Factors effective on sugar beet supply in Fars province

Document Type : Scientific - Research

Authors

1 Assistant Professor of Islamic Azad University of Marvdasht Branch, Iran

2 MSc. student in Islamic Azad University of Marv Dasht Branch, Marvdasht, Iran.

3 Instructor of Islamic Azad University of Marvdasht Branch, Marvdasht, Iran.

4 Assistant Professor of Islamic Azad University of Jahrom Branch, Jahrom, Iran

Abstract

Sugar beet is an important crop from the point of production and consumption. In this case, Fars province is one of the largest producers inIran. The purpose of this study was to determine the effective factors on sugar beet supply. Accordingly, time series information of the crop was collected from 1990 to 2004 inFarsprovince and were analyzed through Nerlove partially adjustment model that is an established method to estimate supply function for agricultural products. Results indicated that the all variables were significant except sugar beet supply in the last year. Independent variables could explain 71 percent of variation of dependent variables (supply). Therefore, elasticities of function showed that elasticity of land (0.94) was more sensitive than others. According to elasticity of product price (0.52), guaranteed price policies are not just sufficient for increasing sugar beet supply. Consequently, government is able to support sugar beet producers by adapting supportive policies  at macro level and investing in sugar production.

Keywords