Economic Analysis for Agricultural Costs of Peaches Production Grown in Nubaria Region

Abstract: ________________________________________________________________________________________________
• Egyptian Journal of Agricultural Economics, Egyptian Association of Agricultural Economics, Vol.(25), No.(4B), Cairo, Egypt, December 2015.
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In spite of the high yield achieved in cultivated peaches at Nubaria region, its cultivated area has progressively shrinking. Therefore, the main objectives of the current study are to estimate the costs functions for peaches in Nubaria District, and derive their technical and economic efficiency indicators. To accomplish these objectives, the study depended on descriptive, statistical analysis and econometric techniques. The study used secondary and primary data collected from a survey conducted during the 2014/2015 season for a sample of peach growers in the target site located at Nubaria region.
The study revealed the following:
- The total construction costs for one feddan of peaches grown inside and outside the Nile Valley reached about L.E. 16.2 and 18.2 thousand, respectively. Besides, the total costs per feddan of fruitful peaches grown inside and outside the Nile Valley amounted to about L.E. 15.1 and 15.3 thousand, respectively in 2013/2014.
- The variable costs of production for one feddan of peaches grown in the sample area reached about L.E. 15.68 thousand, representing about 74.4% of the total costs of production for peaches that reached L.E. 21.07 thousand. Moreover, harvesting cost account for about 41% of variable costs per feddan (41%).
- The marginal costs diminish with increased level of peach production to reach a minimum value of L.E 96 per feddan at the production level of 11.0 tons/feddan. Afterwards, the marginal costs increase with increased level of peach production to reach about L.E 346 per feddan at the production level of 13.5 tons/feddan. Besides, the average costs decrease with increased level of peach production to reach a minimum value of L.E 1202 per feddan at the highest level of production of 13.5 tons/feddan, reflecting a decreasing returns to scale (DRS).
- The level of production that minimizes the costs was 16.22 tons/feddan whereas, the level of production that maximizes profits was 19.45 tons/feddan. Besides, all peaches grown in the sample area did not achieve the optimal level of production that minimizes the costs, reflecting no returns to scale.
- Cost elasticity is estimated at 0.066. Moreover, the optimal area of peaches that achieve the optimum level of production reached about 7.7 feddans. Besides, the minimum price level at which peaches growers offer their production for sale reached about L.E 1116 per ton. Nevertheless, the producer surplus reached about 1582 L.E/ton.
- Price elasticity of supply was low at all price levels offered, reflecting weak response of peaches growers in the sample area to price changes due to the fact that peaches level of production can not be controlled.
Moreover, the research has also addressed the most important problems facing peaches growers in Nubaria area; the causes of these problems as well as ; and their implications. Besides, the study suggested some solutions to these problems and the bodies involved in undertaking these solutions through the farmers opinions.
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URL
Publication year 2015
Pages ص ص 1709: 1724
Availability location مكتبة معهد بحوث الاقتصاد الزراعي-7 ش نادى الصيد - مبنى الهيئات والشركات - الدقي- الجيزة (الدور الرابع)
Availability number
Organization Name
City القاهرة
serial title المجلة المصرية للاقتصاد الزراعي
Web Page
Author(s) from ARC
Agris Categories Production economics
AGROVOC
TERMS
Cost analysis. Economic analysis. Efficiency. Marginal costs. Opportunity costs. Production costs. Productivity. Profitability. Supply functions.
Proposed Agrovoc Cost Function (دالة التكاليف);Optimal Size of Production ( حجم الإنتاج الأمثل);
Publication Type Journal