The Comparison between Cost and Benefit Business Model of Organic and Chemical Agricultural Vegetable Farming System

Author(s):  
Peerasak Puengpapat

This research is intended to compare and demonstrate the difference between the cost and benefit of organic farming and chemistry. Compare differences in the quality of yields and minerals in the soil both before and after cultivation and modeling of agribusiness. Using Business Model Canvas for the decision of agricultural entrepreneurs who want to modify the farming process.The research found that in the experiment comparing between the costs of Organic farming and Chemical farming to produce three types of vegetables that are cucumber ,red oak salad and radish, with the total cost of growing vegetables in Organic farming, higher than the total cost of growing vegetables in Chemical farming. There is a greater frequency of fertilizing and injecting Organic matter than chemical farming. The net profit from the sale of vegetables in the Organic agricultural sector is higher than the net profit from the sale of vegetables in the Chemical agricultural sector, as the production price of Organic agricultural sector is higher than the production price of Chemical agricultural sector because the production process of organic farming has a higher production process and requires higher production attention to produce quality, and another factor is that Organic vegetables have a higher production cost than vegetables from chemical farming, resulting in less volume of organic production in the market than vegetables from Chemical agricultural sector. Consumers are demanding more healthy Organic vegetables. As a result, the price of vegetables that produced by Organic agricultural sector is higher than the price of vegetables that produced by Chemical agricultural sector, and the Return on Investment in Organic vegetables is higher than the vegetables that produced by Chemical agricultural .The Return on Investment in production of Organic farming is 61.48% and The Return on Investment in production of Chemical farming is 33.87%. It is therefore possible to conclude that growing vegetables in Organic way is safe for vegetable farmers who do not have to be exposed to any harmful Chemicals, as well as the resulting produce that is safe from residues, allowing consumers to be safe from toxin residues and receive good quality vegetables. Type of Paper: Empirical/Experimental Keywords: Agricultural; Organics; Cost ;Business Model ;Comparison.

2011 ◽  
Vol 43 (3) ◽  
pp. 443-451 ◽  
Author(s):  
Genti Kostandini ◽  
Elton Mykerezi ◽  
Eftila Tanellari

We investigate the determinants of organic farming in the United States. State-level data show that the organic farming sector has grown over the last decade, but growth has been very heterogeneous with few states accounting for most of the growth. Further analyses of county data reveal that favorable natural amenities, water for irrigation, and government payments have a positive effect on most measures of organic farming used here. Results further point out that organic farming operations are more popular among young farmers. Adjacency to metro areas is also an important determinant for the number of organic operations. Organic farming is more important for the agricultural sector of the areas that are somewhat remote but that does not appear to be the case for very remote rural areas.


2020 ◽  
Vol 10 (5) ◽  
pp. 145-149
Author(s):  
T.O. Stepanenko ◽  
O.Ya. Petrenko ◽  
P.F. Tsygikal

In the interests of further development of organic production in Ukraine, it is necessary: to increase the area for the "organic" production through the use of uncontaminated lands; to create conditions for proper stimulation of agricultural producers, reduction of risks of organic production; to work out a system of state certification of organic products, to ensure clear state control over the quality of organic food; to create an appropriate base for the processing organic raw materials; to promote the competitiveness of domestic "organic" in the world market. Therefore, when greening agricultural land use as a basis for the development of organic farming, it is advisable to determine the optimal areas at the state level, primarily from an ecological point of view, involved in agricultural land turnover. To develop mechanisms for their most cost-effective use and provide the most favorable conditions for preserving the ecological and economic potential of agricultural land. We see the main goals of greening of agricultural production in the greening of social production, including the agricultural sector by greening its individual components, which are combined into a single system. Greening technological and management solutions are undoubtedly important. The priority tasks of greening agricultural land use as the main component of organic farming include strengthening environmental safety; reducing the man-made load on natural biocenoses; rational use of natural resources; preserving, reproducing and increasing soil fertility; introducing energy-saving waste-free production technologies; increasing the production of environmentally friendly organic products.


