AN ECONOMIC ANALYSIS OF THE TOMATO GROWING INDUSTRY IN THE BAGHDAD GOVERNORATE FOR 2022

This study on the economics of tomato production for the 2022 harvesting season was conducted in the Baghdad governorate. Actual output, manufacturing costs, and production inputs together with labor and capital costs were included in the analysis. Annual capital expenditures and labor costs, including both family and hired labor, were estimated. Fifty-seven percent of the workers in the study were direct relatives of the participants while 39% were professional workers. The estimated labor, capital, and total production elasticities were 0.249, 0.501, and 0.75, respectively. The optimal amounts of labor and capital required to produce the optimal volume of the crop were 12.9 workers per day and 479,113 dinars per year. The lowest possible production costs were achieved within the K and L parameters of 4,677 and 658,497 dinars, respectively. They are, in fact, interchangeable, just as in the economic theory.