Economic and regulatory evaluation of the organic agricultural production in Serbia: A case study of the production of wheat

Abstract

Organic agriculture production has been recognized as the strategic chance and successful factor for economic development in many countries. Like in other economic areas, here it is also important to implement knowledge of resources economy, concept that include reducing costs wherever possible, managing resources of the enterprise rationally and efficiently and achieving higher value of profit. This paper presents the analysis of economic efficiency in organic agriculture on the example of wheat production and comparison between conventional and organic production. The methodology used in this paper includes measuring the indicators of economic efficiency, and comparative analysis of the calculation of profit in organic and conventional production. The aim was to point out elements of efficiency in organic production and to show that organic production, although still a controversial notion in underdeveloped countries can provide higher profit than conventional production. Besides, in the paper there have been analyzed legislations of the state providing better conditions for organic agricultural production and also possibilities for higher business success.