A Life Cycle Cost Analysis—Relevant Method Supporting the Decision to Establish an Apple Orchard in an Organic System

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

 

The reviewed article entitled “LCCA relevant method supporting the decision to establish an apple orchard in organic system” concerns a very current and important topic. It is also original because the LCCA method is rarely used in agriculture. The authors correctly justified the purposefulness of the research. Appropriate methods were used and research results were presented correctly.

The developed research tools can also be used to calculate the effectiveness of investments in Romanian farms. The study is therefore of an implementation nature.

A few minor comments:

- Data from Tables 1 and 2 can be presented in one Table (% presented next to Euro),

- please provide the amount of discount rate that was used.

- please provide a profit calculation scheme. What costs were included? It would be good to use the FADN methodology.

In principle, the text could be published in its current form.

Nevertheless, I encourage authors to consider making a few changes in the future:

1. Please consider using the FADN methodology to calculate farm income categories. This will allow the results to be compared with data collected under FADN. Of course, this methodology had to be slightly adjusted.

2. The division into: Capital costs (euro) and Operational costs (euro) is not very useful. Since capital costs constituted only 5% of total costs, they can basically be ignored. They do not constitute a significant cost. Maybe depreciation should also be taken into account?

3. Depreciation may be an important cost of the entire project. Within a period of 20 years, most of the machines will have to be replaced. These leads to big costs. Omitting depreciation artificially lowers costs. The calculations become less useful in practice.

Comments for author File: Comments.pdf

Author Response

Review Report Form 1

The reviewed article entitled “LCCA relevant method supporting the decision to establish an apple orchard in organic system” concerns a very current and important topic.

It is also original because the LCCA method is rarely used in agriculture.

The authors correctly justified the purposefulness of the research.

Appropriate methods were used and research results were presented correctly.

The developed research tools can also be used to calculate the effectiveness of investments in Romanian farms.

The study is therefore of an implementation nature.

Thank you very much for your positive review. Yes, the issue on effectiveness will be part of our further research.

 

A few minor comments:

 Point 1: Data from Tables 1 and 2 can be presented in one Table (% presented next to Euro).

Response 1: Thank you very much for the recommendations. As you suggested, there was definitely need to merge some tables. We modified them accordingly to your suggestion (please see the lines 409-410)

 

Point 2: Please provide the amount of discount rate that was used.

Response 2: Thank you for mentioning this missed indication in the paper. The discount rate used was 2.5%. ( please see this mention on the lines 336-337)

 Point 3: Please provide a profit calculation scheme. What costs were included?

Response 3: Thank you for your suggestions. To comply with your requirements regarding the cost calculation, we have added more details and comments on the profit calculation. (please see the lines 523-526, 556)

 Point 4: It would be good to use the FADN methodology.

Response 4: Thank you for underling this alternative data source. When we have framed the paper and made the conceptualisation, we definitely had a look on the FADN database. We agreed with you on the usefulness of this important database. Still, because the FADN variables represent averages harmonised at regional level, and do not cover all the agricultural holdings, but only those, which due to their size, could be considered commercial, we have considered that this data does not fit the actual LCC methodology of the paper. Moreover, in the FADN database, the information on the apple orchard in less presented. For example, in 2021, among the eight regions of the country, there is data only for the North-West region of Romania, for farms with the economic size of 2000- 8000 EUR and 8000-25000 EUR.

 

In principle, the text could be published in its current form.

Nevertheless, I encourage authors to consider making a few changes in the future:

 

Point 5: Please consider using the FADN methodology to calculate farm income categories. This will allow the results to be compared with data collected under FADN. Of course, this methodology had to be slightly adjusted.

Response 5: Thank you for your suggestions. Yes, for the income calculation, it will be better to use the FADN methodology, and yes, this will be further useful to compare similar results.

Point 6:  The division into: Capital costs (euro) and Operational costs (euro) is not very useful. Since capital costs constituted only 5% of total costs, they can basically be ignored. They do not constitute a significant cost. Maybe depreciation should also be considered?

Response 6: Thank you for your proposal. We have presentd the costs separately because there are different types of costs in the methodology we have chosen to use in this article. Capital costs are generally funded from long term financing sources and can change depending on the way the farm is established. On the other hand, operational costs can present hot points that must be highlighted and that constitute the basis of valuable comparisons. Concerning the depreciation, yes, definitely, this is an element that can be taken into consideration. We will approach it in our future research.

 

Point 7: Depreciation may be an important cost of the entire project. Within a period of 20 years, most of the machines will have to be replaced. These leads to big costs. Omitting depreciation artificially lowers costs. The calculations become less useful in practice.

Response 7: Thank you for this important advice. Indeed, depreciation is important approach and should be underlined in the LCCA. We will adjust the methodology and better indicate these missed elements in our future research.

Thank you very much for your time and expertise.

Please also see the attachment.

