Economic Sustainability in Emerging Agro-Industrial Systems: The Case of Brazilian Olive Cultivation

Abstract

The economic sustainability of agro-industrial systems expresses firms’ competitive capacity and can be achieved with greater innovation, productivity and price management. The emerging olive oil agro-industrial systems in Brazil lack the information on economic and financial performance that they need to grow. The objective of this study is to evaluate the financial viability of an olive grove and the competitiveness and economic sustainability of the extra virgin olive oil using primary data collected and analyzed by the policy analysis matrix method. The main indicators considered with respect to current production and commercialization techniques are private and social profitability, added value, remuneration of domestic factors and total factor productivity. It is concluded that the emerging extra virgin olive oil agro-industrial system in Brazil has financially viable olive groves, significant competitiveness and presents economic sustainability.