Economic and financial analysis in the pea production system (Pisum sativumL.) in Nariño, Colombia

Abstract

The pea production system in the Department of Nariño, Colombia, constitutes an important pillar within the life strategies of Nariño families, representing a good portion of the high Andean landscape. However, despite its importance, there remains a notable lack of information in aspects such as direct and indirect costs, profitability, and other key economic variables, for the development of this productive system and for decision making, particularly in the Nariño context. current. Therefore, the purpose of this study is to carry out a detailed economic and financial analysis, focused on the producers participating in the AGROSAVIA Social Balance project, to facilitate a deep understanding of the dynamics of this productive system. To this end, 38 semi-structured interviews were carried out with producers adopting Agrosavia Obonuco Andina and Agrosavia San Isidro varieties between the years 2019 to 2022. Producers were identified through the snowball strategy and references from key territorial actors. The analysis involved calculations of economic and financial ratios, production costs and the application of an econometric model based on the Cobb-Douglas function, using ordinary least squares to evaluate the efficiency and inefficiency of the crop. The findings reveal an annual increase in production costs of 9.5 %, a financial profitability of 35 % according to the internal rate of return (IRR), and a technical efficiency of 1.67. Factors such as seed and labour exerted a predominant influence on productivity, while aspects such as production area and age showed inefficiencies, which is why more efficient management strategies for available physical resources, more active involvement of the family and management strategies and appropriation of knowledge and technologies with an intergenerational approach.