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Technical and economic analysis of different olive production systems in semiarid regions of the Ebro Valley (Spain)

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Authors: A. Arbonés, M. Pascual y J. Rufat
Issue: 110-4 (400-413)
Topic: Agricultural Economics
Keywords: Olive oil, profitability indicators, irrigation, intensive and superintensive olive orchard.

Profitability indicators and production costs of olive trees cv ?Arbequina? under different cropping systems in the Ebro Valley (Spain) were calculated. Technical and cost coefficients were obtained from a survey of different stakeholders during the year 2013. The profitability indicators used were Net Present Value (NPV), the NPV-Investment relationship (INPV), internal rate of return (IRR) and equivalent present value (EPV), this one used to compare the results of the different systems. As indicators of efficiency, cost of production of olives and oil and the relationship profit/cost (RPC) were calculated. To evaluate NPV sensitivity to investments changes, costs and benefits were determined by fitting regres-sion linear models under changing scenarios. The results indicate that the viability of traditional rainfed plantations depends on agri-environmental aids. When deficit irrigation is added, covering 35% of Etc, it is profitable. Intensive farming systems are the most profitable under the studied conditions. However, super-intensive systems could be efficient under a high degree of mechanization. Also, it is highly sensitive to changes in yield and olive oil prices due to farming intensification, increasing the risk.

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