Profitability analysis of onion production in Morocco

Abstract

This study aims to analyze the profitability of onion production in Fes Meknes Region in Morocco and to visualize sensitivity of this production on an increase in production costs or a decrease in yield due to climate change. The data used were collected from 80 randomly selected producers. Different analysis methods were used in the analysis of data: budgetary analysis, cost-benefit analysis and correlation analysis. The budgetary analysis results show that onion production is profitable and the profitability is sensitive to a decrease in production or an increase in costs. By comparison, the analysis shows that the repercussions of the onion production shock are more detrimental than an increase in production costs. So, the farmers are supposed to adopt farming practices that boost the productivity and reduce his sensitivity. Correlation analysis reveals a positive and significant relationship between net agricultural income, the type of irrigation and the level of education of the farmers. These variables must be taken into account to improve the level of agricultural profitability.