Conference paper

Economics of integrated production of olives

Josip Gugić
Zoran Grgić

Abstract

Integrated production represents a compromise between economical and ecological demands, or a compromise between conventional and organic production. Regeneration of traditional olive – groves and their transformation in to semi intensive olive – groves is based on the principles of integrated olive production and could be realistic option in our practise.
However, olive growers need relevant information about economic profitability of their investment in the regeneration of olive groves, and about economic effects of integrated olive production.
In that context, the purpose of the research is the construction, analysis and development of a deterministic technological and economic simulation model of integrated olive production. This model is used to estimate economic profitability and financial feasibility of investment in regeneration of traditional olive – groves and economic efficiency of integrated olive production.
In the course of work the method of simulation modelling, financial part of cost – benefit analysis - sensitivity analysis and economic analysis of basical measure of business success (labour productivity, cost-effectiveness and profitability) were applied.
The investment analysis shows economic profitability and financial feasibility of the investment. The economic analysis shows efficiency of integrated olive production on the assumption of expected yield and successful sale of olive oil.

Keywords

olive; integrated production; investment; efficiency; simulation model

Hrčak ID:

1925

URI

https://hrcak.srce.hr/1925

Publication date:

1.4.2005.

Article data in other languages: croatian

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