Table 3 Average values of economic indicators for the organic and conventional olive farms for the year 2020 (“average” season)
From: Conventional versus organic olive farming: which has a better economic performance?
Indicator | Organic farms (n = 130) | Conventional farms (n = 246) | Organic-conventional difference | |
|---|---|---|---|---|
Difference | t statistic | |||
Productivity | ||||
Land productivity (€/ha) | 1391 | 2139 | − 747 | 6.64*** |
Labor productivity (€/AWU) | 34,030 | 41,959 | − 7929 | 2.51* |
Capital productivity (%) | 14.3 | 17.5 | − 3.14 | 2.49* |
Profitability | ||||
1. Sales revenue (€/ha) | 1391 | 2139 | − 747 | 6.64*** |
2. CAP subsidies (€/ha) | 507 | 400 | 107 | − 2.77** |
CAP 1st pillar subsidies (€/ha) | 272 | 377 | − 105 | 3.35*** |
CAP 2nd pillar subsidies (€/ha) | 235 | 24 | 212 | − 12.1*** |
A. Total revenue (€/ha) | 1899 | 2539 | − 640 | 5.24*** |
3. Intermediate consump. (€/ha) | 519 | 781 | − 262 | 5.75*** |
B. Gross margin (€/ha) | 1380 | 1758 | − 378 | 3.93*** |
4. Wages paid (€/ha) | 263 | 340 | − 76.6 | 2.50* |
5. Rent paid (€/ha) | 17.1 | 25.9 | − 8.8 | 1.26 |
6. Depreciation (€/ha) | 213 | 195 | 18.4 | − 0.89 |
C. EBIT (€/ha) | 886 | 1198 | − 311 | 3.51*** |
D. EBT (€/ha) | 886 | 1196 | − 310 | 3.50*** |
E. Net income (€/ha) | 866 | 1173 | − 307 | 3.46*** |
ROA (%) | 9.62 | 9.69 | − 0.08 | 0.08 |
ROE (%) | 9.44 | 9.51 | − 0.08 | 0.08 |
Viability | ||||
Total opport. costs (TOC) (€/ha) | 738 | 882 | − 144 | 2.99** |
Economic profit (€/ha) | 128 | 290 | − 162 | 1.69 |
Long− term econ. viabilitya | 1.39 | 1.69 | − 0.29 | 1.81 |
Short− term econ. viabilitya | 11.31 | 8.44 | 2.90 | − 0.80 |
Resilience | ||||
CV of net income (%) | 42.4 | 56.5 | − 14.1 | 2.35* |
Net income resistance (%) | − 47.4 | − 106 | 58.1 | − 1.17 |
Shannon div. index (SDI)a | 0.028 | 0.097 | − 0.069 | 2.87** |
Specific costs adjus. flexibility (%) | 141 | 41.2 | 99.8 | − 8.12*** |
Labor input adjus. flexibility (%) | 32.8 | 32.2 | 0.63 | − 0.20 |
SDI adjus. flexibility (%) | 0.95 | 0.73 | 0.21 | − 0.47 |
Independence | ||||
Revenue dependency (%) | 29.0 | 16.6 | 12.4 | − 6.90*** |
Net income dependency (%) | 8.97 | − 23.9 | 32.8 | − 0.48 |