economic considerations and viability of organic products
Sher, F., & Ahmad, E. (2008). However, the extensive use of such pesticide results in substantial health and environmental threats. considers the possible substitution of investment choices and the tenancy status' endogeneity. American journal of agricultural economics, 91. Most significantly, the cost of. Still, they should also strive to upgrade physical infrastructure and facilities and provide credit services to create an enabling environment that can empower the citizen in adopting large scale use of agricultural machinery for long term sustainability of organic farming. The regression analysis has revealed that with one per cent increase in expenditure on farmyard manure + jeev amrit , biodynamic and machine labour, the organic wheat productivity would increase by 0.114 per cent, 0.703 per cent, 0.556 per cent, respectively, showing significant impact on value productivity. Journal of agricultural and resource economics, American journal of alternative agriculture, 8, Journal of Agricultural Research (03681157), 52. The use of chemical fertilisers have adverse effect on soil fertility, soil layers', health of people and animals in district. Where to send your application. These kind of agricultural machineries can improve the return of investment in land and labor, although large capital investments are still required that can impede ownership. The future values of various inputs are obtained by estimating a separate ARIMA model for each input for each province and then making dynamic forecasts for the required forecasting period using the time series data from 1979-2006. Conventional farmers apply insecticides such. Organic agriculture increases self-confidence and mobilizes new partnerships. We find organic yields are only 19.2% (±3.7%) lower than conventional yields, a smaller yield gap than previous estimates. Thus, farming systems that are both highly productive and minimize environmental harms are critically needed. The DEA-VRS input-oriented model was used to estimate the technical efficiency score of cotton growers as described by. America and the Caribbean: Thematic evaluation. ISSN 1808-. All material on this site has been provided by the respective publishers and authors. Still, they should also strive to upgrade physical infrastructure and facilities and provide credit services to create an enabling environment that can empower the citizen in adopting large scale use of agricultural machinery for long term sustainability of organic farming. The state and central government, NGO's, researchers and organisations must come together to manage and form a policy to reduce the chemical fertilisers use and increase the use of organic pesticides, fertilisers. The results of the study show that first, second, third, and fourth important inputs in ranking in wheat production per hectare are lag output per hectare, labor force per hectare, number of tractors per hectare, and sum of the rainfall in the months of November to March, respectively in all the four provinces. Nicaragua's organic and fairtrade coffee producers. The current research used cluster analysis to define relatively similar farmers from both production systems, and to compare variables. From our understanding this percentage can range from 5 to 50 percent depending on a number of factors su… It was found that the most common machinery concerned herein are tube-well/pumps, tractors, tillage machinery, and thrashers/harvesters. Therefore, this theoretical model should not be regarded as a quick solution, but a process of testing, error, and learning by doing so. accelerated, given that the profit balance will be inclined towards OF. Viability is different from solvency and liquidity. $= mean values; Standard errors are in parenthesis; ; Table 5: Mean profit per hectare of wheat for organic and conventional farming in. the various RePEc services. Organic farming. However, smallholders continually face severe problems in getting finance that lead to reduce investment and in turn, challenges the livelihoods. Overall, organic wheat's input costs are 19.09% lower than conventional crops. Public profiles for Economics researchers, Curated articles & papers on economics topics, Upload your paper to be listed on RePEc and IDEAS, Pretend you are at the helm of an economics department, Data, research, apps & more from the St. Louis Fed, Initiative for open bibliographies in Economics, Have your institution's/publisher's output listed on RePEc. 4. economic benefits that farmers may acquire thr, sufficiently high price provide a competitive. The Economic Viability of International Trade of Organic Honey from Guatemala into the United States of America F-11: Can design and produce a significant document that gives evidence of advanced competence. The findings indicated that policymakers and stakeholders should not concentrate merely on short term planning, such as improving agricultural machinery's adoption rate. 3. Economic Implementation of the Organic Rankine Cycle in Industry Peter Arvay, Michael R. Muller, Vishana Ramdeen, Rutgers University Glenn Cunningham, Tennessee Tech University ABSTRACT An organic rankine cycle operates under the same principle as a steam rankine cycle, but with a lower operating temperature and pressure. Farm input. Overall, input costs are 20% and 10% lower in organic wheat and rice farms relative to their conventional counterparts. of socio-economic viability and its success factors. The aim of this research was to compare organic and conventional hazelnut producers, in terms of their socioeconomic characteristics, production systems and economic performance. https://ageconsearch.umn.edu/record/119380/files/10-Inderpal-Singh.pdf, Economic Viability of Organic Farming: An Empirical Experience of Wheat Cultivation in Punjab, Organic Farming for Sustainable Agriculture