Exploring Organic Cherry Investment Opportunities for Greek Farmers

Abstract

Organic farming has grown rapidly in the European Union (EU) due to a rising demand for high-quality food, increased environmental concerns and market developments that led to the implementation of an organic policy and the creation of a positive institutional framework. Nevertheless, the production of organic fruit, including cherries, is still limited within the EU, despite high demand. Farmers generally adopt organic farming systems only if the support provided by the existing policy regime outweighs the increased risk and uncertainty. This study explores the effectiveness of current policy measures for the production of organic cherries in Greece using a real options methodology. The results reveal that the economic incentives provided by the existing policy regime contribute to profitability and compensate for the risk and uncertainty that organic cherry farmers face, although further institutional support is still needed.