Research Journal of Applied Sciences, Engineering and Technology 4(3): 227-231, 2012 ISSN: 2040-7467 © Maxwell Scientific Organization, 2012 Submitted: October 23, 2011 Accepted: November 10 , 2011 Published: February 01, 2012 Energy and Economic Analysis of Canola Production in Iran a Case Study: Khuzestan Province Nasim Monjezi and Hassan Zakidizaji Agricultural Machinery Engineering and Mechanization Department, Faculty of Agriculture, Shahid Chamran University, Ahvaz, Iran Abstract: The aim of this research was to determine energy use and economic analysis of canola production in Khuzestn province of Iran. The energy use pattern and economic item values were determined by a survey including 57 farms (34 for irrigated farming and 23 for dry farming) using a face to face questionnaire. The farms were chosen by random sampling method. Energy and economic variables were calculated using standard equations. The survey studies indicated that the most important energy inputs were fertilizers and diesel fuel. The output-input energy ratio for irrigated farming and dry farming was estimated to be 1.28 and 0.81, respectively. Economic analysis showed that benefit-cost ratio for irrigated farming and dry farming was 1.11 and 0.58, respectively. Net returns calculated were 85.55 and -240.31 in the farms investigated. Key words: Benefit-cost ratio, canola, economic analysis, energy ratio for planning resources in the ecosystem (Samavatean et al., 2011). Although many experimental works have been conducted on energy use in agriculture such as sunflower (Mousavi-Avval et al., 2011b), sweet cherry (Demircan et al., 2006), pomegranate (Canakci, 2010), apricot (Esengun et al., 2007), Walnut (Banaeian and Zangeneh, 2011a), rice (Pishgarkomleh et al., 2011) and grape (Ozkan et al., 2007). This study aims to determine energy use patterns of canola production and input-output energy analysis was performed. Furthermore, this study compared economic analysis in canola production under irrigated farming and dry farming conditions. INTRODUCTION Canola refers to a cultivar of either Rapeseed (Brassica napus L.) or Field Mustard (Brassica campestris L. or Brassica Rapa var.). Its seeds are used to produce edible oil suitable for consumption by humans and livestock (Dupont et al., 1989; Zeratsky, 2009). The oil is also suitable for use as biodiesel. Canola production in Iran is 164000 tons in 2009 that 64.90% of irrigated farming and 35.10% of dry farming have been obtained (Anonymous, 2010). Also in this year, canola cultivation was about 86000 ha that 59.56% is irrigated farming and the rest of that was dry farming (Anonymous, 2010). Nowadays, energy has an influencing role in the development of key sectors of economic importance such as industry, transport and agriculture (Baruah and Bora, 2008). Agriculture requires energy as an important input to production. Agriculture uses energy directly as fuel or electricity on the farm, and indirectly in the fertilizers and chemicals produced off the farm. An increase in the worldwide average air and ocean temperatures, prevalent snow and ice melting and rising levels of sea waters have been attributable to anthropogenic greenhouse gas emissions, where the agriculture is playing a significant role (Nielsen et al., 2007). So efficient use of energy resources is one of the major assets of eco-efficient and sustainable production, in agriculture (Taheri-Garavand et al., 2010). Therefore, research efforts have emphasized energy and economic analysis of various agricultural productions MATERIALS AND METHODS The study was carried out in Khuzestan province of Iran in November 2010- April 2011. The province with an area 64055 Km2 is located in southwest of Iran (within 29º58! and 33º04! North latitude and 47º41! and 50º39! East longitude). In 2006, the populations of Khuzestan province were over 4.2 million (equivalent to 6.07% of the Iran’s population) (Anonymous, 2006). For the analysis of energy use in different farming, the selected farms were classified into two groups of irrigated farming and dry farming. Data on canola production were collected from 57 farms (34 for irrigated farming and 23 for dry farming) in Khuzestan province using a face to face questionnaire. The sample size was calculated using the Cochran method (Samavatean et al., 2011): Corresponding Author: Nasim Monjezi, Agricultural Machinery Engineering and Mechanization Department, Faculty of Agriculture, Shahid Chamran University, Ahvaz, Iran. Tel.: +9809166003326 227 Res. J. Appl. Sci. Eng. Technol., 4(3): 227-231, 2012 Table 1: Energy equivalent of inputs and output in Canola production Unit Energy equivalent (MJ/kg) Inputs Human labor h 1.96 Machinery kg 62.7 Diesel fuel L 47.8 Chemicals kg C Herbicide 238 C Pesticide 101.2 C Fungicide 216 Fertilizers kg C Nitrogen (N) 78.1 C Phosphate (P2 O5) 17.4 C Potassium (K2 O) 13.7 0.63 Water for irrigation m3 Electricity k Wh 3.60 Seeds