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A Comparative Cost-Benefit Analysis of Conventional and Organic Hazelnuts Production Systems in Center Italy

Author

Listed:
  • Giuseppe Coppola

    (Department of Environmental Science and Policy, University of Milan, 20133 Milano, Italy)

  • Michele Costantini

    (Department of Environmental Science and Policy, University of Milan, 20133 Milano, Italy)

  • Luigi Orsi

    (Department of Environmental Science and Policy, University of Milan, 20133 Milano, Italy)

  • Davide Facchinetti

    (Department of Agricultural and Environmental Sciences, University of Milan, 20133 Milano, Italy)

  • Francesco Santoro

    (Department of Agricultural and Environmental Science, Università degli Studi di Bari Aldo Moro, Via G. Amendola 165/A, 70126 Bari, Italy)

  • Domenico Pessina

    (Department of Agricultural and Environmental Sciences, University of Milan, 20133 Milano, Italy)

  • Jacopo Bacenetti

    (Department of Environmental Science and Policy, University of Milan, 20133 Milano, Italy)

Abstract

In this study, the economic profitability of hazelnut production in central Italy using conventional and organic farming systems was evaluated using the cost–benefit analysis methodology. Viterbo’s province is the leading province in Italy in terms of quantity produced. Three indicators were calculated for both farming systems: net present value, payback time, internal rate of return. The analysis was conducted utilizing primary data collected by means of interviews and surveys with local farmers and organizations of producers. The collected production data refer to the decade 2008–2018; a global area of 100.34 ha and 76.14 ha were considered for conventional and organic cultivation, respectively. Sensitivity analysis was carried out considering different discount rates, price variability, and inflation rates. The net present value is equal to 92,800 €/ha and to 3778 €/ha, the payback time is 10.47 years and 42.94 years, while the internal rate of return is 12.2% and 1.1% for the conventional and organic production systems, respectively. The conventional production system performs significantly more remuneratively, considering that the price premium paid by the market for the organic product and the subsidies granted to organic farmers are not sufficient to balance the lower yield.

Suggested Citation

  • Giuseppe Coppola & Michele Costantini & Luigi Orsi & Davide Facchinetti & Francesco Santoro & Domenico Pessina & Jacopo Bacenetti, 2020. "A Comparative Cost-Benefit Analysis of Conventional and Organic Hazelnuts Production Systems in Center Italy," Agriculture, MDPI, vol. 10(9), pages 1-16, September.
    • Handle: RePEc:gam:jagris:v:10:y:2020:i:9:p:409-:d:414465
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    References listed on IDEAS

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    1. Massimo De Franchi & Karem Boubaker, 2014. "Valorization of Hazelnut Biomass Framework in Turkey: Support and Model Guidelines from the Italian Experience in the Field of Renewable Energy," International Journal of Sustainable Energy and Environmental Research, Conscientia Beam, vol. 3(3), pages 130-144.
    2. Bacenetti, Jacopo, 2019. "Heat and cold production for winemaking using pruning residues: Environmental impact assessment," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    3. Rigby, D. & Caceres, D., 2001. "Organic farming and the sustainability of agricultural systems," Agricultural Systems, Elsevier, vol. 68(1), pages 21-40, April.
    4. Zinnanti, Cinzia & Schimmenti, Emanuele & Borsellino, Valeria & Paolini, Giulio & Severini, Simone, 2019. "Economic performance and risk of farming systems specialized in perennial crops: An analysis of Italian hazelnut production," Agricultural Systems, Elsevier, vol. 176(C).
    5. Simone Pascuzzi & Francesco Santoro, 2017. "Analysis of the Almond Harvesting and Hulling Mechanization Process: A Case Study," Agriculture, MDPI, vol. 7(12), pages 1-9, December.
    6. Massimo de Franchi & Karem Boubaker, 2014. "Valorization of Hazelnut Biomass Framework in Turkey: Support and Model Guidelines from the Italian Experience in the Field of Renewable Energy," International Journal of Sustainable Energy and Environmental Research, Conscientia Beam, vol. 3(3), pages 130-144.
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