Long-term feasibility of Mediterranean olive production systems

Of Mediterranean countries, Italy represents the second largest producer of olive oil, with about 14% of total world production, and represents the largest consumer worldwide, with 20.8% of total world consumption. Olive cultivation is mostly confined to southern regions, which overall account for about 80% of national olive oil production. In Calabria, olive growing plays a significant economic role, particularly in rural contexts, although olive growers have to face different problems such as high production costs, low productivity and low levels of mechanization of agricultural practices. However, many olive farms produce high-quality olive oil, thanks to both more efficient farming management and the adoption of product and process innovations. This paper aims to assess the long-term feasibility of different olive-growing systems in the Calabrian region (southern Italy) by means of joint use of a life cycle costing (LCC) approach and dynamic evaluation methods. The economic analysis allowed us to recognize the main hotspots within the product life of each system analyzed, useful to identify potential enhancements to the production process and to give rise to greater levels of profitability. Our results highlighted a suitable level of economic viability for almost all systems investigated, in particular when public subsidies from the European Union were considered. Our research could be useful to suggest the adoption of possible improvement strategies for corporate decision-making processes, to achieve appropriate economic sustainability performance.