2018 ◽  
pp. 32-39
Author(s):  
Wojciech Wójcik ◽  
Paweł Solarczyk ◽  
Monika Łukasiewicz ◽  
Kamila Puppel ◽  
Beata Kuczyńska

Organic farming is an alternative method for dynamic agricultural system. Products that are obtained from organic farming are referred to as ecological or organic food [1]. These include products of animal origin that come from organic farming [2]. In the case of animal production in organic farming there are particular requirements for breed, animal welfare and feeding. Additionally, the origins of animals is also of crucial importance since, basically, such animals should be purchased from organic farms. However, there can be exceptions to this requirement, for instance, if the number of animals of a particular species or of a specific breed is not sufficient [3]. The main idea behind organic production is obtaining plant or animal products maintaining good soil structure, clean water and adjusting to the natural rhythm of nature. Enhancement of the social status has led to the situation where consumers pay more attention to the quality and origins of the products they choose. Numerous scientific papers from recent years, based on consumer’s opinion, show substantial impact of welfare system on the quality of animal products. Since ‘90s there has been a systematic surge of interest in products from ecological systems and demand for these, which in turn affect the development of this agricultural sector. The aim of the work is to compare the changes in organic production over the last 26 years in Poland with reference to the situation in Europe and whole globe. The research has been done on the basis of statistics since 1990 up till now as well as on scientific studies. Nowadays, there are increasing numbers of farms and redirections of production, as well as changes in the sizes of farms producing organic food.


Author(s):  
O. Hvozd ◽  
◽  
M. Goryn ◽  

The goal of organic agricultural production is to provide humanity with high-quality food without genetically modified organisms and to support the sustainability of society. It is noted that the many benefits of organic agriculture make us think about the prospects for the development of global agriculture as one of the key factors influencing the future of the next generations. n this article we outline the main stages of evolution in the organic farming sphere and emphasize the characteristics that are relevant to each stage; define the term “organic farming” specified for Canadian and Ukrainian legislative systems. This paper also highlights the main prerequisites for the need for state support for organic production in the world on the example of two big organic producers – Canada and Ukraine. Based on the main indicators of the current state and level of development in both countries, the need for government regulation, support, and stimulation are considered. The main approaches to the stimulation and development of organic production in Canada are considered in order to determine priorities for Ukraine. It is established that subsidies for organic agriculture in Canada at one time gave an extremely important impetus to the development of this area of agricultural production, which ultimately led to significant progress in environmental protection, climate change mitigation, health, development of rural areas, and consumer protection. Also, it gave a significant boost for the national farmers, so they could grow in the area and improve their farming activity using innovative technologies. The domestic experience of financial and organizational and legal support of the organic sphere at the state and regional levels for the formation of areas for improvement is analyzed. The necessity of not only direct financial state support, but also active educational, research, and organizational support together with representatives of the active community and business has been proved. It was recovered that the main problems of the development of organic farming in Ukraine and obstacles to the formation of green policy in the field of agriculture include the following: lack of state control and statistical reporting of production, circulation, and sale of organic production; - lack of developed infrastructure in the organic sector of the agricultural sector; - imperfection of the system of certification and labeling of organic products, inconsistency of these processes with European standards; - lack of state support programs for organic producers and an insufficient number of local support programs. The necessity of a systematic approach to the stimulation and development of the domestic organic sphere to ensure the sustainability of the agricultural sector of Ukraine is substantiated. It is established that the policy of organic support in our country is not yet characterized by a high level of system and consistency, but important initial steps have been taken in the areas of organizational, legal, and financial support of organic production.


2018 ◽  
Vol 1 (94) ◽  
pp. 45-50
Author(s):  
M.S. Korniychuk ◽  
N.V. Tkachenko

The expediency of fusarium resistant lupines usage in organic farming for improving soil fertility and producing high protein feed for livestock is justified in this article. Organic production excludes the use of mineral fertilizers and pesticides. In these circumstances, increases the value of cultures that positively affect the fertility of soils and their phytosanitary status. These crops include annual fodder lupine (yellow, white and angustifolia), especially varieties that are resistant to disease. Having the highest nitrogen-fixing ability among annual legume crops, lupins, depending on the type and conditions of cultivation, can accumulate from 80 to 300 kg/ha of environmentally pure symbiotic nitrogen in biomass. Plowing the green mass (30-45 t/ha) is equivalent to the corresponding amount of manure or introduction of 5-7 t/ha of ammonium nitrate. 30 kg/ha of phosphorus and 50 kg/ha of potassium are entering the soil with plant remains. Therefore, lupine provides itself with nutrients and still leaves up to 150 kg/ha of nitrogen in the soil after harvesting for subsequent crops in crop rotation. In organic production, fusariosis resistant varieties of lupines are also interesting as a source of high protein feeds for livestock. They are building up to 60 t/ha of biomass, which contains more than one ton of digestible protein. In grain of the fodder varieties contains 40-52% of crude protein, 5.5-6.0% of fat, 10-12% of sugar. The characteristic of fusarium resistant varieties of lupins (yellow, white and angustifolia), created in the NSC "Institute of Agriculture NAAS" and included in the Register of Plant Varieties of Ukraine is presented in this article. These varieties are practically not affected by fusariosis under the production conditions and do not require the use of fungicides during the growing season. They can be grown in crop rotation with a return period of 2-3 years, whereas for unstable it took 6-7 years. Because of the inability to use in organic farming fungicide to prevent crop losses from anthracnose, it is necessary to use predominantly angustifolia lupine varieties, which are now more tolerant to this disease, prevent sowing of infected seeds and adhere to crop rotation. Fusarium-resistant varieties of lupins are suitable for cultivation in poucous and sown crops, and in mixtures with other crops.