and Meeting the Challenges of Food Security in 21st Century: An Economic Analysis, Impact of Organic Farming on Economics of Sugarcane Cultivation in Maharashtra, Developing Strategy for Advancing Organic Agriculture as Sustainable Agricultural Practice, Impact of organic sugarcane farming on economics and water use efficiency in maharashtra, Organic Sugarcane Farming for Enhancing Farmersâ Income and Reducing the Degradation of Land and Water Resources in Maharashtra, Organic Sugarcane Farming for Development of Sustainable Agriculture in Maharashtra, Managing water in the face of growing scarcity, inequity and declining returns: exploring fresh approaches, Adiprasetyo, Teguh & Suhartoyo, Hery & Firdaus, Arief, 2017. Beatriz is a Content Marketing Manager at BigCommerce and the fashion and lifestyle influencer behind The Letter Bea, an Austin, Texas based blog.She holds a B.A. Š3.4.1.4. desire for higher incomes places pressure on farmers to search for additional work. products being largel y non-ex istent, world-renowned hotels in Islamabad such as Serena and . To counteract negative impacts of cotton cultivation in India, such as environmental degradation and financial dependency due to high input costs, organic cotton cultivation is being promoted by non-governmental organizations in the country. Like attractive package through organic waste. The cases are located in six countries (Argentina, Costa Rica, the Dominican Republic, El Salvador, Guatemala and Mexico) with different policies towards organic agriculture and various degrees of development of the institutions dealing with it, and they include diverse products (coffee, banana, cacao, vegetables, sugar cane and honey) that posed different technical and marketing problems for small producers. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. Moreover, initial evidence indicates that organic agricultural systems deliver greater ecosystem services and social benefits. Nevertheless, both kinds of farming suffer from a 'middle man' cartel. All rights reserved. PolyMet Reaffirms Economic and Technical Viability Of NorthMet Project Highlights potential for Minnesota’s first copper-nickel-precious metals mine March 27, … The future forecasts for the period of 2007-15 show steady growth of 1.6 %. It improves soil fertility, environment, health of animals and human being. Mean price per 40KG of wheat for organic and conventional farming in, Mean profit per hectare of wheat for organic and conventional farming in, All figure content in this area was uploaded by Muhammad Waqar Akram, An Assessment of Economic Viability of Organic Farming in P. Akram, M.W. We didn’t find any true market leaders for our coconut oil for hair products rather a very fragmented market of manufacturers and retailers. thesis (unpublished). Usually, labour costs are calculated per hour, however for thi, Therefore, it was possible to calculate the Return on Investment (ROI) by dividing the. Management of natural regeneration offers an annual return from year one, to amortise costs. For this purpose, two general circulation models HadCM3 and IPCM4 under three scenarios A1B, B1 and A2 in three time periods 2020, 2050 and 2080 were used. Economic viability of the processes at industrial scales depend on the complete cost of a CO 2 sorption process, entailing adsorbents, installation, plant commissioning, and operation costs. Since water costs money (and increasingly so), drought tolerant farming systems mean cheaper food production over time. A multivariate tobit model that captured the probable substitute and investment choices, as well as the endogenous nature of land tenure arrangements, has been employed in this analysis. to analyse its economic viability in relation to OF’s social and personal benefits. were in large farms. The certification programme shall set standards to prevent and control pollutants and contaminants. 4. Results give an indication of the existence of different value systems and cost–benefit considerations in different urban agriculture models. We examine the historical trends of crop production, water use, food availability and population growth in Pakistan, and project them forward to 2050. in Communication and Sociology/Anthropology from Lake Forest College and specializes in ecommerce, marketing and merchandising strategies, influencer and branding work, and social media. For forecasting purpose we need future values of inputs used in wheat production and the parameters that link inputs to wheat output. Thus, incremental net income was only Rs. A wider varietal distribution has been observed for organic than inorganic wheat cultivation. Therefore, the first step in developing pesticide’s health and environmental hazard reduction policy is to set up the extent of the problem by investigating farmer’s attitudes and behaviours regarding pesticide use [Koh and Jeyaratnam (1996); Dasgupta (2005a, 2005b)]. The scarcity of data in the literature on consumer demand for organic food in both countries (Pakistan and Malaysia) and the high incidence of food safety controversies, such as contaminated meat, milk and vegetables, showed the value of evaluating the demand for local organic products (RIEGER et al., 2016). tenure arrangements, has been employed in this analysis. Lotter, D. W. (2003). The data is collected from Sheikhupura district for the Rabi season crops both from conventional and organic farming systems and 15 farmers from each system are interviewed. The results of model evaluation showed that LARS-WG had appropriate prediction for climatic parameters and simulation of stochastic growing season in future climate change conditions for the studied region. In the Indian context, organic farming can be significant in two distinct ways: 1.) social and personal potential must be comprehended by policy makers and other stakeholders. We identified that cultivating organic