Agricultural Economics
Z. Shokoohi; M.H. Trazkar; F. Nasrnia
Abstract
Introduction: Studying Iran’s poultry sector shows that the feed costs account for a large portion of the total cost of poultry production. Besides, corn as the feed for poultry had the largest share of total feed cost. According to the governmental trade policy and exchange rate variability, corn ...
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Introduction: Studying Iran’s poultry sector shows that the feed costs account for a large portion of the total cost of poultry production. Besides, corn as the feed for poultry had the largest share of total feed cost. According to the governmental trade policy and exchange rate variability, corn prices fluctuate in Iranian market. However, the demand for chicken meat has increased in recent years. This is due to the relative increase in the price of red meat compared to chicken, as well as promoting the health benefits of consuming white meat (chicken and fish). However, the chicken meat market has been accompanied by price shocks and price increases, and these fluctuations are one of the main challenges of poultry industry in the country. Examining the cost of production inputs in the Iranian poultry industry shows that poultry feed costs, especially corn, accounts for the largest share.Materials and Methods: In this study, the smooth transition autoregressive (STAR) model was used to investigate the threshold effect of corn price, as one of the most important inputs of poultry feed, on the price of chicken meat. This method is a nonlinear approach of time series analysis which evaluates the asymmetric changes in the pattern parameters with a smooth transition by considering one or more thresholds. Nonetheless, this model allows several regimes and the transition among them to examine the relationship among research variables which is more realistic than that obtained using the traditional linear regression model. To estimate the nonlinear STAR model, monthly data of corn and chicken meat prices from 1993 to 2020 were collected from the State Livestock Affairs Logistics (S.L.A.L). Several steps were performed to estimate the STAR model. First, data stationary was tested using the seasonal Hylleberg, Engle, Granger, and Yoo (HEGY) unit root test. After investigating the order of variables, the optimal number of lags was determined using the Akaike information criterion (AIC). Smooth threshold linearity versus nonlinearity test was then performed to ensure that the STAR method was appropriate. Then, the applicable forms of transfer function and transfer variable were determined. Finally, after estimating the model, the hypotheses of normality and non-autocorrelation of residuals were tested.Results and Discussion: HEGY seasonal unit root test indicates that the logarithms of corn and chicken meat prices do not have seasonal and non-seasonal unit roots, and these data are stationary. Then, three lags are selected as the optimal number of lags using the AIC, and the first lag of chicken meat logarithm is determined as the best transition variable based on the minimum sum of squares of error. Besides, nonlinearity tests suggest that the Exponential Smooth Transition Auto-regression (ESTAR) specification with two-regime switching fits the data better. The empirical results imply that the real threshold value of chicken meat price is statistically significant and equal to 1028.6 Rails. According to the consumer price index in 2020, the nominal threshold value of chicken meat price is 28800 Rails. Therefore, 1% increase in the price of corn will increase chicken meat price by 0.4% and 1.2% in the lower and upper regimes, respectively, after three months.Conclusion: In this study, the threshold effect of corn price as one of the most important inputs of poultry feed on the price of chicken meat was investigated using Smooth Transition Regression (STR) model. This study's results show that the effect of corn price on meat price is nonlinear and asymmetric. The asymmetry feature is revealed in three aspects: lagged impact, direct impact, and the strength of influence. Based on the results, it is suggested that the government adopt appropriate policies to establish the stability in corn price as one of the most important inputs of poultry industry via foreign exchange and trade policies. Thus, fluctuations in the price of chicken meat can be prevented. It is also expected that if the chicken meat price increases in one period, the price in the next period will also be affected by the relationship between the first lagged chicken meat prices and its current period prices in both regimes. Therefore, the government should prevent fluctuations in chicken meat prices to ensure food security. In this regard, in addition to implementing pricing policies affecting the price of poultry industry inputs, based on the results of the previous section, controlling the price of corn is the most important factor.
F. Nasrnia; M. Zibaei
Abstract
Introduction: The water crisis is one of the main challenges of the current century. Drought is one of the most costly natural disasters in Iran. During the past 40 years, our country has experienced 27 droughts. It seems a necessary step to deal with the consequences of drought and reducing its effects, ...
