ECONOMIC EFFICIENCY OF INVESTMENTS IN THE GROWING OF MEDICINAL HERBS AND SPICES

Authors

DOI:

https://doi.org/10.59267/ekoPolj240113N

Keywords:

Medicinal herbs, spices, investments, crossover rate

Abstract

Medicinal herbs are important for human nutrition and industrial processing. The main goal of research is assessment of economic effectiveness of investments in seedlings production and establishment of plantation under mentioned crops. Analysis involves data from the coal mine complex in Pljevlja (Montenegro), while implies dynamic methods such are Net Present Value, (Modified) Internal Rate of Return, and Payback Period. Although research results favored the seedlings production, determined crossover rate indicates some opposite conclusions. Inconsistency in conclusions according to Net Present Value and Internal Rate of Return occurs only for certain range of discount rate. Research also implies sensitive analysis of crossover rate according to changes in volume of invested assets. So, management could make appropriate decisions towards the investments in medicinal plants production. Derived results suppose that investment in production of medicinal herbs seedlings is economically more effective for all discount rates above the crossover rate (6.08%).

Downloads

Download data is not yet available.

References

Abdel Aziz, S., Aeron, A. & Kahil, T. (2016). Health Benefits and Possible Risks of Herbal Medicine. In: Garg, N., Abdel Aziz, S., Aeron, A. (eds.) Microbes in Food and Health, Springer, Cham, Germany, pp. 97-116.

Andrei, D. R., Gogonea, R. M., Zaharia, M., & Andrei, J. V. (2014). Is Romanian rural tourism sustainable? Revealing particularities. Sustainability, 6(12), 8876-8888.

Botezatu, M., & Andrei, J. (2012). Implications of the environmental factors on the economic efficiency of capital investments. A Romanian perspective in terms of a sustainable economy. Journal of Environmental Protection and Ecology, 13(1), 382-391.

Balentine, D., Albano, M. & Nair, M. (1999). Role of medicinal plants, herbs, and spices in protecting human health. Nutrition reviews, 57(9), 41-45.

Barry, P. & Robison, L. (2014). Economic rates of return and investment analysis. The engineering economist, 59(3), 231-236.

Bierman, H. & Smidt, S. (2007). The capital budgeting decisions: Economic analysis of investment projects. 9th edition, Routledge, Boca Raton, USA.

Blanco, G., Campos, M., Dors, P., Menegon, N. & Hanazaki, N. (2022). Is it safe to consume medicinal plants in mined areas? Investigating possible effects caused by a metal-contaminated plant in southern Brazil. Acta Botanica Brasilica, 36, e2021abb0338, https://doi.org/10.1590/0102-33062021abb0338

Chaudhari, R., Dhole, V., More, S., Kushwaha, S. & Takarkhede, S. (2021). Shealth Benefits of Herbs and Spices - review. World Journal of Pharmaceutical Research, 10(3), 1050-1061.

Coal mine enterprise AD Pljevlja (2023a). Techno-economic elaborate of production of seedlings of medicinal plants and spices in organic system for 10 plant species with employee’s education. Rico Training Centre, Belgrade, Institute of Agricultural Economics, Belgrade, Serbia.

Coal mine enterprise AD Pljevlja (2023b). Technology of medicinal plants and spices growing in organic system for 10 plant species with employee’s education. Rico Training Centre, Belgrade, Institute of Agricultural Economics, Belgrade, Serbia.

Dhar, U., Rawal, R. & Upreti, J. (2000). Setting priorities for conservation of medicinal plants: A case study in the Indian Himalaya. Biological conservation, 95(1), 57-65.

Dini, I. (2018). Spices and herbs as therapeutic foods. In: Holban, A., Grumezescu, A. (eds.) Food quality: Balancing health and disease, Academic Press, Cambridge, USA, pp. 433-469.

Dončić, S., Pantić, N., Lakićević, M., & Radivojević, N. (2022). Expected shortfall model based on a neural network. Journal of Risk Model Validation, 16(2), https://doi.org/10.21314/JRMV.2022.016

Done, I., Chivu, L., Andrei, J., & Matei, M. (2012). Using labor force and green investments in valuing the Romanian agriculture potential. Journal of Food Agriculture & Environment, 10(3-4), 737-741.

Dragland, S., Senoo, H., Wake, K., Holte, K. & Blomhoff, R. (2003). Several culinary and medicinal herbs are important sources of dietary antioxidants. Journal of nutrition, 133(5), 1286-1290.

