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Economic Effectiveness Analyses of Potato Farms: the Case of Erzurum Province, Turkey

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Economic Effectiveness Analyses of Potato Farms: the Case of Erzurum Province, Turkey Scientific Research and Essays Vol. 5(17), pp. 2560-2566, 4 September, 2010 Available online at http://www.academicjournals.org/SRE ISSN 1992-2248 ©2010 Academic Journals Full Length Research Paper Economic effectiveness analyses of potato farms: The case of Erzurum Province, Turkey Yavuz Topcu*, Ahmet Semih Uzundumlu and Irfan Okan Guler Department of Agricultural Economics, College of Agriculture, Ataturk University, 25240-Erzurum, Turkey. Accepted 11 August, 2010 The potato (Solanum tuberosum) used as a versatile agricultural product and grown around the world under a wide range of climatic and soil conditions is one of the most important staple food crops in Turkey for local consumption, processing and export. Although its alternative usage fields increased significantly, potato production has continuously decreased in the last years since there are major problems stemming from the lack of the effective usage of the production factors. In order to solve these problems, the production factors should be analyzed. The aim of this study is to analyze economic effectiveness for potato farms in Pasinler district, Erzurum by considering the relationship between both input and output. To this end, data collected from a face-to-face questionnaire carried out in 135 potato farms in Pasinler was used for multiple regression and marginal analyses in SHAZAM statistical program. The results of this study showed that the potato growers should increase all production factors (except for the LP and HP) at an increasing rate so that they could achieve a profitable and effective production, and provide the increasing return to scale by considering the marginal analyses and the effective coefficients of the factors in potato production. Key words: Efficient coefficients, farm, marginal analyses, multiple regression analysis, potato. INTRODUCTION The potato (Solanum tuberosum) is of ancient origin. It The majority of the potato production is basically for has originated and was first domesticated in South human consumption (about 60%); the rest is used as America, and then initially introduced in Spain and the animal feed, important raw material for industry, and seed UK, and gradually in part of Asia and North America. It tubers. Although commonly consumed fresh, tubers are has spread around the world over the past 400 years, versatile and can be used when frozen, fried or and gained recognition as inexpensive and nutritive food dehydrated among other derived foods. In addition to in the eighteenth century (Lutaladio and Castaldi, 2009). starch, tubers provide significant amounts of protein, It is now one of the world's most important staple food dietary fiber, vitamins, minerals and trace elements crops with 323.5 million tones fresh-weight produced in (Sonnewald, 2001; Bradshaw and Ramsay, 2009). The 2007 from 18.8 million hectares in 149 countries (FAO, nutritional value of potato tubers is the key driver for this 2010), ranging fourth after wheat, rice and maize in terms growth, along with the economic benefits that potato of cultivation area and total yield under a wide range of cultivation can bring in developing the economy. The climatic and soil conditions. increasing sophistication in the market for fresh potatoes The importance of the potato, on the other hand, is as well as the increasing consumption of processed increasingly being recognized since it produces more dry potato products strongly contribute in maintaining the matter and protein per hectare than the major cereal crops. interest of innovation and yield improvement in potatoes growing in developed countries as well (Buono et al., 2009). Due to versatile usage of the potato crop, there is a *Corresponding author. E-mail: [email protected]. Tel: (90) strong all-year round demand for potato crop. There is, 4422311393. therefore, a need for sustainable increases in potato Topcu et al. 2561 Table 1. Potato production, consumption, yield and consumption per capita. Production Consumption Yield Consumption Countries (million tones) (million tones) (tone da-1) (kg)*per capita 2001 2007 2001 2007 2001 2007 2001 2007 China 64.60 72.04 64.52 71.70 1.37 1.46 50.25 48.25 The Russian Federation 34.97 36.78 35.04 36.92 1.09 1.29 239.90 260.10 India 22.24 28.60 22.23 28.52 1.84 1.64 20.97 24.49 The USA 19.86 20.37 19.88 20.58 4.02 4.46 68.30 66.67 EU 73.97 63.78 73.70 63.40 2.39 2.85 152.66 128.48 Turkey 5.00 4.25 4.90 4.31 2.50 2.76 72.60 55.21 Erzurum 0.12 0.08 - - 1.93 1.77 - - Pasinler 0.06 0.05 - - 2.20 1.80 - - The World 311.08 323.54 311.27 323.35 1.58 1.72 54.25 48.47 Source: (FAO, 2010). *Annual potato consumption per capita were calculated as (production + import–export)/population from FAO data. production under