Sustainable model for the commercial production of pomegranate (Punica granatum L.) on family farms in Herzegovina

Sa？etak In recent years, the tendency of expanding the production of pomegranate in Herzegovina gave a new inputs to agricultural producers, especially the introduction of a system of financial support for the establishment of perennial crops. The goal of the policy of financial aid is creating commercial family farms. The question is what is the scope of commercial production? This means that there is one family member as permanent staff at the family farm. The aim of this study is to determine the economic and financial viability, and the financial feasibility of investment in growing pomegranate (lat; Punica granatum L.) in the agro-climatic conditions of Herzegovina, based on model calculations, and the two types of planting interval (4 x 3m and 3 x 5m). The paper presents financial performance indicators, which are: a complementary activity (no full-time employee) and self-employed (one full-time employee). For all models economic indicators were calculated such as: economy, productivity, profitability (production or accumulation), the profitability of the invested funds, and break-even point in pomegranate production. Model calculations are determined by production costs and revenues, which represent the input parameters for the calculation of production indicators. With model calculation of costs and revenues determined it was found that the sustainable financial result for the commercial production of pomegranate was only 2.0 ha of orchard