Comparative Analysis of Cost and Profitability in the Irrigated and Non-irrigated Chestnut Farming: Case of Aydin Province, Turkey

Abstract

The objective of this paper was to examine comparatively the cost and profitability of chestnut farming in the irrigated and non-irrigated farms in Aydin Province. The data of this study was collected with face to face surveys from 99 chestnut farms using the stratified sampling method. Partial budgeting analysis was applied to 27 irrigated and 72 non-irrigated farms in order to explain the cost and profitability of chestnut production. The results of the study highlighted that the average production cost of chestnut per kilogram was US $1.26 in the irrigated farms, whereas it was US $1.21 in the non-irrigated farms. The chief element of cost was labor, and the share of labor in the total cost was 70.77% in the irrigated farms and 69.24% in the non-irrigated ones. The gross production value per decare and per tree were US $422.62 and US $47.01 in the irrigated farms, while they were US $270.83 and US $39.77 in the non-irrigated farms, respectively. In the irrigated farms, the gross profit and net profit were US $259.08 and US $158.14, whereas in the non-irrigated farms, they were US $184.50 and US $95.92, respectively. The rate of return was 1.60 in the irrigated farms and 1.55 in the non-irrigated ones. The results of the study confirmed that the chestnut production cost of the farms could be lessened via utilization of irrigation and the effective use of inputs particularly labor.