environmental changes and technical plant and horticultural production in the west, north and improvements to meet increasing demands for food from southern parts of Turkey, and animal husbandry and human population growth. The world potato production fodder crops based on animal feed production in the east has been undergoing major changes. In the early 1990s, of Turkey, have provided an important contribution to most potatoes were grown and consumed in Europe, national economy. Especially, potato after wheat is one of North America and the Russian Federation. Since then, the most important crops grown in Erzurum located in the there has been a dramatic increase in potato production north eastern part of Turkey for local consumption, and demand in Asia, Africa and Latin America, where export, farming and processing. Potato production in output rose from less than 30 million tones in the early Erzurum is to meet 1.8% of Turkey’s potato production in 1960s to more than 165 million tones in 2007 (FAO, 2007, and Erzurum following Nigde, Nevsehir, 2010). Potato production has continuously increased over Afyonkarahisar, Izmir, Bolu, Konya and Trabzon is the the past years in both developed and developing eighth province of Turkey with regard to the potato countries much faster than other tuber or root crops due production amount (TUIK, 2010). to technical advances in potato breeding, genetic In contrary to the potato production in Erzurum, its con- modification, seed production, growing and storage, sumption has considerably increased in the recent years, processing, starch production and molecular farming and potato supply is not to meet the demand, further- (Lutaladio and Castaldi, 2009). more, this gap has gradually increased. It, therefore, has According to FAO data, for the first time, the developing imported the fresh potato from other potato producer world's potato production with 160.02 million tones provinces. The potato production in Erzurum should be exceeded the developed countries potato production with increased to meet demand surplus. The best way to 159.97 million tones in 2005, and Asia and Europe are increase the potato production is to improve its yield in the world's major potato producing regions, accounting regions having the most potato harvest including districts for more than 80% of the world production in 2007. For such as Pasinler, Oltu, Senkaya, Erzurum Center, Tortum example, China, the Russian Federation, India and USA and Koprukoy. Particularly, Pasinler district1 in Erzurum are the world’s four largest potato producer countries potato production is located in the first line for potato produced that almost half of the world potato in 2007, the production with about 71% and its harvested area with potato production increase by 12% between 2001 and 69%, while the annual average potato yield with 1.8 tones 2007, and Turkey was to meet just about 1.3% of that in da-1 of Pasinler. Moreover, this is higher than that with 1.7 2007 by decreasing 15% of its potato production in this tones da-1 of Erzurum, but is lower than that with 2.8 period (Table 1). Comparing the figures with regard to tones da-1 of Turkey in 2007 (TUIK, 2010; EPDAD, 2010). potato yield and consumption per capita, on the other Potato farms in Pasinler have more important hand, it can be stated that potato yield and consumption advantage than other districts, which has taken into per capita in Turkey are lower than developed countries consideration the annual production and yield amounts such as the USA and EU countries, but higher than that are not enough as compared with leader potato developing countries such as India (Table 1). producers in Turkey. In order to improve the farm Because of agro-ecological zones in Turkey, there are productivity, it should be determined the optimum factor very important differences among agricultural regions on account of farming planning and management. Generally, 1The district is located in the eastern part of Erzurum, Turkey. 2562 Sci. Res. Essays usages for potato production by taking into consideration NS 2 n = marginal analyses and production effectiveness based on (N −1)D + S 2 the relationships between input and output. 2 In order to optimize potato productivity and quality, Where: n: Required sample size; : Precision factor ≈ E ’ ; : D ∆ N various aspects of production chain should be considered « t in an integrated way. These aspects include a number of Number of target population (1500); E : Precision (X − x)(9.6); factors such as potato variety, potato seed quality and 2 : Population variance (3550); t Reliability coefficient (1.96 in the size, soil quality, moisture, planter operation, plant stand, S nutrition, irrigation management, fertilization technique, case of 95% reliability) forecasting of pests and diseases, determination of The permissible error sample size was defined to be 5% for 95% proper planting and harvest dates and farm management.
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