Family holdings profitability in the organic food production in the Republic of Serbia

Abstract

Transfer from conventional to organic production in its basis has the profitability analysis of this form of investment. The production of organic food is expensive, but the prices of organic products are high and organic food demand significantly increases every year. The profitability analysis of organic food investment includes a detailed analysis of many factors that have the influence on the final outcome of the investment. The production efficiency and rational usage of available resources of the privately-owned farm was measured by calculating their profit using the calculation method of state agriculture subsidies and by evaluation of their own and borrowed resources involved in production. Accordingly, the work aims to encompass and analyze the most important factors of the investment and the impact of their changes on the profitability of organic food production in Serbia.

Keywords

• organic production
• growth
• profitability analysis
• cost-benefit calculations