Organic and conventional production in Slovakia: Comparison of selected managerial and financial indicators
DOI:
https://doi.org/10.5219/386Keywords:
organic farming, conventional farming, labour imput, ROE, ROCAbstract
The paper deals with comparison of organic and conventional agriculture from two points of view. Firstly the managerial point of view examing number of employees and the personal costs per hectare. Secondly, the owners' point of view examing profitability of organic farming. Both views result from the specifics of organic farming. Organic production usually generates higher employment, higher personal cost and results in lower yields. We evaluated differences between organic and conventional agriculture in Slovakia over period of years 2009-2012 on a sample of more than 1050 farms in each year. The share of organic farms was 15%. Using t-test as evaluation method we found no significant differences from the managerial point of view (measured by employees per hectare and personal costs per hectare). From the owner' s point of view (measured by return on costs, return on equity and total assets per hectare) we conclude that the subsidies successfully compensate the lower revenues of organic farms (there was no significant difference in ROE and ROC). Our results are based on the sample of organic farms with Average utilised area of 850 hectares which reflects the farm structure in Slovakia. We can conclude that large organic farms do not support employment in rural areas and generate comparable profit when compared to conventional farms.Downloads
Metrics
References
Acs, S., Berentsen, P. B. M, Huirne, R. 2007. Conversion to organic arable farming in The Netherlands: A dynamic linear programming analysis. Agricultural Systems, vol. 94, no. 2, p. 405-415. https://doi.org/10.1016/j.agsy.2006.11.002 DOI: https://doi.org/10.1016/j.agsy.2006.11.002
Argyropoulos, CH., Tsiafouli, M. A., Sgardelis, S. P., Pantis, J. D. 2013. Organic farming without organic products. Land Use Policy, vol. 32, no. 1, p. 324-328. https://doi.org/10.1016/j.landusepol.2012.11.008 DOI: https://doi.org/10.1016/j.landusepol.2012.11.008
Arnhold, S., Lindner, L., Lee, B., Martin, M., Kettering, J., Nguyen, T. T., Koellner, T., Ok, Y. O., Huwe, B. 2014. Conventional and organic farming: Soil erosion and conservation potential for row crop cultivation. Geoderma, vol. 219-220, no. 1, p. 89-105. https://doi.org/10.1016/j.geoderma.2013.12.023 DOI: https://doi.org/10.1016/j.geoderma.2013.12.023
Berentsen, P. B. M, Kovacs, K., van Asseldonk M. A. P. M. 2012. Comparing risk in conventional and organic dairy farming in the Netherlands: An empirical analysis. Journal of Dairy Science, vol. 95, no. 7, p. 3803-3811. https://doi.org/10.3168/jds.2011-5200 PMid:22720936 DOI: https://doi.org/10.3168/jds.2011-5200
Breustedt, G., Latacz-Lohmann, U., Tiedemann, T. 2011. Organic or conventional? Optimal dairy farming technology under the EU milk quota system and organic subsidies. Food Policy, vol. 36, no. 2, p. 223-229. https://doi.org/10.1016/j.foodpol.2010.11.019 DOI: https://doi.org/10.1016/j.foodpol.2010.11.019
Březinová, M. 2008. Nové trendy v marketingové komunikaci (New trends in the marketing communication, in Czech). Acta Universitatis Bohemiae Meridionales (The Scientific Journal for Economics, Management and Trade). vol.11, no. 2, p. 7-10. ISSN 1212-3285. [cit. 2014-06-12] Retrieved from the web: http://ojs.ef.jcu.cz/acta/article/view/253/250
Bujna, M., Prístavka, M., Korenko, M., Kadnár, M. 2013. Audit bezpečnosti v liaharenskom podniku (Safety audit in hatching company, in Czech). Journal of Central European Agriculture. vol. 14, no. 4, p. 1270-1280. [cit. 2014-06-12] Available at: https://doi.org/10.5513/JCEA01/14.4.1342 DOI: https://doi.org/10.5513/JCEA01/14.4.1342
