GIRAY, F. H. and M. C. OMERCI KART, 2012. Economics of Rosa damascena in Isparta, Turkey. Bulg. J. Agric.Sci., 18: 658-667
Isparta province of Turkey is one of the two economically important growing centres of Rosa damascena in the world as the climatic needs permits economical production only in certain areas. Rosa damascena is also known as Isparta rose” because experimental studies for economical production elsewhere for oil rose have not produced desired quality and productivity.
This study was conducted through interviews with Cooperatives Union for Agricultural Sales of Rose Oil and Oily Seeds (GULBIRLIK) staff and producers as the main stakeholders, and academics and agricultural experts as they know the area and subject in Isparta in 2011. Results obtained from the study show that the most important challenge of the sector is providing a sustainable production in quantity and quality in parallel with market demand. Production and marketing problems at internal and external markets come from organisational problems in processing, lack of farmers’ interest in investment and establishing recording systems to keep data in production and processing. Other problems in the sector are regarding diversification, introduction/promotion and inefficient use of rose products; and problems regarding lack of advanced technologies, no support from state in rose productions and training problems of producers. It was observed that GULBIRLIK has not fulfilled most of the primary and support activities of the value chain and their activities have not been targeted to farmers anymore. It is because there are already surplus in the market, and they do not have problem to find row material. Rose oil industry has oligopolistic structure controlled by mainly GULBIRLIK and a few private companies. This is why “cost leadership” and/or “differentiation” which are main concerns of a value chain analysis for a competitive advantage are not paid enough attention by GULBIRLIK. However, it is thought that it has to change in the near future because young people in the rural areas are not seem so interested in rose plantation under the current conditions and it will decrease the production if they are not encouraged.
According to the results of farm analysis, 72.62 per cent of total cost is variable cost and the rest (27.38 per cent) is fix cost. Among the variable costs, maintenance accounts for 53.17 per cent and harvesting accounts for 46.82 per cent. Profitability rate was calculated 1.21 according to the same analysis.
There is a big difference between rose flower price and its products’ prices. Producers are not involved in rose oil business and this is why they cannot benefit from the value added. They are traditionally producing rose but do not deal with it as a real business. Who benefits from the value added created in the supply chain is rose oil industry and its buyers (perfume and cosmetic industry in abroad).