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LCA Food 2012 in Saint Malo, France! - Manifestations et colloques ...

LCA Food 2012 in Saint Malo, France! - Manifestations et colloques ...

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GROUP 4, SESSION B: CROP PRODUCTION SYSTEMS 8 th Int. Conference on <strong>LCA</strong> <strong>in</strong> the<br />

Agri-<strong>Food</strong> Sector, 1-4 Oct <strong>2012</strong><br />

115. Environmental and economic life cycle assessment of organic and<br />

conventional olive systems<br />

Ramez Mohamad 1,* , Annalisa De Boni 2 , Gianluigi Cardone 1 , Marie Re<strong>in</strong>e Bteich 1 , Michele Mor<strong>et</strong>ti 2 , Rocco<br />

Roma 2 , V<strong>in</strong>cenzo Verrastro 1<br />

1 Mediterranean Agronomic Institute of Bari, Italy, 2 Dep. Agro-environmental and territorial Sciences, Bari<br />

University, Italy, Correspond<strong>in</strong>g author. E-mail: ramez_19777@yahoo.com<br />

The environmental awareness of the agricultural sector has been <strong>in</strong>creas<strong>in</strong>g dur<strong>in</strong>g the last decades. Cover<strong>in</strong>g<br />

the environmental impacts of any agricultural product or service became a fundamental trend towards the<br />

optimal selection b<strong>et</strong>ween different alternatives to improve the production. Organic farm<strong>in</strong>g has been reported<br />

to be an <strong>in</strong>novative system that contributes to the reduction of environmental impacts of agricultural<br />

practices. This study will <strong>in</strong>vestigate this assumption through a comparison of the environmental impact and<br />

the economic performance b<strong>et</strong>ween two production systems of olive cultivation <strong>in</strong> Apulia region-Italy.<br />

Based on a survey for farms selection, two olive farms have been selected for a case study of organic and<br />

conventional management systems. The criteria of farms selection was based on the similarity of general<br />

characteristics (location, olive vari<strong>et</strong>y, trees age, irrigated, plant<strong>in</strong>g system) and the dissimilarity of agricultural<br />

practices management, particularly fertilisation, soil management, pest and weed control.<br />

<strong>LCA</strong> based m<strong>et</strong>hodology, adopt<strong>in</strong>g the Eco-<strong>in</strong>dicator 99 m<strong>et</strong>hod, has been used for assess<strong>in</strong>g the environmental<br />

impact. Data collection has been analysed by SimaPro software consider<strong>in</strong>g 1 hectare as a functional<br />

unit with a system boundary limited to olive production (cradle to farm gate).<br />

The olive life cycle was assumed to extend over 50 years and was divided <strong>in</strong>to three phases: juvenility phase<br />

(4 years), grow<strong>in</strong>g phase (13 years) and productive phase (33 years). The environmental impacts were<br />

roughly similar dur<strong>in</strong>g the juvenility and grow<strong>in</strong>g phases due to the likeness of the conventional managements<br />

<strong>in</strong> both case studies. Environmental results below are associated to the productive phase when the<br />

organic farm was certified organic and the conventional farm changed <strong>in</strong>to no-tillage conventional system.<br />

Fertilisation and soil management activities resulted <strong>in</strong> a higher environmental impact <strong>in</strong> the organic system<br />

compared to the conventional one, <strong>in</strong> terms of both s<strong>in</strong>gle impact category and damage categories (damage to<br />

the human health, ecosystem quality and resources). This is due to the emissions <strong>in</strong>duced by the transportation<br />

and application of animal manure as well as the higher fuel consumption for manag<strong>in</strong>g the soil <strong>in</strong> the<br />

organic system compared to no-tillage conventional one. Nevertheless, the total environmental impact of<br />

agricultural practices was lower <strong>in</strong> the organic system compared to the conventional one, ma<strong>in</strong>ly the lower<br />

impact on the fossil fuel depl<strong>et</strong>ion as a result of the more recurrent weed and pest control activities <strong>in</strong> conventional<br />

system. In fact, the total environmental impact caused by pest control activity was higher <strong>in</strong> the<br />

conventional system even if carc<strong>in</strong>ogenic effects, ecotoxicity and m<strong>in</strong>erals depl<strong>et</strong>ion impact categories were<br />

higher <strong>in</strong> the organic system, as a result of copper products uses for pest control.<br />

LCC m<strong>et</strong>hodology has been used for assess<strong>in</strong>g the economic performance of both systems by calculat<strong>in</strong>g all<br />

costs and revenues over the life cycle. No large differences were registered b<strong>et</strong>ween the farms <strong>in</strong> terms of<br />

costs and revenues <strong>in</strong> juvenility and grow<strong>in</strong>g phases, while bulk differences were recorded <strong>in</strong> the productive<br />

phase. The organic system resulted <strong>in</strong> higher total costs and lower yield compared to the conventional one.<br />

However, it showed higher revenue and consequently higher n<strong>et</strong> <strong>in</strong>come thanks to the higher sell<strong>in</strong>g price.<br />

Both systems had a positive N<strong>et</strong> Present Value (NPV), show<strong>in</strong>g a positive <strong>in</strong>vestment. Furthermore, the Internal<br />

Rate of R<strong>et</strong>urn (IRR) resulted, <strong>in</strong> both farms, higher than the bank <strong>in</strong>terest rate (1.25%). The organic<br />

system resulted to have a higher NPV and IRR than the conventional one. Therefore, accord<strong>in</strong>g to the farm<strong>in</strong>g<br />

price system and based on the profitability and f<strong>in</strong>ancial analyses, the organic system can be considered a<br />

more profitable <strong>in</strong>vestment system than the conventional one.<br />

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