Economics of Rainfed Olive Production in Homs Governorate

Moammar Dayoub*(1) Khetam Edrees(2) and Nisreen Edrees(2)

(1). Salamieh Agricultural Research Centre, General Commission for scientific Agricultural Research (GCSAR), Damascus, Syria.

(2). Socio Economic Studies Directorate, Homs Agricultural Research Center, GCSR, Damascus, Syria.

(*Corresponding author: Dr. Moammar Dayoub. E-Mail:

Received: 20/07/2016                     Accepted: 20/08/2016


The main objective of this research was the descriptive economic and econometric analysis of cost functions of rain fed olive in Homs Governorate/Syria. In addition, this study aimed to determent the economic efficiency that maximize profit. Primary data was collected in 2012 and 2013 through interviews with the farmers. The farms were divided according to stability zones to zone 1 and 2. According to the descriptive economic analysis of costs and returns of olive production, the highest average of production cost per kilogram of olives was (120.98) SP for zone (1) in 2013, and the lowest value was (76.76) SP for zone (2) in 2012. In general, an obvious increment in production costs was appeared; this is due to the increase in production supplies prices, and labor wages in 2013 when compare with 2012. Also, a significant increase in the cost of olive oil production in 2013 as compared with 2012. The olive oil cost of 1 Kg in zones 1 and 2 for the season 2012 were (436.58, 388.52), and (528.66, 522.83) in 2013, respectively, this is due to the influence of high temperature, and the fall of flowers, which led to a significant decrease in fruition, in addition to other reasons because of the crisis, included the rising in oil production costs, starting from labor wages, ending with the wages of wills and transportation. Using the econometric models of cost functions, the economic efficient size was computed. The optimal production, and area in zone 1 were in 2011 (3533.33 kg, 3.00 Ha), respectively, while in 2013 were (4021.74 kg 4.4 Ha), but in zone (2) the optimal production, and area were (3783.78 kg, 3.59 Ha) in 2012, while in 2013 were (4500 kg, 3.93 Ha), respectively. This increment in production, and area in 2013 due to the alternate fruit bearing phenomenon in olive trees, besides the increase in production costs. The study concluded the need to support production requirements, especially for rainfed olive, because it is considered an important income source for the families of the region, and contribute to the stability and sustainability of agricultural production.

Keywords: Econometric analysis, Costs of olive production, Rainfed, Economic efficiency.

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