ARI REVIEW FOR 2016-2017

Geographic distribution of the sample in the case study area; Larnaka and Famagusta (n = 324). Economic analysis of Stevia ( Stevia rebaudiana ) in Cyprus In the context of a research project running by the Plant Improvement Section regarding the cultivation and adaptation of Stevia crop ( Stevia rebaudiana ) in Cyprus conditions, an integrated economic analysis was conducted by the Rural Development Section. Specifically, the goal of the analysis was to assess the economic sustainability of Stevia crop using primary experimental data of the period 2013-2015. The crop was established in the Zygi Experimental Station and was cultivated as a perennial crop. The economic analysis was implemented in three steps. In the first step, a techno-economic analysis was conducted and the main economic results (e.g. net profit) were presented. In the second step, the economic sustainability/feasibility of Stevia cultivation was assessed through cost-benefit analysis, while in the last step sensitivity analysis was conducted and the switching values for the farm gate price (critical variable) were identified. The results were presented under two different scenarios, that is (a) including subsidies (i.e. direct payments) in the gross income; and (b) without considering subsidies in the gross income. The techno-economic analysis showed that Stevia crop is a profitable investment even when subsidies are not included in the gross income. Specifically, the average (3-year) net profit was estimated at €142,30 and €108,30 per decare for scenarios (a) and (b), respectively. It is noted that due to the relatively high establishment cost (42% of total cost) and the low yield in the first year of the project, the cultivation of Stevia appears to be loss- making under both scenarios. However, this loss is compensated for by the higher yields and net profits of the 2 nd and 3 rd years. Likewise, the cost-benefit analysis revealed that Stevia is economically sustainable under both scenarios. Table 3 presents the main outputs of cost-benefit analysis under scenario (b), i.e. when subsidies are not included in the gross income. In the last step, the effect of price variability, ceteris paribus , on Net Present 66 Rural Development