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Introduction: The water crisis is one of the main challenges of the current century. Drought is one of the most costly natural disasters in Iran. During the past 40 years, our country has experienced 27 droughts. It seems a necessary step to deal with the consequences of drought and reducing its effects, thorough understanding and knowledge of each region's vulnerability, which is neglected in our country, unfortunately. It is necessary to study the influencing factors in determining vulnerability and makes it visible. On the other hand, due to the continuing drought conditions intensified in recent years and its impact on different economic sectors, especially the agricultural sector in the country need to assess vulnerability to drought in the country will double.
Materials and Methods: Fuzzy AHP method based on the concept of fuzzy sets introduced by LotfeiZadeh. There are several ways to use fuzzy theory and hierarchical structure proposed merger. Cheng in 1996 suggested a new approach to solve problems using Fuzzy AHP calibration values within the membership and (TFNs). Extent Analysis Method proposed by Chang is one of the common ways to solve problems. In this study, we developed a method based on fuzzy analytic hierarchy Chang that has been developed by Zhu et al. and Van Alhag.
Results and Discussion: Vulnerability to drought conditions is determined by factors such as economic, social and physical sensitivity to the damaging effects of drought increases. This study is designed in the hierarchy. The purpose of this study is assessing the vulnerability of the country to drought. Vulnerability of this study includes economic vulnerability, social vulnerability and physical vulnerability. Economic vulnerability to drought indicates that the economy is vulnerable to external shocks due to drought and the inability of the economy to withstand the effects of the event and recover the situation. Social vulnerability determines the capacity to deal with drought in the community and reflect the effects of drought on people's ability to cope with the event. The physical vulnerability is related to the characteristics and the structure of society, infrastructure and services that are the result of the damage caused by drought. In the present study, the economic dimension of vulnerability, including GDP per capita, value added in agriculture, value added in industry and the impact of drought on the GDP. Under the criteria of social vulnerability, population density, population growth, the rate of literacy, vulnerable populations, the costs of health and safety and the impact of drought on employment were considered. The physical dimensions of vulnerability include the rate of irrigated land and road density since the objective of this study was to assess vulnerability to drought in various provinces of the country, the required data for all provinces except for Alborz province was collected in 1391 from intelligence sources. To determine the importance of different dimensions of vulnerability as well as the sub-phase in each dimension, the questionnaire was used for paired comparisons. As for the tens of experts, specialists and professionals who have expertise using the Delphi method is incorporated. In general, the importance of physical vulnerability is more than economic and social vulnerability. On the other hand, according to the results the economic and social vulnerability is important, too. The results of this study showed that the importance of the physical vulnerability was more than the economic and social vulnerability and economic vulnerability and social importance were the same. In the economic vulnerability sub-criteria of per capita GDP, in the social vulnerability sub-criteria of population density and in the physical vulnerability sub-criteria of road density have the most importance. These findings may reflect the fact that when drought occurs, access to infrastructure, services and markets can considerably reduce the harmful effects of drought. According to the results, Semnan, Tehran and Gilan provinces jointly are economically vulnerable. On the other hand, in terms of criteria for social vulnerability, provinces of Fars, Khuzestan and Gilan were the most social vulnerable and Isfahan, Kermanshah and Ilam are the least vulnerable. Also, according to the results the province of Khuzestan, Fars and Khorasan were the most; and Yazd, Bushehr and Kohgiluyeh Boyer were the least physical vulnerability.
Conclusion: In this study, in order to assess vulnerability to drought in various provinces, , after determining the hierarchy and collect relevant data, the importance of each criteria and sub-criteria were determined. In order to determine the importance of different aspects of vulnerability (the economic, social and physical) Fuzzy AHP method was used in each dimension. According to the results of this study, the province of Khuzestan, Fars and Khorasan are the most and Yazd, Bushehr and Kohgiluyeh Boyer were the least physical vulnerability. Since different provinces have significant differences in vulnerability to drought and vulnerability in various aspects of economic, social and physical, in order to achieve drought management based on risk management, recommended in policy and planning make attention the effects of drought in the various provinces.
M. Zibaei; F. Nasrnia
Abstract
Introduction: Iran is constantly exposed to natural disasters such as floods, earthquakes and drought. In the meantime, drought is the major natural disaster which leads to numerous losses in agriculture and water resources, and this phenomenon is slow and creeping.Available evidence suggests that drought ...
