The efficiency analysis of oil-bearing rose farming enterprises: Evidence from Isparta province

Turkey is the world's leading country realizing 55% of the world oil-bearing rose production. Isparta province, where widespread oil-bearing rose cultivation, meets more than 80% of country's production. This study aims to investigate the production inefficiency of oil bearing rose cultivation enterprises in Isparta province and to reveal the factors that cause the inefficiency of the enterprises. In this direction, the study, which covers the production period 2021-2022, used the data obtained through the survey method from 169 oil-bearing rose enterprises seven districts and villages in these districts where oil-bearing rose cultivation is intensively practiced in Isparta province. Stochastic Cobb-Douglas production frontier model was established to determine the production inefficiency of the enterprises. According to the model estimation results, the average production inefficiency of the enterprises was calculated 0.21. It was found that 50.3% of the difference between the observed production of the enterprises and the maximum production they can achieve is the due to technical and allocation inefficiencies, while the remaining part is due to unexpected random factors. This result emphasizes the importance of technical and allocative inefficiencies in farms. As a result of production inefficiency, the average loss of yield per decare of oil-bearing rose farm was 95.10 kg. Among the variables included in the inefficiency model established to explain the production inefficiency in the enterprises, the age of the enterprise manager, the average age of the trees in the oil-bearing rose land, the irrigation status of the oil-bearing rose land, the participation in extension activities, whether the enterprise includes another crop other than oil-bearing rose, and the altitude of the oil-bearing rose land were found to be statistically significant. Accordingly, it was found that the age of enterprise manager, having irrigated fields, and participating in extension activities decreased inefficiency. On the other side, the trees in the land were outside the economic yield age, cultivating crops other than oil-bearing rose on the farm, and the altitude level of the oil-bearing rose land increased inefficiency.