Economic analysis of processing tomato growing: the case study of Torbali, west Turkey

Abstract

The cost, yield, and price data from the processing of tomato grown in Torbali-Izmir, Turkey, were analyzed to determine the profitability of contracted and non-contracted tomato growing. According to the results of this study, farms growing tomatoes with and without contracts, respectively, utilized an average tomato production area of 5.55 and 2.48 ha; the total tomato production was 75,915 and 71,971 kg haE-1; the average cost of tomato production was 3,510 and 3,245 US$ haE-1; the gross margin was 2,829 and 3,575 US$ haE-1, and net profits were 1,804 and 2,513 US$ haE-1. It was also determined that production and market risks both affect the profitability and economic viability of tomato growing. Farmers should gather all the economic data about the tomato production and market conditions before making production decisions.