crops is at least as advantageous as traditional crops regardless of the former's low yields, given the lower production expenditure and higher commodity prices. Such information is critical to identify the ‘prospects and constraints to the adoption of alternative crop protection policy’ [Ajayi (2000)]. Rough estimates show that 20,000 workers dying from exposure every year and most of them from developing countries. Š3.4.1.3. Univ. The choice of these areas had also been based on the OF project initiated by the Lok Sanj organisation. Non Technical Summary This proposal outlines a research strategy to generate information on the economic dimensions of Black soldier fly (BSF) [hermetia illucens] larvae to reduce organic waste streams while producing valuable animal proteins, biodiesel feedstocks, soil amendments, and industrial/pharmaceutical products at the farm, non-farm commercial, and community/municipal level. To increase the efficiency and sustainability of production: Organic farming can help to reduce production costs (especially where labor is cheap compared to input costs) and to increase or stabilize yields on marginal soils. The net returns over variable cost of organic and inorganic wheat have been observed as ` 21895/acre and ` 16700/acre for organic growers. Organic agriculture. The present study used a survey method and collected data from small-scale farmers, traders, and financial institutions. Sharing of views with fellow researchers on the question as to how, and to what extent, strategic human resource management can play its role in making innovation possible in an organization. In detail, owner-farmers with secure rental arrangements invested more in improving their land and productivity compared to those with unsecured lease agreements. Possible reasons were the increase in temperature rate and the accelerated growth stages of wheat. On the base of two existing farms the profitability will be discussed. All rights reserved. The major share of organic area has been found under wheat crop, which accounted for 15 per cent of the total operational area of sample organic growers. over the longer term (Samie et al., 2010). General contact details of provider: http://edirc.repec.org/data/aeraiea.html . Results of multinomial probit model show that education of farmer, member of farmer' organization, livestock ownership, farm size and being part of non-farm work activities all were significantly positive in the adoption of farm machinery. Solvency … information systems and communication networks: the case of dairy farmers in Samsun. for certain farmers, thus they only use a lower combination of these. © 2017, Pakistan Agricultural Scientists Forum. Input forecasts and parameters of wheat production function are then used to generate wheat forecasts. significant than cotton in the sampling area. In order to protect soil fertility, environment, water and air such policies are urgently required in India. Organic and non-organic products shall not be stored and This clearly depicts that conventional farming system has exhausted and no further potential exists for improvement in profit without increasing the area. The alternatives appear difficult to implement quickly, so it appears likely that in the short to medium term more groundwater will be consumed, with attendant problems of water quality and sustainability. Table 4: Mean price per 40KG of wheat for organic and conventional farming in. Based on these private and public benefits, we argue that organic agriculture should be encouraged to ensure sustainable agricultural practices in Pakistan. (2) ... geologically to have the economic considerations applied to them that. However, in profit maximization of conventional farming system with LP, the shadow price of land is observed to be highest followed by canal water, implying that land and canal water are crucial factors to increase the profitability of poor farmers in conventional farming system. organic farms use an equivalent amount of water as conventional farms. grown and consumed personally by the farmer. Agriculture today places great strains on biodiversity, soils, water and the atmosphere, and these strains will be exacerbated if current trends in population growth, meat and energy consumption, and food waste continue. More intensive labour requirements are a distinctive characteristic of, meals. use of surface water and groundwater resources in semi-arid areas: a case study from, Rigby, D., & Cáceres, D. (2001). conventional soil cultivation of rice and wheat crops. For sustainable agriculture and economic growth, organic farming is most important. In profit maximization of organic farming system with Linear Programming (LP) approach indicates that irrigation is a limiting factor, where policy planners need to focus. The study aimed to compare profitability and resource used efficiency of organic and conventional farming systems. Women's education can play significant role in reducing the use of chemical fertilisers and pesticides in state. This will increase their yields and pave the way for more intensified sustainable farming practices [9,10]-usually, organic farmers work on farms of smaller sizes scattered around different areas. regularly adopted as a fertiliser by both organic and conventional farms, useful source of nutrients. The multinomial logit regression result shows that those farmers are using the chemical fertilisers have less education, age, irrigated land. In the context of south Asia, There is enough support for suitable agricultural machinery for small farmers. nutritional and income levels. Urbanization and low productivity are real threats to the sustainability of organic farming. High value crops having commercial viability, industrial use and export potential should be considered over other crops. Evidence from the Maikaal bioRe poject in central India. