Browsing by Author "Sadik, Samica Anastasia"

Agricultural systems hold great potential in contributing greenhouse gas mitigation measures globally. Crop diversification, perennial vegetative cover and soil conservational measures are highlighted in order to develop agricultural production in a sustainable way. Increasing climate related public concern has created a demand for sustainable materials for manufacturing industries. Nettle (Urtica dioica) has been proven to hold economic and ecological advantages and great commercial potential. Nettle is a perennial low input crop with multiple end uses within harvest offering an attractive crop for farmers. The crop has been historically used in industrial scale however, current nettle production in agricultural scale is marginal despite its positive characteristics. Research on nettle’s commercial potential has been conducted in various industries. Lack of farmers has left results idle and commercial potential unachieved. This study uses basic management accounting practices in order to find the break-even points and profitability of the production in Finnish conventional farming framework. The production information is gathered from various international projects and is used in order to assess the profitability of nettle production and expand the assessment to evaluate production’s environmental benefits. For a comparison, similar assessment is performed for a conventional crop rotation consisting an oilseed crop, wheat and grass. In the chosen 4-year setting, the nettle production proves more expensive majorly due to first year’s economically non-viable production. Nettle’s low input use during the yield years and predictable long term yield output is likely to reduce unit costs over time. Nettle’s production cost of dry biomass is 0,29 euros per kilogram and break-even price after subsidies is 0,16 euros for a kilogram, similar to wheat. Nettle’s low input use and relatively large, annual 8000kg fresh yields indicate the production could turn profitable with comparably low prices. Environmentally, after the first year nettle creates an annual 1,3 ton carbon sink despite conventional fertilizer use and machinery work done of field.