Returns to almond research in Iran: Application of economic surplus approach

Subject Areas : Agricultural Economics Research

علی Shahnavazi ¹ (عضو هیئت علمی مرکز تحقیقات کشاورزی و منابع طبیعی آذربایجان شرقی)

Received: 2013-12-07 Accepted : 2013-12-07 Published : 2013-05-22

Keywords: Agricultural research, benefit distribution, trade, parallel shift,

Abstract :

This study was conducted to determine rate of returns to almond research and their distribution with parallel and pivotal technology induced supply shifts. The results showed that 1% increase in almond yield with a parallel shift in supply curve created social benefits about annually 59.3 billion Rials of which 56.8 and 2.5 billion Rials went to Iranian almond producers and consumers respectively. Also, by decreasing the world price of almond, rest of the world almond producers faced with reduction in their profits by 39 billion Rials but at the same time their almond consumers got extra benefit about 39.03 billion Rials. Simultaneously a pivotal supply shift did not affect welfare position of rest of the world in comparison with the previous situation but reduced the domestic benefit to 29.7 billion Rials. The findings revealed that there was a considerable difference between economic effects of yield enhancing and cost reducing research efforts. Therefore, 1% cost reduction per hectare with a parallel shift produced 41.5 billion Rials benefit which was 17.1 billion Rials less than yield enhancing position. It is concluded that almond research was more beneficial to domestic producers compare to other groups.