Processing of Medicinal Herbs: Economic Analysis

Nastić, Lana and Jeločnik, Marko and Subić, Jonel (2024) Processing of Medicinal Herbs: Economic Analysis. International symposium Agriculture Economy and Rural Developmen - Trends and Challenges “Agriculture and Rural Economy Between Tradition, Innovation and Sustainability”, 15th edition. pp. 15-23. ISSN 2972-1741

Text Nastić, Jeločnik, Subić - ICEADR (2024).pdf - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (704kB)

Abstract

Medicinal and aromatic plants have been usually used in traditional way of curing people for centuries, while their essential oils are mainly applied in medicine, pharmacy, dentistry, cosmetic industry, light chemistry, and other sectors. Besides, possibilities to use essential oils as plant protection agents or veterinary medicaments have been also increasingly studied. Considering the number of alternatives for using essential oils and growing tendency to increase the appliance of natural compared to synthetic products in many areas, the main goal of paper is to analyze the economic profitability of essential oils production based on exploitation of ten medicinal plants’ species previously produced in plantation system of production. Analysis was performed according to data gained form coal mine Pljevlja, while dynamic methods of investment analysis (net present value, internal rate of return, payback period and annuity method) were used in assessment of economic effects of investing in essential oils production (processing of medicinal plants). Performed analysis has showed that investment in observed processing capacities is economically justified, as well as that economic effects of medicinal herbs processing mainly depend on production structure available at plantations, i.e. on volume and structure of available raw material used in processing capacities.

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