Gross profit analysis in olive oil production: a case study of Hatay Region-Turkey


CUSTOS E AGRONEGOCIO ON LINE, vol.14, no.2, pp.237-259, 2018 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 14 Issue: 2
  • Publication Date: 2018
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.237-259
  • Keywords: Agriculture, Oil Olive, Subsidy, Cost, Turkey
  • Çanakkale Onsekiz Mart University Affiliated: Yes


Turkey, due to its location in the Mediterranean basin, is one of the leading countries of the world in terms of both table olive / oil olive and olive oil production. Located in the East Mediterranean zone of the country's south, the Hatay province has succeeded in being one of the leading cities of Turkey with regards to the production and trade as a result of the consideration it has given on the establishment of new olive groves in recent years. According to the TSI data, Hatay province supplies 6.83% of oil olive production area and 8,98% of the olive oil production. The share of the total farmland in the province of olive fields is 19%. According to 2016 data, whereas in terms of olive oil support 72 million TL is paid to the manufacturers in Turkey, the nationwide share of the Hatay province is 11,23%. As of the same year, within the variation support in the province in 2016, the share of the support for olive oil has been 4,36%. Olives and olive oil trade have brought a distinct vitality in the economy of the province. According to 2014 data, 11,74% out of Turkey's total olive and olive oil export has been achieved in Hatay province. In this study, the economic analysis of olive oil production has been made in irriguous and dry conditions in Hatay province. In the study, according to the 2016 data, while gross profit in oil olive produced in irriguous conditions is 711,30 ETL/da, this value is estimated as 593,32 TL/da in dry conditions. In the study, it has been determined that the supports given for the oil olive production has a significant role on both increasing the gross profit and decreasing the product costs. Whereas the gross profit value showed an increase of 21,40% in enterprises producing oil olive in dry conditions in the province of Hatay when variance support and fuel-fertilizer support were added, this increase was able to reach a level of 22,35% in irriguous conditions. In the condition where the other supports (when organic production is favoured instead of good farming practices -rehabilitation of traditional olive gardens and biological -biotechnical combat supports), given by the MFAL, are added to these supports, it is could be seen that the the increase in gross profit values provided by the oil olive production in irriguous and dry conditions could reach the level 50%. In order to increase the level of income of the producers in the research area; it is needed that the use of modern cultivation techniques should be concentrated and manufacturers should continually be supported financially in this way, new varieties should be developed which will adopt easily to the province conditions that will indicate at a higher level of reaction to especially irrigation and fertilizer inputs and province specific kinds of olives should be protected.