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Economic Analysis of Olive Oil Production Costs as Influenced by Farm Size in Syrian Coastal Region

Author

Listed:
  • Mansoor Maitah

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic,)

  • Ahmed Murjan

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic,)

  • Helena Rezbov

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic,)

  • Mustofa Jehar

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Czech Republic,)

Abstract

To characterize the olive oil production costs and determine the optimal size of olive oil farm, a total of 130 farmers were interviewed in the region. The obtained data was subjected to regression analysis to formulate a mathematical model suitable for predicting the optimal farm size. Olive oil variable and fixed production costs for the five groups of farm sizes at Lattakia regions were calculated. Descriptive economic analysis indicated that the lowest average cost for producing 1 kg of olive oil was 676.9 SP and the highest one was 917.7 SP. Also, the results indicated that the economically efficient farm size was 32.9 Dunum which represents only 29.1% of the current farm sizes in the region, therefore, decision makers should draw the land uses policies in their future plans, so that, to integrate land areas in such a way to approach the border of 32.9 Dunum.

Suggested Citation

  • Mansoor Maitah & Ahmed Murjan & Helena Rezbov & Mustofa Jehar, 2016. "Economic Analysis of Olive Oil Production Costs as Influenced by Farm Size in Syrian Coastal Region," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 154-162.
    • Handle: RePEc:eco:journ1:2016-01-20
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    References listed on IDEAS

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    More about this item

    Keywords

    Optimal Farms Size; Olive Oil; Economic Analyses; Variable and Fixed Production Costs;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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