Dutta, R. & Maharia, R. (2012). Antioxidant responses of some common medicinal plants grown in copper mining areas. Food Chemistry, 131(1), 259-265.

Ergina, E., Ergin, S. & Sidorenko, I. (2020). Ecological and economic evaluation of the disturbed lands recultivation projects in the republic of Crimea. In: IOP Conference Series: Earth and Environmental Science, 459(2), 022021.IOP Publishing, London, UK.

Farnsworth, N. & Soejarto, D. (1991). Global importance of medicinal plants. The conservation of medicinal plants, 26(26), 25-51.

FMI (2023). Herbs and Spices Market. Portal of the Future Market Insights (FMI), Newark, USA, retrieved at: www.futuremarketinsights.com/reports/herbs-andspices-market, 20th July 2023.

Gogić, P. (2014). Teorija troškova sa kalkulacijama u proizvodnji i preradi poljoprivrednih proizvoda [Costs theory with calculations in production and processing of agro-food products]. Faculty of Agriculture, University in Belgrade, Serbia.

Hakimi, Y., Fatahi, R., Naghavi, M. & Shokrpour, M. (2022). The position of medicinal plants in Greenhouse and Vertical cultures. In: Medicinal Plants, Mechanization & Processing Congress (MPMP2022), Karaj, Iran, February 2022, pp. 1-9.

Ignatyeva, M., Yurak, V. & Pustokhina, N. (2020). Recultivation of post-mining disturbed land: Review of content and comparative law and feasibility study. Resources, 9(6), 73.

Inoue, M., Hayashi, S. & Craker, L. (2019). Role of medicinal and aromatic plants: Past, present, and future. In: Perveen, S., Al Taweel, A. (Eds.) Pharmacognosymedicinal plants, IntechOpen, London, UK, pp. 1-13.

Ivanović, S. & Marković, T. (2018). Upravljanje investicijama u agrobiznisu [Investment management in agi-business]. Faculty of Agriculture, University in Belgrade, Serbia.

Ivanović, S. (2013). Analiza investicija u stočarskoj proizvodnji [Investment analysis in livestock production]. Faculty of Agriculture, University in Belgrade, Serbia.

Ivanović, S., Pajić, M. & Ivanović, L. (2007). Choosing type of chamomile harvester based on current value of usage costs. Acta Horticulturae 749, p.p. 259- 264.

Jabeen, N., Kiruthiga, V., Vinodhini, A. & Rudrapal, M. (2022). Herbs, Spices, and Dietary Constituents as Sources of Phytoantioxidants. In: Rudrapal, M. (edt.) Phytoantioxidants and nanotherapeutics, Wiley, NY, USA, pp. 55-76.

Jackson, B. & Snowdon, D. (1990). Atlas of microscopy of medicinal plants, culinary herbs and spices. Belhaven Press, London, UK.

Jeločnik, M. & Subić, J. (2020). Evaluation of economic efficiency of investments in organic production at the family farms. In: Course for trainers: Organic farming, eco-market and their capitalization through the entrepreneurial initiative, Platania, M., Jelocnik, M., Gostin, I. (Eds.) Alexandru Ioan Cuza University, Iasi, Romania, pp. 261-300.

Jeločnik, M., Bekić, B. & Subić, J. (2012). Aspects of development of Serbian agriculture in the context of the global economic crisis. Scientific Papers Series: Management, Economic Engineering in Agriculture and Rural Development, 12(1), 87-91.

Kodir, A., Hartono, D., Haeruman, H. & Mansur, I. (2017). Integrated post mining landscape for sustainable land use: A case study in South Sumatera, Indonesia. Sustainable Environment Research, 27(4), 203-213.

Luković, M., Pantović, D., Kostić, M., Veljović, S., Bugarčić, J. (2023), Food plant diversity in cultural ecosystem services perspective: edible plants as a driver for improving the offer of gastro-tourism, Ecologica, 30 (110), 201-208.

Maggini, R., Kiferle, C., Guidi, L., Pardossi, A. & Raffaelli, A. (2011). Growing medicinal plants in hydroponic culture. In: Greensys-2011, ISHS Acta Horticulturae, 952:697-704.

Mayekar, V., Ali, A., Alim, H. & Patel, N. (2021). A review: Antimicrobial activity of the medicinal spice plants to cure human disease. Plant Science Today, 8(3), 629-646.

Miletić, S., & Radić, S. (2022). Evolution of earnings management practice: A new threat to the quality of financial reports. Oditor, 8(3), 117-142. https://doi.org/10.5937/Oditor2203117M

Mirzaei Aghsaghali, A. (2012). Importance of medical herbs in animal feeding: A review. Annals of Biological Research, 3(2), 918-923.