2019 ◽  
Vol 2 (1) ◽  
pp. 10-19
Author(s):  
Agus Jonikar Ndraha ◽  
Avan Joko Prasetyawan ◽  
Ida Kurnia Wati ◽  
Ilmia Cahyasari ◽  
Nafa Alya Shintya ◽  
...  

Abstrak Tahun demi tahun, persaingan bisnis tempe di wilayah Surabaya kian ketat. Oleh karena itu diperlukan sebuah studi untuk mengkaji kelayakan bisnis tersebut. Tujuan dari makalah ini adalah Sebagai acuan untuk mengetahui semua biaya produksi, pendapatan kotor dan pendapatan bersih usaha tempe serta kelayakan usaha tempe di Surabaya. Penelitian dilaksanakan di daerah Sukomanunggal dengan menggunakan metode surve. Hasil penelitian menunjukkan bahwa: Rata-rata biaya total sebesar Rp 2.144.590 yang dihasilkan dari penjumlahan biaya tetap rata-rata sebesar Rp 160.590 dengan biaya variabel rata-rata sebesar Rp 1.984.000. Laba bersih rata-rata sekitar Rp 955.410 dari pendapatan rata-rata sebesar Rp 3.100.000 dikurangi dengan semua pengeluaran Rp 2.144.590. Analisis kewajaran usaha adalah dengan menyusun pendapatan dan pengeluaran secara keseluruhan. Rata-rata semua pendapatan Rp 3.100.000 dan semua pengeluaran rata-rata sebesar Rp 2.144.590. Dengan rasio 1,45 usaha tempe murni ITA layak untuk dijalankan.  Kata Kunci : Biaya produksi, Pendapatan kotor, Pendapatan bersih, Kelayakan usaha   Abstract From year to year, Tempe business competition in the Surabaya area is getting tougher. Therefore a study is needed to study the feasibility of the business. The purpose of this paper is as a reference to find out all the production costs, gross income, and net income of tempe businesses and the feasibility of tempe businesses in Surabaya. The study was carried out in the Sukomanunggal area using a survey method. The results showed that: The average total cost of Rp 2,144,590 resulted from the sum of the average fixed costs of Rp 160,590 with an average variable cost of Rp 1,984,000. Net profit averaged around Rp. 955,410 from an average income of Rp. 3,100,000 minus all expenses of Rp. 2,144,590. The reasonableness of business analysis is to compile overall income and expenditure. The average income of all Rp 3,100,000 and all expenses averaged Rp 2,144,590. With a ratio of 1.45, pure ITA tempe business is feasible to run.  Keywords : Production costs, Gross income, Net income, Business feasibility


2019 ◽  
Vol 4 (1) ◽  
pp. 30
Author(s):  
Neno Pratiwi ◽  
Andre Setiawan ◽  
Ilmi Cayono ◽  
Johan Trinanto

