Organic production in the Republic of Serbia: Economic aspects

The authors of this paper discuss the concept of organic agricultural products with an emphasis on economic performance. Research has shown that the total cost of production on organic farms is on average lower than that of conventional farms. Variable costs are 30 -40% lower. On the other hand, fix...

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Main Authors: Tomaš-Simin Mirela, Glavaš-Trbić Danica, Petrović Marica
Format: Article
Language:srp
Published: University Business Academy - Faculty of Economics and Engineering Management, Novi Sad, Serbia 2019-01-01
Series:Ekonomija: teorija i praksa
Subjects:
Online Access:https://scindeks-clanci.ceon.rs/data/pdf/2217-5458/2019/2217-54581903088T.pdf
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author Tomaš-Simin Mirela
Glavaš-Trbić Danica
Petrović Marica
author_facet Tomaš-Simin Mirela
Glavaš-Trbić Danica
Petrović Marica
author_sort Tomaš-Simin Mirela
collection DOAJ
description The authors of this paper discuss the concept of organic agricultural products with an emphasis on economic performance. Research has shown that the total cost of production on organic farms is on average lower than that of conventional farms. Variable costs are 30 -40% lower. On the other hand, fixed costs are 45% higher than those from conventional production. An analysis of the economic situation of organic farms in Europe shows that, on average, they have profits or gross margins similar to those of comparable conventional farms, i.e. within the range of +/-20% of profits achieved on similar conventional farms. A survey conducted among organic producers on the territory of the Republic of Serbia showed that gross margins in organic production were on average 20% higher than in conventional production. Consequently, the economic aspect of organic production is more favorable than conventional production for the shown cultures.
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spelling doaj.art-e79ad357a34c41c893d939f923b095872022-12-21T20:02:10ZsrpUniversity Business Academy - Faculty of Economics and Engineering Management, Novi Sad, SerbiaEkonomija: teorija i praksa2217-54582620-02282019-01-01123881012217-54581903088TOrganic production in the Republic of Serbia: Economic aspectsTomaš-Simin Mirela0https://orcid.org/0000-0003-1833-9857Glavaš-Trbić Danica1https://orcid.org/0000-0002-5990-6558Petrović Marica2https://orcid.org/0000-0003-2539-7465Univerzitet u Novom Sadu, Poljoprivredni fakultet, Novi SadUniverzitet u Novom Sadu, Poljoprivredni fakultet, Novi SadUniverzitet u Novom Sadu, Poljoprivredni fakultet, Novi SadThe authors of this paper discuss the concept of organic agricultural products with an emphasis on economic performance. Research has shown that the total cost of production on organic farms is on average lower than that of conventional farms. Variable costs are 30 -40% lower. On the other hand, fixed costs are 45% higher than those from conventional production. An analysis of the economic situation of organic farms in Europe shows that, on average, they have profits or gross margins similar to those of comparable conventional farms, i.e. within the range of +/-20% of profits achieved on similar conventional farms. A survey conducted among organic producers on the territory of the Republic of Serbia showed that gross margins in organic production were on average 20% higher than in conventional production. Consequently, the economic aspect of organic production is more favorable than conventional production for the shown cultures.https://scindeks-clanci.ceon.rs/data/pdf/2217-5458/2019/2217-54581903088T.pdforganic productioncostseconomic aspectsgross margin
spellingShingle Tomaš-Simin Mirela
Glavaš-Trbić Danica
Petrović Marica
Organic production in the Republic of Serbia: Economic aspects
Ekonomija: teorija i praksa
organic production
costs
economic aspects
gross margin
title Organic production in the Republic of Serbia: Economic aspects
title_full Organic production in the Republic of Serbia: Economic aspects
title_fullStr Organic production in the Republic of Serbia: Economic aspects
title_full_unstemmed Organic production in the Republic of Serbia: Economic aspects
title_short Organic production in the Republic of Serbia: Economic aspects
title_sort organic production in the republic of serbia economic aspects
topic organic production
costs
economic aspects
gross margin
url https://scindeks-clanci.ceon.rs/data/pdf/2217-5458/2019/2217-54581903088T.pdf
work_keys_str_mv AT tomassiminmirela organicproductionintherepublicofserbiaeconomicaspects
AT glavastrbicdanica organicproductionintherepublicofserbiaeconomicaspects
AT petrovicmarica organicproductionintherepublicofserbiaeconomicaspects