Original research article
The Economic Feasibility of Conventional and Organic Farm Production in Slovenia
2008, 73 (1) p. 37-41
Abstract
The aim of the research was the comparison of economic feasibility of most common conventional and organic farm production in Slovenia. The methodology of an integrated deterministic technologic-economic simulation system KARSIM 1.0 (DSM) application for cost analysis and decision-making support on farms is described in this article. The direct simulation model result is an individual conventional or organic farm product enterprise budget. The DSM consists of 148 deterministic production simulation models that enable different types of costs and financial feasibility calculations for conventional and organic production and food processing. The developed simulation model enables economical evaluation of some most important economic parameters (breakeven price, breakeven yield, financial result, total revenue and coefficient of economics). In conventional farming system the most suitable farm product is potato (Ke = 1.52), followed by milk and maize production (Ke = 1.10), wheat production (Ke = 1.06) and suckling cows production (Ke = 1.02). The husked spelt production is in conventional farming system economically infeasible (Ke= 0.82). In organic farming system the most feasible farm product is husked spelt (Ke = 1.56), followed by potato (Ke = 1.15), milk (Ke = 1.04) and suckling cows production (Ke = 1.03). Maize (Ke = 0.90) and wheat production (Ke = 0.83) are economically infeasible.
Keywords
simulation models, KARSIM 1.0, economic efficiency, farm production, planning, conventional and organic farming
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