6533b7d2fe1ef96bd125e292

RESEARCH PRODUCT

STRATEGY TO INCREASE THE FARM COMPETITIVENESS

Filippo SgroiAnna Maria Di TrapaniRiccardo TestaSalvatore Tudisca

subject

Agricultural scienceCost leadershipSettore AGR/01 - Economia Ed Estimo RuraleBreak-Even Point Competitiveness Costs Farms ProfitabilityProfit marginProduction (economics)Profitability indexPruning (decision trees)BusinessCompetitor analysisGeneral Agricultural and Biological SciencesInvestment (macroeconomics)Competitive advantage

description

Italy’s wine-growing production structure is highly pulverized. So, for many wine-growing farms loweri ng the production cost represents the only way of gain ing a competitive advantage. Production at average unit costs lower than competitors allows to improve prof itability. Among farming operations, winter pruning and tying of productive vine-branches require a high hu man labor. For this reason the paper presents the r esults of research conducted on a sample of Sicilian wine- producing farms in order to study the cost-effectiv eness to make the pruning and the subsequent ligation of productive branches with tools that facilitate the work. The economic analysis, after the determination of m inimum optimum size, shows that the investment is suitable for both large or small farms. This denote s how the process innovation could represent a way to achieve a cost leadership and improve profit margin .

https://doi.org/10.3844/ajabssp.2014.394.400