Economic Analysis of Oriental Tobacco in Turkey

S. GULER GUMUS
Ege University, Faculty of Agriculture, Department of Agricultural Economics, 35100 Bornova-Izmir,Turkey

Abstract

GULER GUMUS, S., 2008. Economic analysis of oriental tobacco in Turkey. Bulg. J. Agric. Sci., 14: 470-475

Turkey needs tobacco production and price policies with carefully determined objectives and tools that are never changing by political tendencies and all decisions taken and to be taken should be applied under no pressure as the policies point out. The purposes of this paper were performing an economic analysis of oriental tobacco or “Turkish Tobacco” production under the contract farming, and provide a guide for oriental tobacco producers budgeting specific cost categories and estimating a net return the production in Turkey to evaluate tobacco production and price policy. Cost, yield and price data were analyzed to determine the profitability. Net return obtained from tobacco growing 0.49 $/kg. The paper finds that tobacco is lowly profitable cash crop for growers. Many commercial growers have diversified sources of income, and most small hold tobacco growers only small amount of tobacco, and grow other crops (olive and cereals), specifically to lessen their dependence on tobacco.

Key words: tobacco, oriental tobacco, Turkish tobacco, cost analysis

See the article as a PDF