Farming of Medicinal and Aromatic Plants in Italy: Structural Features and Economic Results

Dario Macaluso, Francesco Licciardo and Katya Carbone ()
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Dario Macaluso: Council for Agricultural Research and Economics, Research Centre for Agricultural Policies and Bio-Economy, 00187 Rome, Italy
Francesco Licciardo: Council for Agricultural Research and Economics, Research Centre for Agricultural Policies and Bio-Economy, 00187 Rome, Italy
Katya Carbone: CREA Research Centre for Olive, Fruit and Citrus Crops, Via di Fioranello 52, 00134 Rome, Italy

Agriculture, 2024, vol. 14, issue 1, 1-20

Abstract: In recent years, the primary sector in Italy and elsewhere has been profoundly affected by climate change and a deep economic crisis, mainly linked to stagnating prices and rising production costs. Because of this situation, we are witnessing renewed interest in alternative agricultural productions, which are characterized by their resilience and sustainability, including medicinal and aromatic plants (MAPs). This sector is characterized by a certain heterogeneity due to the great variety of species and their wide range of uses. Although these characteristics contribute to the sector’s economic success, they also hinder its study due to commodity complexity and limited data availability. At the farm level, the situation is complicated by the fact that MAP cultivation is often embedded in complex cropping systems, and more rarely, is practiced exclusively or predominantly. In light of these considerations, we concentrated solely on the agricultural phase of the supply chain, using data available in the Farm Accountancy Data Network. We aimed to examine the main structural characteristics and economic outcomes of Italian farms that grow MAP, as well as the profitability of some of the species. To ensure accurate species classification, only MAPs exclusively designated for botanical use in the Italian National List were considered. The analysis of farm economic performance indicators (gross output, variable costs, gross margins, etc.) focused mainly on the species most represented in the sample: saffron, rosemary, lavender, oregano, and sage. The results indicate that the total gross output and gross margin show the best performance in the case of saffron (66,200 and 57,600 EUR/ha, respectively) and rosemary (27,500 and 22,000 EUR/ha, respectively). However, for saffron, the biggest cost concerns propagation (purchase of bulbs), amounting to 50% of the variable costs, whereas fertilization ones are particularly high for sage and rosemary.

Keywords: medicinal and aromatic plant; Farm Accountancy Data Network; on-farm diversification; economic performance indicators; lavender (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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