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Introduction: Iran is constantly exposed to natural disasters such as floods, earthquakes and drought. In the meantime, drought is the major natural disaster which leads to numerous losses in agriculture and water resources, and this phenomenon is slow and creeping.Available evidence suggests that drought management is based on crisis management. As the present management in our country is based on crisis management, and drought-proneareasin thecountryhave become a society vulnerable to drought. So, the authorities require a new set of data for drought preparedness to deal with these challenges, in order to obtain the resources to be properly and effectively prioritized and reduce the effects of drought and its consequences. Undoubtedly, the starting point of vulnerability assessment and risk management is a prerequisite that has been sadly neglected in our country. In this context, the aim of this study is to determine the vulnerability of technical, economic and social vulnerability assessment determined before and after the drought and vulnerability patterns for wheat farmers in the North of Fars province.
Materials and Methods: The vulnerability of wheat farmers in the North of Fars province is determined using three methods. The first method measured ex ante vulnerability based on estimated income distributions, and the other identified ex post vulnerability according to farmers asset positions and drought coping strategy in the 1390 drought. The final section determined the patterns of vulnerability using cluster analysis and data mining. A sample of 203 farmers in three plains was selected for interview and collection of necessary farm level data for two years (1390 and 1391) was carried out. In this study, to assess the vulnerability of households in the North of Fars province against drought, the formula Me-bar and Valdez has been used. In North of Fars province, as many other fields, agriculture is the main source of income and income from agriculture is highly dependent on rainfall. The conditional mean and variance for each farmer household, were predicted using data on rainfall and farm household characteristics. In this study, to assess the vulnerability of wheat farmer households in the North of Fars province before the drought, the method used to estimate household income distribution is Kusunose.
Results and Discussion: Data for the wheat farmers in three fields Aspass, Namdan and Sedehwho constitute 86% of the Northern Province were collected through questionnaire and with a simple random multistage interview. Typically, ex ante vulnerability, using data on household consumption or expenditure data over time wasmeasured. Household consumption or costs reflect the income stream and the family’s coping capacity. It should be noted that the measurement of vulnerability to drought before (ex ante) is based on two assumptions of behavior and consumers’ income. After the drought, vulnerability criteria (ex post), on the basis of income shocks caused by drought and household tools to tackle with the drought, were measured. The characteristics of households that are vulnerable according to the criteria based on the characteristics of vulnerable households are compared. Percent of irrigated lands are vulnerable households with vulnerable families, and it somehow reflects easier access to equipment and facilities are vulnerable households irrigation.
Conclusion:The results shows that if crops are the sole income source and have no consumption smoothing capability whatsoever, and consumption perfectly tracks income, over 32% of sampled farmers fall to the Southwest of the 60% vulnerability curve meaning that these farmers would fall under the poverty line ever 60% of the time. But only 10% of the sampled farmers would fall under poverty line over 60% of the time if we use the second income measure, the combined income from crops and off-farm sources. The results showed that factors such as unity of citizens and access to capital for agricultural inputs rank first and second in terms of vulnerability todrought.Also, by putting the dimensions of technical, economic and social vulnerability, this study extracted seven independent and distinct patterns of vulnerability. The comparison between the specifications of vulnerable and secure households during droughts shows policy for farmers who are vulnerable to drought before and after the drought, and policies to increase employment opportunities outside the farm.The findings of this study help policymakers shift from crisis management to risk management and design appropriate plans at sub-regional or farm level rather than national or regional levels.
F. Nasrnia; M. Bakhshoodeh
Abstract
AbstractA quantitative framework of combination of liner programming and cooperative game theory was used in this study to analyze and model cooperative contracts in production based on rural households' resources cooperation in Firoozabad plain. Revenues and costs in cooperation game theory have important ...
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AbstractA quantitative framework of combination of liner programming and cooperative game theory was used in this study to analyze and model cooperative contracts in production based on rural households' resources cooperation in Firoozabad plain. Revenues and costs in cooperation game theory have important rule to get agreement. Transaction cost function was used in cooperative costs accounting for moral hazard, contract costs and supervision of performance. Gross margin and individual cultivation plan for each case was calculated assuming that farmers who are individually cultivating can cooperate in various types. Results showed that farmers' benefit increased as a result of cooperation. Furthermore, farmers' benefit is expected to go up due to increase in the number of cooperative groups.