Noe, T., Rebello, M. & Wang, J. (2003). Corporate financing: An artificial agent‐ based analysis. The Journal of Finance, 58(3), 943-973.

Pantić, N., Mikulič, K., & Lekovič, M. (2022). The influence of claims payments on the investment portfolio of insurance companies. Oditor, 8(3), 42-71. https://doi.org/10.5937/Oditor2203042P

Park, S. & Matunhire, I. (2011). Investigation of factors influencing the determination of discount rate in the economic evaluation of mineral development projects. Journal of the Southern African Institute of Mining and Metallurgy, 111(11), 773-780.

Preethi, R., Devanathan, V. & Loganathan, M. (2010). Antimicrobial and antioxidant efficacy of some medicinal plants against food borne pathogens. Advances in biological Research, 4(2), 122-125.

Pruvot, C., Douay, F., Herve, F. & Waterlot, C. (2006). Heavy metals in soil, crops and grass as a source of human exposure in the former mining areas (6 pp). Journal of soils and sediments, 6, 215-220.

Ren, J. (2022). The Scenario Analysis for NPV and IRR in Mutually Exclusive Projects. In: 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022), pp. 2964-2968, Atlantis Press, Amsterdam, the Netherlands.

Sachan, A., Kumar, S., Kumari, K. & Singh, D. (2018). Medicinal uses of spices used in our traditional culture: Worldwide. Journal of Medicinal Plants Studies, 6(3), 116-122.

Sam, S. (2019). Importance and effectiveness of herbal medicines. Journal of pharmacognosy and phytochemistry, 8(2), 354-357.

Saranraj, P. & Sivasakthi, S. (2014). Medicinal plants and its antimicrobial properties: A review. Global Journal of pharmacology, 8(3), 316-327.

Schippmann, U., Leaman, D. & Cunningham, A. (2002). Impact of cultivation and gathering of medicinal plants on biodiversity: Global trends and issues. In: Biodiversity and the ecosystem approach in agriculture, forestry and fisheries, FAO, Rome, Italy, pp. 1-21.

Shinwari, Z. (2010). Medicinal plants research in Pakistan. Journal of Medicinal Plants Research, 4(3), 161-76.

Subić, J., Jeločnik, M., Nastić, L. & Vasile, J. (2021). Economic Effects of Plum Plantation Establishment. In: Sustainable agriculture and rural development, Subic et al. (eds.), Institute of Agricultural Economics, Belgrade, pp. 149-162.

Subić, J., Nastić, L. & Roljević Nikolić, S. (2020). Economic effects of investment in dairy farming. Western Balkan Journal of Agricultural Economics and Rural Development, 2(2), 135-146.

Tichy, R. & Mejstrik, V. (1996). Heavy metal contamination from open-pit coal mining in Europe’s Black Triangle and possible remediation. Environmental Reviews, 4(4), 321-341.

Vaculik, M., Jurkovič, L., Matejkovič, P., Molnarova, M. & Lux, A. (2013). Potential risk of arsenic and antimony accumulation by medicinal plants naturally growing on old mining sites. Water, Air, & Soil Pollution, 224, 1-16.

Van Wyk, A. & Prinsloo, G. (2018). Medicinal plant harvesting, sustainability and cultivation in South Africa. Biological Conservation, 227, 335-342

Wiart, C. (2012). Medicinal plants of China, Korea, and Japan: Bioresources for tomorrow’s drugs and cosmetics. CRC press, Boca Raton, USA.

Wondimu, T., Asfaw, Z. & Kelbessa, E. (2007). Ethnobotanical study of medicinal plants around ‘Dheeraa’town, Arsi Zone, Ethiopia. Journal of Ethnopharmacology, 112(1), 152-161.

Živković, A., Pantić, N., & Rosić, M. (2019). Fiscal sustainability of the macroeconomic system of European Union members. Oditor, 5(2), 32-41. https://doi.org/10.5937/Oditor1902033Z

Downloads

Published

2024-03-31

How to Cite

Nastić, L., Jeločnik, M., & Subić, J. (2024). ECONOMIC EFFICIENCY OF INVESTMENTS IN THE GROWING OF MEDICINAL HERBS AND SPICES . Ekonomika Poljoprivrede, 71(1), 13–29. https://doi.org/10.59267/ekoPolj240113N

Issue

Section

Original scientific papers

Most read articles by the same author(s)

<< < 1 2 3 4 > >>