ABSTRAK Pada umumnya harga pokok produksi dalam akuntansi diartikan dengan jumlah biaya dari seluruh pemakaian yang telah dilakukan selama proses produksi atau kegiatan yang mana mengubah bahan baku menjadi produk jadi (produk siap pakai/siap saji). Tujuan penting dalam tugas ini yaitu memperhitungkan harga pokok produksi dari UD Mulya Jaya dengan menggunakan pendekatan variabel costing untuk mengetahui besarnya harga pokok pada setiap produk yang diproduksi. Pentingnya penentuan harga pokok produksi dapat dilakukan sebelum para usaha menentukan harga jual. Pendampingan ini bertujuan untuk membantu mencari dan menentukan harga pokok produksi yang dapat digunakan untuk menetapkan harga jual. Pendampingan ini dilakukan untuk membantu wirausaha dalam program kerja, yaitu bimbingan akuntansi dengan fokus perhitungan harga pokok produksi. Dalam menentukan harga pokok produksi pada UD Mulya Jaya dapat menggunakan pendekatan variable costing yang biasanya metode ini digunakan untuk semacam pengambilan keputusan dalam perusahaan. Melalui program pendampingan kewirausahaan didapatkan hasil perhitungan harga pokok produksi yang menggunakan pendekatan variabel costing. Hasil tersebut dapat menjadi suatu keputusan bagi UD Mulya Jaya untuk dapat menetapkan harga pokok produksi pada setiap produk telur asin. Kata Kunci : Kewirausahaan, HPP, Harga.   ABSTRACT In general, the cost of production in accounting is defined as the total cost of all uses that have been made during the production process or activities which convert raw materials into finished products (ready-to-use / ready-to-serve products). An important objective in this task is to calculate the cost of goods manufactured from UD Mulya Jaya by using a variable costing approach to find out the cost of goods on each product produced. The importance of determining the cost of production can be done before businesses determine the selling price. This assistance aims to help find and determine the cost of production that can be used to set the selling price. This assistance is carried out to help entrepreneurs in work programs, namely accounting guidance with a focus on calculating the cost of production. In determining the cost of production at UD Mulya Jaya, it can use the variable costing approach, which is usually used for a kind of decision making in a company. Through the entrepreneurship assistance program, the results of the calculation of the cost of production are obtained using the variable costing approach. These results can be a decision for UD Mulya Jaya to be able to set the cost of production for each salted egg product. Keywords: Entrepreneurship, COGS, Price


Author(s):  
Elena Ivanovna Kostyukova ◽  
Alexander Vitalyevich Frolov ◽  
Olga Gennadievna Kalashnikova

Identifying problems and challenges of spatial development of regions, studying the specifics of the organization of regional economic activity and current trends in the system-forming sectors of the region, organizing and optimizing them is one of the most important aspects of economic development, which has both scientific and practical significance throughout the country. The dynamics of development of the agricultural sector of the Stavropol territory indicates the existence of negative economic trends. A limiting factor in the development of the agricultural sector of the Stavropol territory is the low availability of production forces with material and technical resources, outdated material and technical base, which determines the intensity of the production process, labor productivity and competitiveness. In view of these circumstances, we conducted research aimed at identifying the specifics of the organization of the logistics system, agricultural complexes of the Stavropol territory and its problem areas. The theoretical provisions and conclusions of the study allow us to expand and systematize knowledge in the field of organization and management of the supply business process. The practical significance lies in the possibility of introducing into the production process a method of managing the logistics system, which allows to increase the efficiency of the agricultural sector in the region.


Author(s):  
Ahmed Abu Shaban

Organic farming has achieved significant growth in developing countries. However, it is still in some areas such as Gaza strip at embryonic stage. Introduction and promotion of organic farming would need more information about economic feasibility of shifting from the existing conventional farms to organic farming system. This is the main aim of this study. Data was collected from 100 randomly selected farmers in southern area of Gaza strip using standard questionnaire. Additional focus group discussions were conducted for further qualitative analyses. Data was also collected from the organic farm of Safe Agriculture Association where vegetables are organically produced and marketed. Gross margin and comparative analyses were used to describe cost structure of conventional and organic production and to assess economic potentialities to shift to organic farming. Results varied among vegetable crops as some crops showed very high economic potential to shift to organic farming while other crops did not. Major reasons for crops with good potential were higher yield under organic farming, premium market prices and lower production costs. Major reasons for lower economic potential to shift were the significant lower yield and higher production costs. The study recommends further technical research to explore organic production techniques that allows for higher yield and lower production cost. The study also recommends further market research to investigate consumers' preferences and willingness to pay for organic products.


2018 ◽  
Vol 24 (3-4) ◽  
Author(s):  
P. Dremák ◽  
Á. Csihon ◽  
I. Gonda

In our study, vegetative characteristics of 39 apple cultivars were evaluated in environmentally friendly production systems. Numbers of the branches of the central leader in different high zones were shown. According to our results, number of the branches of the axis was probably larger in the integrated production system, compared to the organic one, which is related to the conditional status of the trees. Based on our experiences training and maintaining canopies in integrated system was easier, as relative more extensive canopies were needed in organic farming.


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