Economic Sustainability in Emerging Agro-Industrial Systems: The Case of Brazilian Olive Cultivation
Abstract
:1. Introduction
2. Materials and Methods
3. Results
3.1. Agricultural Costs of Olive Production in Brazil
3.2. Investment Feasibility Indicators and the Financial Impact of the ABP on Olive Groves
3.3. Competitiveness of the EVOO Agro-Industrial System in Brazil
Coefficients and Indicators of Competitiveness, Comparative Advantage and Policy Effects in the EVOO AGS in Southern Brazil
- (a)
- Share of Profits in Revenue—SPR = (D/A × 100)
- (b)
- Share of Added Value in Revenue—SAVR = [(A − B)/A] × 100
- (c)
- Share of Domestic Factors in Value Added—SDFAV = [C/(A − B)] × 100
- (d)
- Total Factor Productivity—TFP = A/(B + C)
- (e)
- Nominal Protection Coefficient of the Product—NPCP = A/E
- (f)
- Nominal Protection Coefficient of Inputs—NPCI = B/F
- (g)
- Effective Protection Coefficient—EPC = (A − B)/(E − F) × 100
- (h)
- Vulnerability of the Chain to Policies—VPC = [(H − D)/H] × 100
- (i)
- Profitability Coefficient—PC = D/H
- (j)
- Level of Taxation in the Chain—LTC = (L/E) × (−1) × 100
4. Discussion
4.1. The Microeconomic Dimension
4.2. The Mesoeconomic Dimension
4.3. The Macroeconomic Dimension
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Price | Revenue | General Input Costs | Profit | |
---|---|---|---|---|
Tradable | Domestics Factors | |||
Private | A | B | C | D 1 |
Social | E | F | G | H 2 |
Wedges | I 3 | J 4 | K 5 | L 6 |
(a) Profitability, Competitiveness and Wedge Indices: | ||||
(b) Performance indicators of agro-industrial systems and calculation formulas: | ||||
(1) Share of profits in revenue (SPR%): Private = (D/A) × 100; Social = (H/E) × 100 | ||||
(2) Share of added value in the revenue (SAVR%): Private = [(A − B/A)] × 100; Social = [(E − F/E)] × 100 | ||||
(3) Share of the domestic factors for the added value (SDFAV%): Private = [C/(A − B)] × 100; Social = [G/(E − F)] × 100 | ||||
(4) Total factor productivity (TFP): Private = A/(B + C); Social = E/(F + G) | ||||
(5) Nominal protection coefficient of the product (NPCP): A/E | ||||
(6) Nominal protection coefficient of the input (NPCI): B/F | ||||
(7) Effective protection coefficient (EPC%): (A − B)/(E − F) × 100 | ||||
(8) Vulnerability of the chain to policies (VCP%): [(H − D)/H] × 100 | ||||
(9) Profitability coefficient (PC): D/H | ||||
(10) Level of taxation in the chain (LTC%): L/E × (−1) × 100 |
Cultivars | Area—Ha | Productivity—kg·ha−1 | Olive Oil Extraction—% | Olive Oil Production—kg·ha−1 |
---|---|---|---|---|
Arbequina | 18 | 5919.94 | 10.95 | 648.06 |
Arbosana | 6 | 4570.17 | 8.52 | 338.67 |
Koroneiki | 12 | 6548.17 | 12.72 | 834.83 |
Ripe olives | 2 | 2281.00 | 15.03 | 374.50 |
Average | - | 5600.00 | 12.50 | 700.00 |
Cost in the Olive Grove (COG) | EUR/ha | Share% COG | ||
---|---|---|---|---|
A. Intermediate inputs | 419.93 | 18.04 | ||
Fertilizers | 201.00 | 8.64 | ||
Fungicides | 83.12 | 3.37 | ||
Herbicides | 17.00 | 0.73 | ||
Diesel | 63.84 | 2.74 | ||
Irrigation | 172.84 | 7.43 | ||
Insecticides | 31.17 | 1.34 | ||
B. Labor | 1020.99 | 43.87 | ||
Permanent | 193.92 | 8.33 | ||
Temporary | 769.21 | 33.05 | ||
Technical assistance | 28.93 | 1.24 | ||
C. Fixed costs | 915.21 | 39.32 | ||
Land remuneration | 333.33 | 14.32 | ||
Implantation of the olive grove | 160.00 | 6.87 | ||
