An Economic Study for the Effect of Feddan Tenure on the Productive and Economic Efficiency of the Olive crop in North Sinai Governorate

Document Type : Original Article

Author

Department of Economics and Rural Development, Faculty of Environmental Agricultural Sciences, Arish University

Abstract

 
Despite the importance of the olive crop in North Sinai Governorate, this crop is characterized by its low production efficiency in light of the high age of some of its trees, and the presence of local varieties characterized by low productivity, and the main problem of research is limited to the decrease in the cultivated area of ​​the olive harvest from about 52.8 thousand feddans in 2013, To about 35.5 thousand feddans in 2017, a decrease of about 32.8%.
The research aims in general to study the effect of feddan holding on the productive and economic efficiency of olive farms in North Sinai Governorate, where the research used the descriptive analysis method to present the topics included in the research, in addition to the quantitative analysis method using some standard models such as multiple regression in its double logarithmic form. In estimating production functions, and in cubic forms in estimating cost functions, The study also relied mainly on primary data through a stratified random sample of 70 farms
It is estimated that the fruitful area of ​​the olive harvest increases annually by a statistically significant amount of about 2.6 thousand feddans, which represents about 9% of the annual average, and on the productive indicators of the research sample farms, the average number of trees per acre is about 56 trees, and the general average productivity of the tree is about 81 kg / year, and the general average productivity per feddan was about 4.6 tons / year. The general average age of olive trees in the research sample was about 28.3 years. The general average of the holder's share was about 3.9 feddans
It is also evident that the relative importance of the rent item is high among the fixed costs items, as well as the rented labor item, and organic fertilizer is among the variable costs items. It is evident that the first holding category farms (less than 3 feddans) achieved the highest rates of lost income, while the third holding category farms The lowest rates of lost income, which confirms the need for intensification and rationalization of the elements of production within this category. Regarding the profit margins, the results indicated that the general average of the net yield from the olive harvest amounted to about 14.4 thousand pounds, which is equivalent to about 3.1 pounds per kilogram of the crop. The general average of the return over the variable costs of the olive harvest was about 19.1 thousand pounds, which is equivalent to about 4.2 Pounds per kilogram of crop. The general average of the added value was about 17.9 thousand pounds
With regard to economic efficiency, the results indicated that every pound spent on fixed and variable production costs achieves an added value of about 1.36 pounds. It was found that the farms of the third holding category for the olive harvest were superior to their counterpart in the first and second categories in profit margins, as well as indicators of economic efficiency. This indicates the importance of expanding olive cultivation to take advantage of the capacity savings in the short and long term.
 

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