Economics of tomato production depending on the method of seedling procurement

• Main Authors: Ivanišević Dragan, Prodanović Radivoj, Stajić Dunja
• Format: Article
• Language: srp
• Published: University Business Academy - Faculty of Economics and Engineering Management, Novi Sad, Serbia 2018-01-01
• Series: Ekonomija: teorija i praksa
• Subjects: economic; tomato; seedlings; market; economical; profitability
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/2217-5458/2018/2217-54581803039I.pdf

The aim of the paper is to calculate and compare the economic indicators in the production of tomatoes in protected areas for two methods of plant breeding: production of seedlings on the agricultural holding and when seedlings are purchased on the market. The results show that the production of tomatoes with farmers' own seedlings is economically more profitable than the method which implies the purchase of seedlings. After calculating the relative indicators of success of production, it was found that the production of tomatoes was economically viable in both ways, but significantly more profitable when seedlings were produced on a farmer's own farm. The obtained profitability coefficient of 2.576 indicates that 2.576 dinars of revenues are achieved for every 1 dinar of expenses. If tomato seedlings were purchased, the profitability coefficient would be 2.078, but production would still be economically viable. The profitability of production coefficient indicates that for every 100 dinars invested, we can make a net profit of 157.6 dinars when seedlings are home-grown, or we can make a net profit of 107.81 dinars when the seedlings are purchased on the market.