Original scientific paper
Economic evaluation of investment in the olive-sheep production system
Josip Gugić
; Veleučilište „Marko Marulić“, Knin, Hrvatska
Tino Ivanišević
; Vukovarska 129, Split, Hrvatska
Abstract
Olive growing and sheep breeding are traditional agricultural activities on Croatian islands. Based on technological and economic starting points a technological and economic model wae prepared, which consisted of the submodel of olive grove establishment, purchase of a parent flock, and construction of the sheep stable as well as the production submodel. Model-calculated investment and production costs and revenues represent input parameters for a part of financial cost-benefit analysis. The cost-benefit analysis shows that investment in the olive-sheep production system is economically profitable and financially feasible, and values of the economic indicators of business performance show that the olive-sheep production system is efficient at full capacity, presuming the realisation of the expected production results and the successful sale of olive oil, live lambs and sheep's milk.
Keywords
economic profitability; model; investment; olive growing; sheep breeding
Hrčak ID:
78914
URI
Publication date:
10.3.2012.
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