The Economic Estimation of Cost Functions in the Long Run and Scale Economies of Almonds in Homs Governorate

Khetam Idris*(1)

(1). Homs Research Center, General Commission for Scientific Agricultural Research (GCSAR), Damascus, Syria.

(*Corresponding author: Dr. Khetam Idris. E-Mail:

Received: 22/09/2017                                Accepted: 08/11/2017


The objective of this research is to study costs structure of almonds production in Homs governorate for the agricultural season 2015. To achieve the targets, the research depended on the econometric and statistical analysis of the primary data which was collected by interviews with the farmers of the studied region. The results of the cost structure analysis of the almonds production showed that the variable costs accounted approximately (66.11) % of total costs, while the fixed costs accounted (33.89) % of the total costs. The quantitative analysis showed that the optimal size of production that decreases the costs was (12.9) tons, but the optimum area was (49.54) dunum. The estimated elasticity of costs, amounted (1) at the optimum level of production, and the minimum price was calculated as (148673.08) sp/tons, and the function supply in long term was derived. A positive relationship between quantity supplied of almonds and price, when price is greater than (148673.08) sp/tons. Also, the results showed that the average cost decreases until it reaches to optimal level of production, while proportion economies of scale reach the maximum value 100% at optimum level of production average cost.

Key Words: Almonds, Economies of scale, Function supply, Function of production costs in long-term.

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