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Canary tomato exports: a cost assessment

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Authors: J.J. Cáceres-Hernández, D. Godenau, J.I. González-Gómez, G. Martín-Rodríguez y J.M. Ramos-Henríquez
Issue: 114-3 (280-302)
Topic: Agricultural Economics
Keywords: Tomato, activity‑based costing, Canary, Mainland Spain, Morocco

The aim of this paper is to assess the production costs of Canary tomato exports in comparison to its main competitors. The activity‑based costing methodology is applied. To gather information about the cultivation and packaging activities throughout an agricultural season, two surveys were conducted for separate samples of farmers and packaging centres, respectively. The cost of transportation and distribution up to the sale to wholesalers at the European destination is also assessed. The result is that, once financial costs are taking into account, a kilogram of Canary tomato located in the European point of sale costs more than 1.05 euros, whereas the same cost for tomato from mainland Spain and Morocco is about 80 and 70 cents of euro, respectively.

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