ORGANIC PRODUCTION IN THE REPUBLIC OF SERBIA -ECONOMIC ASPECTS

Abstract

The authors of this paper discuss the concept of organic
agricultural products with an emphasis on economic performance.
Research has shown that the total cost of production on organic farms
is on average lower than that of conventional farms. Variable costs
are 30 - 40% lower. On the other hand, fixed costs are 45% higher
than those from conventional production. An analysis of the economic
situation of organic farms in Europe shows that, on average, they
have profits or gross margins similar to those of comparable
conventional farms, i.e. within the range of +/- 20% of profits
achieved on similar conventional farms. A survey conducted among
organic producers on the territory of the Republic of Serbia showed
that gross margins in organic production were on average 20% higher
than in conventional production. Consequently, the economic aspect
of organic production is more favorable than conventional production
for the shown cultures.