Strategic decisions and economic evaluation of horticulture farms in Finland

A.M. Koivisto, E.K. Liski, T.E.A. Mattila, M. Väre
The aim of this study was to evaluate the management choices of horticulture producers that led to economic success. However, only outdoor vegetable and berry producers were examined. Self-reported farm profitability was assessed on a 6-point Likert scale to indicate the economic success of farms. Data were based on a farm questionnaire conducted in 2014 and supplemented by information from a farm survey conducted in 2013 and horticultural statistics collected by the Natural Resources Institute Finland. Data analysis of farm profitability using several potential predictors was performed using proportional odds ordered logistic regression. Both the interpretability and predictability were taken into consideration in the modeling process. According to the results, farm profitability was symmetrically distributed with the largest number of farms in the middle-income group. High returns, farm development activities and not focusing only on direct sales were found to be the best predictors for improved profitability. Better profitability can be achieved by actively improving farm practices, with advanced economic follow-up and planning. Research, education and extension efforts should be directed toward farm level food processing, technology, labor productivity and innovative means for direct selling.
Koivisto, A.M., Liski, E.K., Mattila, T.E.A. and Väre, M. (2019). Strategic decisions and economic evaluation of horticulture farms in Finland. Acta Hortic. 1258, 117-124
DOI: 10.17660/ActaHortic.2019.1258.17
profitability, vegetable production, berry production, management

Acta Horticulturae