Farm gate profitability of organic and conventional farming systems in the tropics

ABSTRACT

Systematic studies on the economic competitiveness of organic farming systems compared to conventional farming systems are particularly lacking in tropical environments. In tropical regions, the evaluation of organic production systems typically concentrates on main cash crops earmarked for export markets. Consequently, crops grown in rotation or in association with these main crops have been largely overlooked, with their contribution to farm profitability is often considered negligible due to perceived challenges in securing premium organic prices. To address this knowledge gap, we conducted an analysis of twelve years of economic data from four long-term farming system comparison trials in tropical regions. Our objective was to delve into the economic competitiveness of both organic and conventional production systems at the system level, considering not only the main cash crops but also the associated and rotational crops. The outcomes of our analysis revealed that in three out of four systems, the gross margins of organic and conventional systems were comparable. In the fourth system, the gross margins of the organic system were 13.13% lower, equivalent to $169.8 per hectare per year compared to the conventional system. Furthermore, the contribution of crops grown in rotation with these main crops remains similar even when premium prices are not obtained. In instances where premium prices for non-cash crops are secured, their profitability can even surpass that of cash crops. Additionally, in the case of agroforestry, companion plantings serve as valuable additions for both dietary and income diversity. These findings suggest that the profitability of an agricultural system is not solely dependent on whether it is organic or conventional but is instead influenced by various system components. The emphasis should shift from a singular focus on main cash crops to a more comprehensive understanding that considers the entire spectrum of crops within a farming system.

KEYWORDS:

• Long-term experiments
• conventional vs. organic farming
• farming systems
• profitability

Acknowledgements

We also gratefully acknowledge the support of the International Centre of Insect Physiology and Ecology (icipe) Kenya, bioRe association, India and El Ceibo, Bolivia, for their passion and engagement in this project. The authors are grateful to Field staff, LTE technicians and field assistants for their technical assistance during fieldwork and data collection.

Authors’ contributions

Amritbir Riar: Conceptualization, Data Analysis, Visualization, Writing & results discussion. Eva Goldmann: Data consolidation and Writing Methodology and contribution to introduction. David Bautze and Johanna Rüegg: Data consolidation, Gurbir S. Bhullar, Noah Adamtey, Monika Schneider1, Beate Huber: Coordination of trials and resources, Laura Armengot: Conceptualization, contribution to data analysis and writing. All authors prodived feedback to drafts, proofread and revised the final manuscript.

Consent for publication

All authors consent to publish.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Availability of data and material

Data used for the manuscript can be provided on request.

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Additional information

Funding

This work was supported by Direktion für Entwicklung und Zusammenarbeit: [Grant Number SysCom]; Biovision Foundation for Ecological Development; Coop Sustainability Fund; Liechtenstein Development Service (LED). LA was supported by the Ramón y Cajal RYC2021-032601-I fellowship, funded by MCIN/ AEI/10.13039/501100011033 and UE “NextGeneration EU”/PRTR.