Ciaian, P., Swinnen, J. F. M. 2009. Credit market imperfections and the distribution of policy rents. American Journal of Agricultural Economics, vol. 91, no. 4, p. 124-139. https://doi.org/10.1111/j.1467-8276.2009.01311.x DOI: https://doi.org/10.1111/j.1467-8276.2009.01311.x
Damgaard, Ch., Strandberg, B., Strandberg, M., Aude, E., Borgen Sørensen, P., Nielsen, K. E., Bruus, M. 2014. Selection on plant traits in hedgerow ground vegetation: The effect of time since conversion from conventional to organic farming. Basic and Applied Ecology, vol. 15, no. 3, p. 250-259. https://doi.org/10.1016/j.baae.2014.04.003 DOI: https://doi.org/10.1016/j.baae.2014.04.003
Frey, B. S., Stutzer, A. 2008. Environmental morale and motivation. The Cambridge Handbook of Psychology and Economic Behaviour. Cambridge University Press, p. 406-428. https://doi.org/10.1017/CBO9780511490118.017 DOI: https://doi.org/10.1017/CBO9780511490118.017
Greer, G., Kaye-Blake, W., Zellman, E., Parsonson-Ensor, CH. 2008. Comparison of the financial performance of Organic and conventional farms. Journal of Organic Systems, vol. 3, no. 2, p. 18-28. ISSN 1177-4258. [cit. 2014-06-30] Retrieved from the web: http://www.organic-systems.org/journal/Vol_3(2)/pdf/18-28_Greer_et_al.pdf
Gündoğmuş, E. 2006. Energy use on organic farming: A comparative analysis on organic versus conventional apricot production on small holdings in Turkey. Energy Conversion and Management, vol. 47, no. 18-19, p. 3351-3359. https://doi.org/10.1016/j.enconman.2006.01.001 DOI: https://doi.org/10.1016/j.enconman.2006.01.001
Hennessy, D. A. 1998. The production effects of agricultural income support polices under Uncertainty. American Journal of Agricultural Economics, vol. 80, no. 1, p. 46-57. https://doi.org/10.2307/3180267 DOI: https://doi.org/10.2307/3180267
Jánský, J. 2005. Analysis of current sutuation in sales of selected organic products in the Czech Republic. Zemědělská ekonomika, vol. 51, no. 7, p. 309-313. ISSN 0139-570X. [cit. 2014-05-23] Retrieved from the web: http://www.agriculturejournals.cz/publicFiles/58274.pdf DOI: https://doi.org/10.17221/5112-AGRICECON
Kerselaers, E., De Cock, L., Lauwers, L., Van Huylenbroeck, G. 2007. Modelling farm-level economic potential for conversionto organic farming. Agricultural Systems, vol. 94, no. 1, p. 671-682. https://doi.org/10.1016/j.agsy.2007.02.007 DOI: https://doi.org/10.1016/j.agsy.2007.02.007
Klieštik, T., Valášková, K. 2013. Models of capital costs quantification. Journal of Advanced Research in Management, vol. 4, no. 1, p. 5-19. [cit. 2014-05-17] Retrieved from the web: http://econpapers.repec.org/article/srsjarm12/1_3av_3a4_3ay_3a2013_3ai_3a1_3ap_3a5-19.htm
Klocoková, D. 2011. Integration of heuristics elements in the web-based environment: Experimental evaluation and usage analysis. Procedia - Social and Behavioral Sciences,
vol. 15, no. 1, p. 1010-1014. https://doi.org/10.1016/j.sbspro.2011.03.230 DOI: https://doi.org/10.1016/j.sbspro.2011.03.230
Klonsky, K., Greene, C. 2005. Widespread adoption of organic agriculture in the US: Are market-driven policies enough? American Agricultural Economics Association Annual Meeting, Providence, Rhode Island, July 24-27, 2005. 25 p. [2014-06-30] Retrieved from the web: http://ageconsearch.umn.edu/bitstream/19382/1/sp05kl05.pdf
Kozelová, D., Matejková, E., Qineti, A. 2010. Analyzing consumers opinion on organic food, their safety and availability in the Slovak food market. Potravinarstvo, vol. 4, no. 3, p. 30-35. https://doi.org/10.5219/16 DOI: https://doi.org/10.5219/16
Kozelová, D., Vietoris, V., Fikselová, M. 2013. Quality and availability of organic foods by Slovak consumers. Potravinarstvo, vol. 7, no. 1, p. 146-150. https://doi.org/10.5219/306 DOI: https://doi.org/10.5219/306
Kozáková, J. 2011. Management of the major sectors of the organic plant production in Slovak selected agricultural entities: dissertation theses. Slovak University of Africulture in Nitra, 201 p.