kg 29.20 Output Canola kg 27.60 Table 2: Amounts of energy inputs and output for canola production Irrigated farming -------------------------------------------------------------------------Item Total energy equivalent (MJ/ha ) Percentage (%) Inputs Human labor 174.59 0.60 Machinery 1160.93 4.01 Diesel Fue l6902.25 23.84 Chemicals 573.81 1.98 Fertilizers 11822.66 40.84 Water for irrigation 3213 11.10 Electricity 4849.21 16.75 Seeds 248.2 0.85 Total energy input 28944.65 100 Output Total energy output 37260 100 n N s2 t 2 N 1d 2 s2 t 2 (1) where n is the required sample size, N is the number of canola producers in target population, s is the standard deviation in the pre-tested data, t is the t-value at 95% confidence limit (1.96), and d is the acceptable error. The permissible error in the sample size was defined to be 5% for 95% confidence. Energy inputs including human labor, machinery, diesel fuel, electricity, fertilizers, chemicals, water for irrigation and output yield values of canola have been used to estimate the energy ratio. Energy equivalents shown in Table 1 were used for estimation. Based on the energy equivalents of the inputs and output (Table 1), the energy use efficiency (energy ratio), energy productivity, specific energy and net energy gain were calculated (Mohammadi et al., 2008): Reference Taheri-Garavand et al. (2010) Namdari et al. (2011) Banaeian et al. (2011) Erdal et al. (2007) Erdal et al. (2007) Erdal et al. (2007) Pishgarkomleh et al. (2011) Pishgarkomleh et al. (2011) Pishgarkomleh et al. (2011) Pishgarkomleh et al. (2011) Heidari and Omid (2011b) Unakitan et al. (2010) Unakitan et al. (2010) Dry farming -------------------------------------------------------------------------Total energy equivalent (MJ/ha) Percentage (%) 89.36 925.71 6130.32 146.39 11038.18 0 0 227.76 18557.72 0.48 4.98 33.03 0.78 59.48 0 0 1.22 100 15180 100 Specific energy = Energy input (MJ/ha) / Canola output (kg/ha) (4) Net energy gain = Energy output (MJ/ha) / Energy input (MJ/ha) (5) For the growth and development, energy demand in agriculture can be divided into direct and indirect energies or alternatively as renewable and Non-renewable energies (Kizilaslan, 2009). Indirect energy included energy embodied in seed, fertilizers, chemicals and machinery while direct energy covered human labor, diesel fuel, water for irrigation and electricity used in canola production. Non-renewable energy includes; machinery, diesel fuel, electricity, fertilizers and chemicals, and renewable energy consisted of seed, human labor and water for irrigation. In the last part of the research, economic analysis of canola production was investigated. Gross return, net return, benefit-cost ratio and productivity were calculated as (Zangeneh et al., 2010): Energy use efficiency = Energy output (MJ/ha) / Energy input (MJ/ha) (2) Total production value = Canola yield (kg/ha) × Canola price ($/kg) (6) Energy productivity = Canola output (kg/ha) / Energy input (MJ/ha) (3) 228 Res. J. Appl. Sci. Eng. Technol., 4(3): 227-231, 2012 Table 3: Energetic parameters in canola production Farming type Energy ratio Energy productivity (kg/MJ) Irrigated farming 1.28 0.040 Dry farming 0.81 0.029 Specific energy (MJ/kg) 21.44 33.74 Net energy gain (MJ/ha) 8315.35 -3377.72 Table 4: Total energy input in the form of direct, indirect, renewable and non-renewable for canola production Dry farming Irrigated farming -----------------------------------------------------------------------------------------------------------------------Form Of Energy Quantity (MJ/kg) Percentage (%) Quantity (MJ/kg) Percentage (%) 15139.1 0 52.3 6219.68 33.51 Direct energy(1) 13805.6 0 47.69 12338.04 66.48 Indirect energy(2) 3635.79 12.56 317.12 1.70 Renewable energy(3) 25308.86 87.43 18240.60 98.29 Non-renewable energy(4) 28944.65 18557.72 Total energy input(5) 1: Includes human labor, diesel, electricity and water for irrigation; 2, 3: Includes seeds, fertilizers, chemicals and machinery; 4: Includes human labor, seeds and water for irrigation; 5: Includes diesel, fertilizers, chemicals, electricity and machinery Table 5: Economic analysis of Canola production Cost and return components Yield Sale price Total production value Variable cost of production Fixed cost of production Total cost of production Gross return Net return Benefit to cost ratio Productivity Unit Kg/ha $/kg $/ha $/ha $/ha $/ha $/ha $/ha $/kg Irrigated farming 1350 0.625 843.75 297.52 460.68 758.2 546.23 85.55 1.11 1.78 Grossreturn = Total production value ($/ha) Variable cost of production ($/ha) (7) Net return = Total production value ($/ha) Total production costs ($/ha) energy such as machinery, fertilizers, seeds, human labor, diesel fuel, irrigation, electricity and chemicals in canola production were 4.44, 38.93, 0.77, 1.3, 20.08, 5.52, 27.62 and 1.37%, respectively. Average annual yield of irrigated farming and dry farming investigated was 1350 and 550 