Tag: profitability

The main objective of this study is to compare the efficiencies of organic and conventional farms in Poland. As shown by the conducted analysis, acting in compliance with the essential production principles, organic farms practiced extensive farming which resulted in reduced efficiency of productive inputs. The efficiency of land and labour measured by the Adjusted Net Value Added was respectively nearly 30 and 65 per cent higher in conventional holdings. Moreover, subsidies contribute more to the income of organic farms, making them strongly dependent on external support (this is especially true for farms with grazing livestock). As a part of policy planning, it should be taken into consideration that organic farms may in the future encounter a development barrier stemming from lower efficiency, difficult access to subsidies and, finally, lower levels of income.

An increasing number of villages in many countries do not have any local supplier at all. In the retail sector of Germany, the large supermarket companies require at least 5,000 inhabitants in the catchment area to run a shop. The aim of this paper is to describe the contribution of village shops to local supply and social life as well as to assess their economic viability. Therefore, findings from a telephone survey of approximately 100 shop operators in Germany are presented. The results show the limited supply and social function of the shops as well as their precarious economic situation. Many shops only offer a small range of goods so that the coverage of basic needs is difficult and they are mostly visited for supplementary purchases. Most village shops provide a snack area as a meeting place, but these are relatively seldom used. The findings indicate that permanent public and civic support is required to sustain many small shops in small villages. Because of the market conditions, however, public initiatives cannot halt the trend towards increasing numbers of ‘food deserts’; at best they can slow down the process. Where village shops cannot be sustained economically, home delivery services, mobile supermarkets ...