A comparative analysis of organic and conventional farmers in the Czech Republic
Josef Krause, Ondrej Machekhttps://doi.org/10.17221/161/2016-AGRICECONCitation:Krause J., Machek O. (2018): A comparative analysis of organic and conventional farmers in the Czech Republic. Agric. Econ. – Czech, 64: 1-8.
Organic farming has become a topic that receives an increasing academic as well as popular attention. This study examines the financial differences between the organic and conventional farmers, as well as their income volatility. Based on the Student’s t-test, the regression analysis and the matched-pair investigation on a sample of Czech 291 organic and 4045 conventional farmers over the period 2009–2013, the study indicates that the organic agricultural companies outperform the conventional companies in the terms of profitability. However, their asset turnover is considerably lower. No evidence of different income volatility has been found.Keywords:
ecological agriculture, organic farmers, performance, Czech Republic
Acs S., Berentsen P.B.M., de Wolf M. (2007): Comparison of conventional and organic arable farming systems in the Netherlands by means of bio-economic modelling. Biological Agriculture & Horticulture, 24: 341–361.Allouche José, Amann Bruno, Jaussaud Jacques, Kurashina Toshiki (2008): The Impact of Family Control on the Performance and Financial Characteristics of Family Versus Nonfamily Businesses in Japan: A Matched-Pair Investigation. Family Business Review, 21, 315-330 https://doi.org/10.1177/08944865080210040104Al-Taie W.A.A., Rahal M.K.M., Al-Sudani A.S.A., Al-Farsi K.A.O. (2015): Exploring the consumption of organic foods in the United Arab Emirates. Sage Open, 5 (2).Ankamah-Yeboah Isaac, Nielsen Max, Nielsen Rasmus (2016): Price premium of organic salmon in Danish retail sale. Ecological Economics, 122, 54-60 https://doi.org/10.1016/j.ecolecon.2015.11.028Barbera F. (2013): Financing, firm size and productive efficiency: the effect of family ownership. [Doctoral dissertation.] Bond University, Australia.BENGTSSON JANNE, AHNSTRÖM JOHAN, WEIBULL ANN-CHRISTIN (2005): The effects of organic agriculture on biodiversity and abundance: a meta-analysis. Journal of Applied Ecology, 42, 261-269 https://doi.org/10.1111/j.1365-2664.2005.01005.xBerentsen P.B.M., Kovacs K., van Asseldonk M.A.P.M. (2012): Comparing risk in conventional and organic dairy farming in the Netherlands: An empirical analysis. Journal of Dairy Science, 95, 3803-3811 https://doi.org/10.3168/jds.2011-5200Brožová I. (2011): The economic performance analysis of organic farms in the Czech Republic. Agricultural Economics – Czech, 57: 240–246.Burgoyne Daniel, Levallois Raymond, Perrier Jean-Philippe, Pellerin Doris, Paillat et Nicolas (1995): Comparaison de la rentabilite des systemes conventionnels et biologiques en production laitiere au Quebec. Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 43, 435-442 https://doi.org/10.1111/j.1744-7976.1995.tb00133.xSean Clark M (1999): Ground beetle abundance and community composition in conventional and organic tomato systems of California's Central Valley. Applied Soil Ecology, 11, 199-206 https://doi.org/10.1016/S0929-1393(98)00138-3Conti Stefano, Villari Gerardo, Faugno Salvatore, Melchionna Giuseppe, Somma Silvano, Caruso Gianluca (2014): Effects of organic vs. conventional farming system on yield and quality of strawberry grown as an annual or biennial crop in southern Italy. Scientia Horticulturae, 180, 63-71 https://doi.org/10.1016/j.scienta.2014.10.015Crowder David W., Reganold John P. (2015): Financial competitiveness of organic agriculture on a global scale. Proceedings of the National Academy of Sciences, 112, 7611-7616 https://doi.org/10.1073/pnas.1423674112Dobbs Thomas L., Smolik James D. (1997): Productivity and Profitability of Conventional and Alternative Farming Systems: A Long-Term On-Farm Paired Comparison. Journal of Sustainable Agriculture, 9, 63-79 https://doi.org/10.1300/J064v09n01_06Drinkwater L. E., Letourneau D. K., Workneh F., van Bruggen A. H. C., Shennan C. (1995): Fundamental Differences Between Conventional and Organic Tomato Agroecosystems in California. Ecological Applications, 5, 1098-1112 https://doi.org/10.2307/2269357Dritschilo William, Wanner Diane (1980): Ground Beetle Abundance in Organic and Conventional Corn Fields. Environmental Entomology, 9, 629-631 https://doi.org/10.1093/ee/9.5.629Eurostat (2016): Area under organic farming. Available on-line: