Intercountry Comparative Economic Analysis of Pomegranate Production Costs

This paper examines variations in the composition of pomegranate production costs in four countries: Australia, Israel, Spain and the USA and tries to explain the similarities and differences among these countries. Findings from five studies conducted by different analysts provided the data basis for the study. The comparison runs along two main tracks: the investment period and a typical full-bearing year, say year six. To overcome the technical difficulties of making a valid inter-country comparison, (e. g., different currencies) cost composition is expressed in proportions (percents) rather than in the nominal figures of each country. Since the studies analyze actual cases, they do not fit what would be regarded as a comparable multi-country situation in which most of the parameters are maintained at a "fixed" level while the variables of interest are allowed to change. For example, one study focuses on production on poor soil, with all its technical implications. The comparison highlights a striking variability in the labor input: where labor is relatively costly it represents the major expense and creates a strong incentive to search for an alternative, i.e., development of machinery and mechanical devices to substitute for high cost labor. A major limitation of this analysis is its lack of comparable yield data. This prevents us from relating the costs to outputs. A specifically designed study carried out in several countries, perhaps supported by an international entity (e. g., FAO, UNDP, IBRD, or others), could produce the data for a valid, comprehensive analysis.