Estimation of Normative Supply Function and Price Elasticity of Hazelnut: A Case Study in Turkey

Abstract

In this study, a variable price programming model was developed to derive normative hazelnut function and calculate price elasticity of supply for hazelnut in Carsamba Plain of Samsun, Turkey. Economic analysis revealed that the composition of the total assets of hazelnut farms seemed to be unbalanced. In addition, the efficiency of resource use was not adequate in sample hazelnut farms. Research results also showed that hazelnut production would stop on the Carsamba Plain completely when the hazelnut price is less than $ 0.57 per kilogram. Calculated price parities between hazelnut and corn, rice, and sugar beet were 3.87, 1.77, and 15.21, respectively. In conclusion, relying on market forces would increase land and labor use efficiency.