Analysis of cost and profitability in hazelnut production, case of Giresun province

Objective: The objective of this study was to analyze the production structure of hazelnut production activity in Giresun province, which ranks second in hazelnut production in Turkey.. Material and Methods: Research data were collected through a questionnaire from 53 farms selected by simple random sampling method among 227 agricultural farms engaged in hazelnut cultivation in the central district of Giresun province. The single product budget analysis method was used to determine the cost of hazelnut production, the gross profit and net profit were calculated in hazelnut production. Results: Hazelnut farmers get 0.97 TL for their 1 TL expense to grow hazelnuts. As a result of the study, it was determined that the producers suffered from hazelnut production without government support, but they could cover the costs of 1 kg of shelled hazelnuts with the support. Farmers make profit with agricultural supports. Conclusion: The result of the research revealed that the biggest problem for the producers is the inability do not get paid for their labor and expenses. For this reason, it is important to establish a sustainable price strategy for hazelnuts and to prevent the producer from making possible financial losses.