Profitability and Risk of the Mulch-Drip Irrigation System Onion Production, Costa Rica

José Esteban Gómez-Alvarado, Javier Paniagua-Molina and Johanna Solórzano-Thompson

International Journal of Food and Agricultural Economics (IJFAEC), 2022, vol. 10, issue 01

Abstract: The profitability and risk of onion cultivation in Costa Rica in a conventional production system and an alternative system with drip irrigation and mulch were compared. Production costs for both systems and real agricultural prices were estimated, which were important factors in the simulation of profitability scenarios. The results suggest that profitability improves in the alternative production system and risk decreases significantly, which allows mitigating the adverse conditions that the farmer usually faces. Despite the alternative production, onion growers are still exposed to high market risk due to price volatility.

Keywords: Community/Rural/Urban Development; Crop Production/Industries; Environmental Economics and Policy; Farm Management; Research and Development/Tech Change/Emerging Technologies; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:319342

DOI: 10.22004/ag.econ.319342

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