Statistical Estimation of the Production and Cost Functions of Sugar Cane Crop in Minia Governorate

Document Type : Original Research

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Department of Agricultural Economics, Faculty of Agricultural, Minia University, Egypt

Abstract

The aim of this research was to study the productivity and economic indicators of sugar cane production in Egypt and the Minia Governorate. It also aimed to estimate the statistical functions of physical production in order to assess the economic efficiency of the main resources used in sugar cane production within the study sample. Additionally, statistical estimation of cost functions was conducted to obtain indicators of the economic efficiency of sugar cane production. The research yielded several results, among the most important of which were: through estimating the production function of sugar cane in the DeirMawas center, it was found that production factors account for approximately 72% of the variations in sugar cane production quantity in the study sample. The significance of the seedlings variable (Q2) and the nitrogen fertilizer variable (Q4) were established, as their coefficients were statistically significant with the dependent variable, while the significance of the other variables was not established. The production elasticity of the seedlings element (Q2) was approximately 0.507, which means that a 10% increase in the use of this production factor leads to a 5.07% increase in sugar cane production. The total elasticity of the function was approximately 1.45, indicating that these factors operate within the range of increasing returns to scale. The results also indicated that the most significant problems and obstacles faced by sugar cane producers in the Minia Governorate during the 2021/2022 agricultural season were primarily related to the high prices of fertilizers.

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