ECONOMIC EFFICIENCY OF INVESTMENT IN GREENHOUSE VEGETABLE PRODUCTION WITHOUT HEATING
DOI:
https://doi.org/10.5937/ekoPolj1804383BKeywords:
protected area, greenhouse, investments, vegetables, scenario analysisAbstract
This paper analyzes the economic effectiveness of vegetable production in a protected area in terms and in a manner that is characteristic of the analyzed area (Bijeljina, Bosnia and Herzegovina). Dynamic methods for evaluating the economic feasibility of the investment were applied to two models of vegetables production in greenhouses. Models represent completely alternative investments, so the choice between them is based on the net present value. Economic justification under risk conditions was checked using the scenario analysis. The results of the survey indicate that the investments in both models are justified both in optimal and risky production conditions. The model that includes the production of two crops is economically more efficient than the production of one crop per year. The same model will take precedence also in risky production conditions, as indicated by the higher expected net present value and lower value of the coefficient of variation.
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References
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2. Andrić, J. (1998). Costs and calculations in agricultural production. Contemporary administration, s.s. Belgrade. [In Serbian: Андрић, Ј. (1998). Трошкови и калкулације у пољопривредној производњи. Савремена администрација д.д., Београд.
3. Asci, S., VanSickle, J.J., & Cantliffe, J.D. (2014). Risk in Investment Decision Making and Greenhouse Tomato Production Expansion in Florida. International Food and Agribusiness Management Review, Vol. 17, Issue 4.
4. Bodiroga, R. (2015): Organizational-Economic Characteristics of Vegetable Production in Greenhouses in the Area of Bijeljina. Master thesis, Faculty of Agriculture, University of East Sarajevo. [In Serbian: Bodiroga, R. (2015): Organizaciono-ekonomska obilježja proizvodnje povrća u zaštićenom prostoru na području Bijeljine. Master rad, Poljoprivredni fakultet, Univerzitet u Istočnom Sarajevu].
5. Brzakovic, T., Brzakovic, A., & Petrovic, J. (2016): Application of Scenario Analysis in the Investment Project Evaluation. Economics of Agriculture, Vol. 63, No 2, pp. 501-513.
6. Engindeniz, S., & Tuzel, Y. (2006): Economic Analysis of Organic Greenhouse lettuce production in Turkey. Sci. Agric. (Piracicaba, Braz.), vol. 63, No.3, pp. 285-290.
7. Gogić, P. (2010). Economic Efficiency of Investments in Vineyard Production in Risky Circumstances. Economics of Agriculture, Vol. 57, No 3, pp. 393-410. [In Serbian: Гогић, П. (2010). Економска ефективност улагања у виноградарску производњу у условима ризика].
8. Hadelan, L., Grgić, I., Zrakić, M., & Crnčan, A. (2015). Financial aspects of greenhouse vegetable production. Bulletin of plant protection, No 4, pp. 51-59. [In Croatian: Financijska ocjena proizvodnje povrća u zaštićenim prostorima. Glasnik zaštite bilja.
9. Kuswardhani, N., Soni, P., & Shivakoti, G.P. (2014): Development Protected Cultivation in Horticulture Product: Feasibility Analysis in West Java Province. Advanced Science Engineering Information Technology, Vol. 4, No 5, pp. 66-70.
10. Milić, D., Sredojević, Z., & Jeločnik, M. (2008). Determination of Upper Limit for Investment in Cherry Plantation Establishment. Economics of Agriculture, Vol. 55, No 4, pp. 379-387. [In Serbian: Милић, Д., Средојевић, З., Јелочник, М. (2008). Утврђивање горње границе инвестирања у подизање засада вишње].
11. Milić, D., Bulatović, M., Kukić, Đ. (2005): Assesing the Economic Efficiency of Bulding Plantation Apple Fruits. Journal of Process Techniques and Eneretics in Agriculture, PTEP, Vol. 9, No 5, pp 118-120. [In Serbian: Milić, D., Bulatović, M., Kukić, Đ. (2005): Ocena ekonomske efektivnosti podizanja zasada jabučastog voća. Časopis za procesnu tehniku i energetiku u poljoprivredi].
12. Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina (2017): Annual Report (2016) on Agriculture, Food and Rural Development for Bosnia and Herzegovina. [In Serbian: Ministarstvo vanjske trgovine i ekonomskih odnosa Bosne i Hercegovine (2017): Godišnji izvještaj (2016) iz oblasti poljoprivrede, ishrane i ruralnog razvoja za Bosnu i Hercegovinu.
13. Navyatha, N., Kumar Anesh, R., & Rao Dayakar, B. (2015): Investment Analysis of Sorghum Products Developed by Premier ICAR Institution in Hyderabad. Research Journal of Agricultural Sciences, 6, pp. 1703-1706. ISSN: 0976-1675.
14. Szymszal, J., Lis, T., Gajdzik, B., & Kliś, J. (2014): Analysis of the Possibility of Using Dynamic Methods for Assessment of Investment Projects in the Domestic Foundry Industry. Archives of Foundry Industry, Vol. 14, Issue 3, pp. 103-106.
15. Subić, J., Cecić, N., & Kuzman, B. (2007). Economic Aspects of Vegetable Production in Greenhouses – Results of Mini Projects. Economics of Agriculture, Vol. 54, No 22, pp. 231-240. [In Serbian: Субић, Ј., Цецић, Н., Кузман, Б. (2007). Економски аспекти производње поврћа у заштићеном простору-резултати мини пројекта].
16. Đurovka, M., Lazić, B., & Vujasinović,V. (2002).Microclimate conditions in greenhouses. Journal of Process Techniques and Eneretics in Agriculture, PTEP, Vol. 6, No 3-4, pp. 123-126. [In Serbian: Ђуровка, М., Лазић, Б., Вујасиновић, В. (2002). Микроклиматски услови у пластеницима. Часопис за процесну технику и енертетику у пољопривреди].
17. Đorović, M., Milanović, M., Stevanović, S., & Lazić, V. (2007). The Global Vegetable Market. Economics of Agriculture, Vol. 54, No 2, pp. 109-130. [In Serbian: Ђоровић, М., Милановић, М., Стевановић, С., Лазић, В. (2007): Глобално тржиште поврћа].
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Published
2018-12-27
How to Cite
Bodiroga, R., Sredojević, Z., & Subić, J. (2018). ECONOMIC EFFICIENCY OF INVESTMENT IN GREENHOUSE VEGETABLE PRODUCTION WITHOUT HEATING. Economics of Agriculture, 65(4), 1383–1393. https://doi.org/10.5937/ekoPolj1804383B
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Original scientific papers
