The resources invested in European vegetable production exceeds the growth of production itself, according to SARA

Published Oct 6, 2021

Tridge summary

A study by the Center for Economic Research in Agriculture (SARA) has found a decrease in factor productivity in the vegetable sector from 2008-2010 to 2017-2019, with a 34% contraction and a coefficient of 0.66. The study suggests that the decrease is due to increased resource intensity, particularly capital costs and materials, which have not been offset by a gross increase in production. The current SARA forecasts for the production of tomatoes, peppers, and cucumbers are also reported, along with developments in purchase and wholesale prices for these vegetables in the EU and Turkey. The article also mentions the impact of COVID-19 on the market share of fruits and vegetables, and the distribution of compensation for Brexit-related losses.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

A study by the Center for Economic Research in Agriculture (SARA) on factor productivity in the vegetable sector, which takes into account the change in physical production related to the change in resources used (land, labor, capital, materials and subsidies) shows a contraction for the period 2017- 2019 to 2008-2010 with about 34% and a coefficient of 0.66. In the scenario excluding the subsidies received in the specialized farms, the factor productivity increases to 0.69, as the subsidies occupy about 10% of the available resources. The deteriorating factor productivity in vegetable production is due to the increased resource intensity, mainly in terms of capital costs and materials, which significantly exceed the gross increase in production for the period. The current estimates of SARA for the production of tomatoes this year is for quantities reaching 120 thousand tons, with 54 thousand tons amounting to greenhouse production and 66 thousand tons. for the Polish. SARA ...

Source: Agroplovdiv