A Comparison of Cost in Organic and Conventional Olive Oil Production in Greece

  • Evangelia PANAGODIMOU Agricultural University of Athens, School of Agriculture, Engineering and Environmental Sciences, 75 Iera Odos Str., 118 55 Athens
  • Ioannis ROUSSIS Agricultural University of Athens, School of Agriculture, Engineering and Environmental Sciences, 75 Iera Odos Str., 118 55 Athens
  • Christos T. PAPADAS Agricultural University of Athens, School of Food, Biotechnology and Development, 75 Iera Odos Str., 118 55 Athens
  • Dimitrios BILALIS Agricultural University of Athens, School of Agriculture, Engineering and Environmental Sciences, 75 Iera Odos Str., 118 55 Athens
Keywords: conventional farming, olive oil, organic farming, cultivation cost analysis

Abstract

An economic analysis of conventional and organic olive oil cultivation was examined in one of the most important olive-growing regions in Greece. Based on structured interviews and open-ended questions of 60 farmers from both organic and conventional systems, this study aimed to clarify the cost and returns of organic olive oil cultivation in comparison with conventional farming. Olive oil cultivation cost was calculated as 2.60 € kg-1 in organic and 2.25 € kg-1 in conventional system. The selling price for organic olive production was 4.19 € kg-1 compared to 3.63 € kg-1 for conventional production. Net profit from organic olive oil cultivation was 7,043.43 € ha-1, which was 3,664.58 € ha-1 higher than the net profit from conventional cultivation. Finally, in both types of olive farming the results of financial analysis attested to a positive convenience; however, organic farming is more advantageous providing a financially competitive alternative to conventional.

Author Biographies

Evangelia PANAGODIMOU, Agricultural University of Athens, School of Agriculture, Engineering and Environmental Sciences, 75 Iera Odos Str., 118 55 Athens
Department of Crop Science, Laboratory of Agronomy
Ioannis ROUSSIS, Agricultural University of Athens, School of Agriculture, Engineering and Environmental Sciences, 75 Iera Odos Str., 118 55 Athens
Department of Crop Science, Laboratory of Agronomy
Christos T. PAPADAS, Agricultural University of Athens, School of Food, Biotechnology and Development, 75 Iera Odos Str., 118 55 Athens
Department of Agricultural Economics and Rural Development, Laboratory of Rural Economic Development
Dimitrios BILALIS, Agricultural University of Athens, School of Agriculture, Engineering and Environmental Sciences, 75 Iera Odos Str., 118 55 Athens
Department of Crop Science, Laboratory of Agronomy
Published
2019-06-12