Preliminary communication
Real Option Approach to Economic Analysis of European Sea Bass (Dicetrarchus labrax) Farming in Croatia
Lari Hadelan
orcid.org/0000-0002-8499-0771
; University of Zagreb, Faculty of Agriculture, Svetošimunska cesta 25, 10000 Zagreb, Croatia
Vjekoslav Par
; University of Zagreb, Faculty of Agriculture, Svetošimunska cesta 25, 10000 Zagreb, Croatia
Mario Njavro
; University of Zagreb, Faculty of Agriculture, Svetošimunska cesta 25, 10000 Zagreb, Croatia
Mario Lovrinov
; Croatian Chamber of Agriculture, Fishery Department, Sv. Teodora 2, 52000 Pula, Croatia
Abstract
The paper emphasizes the economic performance of the fresh European sea bass production and profitability of related processing to value-added fillets. Croatian annual farmed European sea bass and gilthead sea bream production in amount of 4,000 tones plays only about 1.7% of the World production with mediocre economic benefits for producers. However, product diversification, including processing measures as filleting, vacuuming and smoked processing can ensure additional product value providing long-term strategic orientation for fish-farmers. Seabass filleting, although at the initial phase, can be a modus of value-added production, which protects the producers of the price risk volatility targeting the population averse to the long lasting traditional fish mill preparation. Applied Real Option method can be helpful tool in the situation when the strategic project value includes not just the current economic features but also opportunities related to the basic model. Option approach indicates that seabass filleting triplicate the economic performance with respect to fresh seabass production.
Keywords
economic analysis; European sea bass; real option
Hrčak ID:
89915
URI
Publication date:
30.10.2012.
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