Estimation model the virtual profit of organic wheat in transition period (Case study of Khorasan Razavi province)

Document Type : Scientific - Research

Authors

• Mohammad Ghorbani ¹
• Mohsen Rajabzadeh ²
• Hoda Zare Mirakabad ³

¹ Department of Agricultural Economy, Faculty of Agriculture, Ferdowsi University of Mashhad, Mashhad, Iran

² Management Department, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran

³ Department of Biotechnology and Plant Breeding, Faculty of Agriculture, Ferdowsi University of Mashhad, Mashhad, Iran

10.22067/jag.v3i1.9934

Abstract

Wheat production with the least use of chemical inputs is an important goal of modern farming to decrease of negative effects of the use of chemical inputs. This paper has estimated the virtual profit of organic wheat in transition period using a cross sectional data of 453 wheat producers of Khorasan Razavi province during 2007. A model introduced to this objective so that it has ability of estimation the virtual yield, revenues, costs and profit of organic wheat based on traditional wheat input-output data. Results of study showed that yield loss of organic wheat compensate in extremely six years. It can consider transition period from one to six year based on price of organic wheat but compensation of reducing farmer's revenue is easier and price pressure on consumer level is lower in six years transition period. Based on the results of the present study, using of introduced model structure is recommended in order to estimate the virtual profit of agricultural organic products.

Keywords

• Cost
• Organic products
• Price
• Revenue
• yield

---

References

1- Acs, P.B., Berentsen, M., and Huirne, R.B.M. 2005. Modeling conventional and organic farming: A literature reviews. Business Economics Group, Wageningen University, EW Wageningen, the Netherlands.

2- Anonymous. 2002. IFOAM basic standards for organic production and processing. International Federation of Organic Agriculture Movements (IFOAM), Victoria, Canada, 68 pp. Accessed 12 December 2004.

3- Brumfield, R.G., Rimal, A., and Reiners, S. 2000. Comparative cost analyses of conventional, integrated crop management, and organic methods. Horticulture Technology 10(4): 785-793.

4- Koocheki, A.R. 2004. Organic farming: Opportunities and threats. Letter of Cultural Sciences 25: 55-95 (In Persian with English Summary)

5- Hau, P., and Joaris, A.1999. Organic Farming. Agriculture and Environment. The European Commission. Accessed 20November 2004.

6- Ghorbani,M., Darijani, A., Koocheki, A., and Zare Mirakabad, H. 2008. A model for pre- estimation of production of organic cotton in Iran: case study of Khorasan province. Asian Journal of Plant Sciences 7(1): 13-17.

7- Gundogmus, E. 2006. A comparative analysis of organic and conventional direct apricot production on small households in Turkey. Asian Journal of Plant Sciences 5(1): 98-104.

8- Gundogmus, E. 2007.The economics of organic fig production: a comparative analysis between organic and conventional farms in Turkey. Asian Journal of Plant Sciences 6: 1-7.

9- Hanson, J.C., Lichtenberg, E., and Peters, S.E. 1997. Organic versus conventional grain production in the mid-Atlantic: an economic and farming system overview. American, Journal of Alternative Agriculture 12(1): 2-9.

10- Huring, A.M., and Dabbert, S. 2004. Organic Farming and Measures of European Agricultural Policy. Organic Farming and Measures in European Agricultural Policy, Vol. 11. University of Hohenheim, Stuttgart, 243 pp.

11- Janse, S., and Fernandez-Cornejo, J. 2001. The economics of organic farming in the U.S: The cost of tomato production. American Agriculture Economics Association Annual Meeting 9: 1-9.

12- Le Guillou, G., and Scharpe, A. 2001. Organic farming: Guide to community Rules. European Commission, Luxembourg, 28 pp.

13- Mannion, A.M. 1995. Agriculture and environmental change: Temporal and spatial dimensions. Wiley, Chichester, 405 pp.

14- Michelsen, J. 2001. Recent development and political acceptance of organic farming in Europe. Sociologia Ruralis 4: 3–20.

15- Scofield, A. 1986. Organic farming: the origin of the name. Biological Agriculture and Horticulture 4: 1–5.