A Life Cycle Cost Analysis—Relevant Method Supporting the Decision to Establish an Apple Orchard in an Organic System

The life-cycle cost analysis is a method used to assess long-term economic efficiency among equivalent competing processes or products. The purpose of this paper is to investigate the nature and level of costs for an organic orchard located in Southern Romania, using a complex approach covering the...

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Main Authors: Ionela Mițuko Vlad, Ana Cornelia Butcaru, Gina Fîntîneru, Liliana Aurelia Bădulescu, Florin Stănică, Cosmin Alexandru Mihai
Format: Article
Language:English
Published: MDPI AG 2023-11-01
Series:Horticulturae
Subjects:
Online Access:https://www.mdpi.com/2311-7524/9/12/1263
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author Ionela Mițuko Vlad
Ana Cornelia Butcaru
Gina Fîntîneru
Liliana Aurelia Bădulescu
Florin Stănică
Cosmin Alexandru Mihai
author_facet Ionela Mițuko Vlad
Ana Cornelia Butcaru
Gina Fîntîneru
Liliana Aurelia Bădulescu
Florin Stănică
Cosmin Alexandru Mihai
author_sort Ionela Mițuko Vlad
collection DOAJ
description The life-cycle cost analysis is a method used to assess long-term economic efficiency among equivalent competing processes or products. The purpose of this paper is to investigate the nature and level of costs for an organic orchard located in Southern Romania, using a complex approach covering the entire chain of production, through its life span. The research results, based on a dynamic analysis and an integrated evaluation of the orchard’s performance, were ranked on investment and operational costs and broken down into three categories (establishment, production, post-harvest, transport costs). The highest costs, representing 151,726 EUR/ha/20 years, about 52.72% of the total operational costs and 50.4% of the total farm costs/ha/20 years, were recorded in the exploitation stage. The scenarios for the sensitivity analysis considered different levels of average yields (40 and 60 tons/ha, respectively) with different rates of sold productions (85%, optimistic scenario; 70%, pessimistic scenario). The hot points identified at the production stage were the use of agricultural machinery, several pesticides, the costs of seedlings, anti-hail nets, plastic boxes, and labor costs, while at the post-harvest stage, there were those related to labor and energy consumption. The transport stage had important costs with respect to tractor operations and the track.
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spelling doaj.art-8275daa633734e0c9ee0ad8750290bc22023-12-22T14:12:25ZengMDPI AGHorticulturae2311-75242023-11-01912126310.3390/horticulturae9121263A Life Cycle Cost Analysis—Relevant Method Supporting the Decision to Establish an Apple Orchard in an Organic SystemIonela Mițuko Vlad0Ana Cornelia Butcaru1Gina Fîntîneru2Liliana Aurelia Bădulescu3Florin Stănică4Cosmin Alexandru Mihai5Faculty of Management and Rural Development, University of Agricultural Sciences and Veterinary Medicine, 59 Mărăști Boulevard, 011464 Bucharest, RomaniaResearch Centre for Study of Food and Agricultural Products Quality, University of Agricultural Sciences and Veterinary Medicine, 59 Mărăști Boulevard, 011464 Bucharest, RomaniaFaculty of Management and Rural Development, University of Agricultural Sciences and Veterinary Medicine, 59 Mărăști Boulevard, 011464 Bucharest, RomaniaResearch Centre for Study of Food and Agricultural Products Quality, University of Agricultural Sciences and Veterinary Medicine, 59 Mărăști Boulevard, 011464 Bucharest, RomaniaFaculty of Horticulture, University of Agricultural Sciences and Veterinary Medicine, 59 Mărăști Boulevard, 011464 Bucharest, RomaniaFaculty of Horticulture, University of Agricultural Sciences and Veterinary Medicine, 59 Mărăști Boulevard, 011464 Bucharest, RomaniaThe life-cycle cost analysis is a method used to assess long-term economic efficiency among equivalent competing processes or products. The purpose of this paper is to investigate the nature and level of costs for an organic orchard located in Southern Romania, using a complex approach covering the entire chain of production, through its life span. The research results, based on a dynamic analysis and an integrated evaluation of the orchard’s performance, were ranked on investment and operational costs and broken down into three categories (establishment, production, post-harvest, transport costs). The highest costs, representing 151,726 EUR/ha/20 years, about 52.72% of the total operational costs and 50.4% of the total farm costs/ha/20 years, were recorded in the exploitation stage. The scenarios for the sensitivity analysis considered different levels of average yields (40 and 60 tons/ha, respectively) with different rates of sold productions (85%, optimistic scenario; 70%, pessimistic scenario). The hot points identified at the production stage were the use of agricultural machinery, several pesticides, the costs of seedlings, anti-hail nets, plastic boxes, and labor costs, while at the post-harvest stage, there were those related to labor and energy consumption. The transport stage had important costs with respect to tractor operations and the track.https://www.mdpi.com/2311-7524/9/12/1263orchardappleorganiccostsperformanceRomania
spellingShingle Ionela Mițuko Vlad
Ana Cornelia Butcaru
Gina Fîntîneru
Liliana Aurelia Bădulescu
Florin Stănică
Cosmin Alexandru Mihai
A Life Cycle Cost Analysis—Relevant Method Supporting the Decision to Establish an Apple Orchard in an Organic System
Horticulturae
orchard
apple
organic
costs
performance
Romania
title A Life Cycle Cost Analysis—Relevant Method Supporting the Decision to Establish an Apple Orchard in an Organic System
title_full A Life Cycle Cost Analysis—Relevant Method Supporting the Decision to Establish an Apple Orchard in an Organic System
title_fullStr A Life Cycle Cost Analysis—Relevant Method Supporting the Decision to Establish an Apple Orchard in an Organic System
title_full_unstemmed A Life Cycle Cost Analysis—Relevant Method Supporting the Decision to Establish an Apple Orchard in an Organic System
title_short A Life Cycle Cost Analysis—Relevant Method Supporting the Decision to Establish an Apple Orchard in an Organic System
title_sort life cycle cost analysis relevant method supporting the decision to establish an apple orchard in an organic system
topic orchard
apple
organic
costs
performance
Romania
url https://www.mdpi.com/2311-7524/9/12/1263
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