engleski

Economic Efficiency of Olive Growing

Olive growers need relevant information about economic justifications of their investments in the construction of new olive groves, and about economic effects of olive growing. In that context, the purpose of the research is the analysis of an investment in olive grove establishment and of the economic indicators of production of olives in full growth. The purpose is to establish the economic justification of investments in the olive groves establishment, and to establish the economic effectiveness of olive growing. In the course of work, the method of simulation modelling was applied. For the purpose of the research, a deterministic simulation model was constructed, consisting of a sub-model of olive grove establishment, and a sub-model of olive growing. Total investment value of 1 hectare of olive grove establishment amounts to 65, 500 kn. Profit evaluation indicates that investment of 1 hectare of olive grove establishment is economically justifiable. An olive grove, 1 hectare large, in one year of full yield, makes a profit in the amount of 34, 751 kn, and the olive grower has to evaluate if the economic results satisfy his expectations for the work he put in.

profit; economic efficiency; investment; olive growing; simulation modelling

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