Economic Analysis of Production Costs Irrigated Olive Oil in Bani Waleed Region

Document Type : Original Article

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Department of Agricultural Economics - Faculty of Agriculture - University of Tripoli

Abstract

The main objective of this study was the descriptive economic and econometric analysis of costs of production of irrigated olive oil in Bani Waleed region, and determining some economic and profitability indicators, such as  the profit maximizing size, economically efficient size, the profit margin and net profit per hectare of irrigated olive oil. The study relied on preliminary data from the questionnaire results and interviews, which includes 25 farms, which cultivates as a major activity in different areas (1-6 ha) distributed over different agricultural valleys in Bani Waleed (Ghibin, Suf El Gine, El Mardoum, Shmeikh, Harqous) during the 2016 season.

The total costs of the hectare was about (2876.7 LD), the fixed costs ratio was about 49.05%, the variable costs ratio was about 50.95%, and the labor cost was the largest component of the production costs, estimated at 47.7% of the total cost, Fertilizers accounted for 12.89% of  total costs  per hectare. It was found that the average actual production of the irrigated olive oil in Bani Waleed region of ( 1188.6 kg)  which lees than from the profit maximizing size (4552.06 kg), and economically efficient size (3399.1 kg). The profit margin was estimated at 3225.2 LD/h , and the net profit was 1814.3 LD per hectare.

 

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