Kg/ha, respectively and calculated total energy output was 37260 and 15180 MJ/ha, respectively. The energy use efficiency (energy ratio), specific energy, energy productivity and net energy gain of canola production in the Khuzestan province are tabulated in Table 3. Energy use efficiency (energy ratio) in irrigated farming and dry farming was calculated as 1.28 and 0.81, respectively. In Turkey, Unakitan et al. (2010) reported canola output/input ratio as 4.68. Taheri-Garavand et al. (2010) calculated energy output/input ratio 1.44 for dry farming canola in Iran. The average energy productivity of irrigated farming and dry farming was 0.046 and 0.029 kg/MJ, respectively. This means that 0.046 and 0.029 outputs were obtained per unit energy. Calculation of energy productivity rate is well documented in the literature such as cotton (0.06) (Yilmaz et al., 2005), canola (0.12) (Mousavi-Avval et al., 2011a), corn (0.17) (Banaeian and Zangeneh, 2011b), garlic (0.41) (Samavatean et al., 2011). The specific energy and net energy gain of canola production in irrigated farming and dry farming were 21.44MJ/kg, 8315.35MJ/ha and 33.74 MJ/kg-3377.72 MJ/ha, respectively. Pishgarkomleh et al. (2011) reported specific energy for rice production in Iran 11.09 MJ/kg. Table 4 shows the distribution of total energy input as direct, indirect, renewable and Non-renewable forms. As (8) Benifit - cost ratio = Total production value ($/ha) / Total production costs ($/ha) (9) Production = Canola yield (kg/ha)/ Total production costs ($/ha) Dry farming 550 0.625 343.75 213.57 370.79 584.06 130.81 -240.31 0.58 0.94 (10) All estimations were carried out using the Microsoft Excel spreadsheet and SPSS 17.0 software programs. RESULTS AND DISCUSSION Analysis of input-output energy use in canola production: Amounts of inputs used and output in canola production for each item are illustrated in Table 2. Total input energy in irrigated farming and dry farming was 28944.65 and 18557.72 MJ/ha, respectively. In another study in Iran, Mousavi-Avval et al. (2011a) found that total energy input in canola production was 17786 MJ/ha. Out of all the inputs, the fertilizer has the biggest share in the total energy with a 40.84 and 59.48% in irrigated farming and dry farming, respectively. From Table 2 it is shown that human labor was the least demanding energy input for canola production. Sheikhdavoodi and houshyar (2009) noted that the rates of inputs in the total amount of 229 Res. J. Appl. Sci. Eng. Technol., 4(3): 227-231, 2012 it can be seen from the Table, the total energy input consumed in irrigated farming could be classified as direct energy (52.3%), indirect energy (47.69%) and renewable energy (12.56%) and Non-renewable energy (87.43%). Because of high diesel and fertilizers consumption the amount of Non-renewable energy was quite high. Several researchers have found that the rate of Non-renewable was greater than that of renewable consumption in cropping systems (Erdal et al., 2007; Kizilaslan, 2009; Banaeian et al., 2011). The high ratio of Non-renewable in the total used energy inputs causes negative effects on the sustainability in agricultural production. Therefore, it is important to better utilize the renewable sources for making up for the increasing energy deficit, so renewable production stimulates the agricultural and rural economy, improves the environment and enhances national energy security (Banaeian et al., 2011). energy gain in irrigated farming were 1.28, 0.046 kg/MJ, 21.44 MJ/kg and 8315.35 MJ/ha, respectively. Also these energy indicators in dry farming were 0.81, 0.029 kg/MJ, 33.74 MJ/kg and -3377.72 MJ/ha, respectively. An economic analysis revealed that benefit-cost ratio of irrigated farms was 1.11 and for dry farms was 0.58. The net return from canola production in irrigated farming and dry farming was obtained 85.55 and -240.31 $/ha, respectively. Energy management is an important issue in terms of efficient, sustainable and economic use of energy. ACKNOWLEDGMENT The financial support provided by the Shahid Chamran University of Ahvaz in Iran, is gratefully acknowledged. REFERENCES Economic analysis of canola production: In this study economic analysis of canola production was carried out by taking the costs of various inputs into consideration. The results obtained from economic analysis are presented in Table 5. Based on the evaluation of collected data, total production value in irrigated farming and dry farming were calculated as 843.75 and 343.75 $/ha, respectively also the cost of production 758.2 and 584.06 $/ha, respectively. The net return values for irrigated farming and dry farming were found to be 85.55 and 240.31$/ha, respectively. The benefitcost ratio of canola production was calculated to be 1.11 for irrigated farming that was lower than Mousavi-Avval et al. (2011a) research results of benefit-cost ratio. 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