species that has been investigated for productive purposes and domestication. Due to its low soil fertility requirements and its great ability to compete with other species, murtilla could be an interesting option as a fruit crop in southern Chile, particularly in marginal coastal areas commonly dominated by small farmers. The aim of this study was to determine the technical and economic feasibility of cultivating murtilla in the coastal range of the Valdivia Province and compare the resulting financial indicators to those from sheep farming, the main productive activity carried out by small farmers in this area. The feasibility was also investigated under alternative scenarios (self production of murtilla plants, irrigation subsidy, and no exports). The net present value (NPV) in the original scenario and 10-year time horizon was $16,329,837 ha^-1 with an internal rate of return (IRR) of 33.9%. In the alternative scenario, the NPV fell to $5,076,015 ha^-1 with an IRR of 25%, indicating the high profitability of murtilla crop in both scenarios compared to sheep farming, which reached a NPV of $11,222 ha^-1 and an IRR of 10.8%. The results confirm that growing murtilla as a fruit crop is a profitable alternative, which can contribute to the productive diversification of small farms in coastal areas of southern Chile.