Investment management in the cultivation of lavender for the production of the essential oil

Abstract

The group of authors purposesin this article to analyze the benchmarking of budget in the lavender culture. Group of authors developed the economic-financial budgets for the cultivation of lavender, which can be considered an important source of information for benchmarking. The authors used data from the primary records in agricultural holdings, which practice lavender cultivation. The analysis methods used in the article are benchmarking and budgeting of production for comparing the data and economic efficiency. Based on the research and analysis carried out, strategic conclusions were formulated for the sustainable development of the lavender branch, necessary for the implementation by the actors of the value chains in the sector. The final conclusion of the group of authors boils down to: lavender culture is highly profitable, the production processes are fully mechanized and it is a payment with increased resistance to drought (in dry years the quality of the essential oil is higher), which is extremely important in conditions of climate resilience and it is recommended to be practiced for small farmers to diversify incomes in rural areas.