Comparative Economic Evaluation of Greenhouse Pepper Cultivation Under Conventional and Organic Management

Economic comparison of different production models, focusing on production costs and economic viability–profitability are essential to guide decision-making and enhance the competitiveness and resilience of the agri-food chain. This is the overall objective of the paper: to establish the production and cost structure and to economically evaluate two greenhouse pepper production models. Data on the production process of the production models (organic and conventional greenhouse pepper) and their cost and income structures were collected through 15 on-site surveys conducted with growers and horticultural sector technicians. The initial investment is very high (140,030 €·ha−1) and requires a significant financial effort for implementation, being the same for both conventional and organic cultivation, this means that fixed costs are high in percentage terms, especially when compared to other intensive outdoor horticultural crops. The key cost differences between the two systems are found in fertilisers, plant protection treatments, and biotechnological control and cost structure indicates a higher unit cost for organically produced peppers, 0.60 €·kg−1 for conventional and 0.75 €·kg−1 for organic production. Greenhouse pepper cultivation in southeastern Spain is an economically viable and profitable activity under both conventional and organic management. Profitability indicators consistently show that the conventional system is more profitable at the same farm scale or size.