Cost and gross profit analysis of wheat production: a case study of the Hatay Province of Turkey


ÇELİK A. D.

CUSTOS E AGRONEGOCIO ON LINE, no.4, pp.149-169, 2023 (SCI-Expanded) identifier

  • Publication Type: Article / Article
  • Publication Date: 2023
  • Journal Name: CUSTOS E AGRONEGOCIO ON LINE
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus, CAB Abstracts, Veterinary Science Database
  • Page Numbers: pp.149-169
  • Hatay Mustafa Kemal University Affiliated: Yes

Abstract

This research was carried out in the Hatay province which is one of the most important agricultural production areas of Turkey. According to the data obtained from 104 agricultural enterprises, the average wheat yield was 555 kg/da, and the usage amounts of inputs in wheat production were as follows; 28.97 kg/da of seed, 345.55 cc/da of pesticides (herbicides, fungicides, insecticides), 72.34 kg/da of fertilizer, 16.14 lt/da of diesel fuel, 1.34 h/da of machine power, 1.42 h/da of labor force, and 51.54 KW/da of electricity. In addition to these, 2.45 daily workers were working per enterprise, and the average number of days worked was 7.9 days. The gross production value per unit area was found as 3640.80 TL/da, but with subsidies this value could increase 6.22% (226.5 TL/da). In the research area, the total production costs were determined as 2096.69 TL/da, and the cost per unit was revealed as 3.78 TL/kg. Among the cost factors, fertilizer (26.44%) was the highest cost item in wheat production (excluding land rent). Fertilizer cost per unit area was found as 554.34 TL/da. Other important cost items respectively were; seed cost at 148.52 TL/da (7.08%), diesel fuel cost at 140.63 TL/da (6.72%), harvest cost at 111.19 TL/da (5.30%), and pesticide cost at 87,43 TL/da (4.17%). According to the economic analysis results; when excluding subsidies, the gross profit per unit area was 2641.40 TL/da, the net profit was 1544.11 TL/da, and the relative profit was 1.74. When subsidies were included; the gross profit was 2687.90 TL/da, the net profit was 1770.61 TL/da, and the relative profit was 1.84. One of the most important findings of the research was that due to the high input prices, producers try to reduce their costs by reducing the use of fertilizer, the number of soil cultivation, and accordingly, the use of machine power. Therefore, there was a decrease in wheat yield comparing to previous years. As a result of the research, in order to make wheat production more profitable and to increase the production amount, concrete steps should be taken to especially reduce fertilizer and energy costs. Producer organizations should take an active role in input supply, and unit prices of subsidies should be revised to be at the level of developed countries.