Annex White book.pdf

COMMERCIALIZATION ANDCONSUMPTION DEVELOPMENTOF SAFFRONA5.1 GLOBAL ECONOMIC STUDYA5.1.1. PRODUCTION COSTSA5.1.1.1. Direct and variable costsDirect costs are those created byvarious production factors used or destroyedduring the production procedureof one year. The can be classifiedas follows:• External costs: corresponding topayments during production inform of invoices. The farming enterpriseneeds to purchase thoseexternal factors in order to completethe production. Followingsupplies belong to those costs:• Fertilizers• Phytosanitary products againstplagues and diseases• Propagation plant material (bulbs)• Irrigation water (deriving from thewell of the farm paying the invoicefor electricity consumption)• Various raw materials. Plastic nettingsare included in this heterogeneousgroup (used during planting)• Mechanized phytosanitary servicesHarvesting (UCLM)• Calculated costs include all coststhat derive from production factors,which – despite their initial175