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Full Length Research Paper
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Demand for
inputs in milk production: The case of Tokat province
Atilla Keskin*, Emine Ikikat Tumer and
Vedat Dagdemir
Department of Agricultural Economics, College of
Agriculture, Ataturk University, 25240, Erzurum, Turkey.
*Corresponding author. E-mail:
keskin.1@atauni.edu.tr. Tel: +90(442) 231 2592. Fax:
+90(442) 231 2678.
Accepted 19 April, 2010 |
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Abstract |
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The purpose of this study was to determine the gross margin and
price, cross and morishima technical substitution elasticities
for the cost inputs which play a key role in the milk produced
in enterprises making animal insurance (Group I) and not making
animal insurance (Group II), such as labour, feed, health and
energy in Turhal district of Tokat province in Turkey. Model
solutions were performed with Seemingly Unrelated Regression
(SUR), using Translog production function. In enterprises Group
I, own price elasticities of labour, feed, health and energy
were estimated from the inputs demand model as -0.344, -0.247,
-0.312 and -0.309, respectively. In enterprises Group II also
own price elasticities of labour, feed, health and energy were
estimated from the inputs demand model as -0.184, -0.197, -0.989
and -0.607, respectively. In addition, the gross margin
calculated for the enterprises Group I was found to be more than
three times as high as the ones calculated for the enterprises
of Group II.
Key words:
Translog function, cost, demand, milk, Turkey. |