Determination of cost and profitability of dried fig production
(dried figs to buyers)
Introduction
The decision of conducting a market research into dried fig-based products is the result of the increased consumer attention to typical products, and the focus is on products closely linked with the regional food tradition and which, although representing a marginal niche market, could become an opportunity if proper strategies are worked out. At present, given the international scenario, the huge product diversification offered by Calabrian and Italian firms creates considerable job opportunities, while facing the s- tiff competition by the main producers of figs (fresh and dried) in the Mediterranean basin and above all by Turkey and Greece. In addition, since the eating habit in a given geographic area is strongly determined by the cultural heritage and the local tradition, this study in- tends to assess the demand segmentation ac- cording to the type of product and to highlight the distinctive attributes which mainly affect the consumer decision to buy the product, and the following approach, despite its limitations and the criticism it attracts (Romani, 2000), is of a qualitative kind with a primarily explorative objective (Calder, 1977). Indeed, it represents a preliminary contribution given that fig- based products have little been investigated so far, and dried figs is the main dried fruits products offered in e-store which is directly supplied from producer to the consumer market. Considering to the various kinds of dried figs in the markets and its different prices and because of different people interests with economical potential we tried to provide superior products with high quality and reasonable price in addition to available other examples for dear interested. Buy Dried figs in e- store is almost by internet but there is also the possibility to receiving order by phone. Reasonable price is generally due to fig garden ownership and direct supply and without intermediates. Hence our customers could have the most cost effective and economical buy of figs experience with high product quality. The main important note is that the attributed titles to variety of dried figs in e-store is contracted and does not comply with certain standards and only chosen for distinction between different types of products. If you intend to purchase figs, we recommend you to read description of each product samples. For understanding production process and packaging we suggest you to study the relevant articles on this website. Moisture content2 The dried figs shall have a moisture content: not exceeding 26.0 per cent for untreated dried figs 20.0 and not exceeding 40.0 percent for high moisture dried figs provided they are labelled as high moisture or equivalent denomination and treated with preservatives or preserved by other means (e.g.pasteurization) C. Classification In accordance with the defects allowed in section “IV. Provisions concerning tolerances”, dried figs are classified into the following classes: “Extra” Class, Class I and Class II. The defects allowed must not affect the general appearance of the produce as regards quality, keeping quality and presentation in the package.
Strategies for exploiting typical products represent a topic of great interest, in so far as proper marketing may make them better-known and promote their distribution. The “dried fig“, is a product deeply rooted in the local food tradition and with a high penetration index, although its market share has de- creased in favor of substitute sweets which provide some added advantage but not the same high qualitative characteristics to the consumer. The area selected for this study is Calabria, in South Italy, where the fig cultivation is predominant and the processing plants are highly concentrated, taking into account the strategic role of dried figs for the preservation of local re- sources and the promotion of regional development. This paper probes into the potential of this traditional product applying descriptive statistical analysis to a sample of consumers. The X2 test has allowed to define the independent relation between the main characteristics of this product for the consumer. It may be concluded that the consumer behavior is determined not only by family tradition or habit but also by the intrinsic characteristics (taste) of these products which are closely related to the local culture in terms of origin and production methods, and the main characteristics of the dried fig market Of the typical products of Calabria, figs and their by-products have a potentially important role in a strategy aimed at promoting local development, safeguarding and relaunching agriculture and handicraft, and the main characteristics of the dried fig market Of the typical products of Calabria, figs and their by-products have a potentially important role in a strategy aimed at promoting local development, safeguarding and relaunching agriculture and handicraft, and It has 15.67 % of total fig production in Turkey and has 13.71 % of total fig plantations as well. This is important for the producers, exporters and policy makers that which products has a comparative advantages. Trade is worthwhile if a country can produce goods more efficiently than the others. And also, producers are targeted to get maximum profit. Economic factors effect producers in the decision making process as well as natural and political factors in the area and in the country. Relating with the many researches which were done on fig economics imply that decision making is mostly based on the marketing conditions of product and the supply conditions of inputs, also the general cost items of dried fig production was classified as variable costs, fixed costs. The variable costs associated with crop production were all inputs that directly relate to the production and covered labor and machine costs, material costs (fertilizer, pesticide, wrapping, etc.) and transport costs. In this study, variable costs was calculated by using current input and labor wages.
dried fig production
Fixed costs are named as indirect costs, supplementary costs.
