Comparative Study on the Profitability of Sugar Beet in Conventional System and in Organic Agriculture in Romania

Abstract:

The diversity regarding the ecological and environmental aspects in Romania offers opportunities for the cultivation of sugar beet culture, both in conventional system and in organic agriculture. The study aims to highlight the economic benefits that can be obtained by farmers, in addition to the possibility of having healthy food products on livestock farms, health benefits, but also to ensure a balance between agroecosystems and environment. The study reveals the comparative technical-economic and financial context performed for two types of agriculture (conventional and ecological) and two production systems (non-irrigated and irrigated). Profitability indicators for the production year 2020/2021 are examined. The research results illustrate that non-irrigated beets in organic farming ensure a profitability of gross profit of 50.1%, compared to beets grown in conventional agriculture whose rate of return is 30.3%. In the irrigated system, conventional beet provides a rate of return on gross profit of 32%, compared to beet grown in organic farming where the return is 13.1%. The conventional / organic ratio maintains positive rates of return only in the context in which beet is subsidized. The resulting differences are given by different levels of yield and capitalization prices. Due to the lower yield, organic sugar beet may not be in the preferences of conventional producers, but capitalization prices and financial support to producers to maintain cultivated areas could offset loss of income. Based on these assumptions, a precise rationalization is offered which could lead to the creation of a decision opportunity for producers in the selection and expansion of areas cultivated with sugar beet and / or its introduction into culture.

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