Determining the Optimal Combination of Inputs in Onion Production in East Azerbaijan Province Using DEA Approach

Document Type : Original Article

Author

Assistant Professor of Economic, Social and Extension Research Department, East Azarbaijan Agricultural and Natural Recourses Research and Education Center, AREEO, Tabriz, Iran

Abstract

This study was conducted to identify ways to improve the allocation of inputs in onion production of East Azerbaijan province using DEA approach. After determining reference regions for East Azerbaijan province, the inputs usage was compared among the similar provinces. The results showed that the use of all inputs would be decreased except phosphate and nitrogen fertilizers in cost minimization approach under constant return to scale assumption, so the profit increase 23 percent. In revenue maximization model, it was possible to increase the production from 44 to 61 ton and the benefit could be increased to 96 million Rials. It was expected that in profit maximization model, the use of seed, pesticide and fungicide decrease and at the same time the use of manure, herbicide, nitrogen, potassium and phosphate must be increased. In addition, the results of cost minimization model under variable return to scale assumption showed that there is a possibility of profit reduction. In the maximizing approach of revenue, production could be increased to 51 tons per hectare, resulting in a profit of 61 to 75 million Rials. The findings indicated that the profit maximization approach could increase the usage of seed, manure, herbicide, nitrogen, potassium and also could decrease the usage of pesticide, fungicide, phosphate fertilizer and labour, so profit could increase up to 101 percent.

Keywords

References

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