Depreciation of civil works | 35.20 | 1.51 | ||
Depreciation of machines | 215.22 | 9.25 | ||
Depreciation of equipment | 171.46 | 7.37 | ||
Total olive grove cost = [A + B + C] | 2356.13 | 100.00 | ||
Olives per hectare—kg | 5600.00 | |||
Cost of 1 ton olives—EUR | 420.74 | |||
EVOO per hectare—kg | 700.00 | |||
Revenue 1 ton EVOO | 17,095.98 | |||
Financial Feasibility of Olive Production with and without ABP | ||||
Indicator | Unit | with Alternate Bearing (A) | without Alternate Bearing (A) | Variation (A) – (B)% |
Net Present Value—NPV | EUR/40 ha | 195,078.52 | 397,614.23 | −49.06 |
Internal Rate of Return—IRR | % | 17.49 | 23.24 | −24.74 |
Discounted Pay Back | Year | 7 | 5 | −28.57 |
Links and Prices | Revenue—EUR/ton | General Inputs Costs—EUR/ton | Profit—EUR/ton | ||
---|---|---|---|---|---|
Tradable | Domestic Factors | ||||
Labor | Land and Capital | ||||
Private Price | |||||
First Link 1 | 3736.15 | 391.13 | 1272.76 | 915.21 | 1175.05 |
Second Link 2 | 6.67 | 3.47 | 0.97 | 0.58 | 1.65 |
Third Link3 | 13,333.33 | 2.893.82 | 2604.54 | 120.10 | 7714.87 |
Fourth Link 4 | 19.83 | 10.32 | 2.88 | 1.73 | 4.90 |
Chain 5 | 17,095.98 | 3298.73 | 3.881.15 | 1037.62 | 8878.48 |
Social Price | |||||
First Link | 3899.57 | 343.91 | 1704.15 | 1851.51 | |
Second Link | 7.05 | 2.69 | 1.02 | 3.35 | |
Third Link | 14,305.34 | 1877.95 | 1502.10 | 10,925.29 | |
Fourth Link | 5.44 | 7.58 | 3.03 | 5.17 | |
Chain | 18,217.40 | 2232.12 | 3210.30 | 12,774.98 | |
Wedge (Private Price—Social Price) | |||||
Wedge | (1121.42) | 6399.65 | 8740.15 | (3644.72) 6 |
(a) Share of profits in revenue (SPR) (%) | ||
Private | (D/A) × 100 | 51.93 |
Social | (H/E) × 100 | 70.13 |
(b) Share of added value in revenue (SAVR) (%) | ||
Private | [(A − B)/A] × 100 | 80.70 |
Social | [G/(E − F)] × 100 | 87.75 |
(c) Share of domestic factors in added value (SDFAV) (%) | ||
Private | [C/(A − B)] × 100 | 33.83 |
Social | [G/(E − F)] × 100 | 20.01 |
(d) Total factor productivity (TFP) | ||
Private | A/(B + C) | 2.15 |
Social | E/(F + G) | 3.35 |
(e) Nominal protection coefficient of the product (NPCP) | ||
A/E | 0.94 | |
(f) Nominal protection coefficient of the input (NPCI) | ||
B/F | 1.48 | |
(g) Effective protection coefficient (EPC) (%) | ||
(A − B)/(E − F) × 100 | 86.31 | |
(h) Vulnerability of the chain to policies (VCP) (%) | ||
[(H − D)/H] × 100 | 28.53 | |
(i) Profitability coefficient (PC) | ||
D/H | 0.71 | |
(j) Level of taxation in the chain (LTC) (%) | ||
(L/E) × (−1) × 100 | 20.01 |
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Belarmino, L.C.; Padula, A.D.; Navarro Pabsdorf, M. Economic Sustainability in Emerging Agro-Industrial Systems: The Case of Brazilian Olive Cultivation. Agriculture 2022, 12, 2085. https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture12122085
Belarmino LC, Padula AD, Navarro Pabsdorf M. Economic Sustainability in Emerging Agro-Industrial Systems: The Case of Brazilian Olive Cultivation. Agriculture. 2022; 12(12):2085. https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture12122085
Chicago/Turabian StyleBelarmino, Luiz Clovis, Antonio Domingos Padula, and Margarita Navarro Pabsdorf. 2022. "Economic Sustainability in Emerging Agro-Industrial Systems: The Case of Brazilian Olive Cultivation" Agriculture 12, no. 12: 2085. https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture12122085