Krechovská, M., Taušl Procházková, P. 2014. Sustainability and its Integration into Corporate Governance Focusing on Corporate Performance Management and Reporting. Procedia Engineering, vol. 69, no. 1, p. 1144-1151 https://doi.org/10.1016/j.proeng.2014.03.103 DOI: https://doi.org/10.1016/j.proeng.2014.03.103
Lesjak, H. A. 2008. Explaining organic farming through past policies: comparing support policies of the EU, Austria and Finland. Journal of Cleaner Production, vol. 16, no. 1, p. 1-11. https://doi.org/10.1016/j.jclepro.2006.06.005 DOI: https://doi.org/10.1016/j.jclepro.2006.06.005
Max-Neef, M. 1995. Economic growth and quality of life: a threshold hypothesis. Ecological Economics, vol. 15, no. 2, p. 115-118. [cit. 2014-06-29] Retrieved from the web: ftp://131.252.97.79/Transfer/ES_Pubs/ESVal/ecol_econ_general/maxneef_1995_ee_15_p115.pdf DOI: https://doi.org/10.1016/0921-8009(95)00064-X
Moschitz, H., Stolze, M. 2010. The influence of policy networks on policy output. A comparison of organic farming policy in the Czech Republic and Poland. Food Policy, vol. 35, no. 3, p. 247-255. https://doi.org/10.1016/j.foodpol.2009.12.009 DOI: https://doi.org/10.1016/j.foodpol.2009.12.009
Munk, M., Drlik, M., Kapusta J., Munková, D. 2013. Methodology Design for Data Preparation in the Process of Discovering Patterns of Web Users Behaviour. Applied Mathematics & Information Science, vol. 7, no. 1, p. 27-36. https://doi.org/10.12785/amis/071L05 DOI: https://doi.org/10.12785/amis/071L05
Mzoughi, N. 2011. Farmers adoption of integrated crop protection and organic farming: Do moral and social concerns matter? Ecological Economics, vol. 78, no.8, p. 1536-1545, https://doi.org/10.1016/j.ecolecon.2011.03.016 DOI: https://doi.org/10.1016/j.ecolecon.2011.03.016
Offermann, F., Nieberg, H. 2000. Economic Performance of Organic Farms in Europe. Organic Farming in Europe: Economics and Policy; vol. 5. ISBN 3-933403-04-9. [cit. 2014-06-28] Available at: http://orgprints.org/8473/1/Organic_Farming_in_Europe_Volume05_Economic_Performance_of_Organic_Farms_in_Europe.pdf
Palšová, L., Schwarczová, L., Schwarcz, P., Bandlerová, A. 2014. The Support of Implementation of Organic Farming in the Slovak Republic in the Context of Sustainable Development. Procedia. Social and Behavioral Sciences,
vol. 110, p. 520-529. https://doi.org/10.1016/j.sbspro.2013.12.896 DOI: https://doi.org/10.1016/j.sbspro.2013.12.896
Paška, Ľ. 2006. Selected aspects of managerial and economic comparisons of organic and conventional production in upstream production conditions of Slovakia. Zborník vedeckých príspevkov z medzinárodného odborného seminára Hruštín, Hruštín: SUA, p. 82-89. ISBN 80-8069 705-1.
Patil, S., Reidsma, P., Shah, P., Purushothaman, S., Wolf, J. 2014. Comparing conventional and organic agriculture in Karnataka, India: Where and when can organic farming be sustainable? Land Use Policy, vol. 37, no. 1, p. 40-51. https://doi.org/10.1016/j.landusepol.2012.01.006 DOI: https://doi.org/10.1016/j.landusepol.2012.01.006
Rábek, T., Čierna, Z. 2012. Increasing the return on equity by financial leverage in agricultural enterprises. Ekonomika poľnohospodárstva, vol. 12, no. 2, p. 31-40.
