The profitability of the saccharine beetroot vs dairy farming in the Azores

Abstract

In the Azores the production of sugar beet for industrial uses is exclusive of the island of S. Miguel where along the last century it has occupied areas up to 300 meters and slopes inferior to 7 %. The used area varied between 3000 hectares in the sixties and 200 hectares at present. The productivity is variable being situated between 20 and 90 tons per hectare. In the Azores the SINAGA is responsible for the transformation and distribution of the products of the sugar beet. Using a linear programming model to explain the behaviour of farmers in the Azores it was possible to conclude that the price of sugar beet influences the quantity produced of beetroot while the price of the milk has a reduced influence; and that the biggest effect in the increase of production is got by the increase of cultivable area and with technical support.