Some statistical characteristics of total and sample fig orchards
Fig orchards The number of sample fig
producer Fig orchards (decars) Average fig orchards
(decars) Standard deviation Min. fig orchards
(decars) Max. fig orchards
(decars) Constant of variability
Sample fig orchards 52 1 339 25.750 17.257 3 5 67.02
Total fig orchards 312 8 433 27.028 16.297 3 73 60.30
The cost of production that do not vary significantly with the volume of output. Fixed costs included interest of total variable costs, managerial costs, annual depreciation costs and land rent. Interest on total variable costs were calculated by charging a rate of 40 percent (The Agricultural Bank of Turkish Republic apply to short-term agricultural loans) on one-half of the total variable costs. Managerial costs were estimated to be 3 percent of the total variable costs. Annual depreciation cost was estimated using the straight-line method. Fig orchards are exempted from property tax and were not insured. In this study, total production costs were subtracted from total gross income to calculate net profit.
Marketing and pricing: Dried fig is marketed by the Sales Cooperatives, whole sellers, commission agents, companies and retailers in Turkey. Sales Cooperatives has a 6-7% market share and 3-4% of total export in overall Turkish economy. In the selected area, most of producers are the member of sales cooperative (TARIS) and generally, most of the product is marketed by this cooperative. The price of dried fig varied between 400 000 TL/kg and 800 000 TL/kg. But, the producers had the price of 629 000 TL per kg of dried fig. Gross income and net profit: Gross income of fig orchards is shown in Table . The gross income was found 117.2 million TL per decar and 5.8 million TL per tree. Gross income and costs were as follows in Fig. Net profit was taken after 8 years of tree age. Maximum net profit had been realized between 15-30 years old trees. Net profit is calculated by deduction from the total gross income. Concerning quality the purpose of the standard is to define the quality requirements of dried figs at the export control stage, after preparation and packaging. However, if applied at stages following export, the holder/seller shall be responsible for observing the requirements of the standard. The holder/seller of products not in conformity with this standard may not display such products or offer them for sale, or deliver or market, and te influence of fig production experience on adoption of organic fig agriculture; the third most important of the social factors is fig production experience. There is a positive relationship between fig production experience.
A. Minimum requirements:
In all classes, subject to the special provisions for each class and the tolerances allowed, the
dried figs must display the following characteristics:
• intact; the stem and the eye (ostiolum) ends of the figs may be cut off
• sound; produce affected by rotting or deterioration such as to make it unfit for human consumption is excluded
• clean, practically free of any visible foreign matter; however, naturally crystallized sugar is not considered foreign matter or a defect
• sufficiently developed
• free from living pests whatever their stage of development
• free from damage caused by pests, including the presence of dead insects and/or mites, their debris or excreta
• free from blemishes, areas of discolouration or spread stains in pronounced contrast
with the rest of the produce affecting in aggregate more than 5 per cent of the surface of the produce
• free from mould filaments visible to the naked eye
• free of fermentation
• free of abnormal external moisture
• free of foreign smell and/or taste except for a slight salty taste of sodium chloride
and or calcium chloride and a slight smell of preservatives/additives, including: packaging Dried figs must be packed in such a way so as to protect the produce properly. The materials used inside the package must be clean and of a quality such as to avoid causing any external or internal damage to the produce. The use of materials, particularly of paper or stamps bearing trade specifications, is allowed, provided the printing or labelling has been done with non-toxic ink or glue. Packages must be free of all foreign matter in accordance with the table of tolerances in section “IV. Provisions concerning tolerances”.Nature of the produce • “Dried figs”, which may be replaced (when appropriate) by high moisture or equivalent denomination • Name of the variety (optional) • Commercial type (optional). C. Origin of the produce • Country of origin and, optionally, district where grown or national, regional or local place name. D. Commercial specifications • Class • Size7 ; expressed in accordance with section III; when sized by diameter, the size or size range should be indicated • Crop year (optional) • “Naturally dried” (optional) • “Best before” followed by the date (optional).
dried fig production
Discussion
In this paper, we presented explanatory information for the production economics of dried fig along with the comparison of opportunities for the other producing countries. This is completely related with the comparative advantages between the countries, and the yield of a tree is 9 kg dried fig. This is 186 kg per decar. Farmers are getting 117,190,000 TL gross income per decar. This is the production value of the dried fig from a decar of orchard. Farmers are getting 36,900,000 TL net profit per decar of orchard, and at the time of study, 1 US $ was equvalant to 626,519 TL and 1 decar is equal 1000 m2 for making comparison. While according to this study, dried fig production may be more profitable. Collection of data on fig economics is useful to farmers for the knowledge about the production and market conditions of dried fig, and moisture content2 The dried figs shall have a moisture content: • not exceeding 26.0 per cent for untreated dried figs • above 26.0 and not exceeding 40.0 percent for high moisture dried figs provided they are labelled as high moisture or equivalent denomination and treated with preservatives or preserved by other means (e.g.pasteurization) Provisions concerning tolerances At all marketing stages, tolerances in respect of quality and size shall be allowed in each lot for produce not satisfying the minimum requirements of the class indicated. several variables connected with the structure of farms were included in the models as structural/economic variables. These are variables such as farm size, size of fig growing area, number of trees, total dried fig production, top quality dried fig production.
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