Comparative assessment of kiwifruit and citrus production using material flow cost accounting (MFCA) and traditional cost accounting (TCA)

This study comparatively evaluates kiwifruit and citrus cultivation using both Material Flow Cost Accounting (MFCA) and Traditional Cost Accounting (TCA) frameworks to identify hidden inefficiencies and evaluate cost–sustainability trade-offs. All financial data are expressed in US dollars (USD) using an average exchange rate of 1 USD = 145000 IRR (reference year: 2019). By focusing on two prominent crops in Iranian agriculture, the study highlights key differences in resource allocation, profitability, and environmental sustainability. Kiwifruit cultivation demonstrated higher profitability, with a net profit of $18900.26 ha -1 compared to $8194.03 ha -1 for citrus. This advantage is driven by Kiwifruit's superior yield of 22862.6 kg ha −1 and gross value of production, which significantly outweigh its higher labor and input costs. Conversely, citrus offers a more resource-efficient option, requiring 451.1 h ha −1 of labor, compared to 1446.1 h ha −1 for Kiwifruit, and lower potassium and farmyard manure costs. From an environmental perspective, nitrate leaching and biocide emissions were the most significant contributors to negative impacts for both crops. Kiwifruit exhibited higher environmental costs, particularly in nitrate leaching ($5.68 ha -1 ) and ammonia emissions, highlighting the need for improved nutrient management practices. The findings underline that Kiwifruit is a viable option for large-scale farmers capable of managing its high labor and environmental costs, while citrus is more suitable for small-scale farmers seeking sustainability and lower input demands. The application of Material Flow Cost Accounting revealed critical inefficiencies, such as high labor intensity and nutrient losses, which traditional accounting systems may overlook. These results provide actionable insights for policymakers and farmers, emphasizing the need for targeted interventions to enhance both economic viability and environmental sustainability. For Kiwifruit cultivation, strategies such as mechanization and integrated pest management are recommended to balance profitability with ecological responsibility. For citrus, optimizing nutrient application and pest control could further improve its cost-efficiency and environmental profile. This comparative analysis contributes to the growing body of literature on sustainable agricultural practices, demonstrating the utility of Material Flow Cost Accounting in refining resource use and decision-making in crop production systems. • This study applies Material Flow Cost Accounting to compare economic and environmental efficiency in fruit farming. • Kiwifruit production delivers higher profit but involves greater labor input and environmental costs. • Citrus cultivation offers better input efficiency and lower emissions per hectare. • Environmental losses from fertilizers and pesticides are quantified and monetized in the cost analysis. • MFCA reveals hidden inefficiencies and supports sustainable production decisions at the farm level.