Khetam Edrees ^(1)*

(1) Economic and Social Studies Department, Agriculture Research Center Homs, General Commission for Scientific and Agricultural Research (GCSAR)

(*Correspoding author: Dr. Khetam edrees. E-Mail: Khetamedrees83@yahoo.com).

                     Received: 3/12/2024                   Accepted: 6/4/2025

Abstract: 

The aim of this research is to estimate the structure of production costs and consequently to derive the economies of scale for the olive in Homs Government to the season (2020/2021)، (2021/2022), Estimated cost function for olive crops in the short and long run period by using cross-sectional data for a sample of producers olive for (380) Farmer, The sample was divided into three categories of owners (less than 20 Dunam) (20-40) Dunam (more than 40 Dunam) Was adopted by the Economic and statistical analysis and standardization of primary data, The results of the analysis showed that the variable costs were (59.14)% (56.4)% (55.48)% and costs fixed costs were (40.86)% (43.6)% (44.52)%  of the total overall costs for the first and second and third categories, respectively, and showed a significance differences between majority of economic indicators, as for estimating the total cost function it was that  cube model was the most suitable for the relationship adopted in the study, by its estimation in the short term find out the scales for economic efficiency and maximize profit are far  to their actual counterparts, for three categories, which requires the necessity of redirecting the resources used in production to allow for an increase in their efficiency, and the optimal of output size in long run was (838.33) tons  this output level requires an optimal area of (68.4) Dunam.and the economies efficiency indicating  (68.24)% of the sample farmers produce within the economic scale,  therefore We recommend expand the cultivated areas to reach the optimal size. and (31.76)% of the farms were operating within the Diseconomic zone, which requires them to reduce the cultivated area to reach the optimum size, and the number of farmes were exceeded the economic efficiency zone formed  (16.1)% of the sample farmers, research recommends a set of recommendations, as to educate farmers and support them to reach the optimum size of production, which achieves the highest economic efficiency and maximize their profits.

Keywords: costs of production, Cost functions, Optimal size, Economies of scale, area optimal.

Full paper in Arabic: PDF