6533b820fe1ef96bd1279c73

RESEARCH PRODUCT

Cost-benefit analysis: A comparison between conventional and organic olive growing in the Mediterranean Area

Riccardo TestaFilippo SgroiMario FoderàSalvatore TudiscaAnna Maria Di Trapani

subject

Biogas oliveEnvironmental EngineeringOrganic farmingCost–benefit analysisEnvironmental engineeringBiodiversitySubsidyManagement Monitoring Policy and LawFinancial analysiAgricultural scienceMarket priceSettore AGR/01 - Economia Ed Estimo RuraleOrganic farmingMarket priceFinancial analysisEnvironmental scienceCAP subsidyEnvironmental impact assessmentProfitability indexNature and Landscape Conservation

description

The conversion from conventional to organic management of olive growing has many benefits, such as increase of biodiversity, reduction of soil erosion and lower environmental impact. Since olive represents a main crop in the Mediterranean area, from a social, economic as well as environmental point of view, the aim of this paper has been to determine if the conversion from conventional to organic olive growing can increase the profitability of the farmer in Sicilian farms. Economic analysis has been carried out by means of cost-benefit analysis and financial indicators (NPV, B0/C0, IRR) show that organic growing would allow a better profitability for organic olive farms respect to conventional ones. This is primarily due to CAP subsidy and to market price of organic olive oil, which is currently 21% higher than the conventional olive oil price.

yearjournalcountryeditionlanguage
2015-09-01Ecological Engineering
https://doi.org/10.1016/j.ecoleng.2015.05.043