Exploring organic cherry investment opportunities for Greek farmers

Type: Journal Article
Journal title: Outlook on AGRICULTURE
Year of publication: 2013
Source: AGRERI
Subject:
products
agricultural products
plant products
agricultural policies
agricultural and rural legilslation
organic agriculture
Description:

Organic farming has grown rapidly in the European Union (EU) due to
a rising demand for high-quality food, increased environmental concerns and
market developments that led to the implementation of an organic policy and the
creation of a positive institutional framework. Nevertheless, the production of
organic fruit, including cherries, is still limited within the EU, despite high
demand. Farmers generally adopt organic farming systems only if the support
provided by the existing policy regime outweighs the increased risk and uncertainty.
This study explores the effectiveness of current policy measures for the production of
organic cherries in Greece using a real options methodology. The results reveal that
the economic incentives provided by the existing policy regime contribute to
profitability and compensate for the risk and uncertainty that organic cherry
farmers face, although further institutional support is still needed.

 

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