The profitability of crop and livestock production in the Settat Province of Morocco

Abdellah Mdafri, Purdue University

Abstract

The objective of the research was to evaluate the effects of alternative policy measures on the crop and livestock systems in Settat Province, Morocco. The specific objectives were to determine the likely changes in crop and livestock production patterns under alternative government policies such as a reduction in barley and bread wheat prices, and subsidized credit; to determine the likely effects of increased bread wheat yield, through the introduction of the Hessian fly resistant bread wheat variety; and finally to determine the relative contributions of crops and livestock enterprises in an integrated farming system. A farm model under risk, which accounts for the complementarities between the cropping and livestock systems, was developed for a 20 hectare farm in the Settat Province of Morocco. This research has shown that a 30 percent decrease in barley and bread wheat prices will not have a major impact on crop production patterns. However, a 30 percent price decrease for these crops will induce as much as an 8 percent fall in expected income. The yields or price of bread wheat have to increase by 16 percent before the Hessian fly resistant variety becomes as profitable as durum wheat. Increased bread wheat yield makes this crop more profitable and would displace some of the land devoted to barley production. The availability of cheaper credit to farmers was shown to affect the way farmers finance their farm operations; that is, instead of selling sheep they resort to credit as a source of liquidity. Finally, this research has estimated the relative contribution of livestock in the farming system to be as high as 60 percent.

Degree

Ph.D.

Advisors

Preckel, Purdue University.

Subject Area

Agricultural economics

COinS