Cost analysis of poppy-producer agricultural enterprises and competitive advantage with other enterprises: the case of ilgin district of Konya Province, Turkey

The study was conducted to ascertain the economic activity results and costs of poppy-producing agricultural enterprises in the Ilgin district of Konya province. In the study, face-to-face surveys were conducted with business owners in 87 businesses determined according to the stratified sampling method. The data of the 2019 production season and the surveys were executed by the researchers themselves after the poppy harvest in July, August and September. In the research, population, workforce and land assets, gross production value, variable costs and gross profit analysis of the analysed enterprises were made. 129.84 decares of the lands in the research area are private property and the average land size in the surveyed enterprises is 221.16 decares. According to the results of the research, the cost of poppy production for 1 decare of land was 0.99 $/Kg, and the poppy capsule yield was 172.93 kg/da. The selling price of poppy is determined as 1.70 $/Kg. In the average of the enterprises, the total plant gross production value was calculated as 111,067.16 $ while the gross profit was calculated as 100,082.92 $. The labor force holds the largest share in the production cost per decare in the enterprises. The relative profitability of poppy plant with other products is 1.70, and it is preferred by the farmers after silage-corn and sugar beet. In addition, the family workforce remains idle during off-peak periods. Therefore, poppy production can be a good alternative for the evaluation of the idle workforce.