http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tsdpc440&plugin=1 (accessed Jan 5, 2016).Halberg N., Kristensen I.S. (1997): Expected crop yield loss when converting to organic dairy farming in Denmark. Biological Agriculture & Horticulture, 14: 25–41.Klima K., Labza T. (2010): Yielding and economic efficiency of oats crop cultivated using pure and mixed sowing stands in organic and conventional farming systems. Zywnosc-Nauka Technologia Jakosc, 17: 141–147.Long J. (1997): Regression Models for Categorical and Limited Dependent Variables. Thousand Oaks, Sage, CA.Machek O., Hnilica J. (2015): Evaluating the impact of family presence in ownership and management on financial performance of firms using matched-pair investigation. Politická ekonomie, 63: 347–362.Mader P. (): Soil Fertility and Biodiversity in Organic Farming. Science, 296, 1694-1697 https://doi.org/10.1126/science.1071148Makower J. (2009): Strategies for the Green Economy: Opportunities and Challenges in the New World of Business. McGraw-Hill, New York.Marian Livia, Chrysochou Polymeros, Krystallis Athanasios, Thøgersen John (2014): The role of price as a product attribute in the organic food context: An exploration based on actual purchase data. Food Quality and Preference, 37, 52-60 https://doi.org/10.1016/j.foodqual.2014.05.001McBride William D., Greene Catherine (2009): Costs of Organic Milk Production on U.S. Dairy Farms. Review of Agricultural Economics, 31, 793-813 https://doi.org/10.1111/j.1467-9353.2009.01467.xMinistry of Agriculture (MA) (2014): The Rural Development Program 2014–2020. The Ministry of Agriculture of the Czech Republic, Prague. Available at http://eagri.cz/public/web/file/323384/PRV_do_vlady.pdf (accessed March 4, 2016).Ministry of Agriculture (MA) (2015): Organic Farming in the Czech Republic – Yearbook 2014. The Ministry of Agriculture of the Czech Republic, Prague.Ministry of Agriculture (MA) (2016): The Czech Registry of Ecological Entrepreneurs. Available at https://eagri.cz/public/app/eagriapp/EKO/Prehled/Prehled.aspx?typ=ZEM&clear=A&stamp=1463740413427 (accessed Feb 2, 2016).Mohamad Ramez Saeid, Verrastro Vincenzo, Cardone Gianluigi, Bteich Marie Reine, Favia Mariafara, Moretti Michele, Roma Rocco (2014): Optimization of organic and conventional olive agricultural practices from a Life Cycle Assessment and Life Cycle Costing perspectives. Journal of Cleaner Production, 70, 78-89 https://doi.org/10.1016/j.jclepro.2014.02.033Moudrý J., Moudrý J. (Jr), Konvalina P., Kopta D., Šrámek J. (2008): Ekonomická efektivnost rostlinné bioprodukce. JU ZF, České Budějovice.Nieberg H., Offermann F. (2003): The profitability of organic farming in Europe. Organic Agriculture: Sustainability, markets and policies. OECD Workshop on Organic Agriculture, Washington, D.S., Sep 23–26, 2002.Pimentel D. (1993): Economics and energetics of organic and conventional farming. Journal of Agricultural & Environmental Ethics, 6: 53–60.PIMENTEL DAVID, HEPPERLY PAUL, HANSON JAMES, DOUDS DAVID, SEIDEL RITA (2005): Environmental, Energetic, and Economic Comparisons of Organic and Conventional Farming Systems. BioScience, 55, 573- https://doi.org/10.1641/0006-3568(2005)055[0573:EEAECO]2.0.CO;2Sgroi F., Fodera M., Di Trapani A.M., Tudisca S., Testa R. (2015a): Cost-benefit analysis: A comparison between conventional and organic olive growing in the Mediterranean Area. Ecological Engineering, 82: 52–546.Sgroi F., Candela M., Di Trapani A.M., Fodera M., Squatrito R., Testa R., Tudisca S. (2015b): Economic and financial comparison between organic and conventional farming in Sicilian lemon orchards. Sustainability, 7: 947–961.Shrestha K., Shrestha G., Padney P.R. (2014): Economic analysis of commercial organic and conventional vegetable farming in Kathmandu valley. Journal of Food Agriculture and Environment, 15: 58–71.Taube F., Loges R., Kelm M., Latacz-Lohmann U. (2005): A comparative assessment of the performance of organic and conventional arable farming systems on high-quality soils in Northern Germany. Berichte uber Landwirtschaft, 83: 165–176.Tuck Sean L., Winqvist Camilla, Mota Flávia, Ahnström Johan, Turnbull Lindsay A., Bengtsson Janne, McKenzie Ailsa (2014): Land-use intensity and the effects of organic farming on biodiversity: a hierarchical meta-analysis. Journal of Applied Ecology, 51, 746-755 https://doi.org/10.1111/1365-2664.12219Uematsu H., Mishra A.K. (2012): Organic farmers or conventional farmers: Where is the money? Environmental Ecology, 78: 55–62.