Economic Analysis of Thyme Production: A Case Study of Denizli Province, Turkey

Abstract

This study aims to determine the production costs and profitability of the enterprises producing thyme in Denizli province. Denizli province was chosen as the research area because Turkey was an important region for the production of thyme. The study’s data were determined by the stratified random sampling method and obtained by the survey method from 58 enterprises producing thyme in Pamukkale district of Denizli province. The production data set includes data for 2019. According to the research findings, the average production cost per decare was calculated to be 577.66 TRY. The share of variable costs was 59.67% within the production costs, and the share of fixed costs was 40.33%. It was determined that the yield per decare was 144.48 kg, and the unit sale price of thyme was 7.04 TRY. The gross production value (GPV) of thyme in the region was calculated as 686.45 TRY/da, gross profit 353.69 TRY/da, and net profit 128.79 TRY/da. The unit cost of thyme in the region was 3.86 TRY and its net profit was 3.18 TRY. The relative profit was determined as 1.23 unit. As a result of the research, as the enterprises’ size increases, the yield per decare, fixed, and variable costs decreased. The profitability ratios decreased by the size groups of the enterprises.

Keywords

• Thyme
• Economic analysis
• Production cost
• Profitability
• Denizli

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