Author Response File: Author Response.docx

Reviewer 2 Report

Comments and Suggestions for Authors

I wish to convey my appreciation for your invaluable contributions to research. I have taken the liberty of offering some suggestions aimed at enhancing the quality of your work:

To fortify the introductory section, it is advisable to bolster the Life Cycle Cost Analysis description concerning the impact of apple orchards in organic systems. Delve into comprehensive research on the effects on locally produced apples and elucidate existing research gaps that necessitate clarification. Additionally, address prevailing trends in organic apple orchard research in your region and underscore its progress.

The literature review is deficient, indicating a need for a more robust theoretical foundation. Integrate the theories of the LCCA method and cost control to underpin the theoretical framework of your research. This augmentation will underscore the scientific rigor of your study and illuminate how apple orchard operations in Europe manage costs through LCCA.

The research methods section presently lacks crucial elements, including a thorough delineation of the research methods, sample analysis, and the theoretical underpinnings of sampling techniques. While you mentioned adopting an LCCA approach, it must be articulated clearly and in detail. Correcting this flaw is imperative to uphold the integrity of this section.

The incorporation of a "Discussion" section in the research results will facilitate comparative analysis with previous research, thereby augmenting the depth of the study. Additionally, certain paragraphs in your conclusion are somewhat vague. Clarity and precision can be achieved through revision. It is recommended to incorporate practical management strategies for cost control.

The absence of explicitly stated study limitations is apparent and warrants attention. I propose addressing these limitations in a manner that provides practical insights into managing organic apple orchards for sustainability.

I appreciate your commitment to academic excellence, and I eagerly anticipate observing the refinement and expansion of your research.

Comments for author File: Comments.pdf

Comments on the Quality of English Language

Minor editing of English language required

Author Response

Review Report Form 2

I wish to convey my appreciation for your invaluable contributions to research.

Thank you very much. I have highly appreciated the usefulness of your comments that will strengthen the quality of our work.

 

I have taken the liberty of offering some suggestions aimed at enhancing the quality of your work:

 Point 1: To fortify the introductory section, it is advisable to bolster the Life Cycle Cost Analysis description concerning the impact of apple orchards in organic systems.

Response 1: Thank you very much for your suggestion. We have adjusted the content in the introductory part and made a clearer research frame (please see especially on the lines 116-127)

 

Point 2: Delve into comprehensive research on the effects on locally produced apples and elucidate existing research gaps that necessitate clarification. Additionally, address prevailing trends in organic apple orchard research in your region and underscore its progress.

Response 2: Thank you very much for this remark. We also think that this part should be written properly in the manuscript. We have provided more details on these issues (please see especially on the lines 185-250)

 

Point 3: The literature review is deficient, indicating a need for a more robust theoretical foundation. Integrate the theories of the LCCA method and cost control to underpin the theoretical framework of your research. This augmentation will underscore the scientific rigor of your study and illuminate how apple orchard operations in Europe manage costs through LCCA.

Response 3: Thank you for this observation. We completely agree with you. We have made the appropriate modifications. (please see especially on the lines 267-277)

 

Point 4: The research methods section presently lacks crucial elements, including a thorough delineation of the research methods, sample analysis, and the theoretical underpinnings of sampling techniques.

Response 4: Thank you for this observation /advice. We have adjusted with the appropriate elements on the methodology that missed before (please see especially on the lines 328-339).

Point 5: While you mentioned adopting an LCCA approach, it must be articulated clearly and in detail. Correcting this flaw is imperative to uphold the integrity of this section.

Response 5: Thank you for your proposal. We also think that this part should be written properly in the manuscript and reconsidered the approach (please see especially on the lines 368-376, 282-290).

 

Point 6: The incorporation of a "Discussion" section in the research results will facilitate comparative analysis with previous research, thereby augmenting the depth of the study.

Response 6: Thank you very much for the recommendations. We have adjusted the content of the section in order to present appropriate comparisons and discussions on the paper findings. (please see especially on the lines 390-398, 509-517)

 

Point 7: Additionally, certain paragraphs in your conclusion are somewhat vague. Clarity and precision can be achieved through revision.

Response 7: Thank you for mentioning this missed indication in the paper. Indeed, the Conclusion part deserve a higher attention. We have clarified the findings of the paper (please see especially on the lines 563-571, 612-620).

 

Point 8: It is recommended to incorporate practical management strategies for cost control. The absence of explicitly stated study limitations is apparent and warrants attention.

Response 8: Thank you for this important advice. It is true that this kind of information does not have to missed. We have adjusted the content of the paper accordingly.  (please see especially on the lines 621-645)

I propose addressing these limitations in a manner that provides practical insights into managing organic apple orchards for sustainability.

I appreciate your commitment to academic excellence, and I eagerly anticipate observing the refinement and expansion of your research.

Thank you very much for your time and expertise.

Please also see the attachment.

Author Response File: Author Response.docx

Round 2

Reviewer 2 Report

Comments and Suggestions for Authors

Thanks to the author for the correction!

Comments on the Quality of English Language

Minor editing of English language required