NEW REPORT PUBLISHED: Economic Water Productivity in Fruit Production: Insights from Arid and Water-Abundant Regions
11/11/2025
>> Visit External Site
2022 Scholar Vctor Muoz Aravena's global research offers practical strategies for producers and policymakers navigating water scarcity, labor pressures, and climate change
This comprehensive report introduces Economic Water Productivity (EWP) as a practical framework for optimizing resource use, enhancing profitability, and building long-term resilience in fruit-growing systems worldwide.
Vctor's scholarship was generously supported by PSP Investments and the Chris Reichstein Philanthropy Fund, enabling research across nine countries on three continents.
From Crisis to Framework: The Origin of EWP
The concept emerged from a critical question posed by Chilean fruit growers during the country's worst drought in 2015: "What should we grow with the little water we have?" As Program Manager for the Strategic Regional Program for Sustainable Fruit Production in Chile's Coquimbo Region--one of the nation's most water-stressed areas--Vctor witnessed firsthand how drought, market volatility, and infrastructure constraints were forcing producers to fundamentally rethink their operations.
EWP measures the economic return per cubic meter of irrigation water used. Unlike traditional metrics focused on yield per hectare, EWP introduces a market-oriented perspective: Yield -- Price / Water Used. This shift enables producers to compare crops based on value per unit of water--a vital decision tool in resource-constrained environments.
Global Research, Local Impact
Through his Nuffield Scholarship, Vctor conducted fieldwork across Israel, Chile, California, Florida, the Netherlands, Brazil, Japan, Singapore, and the United Kingdom. His research revealed striking patterns:
In water-scarce regions (Israel, Chile, California), producers have transformed scarcity into competitive advantage through:
- Precision drip irrigation and fertigation systems
- Reuse of treated wastewater (Israel recycles over 85% for agriculture)
- Crop portfolios prioritizing high-EWP species like citrus, cherries, and almonds
- Governance reforms including volumetric pricing and sustainable groundwater management
In water-abundant regions (Netherlands, Brazil, Japan, Florida, Singapore), different constraints dominate:
- Labor scarcity driving automation and agrotourism models
- Energy costs reshaping greenhouse economics
- Land fragmentation enabling ultra-premium, culturally-driven production
- Infrastructure gaps limiting cold chain and logistics efficiency
Key Findings
Value per drop matters more than volume: In Chile's Coquimbo Region, cherries and lemons generate net margins of 1.92 and 1.79 USD/m respectively, compared to less than 1 USD/m for olives--directly influencing investment decisions.
Scarcity drives systemic innovation: Water-stressed regions have pioneered not just irrigation technology, but governance models, cooperative structures, and diversification strategies that enhance resilience.
Constraints evolve beyond water: Even in regions with adequate water, productivity is increasingly defined by energy efficiency, labor value, consumer trust, and logistics performance.
New business models build resilience: From Florida's U-Pick farms to the Netherlands' multifunctional agriculture, Japan's ultra-premium fruit culture, and Brazil's export cooperatives, producers are diversifying income streams beyond traditional volume-based growth.
Recommendations for Action
The report concludes with targeted recommendations for different regional contexts:
For water-stressed regions:
- Adopt EWP as a baseline tool in public programs guiding subsidies, crop selection, and irrigation investment
- Strengthen water governance with transparent metrics and capacity building
- Enable transition support for producers shifting from low-EWP to high-EWP crops
For water-abundant regions:
- Anticipate emerging constraints (labor, energy, logistics) before they become binding
- Promote culturally grounded, multifunctional farming models
- Invest in traceable, high-value value chains rewarding quality and consumer trust
For global stakeholders:
- Support comparative research across arid and non-arid regions
- Fund scalable pilots blending technology, governance, and business innovation
- Encourage cross-regional collaboration between countries with shared crops but divergent challenges