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). Furthermore, organic crops' return on investment of organic crops is also significant, indicating that farmers may obtain loftier returns through transitioning from conventional crops to organic crops. various sources (canal, tube well, solar energy, electricity, and peter) were collected. Soil nutrient tests show that organic farms tend to better conserve soil fertility and system stability than conventional farms. © 2008-2021 ResearchGate GmbH. Therefore, people are increasingly apprehensive about soil fertility declines, substantial, on three major dimensions: 1) input c, analysis of the mean difference. Retailing, Packaging and Labelling should also be better managed to promote organic products. LARS-WG model was used for simulating climatic parameters for each period and CERES-Wheat model was used to simulate wheat growth. The results also show that the coefficients of labor force per hectare, tractors per hectare, per hectare fertilizer use, sum of the rainfall in the months of November to March, rainfall in the month of April and sum of the standard deviations of rainfall in the months of November to March are common for all the four provinces implying that all these variables have the same role in wheat production in all the four provinces. However, they are more profitable and environmentally friendly, and deliver equally or more nutritious foods that contain less (or no) pesticide residues, compared with conventional farming. on the Livelihoods of Smallholders. The literature shows that health and environmental hazards of pesticide use occur due to lack of information, awareness and knowledge which are chief contributing factors of extensive overuse or misuse of hazardous pesticide and dangerous practices [Forget (1991); Dasgupta, et al. Organic producers had lower costs of production and had higher income. This reduction in B1 scenario was less than A1B and A2 scenarios. Pakistan, alongside exclusive reliance on biochemical inputs and highly productive crop. Likewise, given the. Regarding the mean profit margin, organic farms have significantly diminished returns. mitigation strategy in developing countries. ; Akram, N.; Hongshu, W.; Mehmood, A. As it is generally believed that OF is, Adhikari, R. K. (2009). Women are less educated in such families. The empirical outcomes displayed that rights of land use affected the decisions made by farmers to invest in land and to improve efficiency. Thus, the present study could provide new ways to integrate the value chain partners, through information and communication technology and governance arrangements in the organic food value chain financing. Organic producers needed more labor, especially hired workers, and used more lime, organic fertilizer and insect traps, while conventional producers used more synthetic inputs. There is an increased need to comprehend all relevant elements associated with farming machinery procurement and service delivery. Developing a conceptual model is vital for small-scale organic farmer’s credit access to sustain the livelihoods. The findings indicated that policymakers and stakeholders should not concentrate merely on short term planning, such as improving agricultural machinery's adoption rate. Therefore, the aim of the present study was to establish and empirically test a theoretical model to explore how agility and innovativeness in organic food value chain finance are achieved through ITI, TRST, CG, ICT, and IS, and how these, in turn, can accelerate financial flow in the value chain and enhance competitiveness. while conventional farms’ pesticide costs are also substantial. Results from a multinomial probit estimation showed that farm machinery ownership is positively correlated with capital assets, civil infrastructure, alternative sources of power, and credit facility. For example, profits from July's wheat harvest canbuy fuel for the corn harvest, reducing the need to borrow forthe corn harvest. determine the suitability of existing power plants installed under the umbrella of CPEC in Pakistan. farms’ costs in our sample accounted for 20% of conventional wheat farms’ costs. During meetings and interviews, stakeholders have identified fiv. Organic farming systems produce lower yields compared with conventional agriculture. These districts were selected for consultations with the main stakeholders of this study, such as growers, villagers, NGOs, and organic farmers. In addition, food production depends greatly on irrigation, including the use of substantial volumes of water from already stressed aquifers. At commercial level organic farming, being propagated in the state, is economically not viable. Organic products shall be protected from co-mingling with non-organic products. There is an increased need to comprehend all relevant elements associated with farming machinery procurement and service delivery. (2005a); Ibitayo (2006)]. Research has also shown that health and environmental hazards of pesticides can be avoided by awareness, education and changing farmer’s attitude and behaviour regarding pesticide use [Dasgupta, et al. The parameters are obtained by estimating Cobb-Douglas production function for wheat for each province of Pakistan. PhD Techno-economic assessment of the commercial viability of organic fertilizer production processes and products Application Deadline: 15/02/2021 18:00 - Europe/Brussels Contact Details. Economic viability Lack of economic viability is probably the most important reason why conservation farming practices have not been more widely adopted. This is not to say that all such practices are uneconomic, nor to deny that there are cases where these practices are economic but for some other reason are not adopted. Farmers’ tentative adoption of commercial organic farming will largely depend on how demand for organically farmed food continues to grow.