Gross profit analysis in cotton production and effects of agricultural subsidies on product cost: A case study of hatay region-turkey

Semerci A., Çelik A.

Custos e Agronegocio, vol.14, no.1, pp.2-21, 2018 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 14 Issue: 1
  • Publication Date: 2018
  • Journal Name: Custos e Agronegocio
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.2-21
  • Keywords: Agriculture, Subsidy, Cotton, Cost, Gross Profit, Turkey
  • Çanakkale Onsekiz Mart University Affiliated: No


The aim of this study is to determine the gross profit in cotton production in Hatay province and to examine the effect of agricultural subsidies on cotton production cost. The primary data of the study were obtained from 136 agricultural enterprises by using the Simple Random Sampling Method. Income per unit area was 922 TL/da, and with subsidies this number could increase at a level of 44% (408 TL/da more). The cost per kg was found as 2,0 TL in small enterprises, and 2,03 TL in large enterprises. The highest cost element was energy (regardless of ground rent). Energy usage per unit was found as 170 TL.According to the economic process results of cotton production excluding the subsidies; the gross profit was 135,79 TL/decare, the net profit was -151,57 TL/ decare, and the relative profit was 0,86 TL. Including the subsidies; the gross profit was 543,76 TL/ decare, the net profit was 256,40 TL/ decare, and the relative profit was 1,24 TL. This result proves that cotton producers’ profits consist of subsidies. According to the research results, in order to continue cotton production in the research area; concrete steps should be taken to decrease energy costs used for irrigation, producer organizations should be more active about helping producers with obtaining input and marketing their products, and subsidy unit prices should be allocated at the same level as developed countries.