Factor Demand Analysis for Canola Production in Turkey

Abstract

The aim of this study is to investigate the situation of canola production which yields high quality and high yield vegetable oil seed in Trakya region, Turkey. For this purpose flexible cost function Translog model is utilized. Data was collected through surveys from 100 canola producers in Trakya region. The translog cost function was used to determine the relations among the production factors of canola. Price-demand, cross price-demand and Morishima technical substitution elasticities and Allen partial substitution elasticities were calculated by translog cost function. The highest input price-demand elasticity is equal to -2.06 for pesticide. Canola producers are more sensitive to pesticide prices than the other input prices. Also, the lowest input price-demand elasticity is equal to -0.16 as regards fertilizer cost. The highest Morishima elasticity is equal to 2.46 between the pesticide and labour cost.