Rizov, M., Pokrivčak, J., Ciaian, P. 2013. CAP subsidies and productivity of the EU farms. Journal of Agricultural Economics, vol. 64, no. 3, p. 537-557. https://doi.org/10.1111/1477-9552.12030 DOI: https://doi.org/10.1111/1477-9552.12030
Rozman, Č., Pažek, K., Kljajić, M., Bavec, M., Turk, J., Bavec, F., Kofjač, D., Škraba, A. 2013. The dynamic simulation of organic farming development scenarios: a case study in Slovenia. Computers and Electronics in Agriculture, vol. 96, no. 8,
p. 163-172. https://doi.org/10.1016/j.compag.2013.05.005 DOI: https://doi.org/10.1016/j.compag.2013.05.005
Schwartz, H. 2002. Herbert Simon and behavioral economics. Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), vol. 31, no. 3, p. 181-189. https://doi.org/10.1016/S1053-5357(02)00161-0 DOI: https://doi.org/10.1016/S1053-5357(02)00161-0
Stolze, M., Lampkin, N. 2009. Policy for organic farming: Rationale and concepts. Food Policy, vol. 34, no. 3, p. 237-244. https://doi.org/10.1016/j.foodpol.2009.03.005 DOI: https://doi.org/10.1016/j.foodpol.2009.03.005
Šimšák, P. 2005. Economics of organic farming in Slovakia. Economycs and Management of organic farming. Liptovská Teplička: SUA, p. 149-157. ISBN 80-8069-565-2.
Ubrežiová, I., Stankovič, L., Mihalčová, B., Ubrežiová, A. 2013. Perception of corporate social responsibility in companies of Eastern Slovakia region in 2009 and 2010. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, vol. 61, no. 7, p. 2903-2910. https://doi.org/10.11118/actaun201361072903 DOI: https://doi.org/10.11118/actaun201361072903
van den Bergh, J., Ferrer-i- Carbonell, A., Munda, G. 2000. Alternative models of individual behaviour and implications for environmental policy. Ecological Economics, vol. 32, no. 1, p. 43-61. https://doi.org/10.1016/S0921-8009(99)00088-9 DOI: https://doi.org/10.1016/S0921-8009(99)00088-9
Venkatachalam, L. 2008. Behavioral economics for environmental policy. Ecological Economics, vol. 67, no. 4, p. 640-645. https://doi.org/10.1016/j.ecolecon.2008.01.018 DOI: https://doi.org/10.1016/j.ecolecon.2008.01.018
Wachter, I., Nagy, B., Kovacs, E. 2005. The traditional, integrated and organic grape production in Hungary. Zborník príspevkov z medzinárodného vedeckého seminára. Liptovská Teplička, Liptovská Teplička: SUA, p. 26-31. ISBN 80-8069-565-2.
Willer, H. Lernoud, J., Kilcher, L. 2013. The World of Organic Agriculture. Statistics and Emerging Trends 2013. FiBL-IFOAM Report. Research Institute of Organic Agriculture (FiBL), Frick, and International Federation of Organic Agriculture Movements (IFOAM), Bonn. ISBN FiBL 978-3-03736-239-6, ISBN IFOAM 978-3-944372-02-0.
Wolcs, A., Pummer, L. 2004. Aspects of ecological management for economic analysis. Tudományos Közlemények. Gyöngyös: Károly Róbert Főiskola, p. 42-53.
Wožniak, L. 2002. Ekologiczne i ekonomiczné podstawy rozwoju rolnictva ekologiczneho w Polsce. Organic farming and economics of organic food. Košice: SPU, p. 94-99. ISBN 80-88943-15-9.
Živělová, I., Chrnová, M. 2013. Organic food market in the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, vol. 62, no. 2, p. 539-546. ISSN 1211-8516. [cit. 2014-06-20] Retrieved from the web: http://www.mendelu.cz/dok_server/slozka.pl?id=70574;download=114985 DOI: https://doi.org/10.11118/actaun201361020539
Downloads
Published
How to Cite
Issue
Section
License
This license permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way.
