The Determinants of Profitability of Organic Production in the Opinions of Farmers in the Podlaskie Voivodeship

Renata Przygodzka, Mirosława Kozłowska-Burdziak and Marcin Bąk

Roczniki (Annals), 2019, vol. 2019, issue 01

Abstract: The aim of the research paper was to present a character description of organic agricultural holdings and identify factors affecting profitability of these holdings basing on the opinions of farmers specializing in such production. The area analyzed in this research was the Podlaskie Voivodeship. In order to achieve the aim, various research methods were employed, such as the study of relevant literature opinion surveys conducted using a questionnaire directed to 101 organic farms (selected randomly ensuring representativeness of results) as well as means of descriptive statistics. The conducted research indicates that a typical organic farmer in the Podlaskie Voivodeship is 48 years old and has 16 years of experience in agricultural holding management. He is also well educated (44% have higher education) and possesses good knowledge about organic agriculture. Almost 80% of analyzed agricultural holdings have certificates, usually for several products. 51% produce mostly for their own needs, while production of only every third is for the most part dedicated to market purposes. In 55% of these holdings, production is oriented mostly towards plant production, whereas 35% is multidirectional. In the majority of farmers’ opinions, the economic situation of their holdings is comparable to that of conventional farms. Only every fifth farmer considers their situation to better. According to the respondents, subsidies from the European Union are among the most important factors determining profitability of organic agricultural production. The factors that affect profitability negatively, according to interviewed farmers, are: low sale prices, unfavorable climate conditions, high costs of obtaining certificates and overly extensive bureaucracy.

Keywords: Agribusiness; Agricultural and Food Policy (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:paaero:293820

DOI: 10.22004/ag.econ.293820

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