Assessment of the Economic Viability and Sustainability of Olive Production in the Sistan Region

This study aimed to assess the economic status and sustainability of the olive production system in the Sistan region. Data were collected through face-to-face interviews and questionnaires from 64 gardeners, retailers, and wholesalers in the region between 2021 and 2022, and analyzed using empirical methods and spatial regression. The total support of olive production systems in the cities of Zabol, Zahak, Hamoun, Hirmand and Nimroz was 1.06×1016, 1.19×1016, 1.60×1016 and 7.72×1015 sej ha-1, respectively. The inefficiency in the olive product was more than the inefficiency in olive oil, which itself indicates the efficiency of the olive oil market. Therefore, it can be said that the processing of these products leads to the improvement of its marketing and increases the technical efficiency. The R2 values of olive and olive oil in the simple regression model were 0.99 and 0.63 respectively. In contrast, the R² values in the spatial regression model were 0.98 and 0.99, highlighting the superiority of the spatial regression model over the simple regression model. The results indicate a spatial relationship among olive oil producers. Due to the positive sign of marketing costs, it can be said that marketing cost has a positive effect on the marketing margin and with its increase, the marketing margin of these products will increase. The mechanization and industrialization of olive cultivation and exploitation can enhance the economic empowerment of the farmers, leading to increased profits from the sale of this product. Therefore, the level, appropriate selection and correct use of machine inputs in agriculture have a significant impact land productivity, labor productivity, agricultural profitability, sustainability, environmental outcomes and quality of life fir those involved in agricultural trade.