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Profitability of olive mill pomace composting as a bioeconomy alternative


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https://doi.org/10.12706/itea.2024.004

Authors: David Polonio, Anastasio J. Villanueva y José A. Gómez‑Limón
Issue: 120-2 (179-199)
Topic: Agricultural Economics
Keywords: Bioeconomy, circular economy, valorization, by-products, olive mill, compost
Summary:

The circular bioeconomy is top-ranked among the priorities of the political agenda due to society's concern for the environment. This new paradigm is presented as an opportunity for the olive oil sector due to the large quantities of by‑products generated and their potential for valorization. Among the existing alternatives for valorizing olive pomace and olive leaves produced in olive mills, composting is presented as a technically feasible alternative, although its implementation is scarce. This study aims to analyze the financial profitability for olive mills of by-products composting, identify the main factors that determine this profitability, and conduct a sensitivity analysis regarding these factors. For this purpose, the investment and operating costs required for the composting activity have been assessed, determining that, under the current situation, the commercial margin of the activity is negative (−€3.64/t of compost). Without considering the sale price of olive pomace to the extractor industry (which represents an opportunity cost for other valorization alternatives, like composting), the commercial margin is estimated to be positive (+€9.52/t of compost). The sensitivity analysis has shown that fuel price, the sale price of the olive pomace to the extractor industry, and the manure price are the main limiting factors for the profitability of the composting valorization alternative. A detailed analysis of the effect of the distance to the pomace oil extraction industry on the cost of the compost produced was also carried out, showing that the commercial margin is positive for distances greater than 54 km.

Citation:

Polonio D., Villanueva A.J., Gómez‑Limón J.A. (2024). Rentabilidad del compostaje del alperujo como una alternativa bioeconómica. ITEA‑Información Técnica Económica Agraria 120(2): 179-199. https://doi.org/10.12706/itea.2024.004

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