Table 7 Average values of economic performance indicators for organic and conventional farms sampled by the RECAN for the years 2014 (“bad” season) and 2018 (“good” season)
From: Conventional versus organic olive farming: which has a better economic performance?
Indicator | 2014 | 2018 | ||||||
|---|---|---|---|---|---|---|---|---|
Organic farms (n = 113) | Conven. farms (n = 203) | Organic-conventional difference | Organic farms (n = 113) | Conven. farms (n = 210) | Organic-conventional difference | |||
Mean | Mean | Diff | t statistic | Mean | Mean | Diff | t statistic | |
Productivity | ||||||||
Land productivity (€/ha) | 1112 | 1734 | − 623 | 5.03*** | 1707 | 2299 | -592 | 5.30*** |
Labor productivity (€/AWU) | 24,072 | 30,153 | −6080 | 2.31* | 34,903 | 50,397 | -15,494 | 3.93*** |
Capital productivity (%) | 13.2 | 18.8 | −5.66 | 3.56*** | 18.7 | 21.9 | − 3.23 | 2.19* |
Profitability | ||||||||
1. Sales revenue (€/ha) | 1112 | 1734 | − 623 | 5.03*** | 1707 | 2299 | − 592 | 5.30*** |
2. CAP subsidies (€/ha) | 523 | 545 | − 21.8 | 0.45 | 607 | 431 | 176 | − 4.02*** |
CAP 1st pillar subsidies (€/ha) | 309 | 516 | − 207 | 5.36*** | 234 | 419 | − 185 | 6.33*** |
CAP 2nd pillar subsidies (€/ha) | 214 | 29.3 | 185 | − 7.00*** | 373 | 11.9 | 361 | − 11.9*** |
A. Total revenue (€/ha) | 1635 | 2279 | − 645 | 4.66*** | 2313 | 2730 | − 417 | 3.31** |
3. Intermed. consump. (€/ha) | 505 | 708 | − 203 | 4.96*** | 444 | 738 | − 294 | 7.21*** |
B. Gross margin (€/ha) | 1130 | 1571 | − 442 | 3.60*** | 1869 | 1992 | − 122 | 1.14 |
4. Wages paid (€/ha) | 224 | 319 | − 95.5 | 3.67*** | 262 | 363 | − 101 | 3.69*** |
5. Rent paid (€/ha) | 2.42 | 37.4 | − 35.0 | 5.19*** | 13.9 | 39.7 | − 25.7 | 3.54*** |
6. Depreciation (€/ha) | 210 | 221 | − 11.1 | 0.60 | 219 | 187 | 32.3 | − 1.61 |
C. EBIT (€/ha) | 694 | 994 | − 300 | 2.66** | 1374 | 1402 | − 27.9 | 0.29 |
D. EBT (€/ha) | 694 | 990 | − 297 | 2.63** | 1374 | 1400 | − 26.2 | 0.27 |
E. Net income (€/ha) | 673 | 968 | − 295 | 2.62** | 1356 | 1380 | − 23.9 | 0.25 |
ROA (%) | 8.52 | 10.8 | − 2.33 | 2.09* | 15.4 | 12.9 | 2.55 | − 2.24* |
ROE (%) | 8.27 | 10.8 | − 2.57 | 2.26* | 15.2 | 12.8 | 2.38 | − 2.08* |
Viability | ||||||||
Total Opportunity Costs (TOC) (€/ha) | 860 | 911 | − 51.2 | 0.91 | 820 | 780 | 39.7 | − 0.97 |
Economic profit (€/ha) | − 187 | 57.2 | − 244 | 1.97* | 535 | 599 | − 63.6 | 0.67 |
Long− term econ. viabilitya | 0.90 | 1.40 | − 0.50 | 2.61** | 1.83 | 2.11 | − 0.28 | 1.65 |
Short− term econ. viabilitya | 2.02 | 3.36 | − 1.34 | 2.28* | 5.19 | 10.3 | − 5.12 | 2.17* |
Independence | ||||||||
Revenue dependency (%) | 32.5 | 26.2 | 6.31 | − 3.27** | 26.5 | 16.1 | 10.4 | − 6.69*** |
Net income dependency (%) | 429 | − 140 | 569 | − 1.63** | 47.1 | 27.8 | 19.3 | − 2.10* |