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Wheat Production and Economics

Article  in  American Journal of Agricultural and Biological Science · March 2011

DOI: 10.3844/ajabssp.2011.332.338

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American Journal of Agricultural and Biological Sciences 6 (3): 332-338, 2011
ISSN 1557-4989
© 2011 Science Publications

Wheat Production and Economics

Elgilany Ahmed, Jamalludin Sulaiman

and Saidatulakmal Mohd
Department of Postgraduate Studies and Research, University Sains Malaysia,
School of Social Sciences, Pulau Pinang, Malaysia

Abstract: Problem statement: The crop in the irrigated scheme has faced by manifold problems
contributed to low level of productivity and high cost of production of wheat. The crop is commonly
produced under pump irrigation from the River Nile. In River Nile State (RNS), wheat is grown under
the irrigated sector, the State is considered as a suitable environment for producing this crop. The study
was conducted at Elzeidab irrigated scheme of RNS which is regarded as the oldest and biggest
scheme belonging to the Ministry of Agriculture of RNS. Approach: Primary data was collected by
using structured questionnaire for (70) randomly selected respondents. More than one technique used
to assess economic aspects of the crop. Cobb-Douglas production function, descriptive statistics and
partial budgeting have been employed to analyze the primary data. The study detected that the major
socioeconomic characteristics of Elzeidab farmers were educated, the scheme tenants have had a
cumulative experience in agriculture and average farm size is found to be small and the majority
50% of surveyed tenants in Elzeidab scheme were rented. The farming system of Elzeidab scheme is
dominated by wheat production which counts to 25% of the farm land. The yield gab with the
potential yield obtained by Agricultural Research Corporation (ARC) in the State amounts 66%. The
microfinance market in Elzeidab scheme is not well developed. Water charges in the scheme were
high. About 53% of the annual running expenses were allocated for fuel that made irrigation costs to
be the highest single component of production costs of the crop, while irrigation water cost was
considered as the most agricultural constraint, this item was found to be as 19% of the total cost of
production as the highest percentage overall the variable cost items. Results: The regression
analysis revealed that the most factors affecting wheat productivity under the study were: the
average of tenants’ age, family labor, distance from home to field, hired labor, distance of farm to
source of irrigation, number of irrigation, term of irrigation. Furthermore, the weakness of wheat
production normally regards as a cost issue and lack of awareness wheat grower especially about
wheat technical package. Conclusion: The study concluded that wheat production contribute
significantly to farm sustainability and contribute to alleviation of malnutrition in the State. The
actual production constraints restrict the sustainability of this important crop. The cooperation
between international organizations and governmental institutions should tackle the hindrances of
wheat production and achieve stability of wheat. There is a great potential for improvement the yield
of the crop and an intervention of the State is needed to ease having the inputs of production
especially irrigation water inputs.

Key words: Food security, wheat production, Agricultural Research Corporation (ARC), family
labor, elzeidab public, public schemes, surveyed tenants, River Nile, field crop, food crop

INTRODUCTION wheat doughs that allow a wide range of food products

(Claudia et al., 2007). Over the past few years, wheat
Wheat (Triticum aestivum) is a strategic crop in production, which is almost entirely irrigated, has been
Sudan. It is Sudan's second most important cereal food declining due to diminishing yields and soaring input
crop in terms of consumption after sorghum. The wheat costs. Since 1999, the Government liberalized the
seed storage proteins are a major source of protein in wheat production regime and removed all support
the human diet, and are responsible for the properties of programs. These moves have prompted many farmers
Corresponding Author: Elgilany Ahmed, Department of Postgraduate Studies and Research, University Sains Malaysia,
School of Social Sciences, Pulau Pinang, Malaysia
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 Am. J. Agri. & Biol. Sci., 6 (3): 332-338, 2011

to drastically reduce wheat cultivation and/or switch to wheat yield include poor practices of technical
more lucrative cash crops, such as vegetables and oil packages used by tenants, stress inflicted by the
seeds. Gezira, White Nile, New Halfa, River Nile and changing of environmental conditions especially
Northern States are the main suppliers for wheat crop. temperature beside the widespread of different diseases,
The overall area under wheat in this year (2005/06) is insects, pests, weeds and power failure that a
exceeded 290,360 feddan (122 000 hectares). companied by lack and high cost of fuel and spare parts
The River Nile State is considered as one of the poor to operate the pumps. Faki et al. (2004) summarized
States in the country. Although the State with its that the high cost of production coupled with low
productivity and lack of a cheap source of power has
relatively cooler weather and fertile alluvial soils, has a
made it difficult for the farmers to realize the full
comparative advantages over other parts of the country in potential of the State. Further, development is
producing relatively high-value crops (wheat, faba beans, considered by serious limitation on the two basic
citruses, mangos, dates, certain spices and medical resources: land and water. Ahmed (2004) stated that,
plants). Wheat is regarded as one of the major winter the irrigation water significantly affects the crop
food crops in the State; the total area planted under wheat production in the State and the irrigated schemes in the
for season 2005/06 is estimated at 75,434 feddans. The River Nile State are suffered of irrigation shortage due
State is consisted three types of schemes: private, to inadequate supply of irrigation inputs in proper time
cooperative and public schemes with different production and at right prices.
relation systems. The optimum time for planting wheat is MATERIALS AND METHODS
November and temperatures during this period remained
cooler than average. In almost all wheat growing areas The study was carried out in 2006 at Elzeidab
the bulk of the plantings occurred on time. The public irrigated scheme of RNS where wheat is
effectiveness of irrigation is determined by the commonly produced under pump irrigation mainly from
availability and supply of fuel for pump irrigation and the the River Nile. The sample size for this study is 70
degree of siltation in canals for larger schemes. tenants, which formed about 2.3% of Elzeidab scheme
The public schemes are the important ones for tenants. The tenants were selected randomly from the
growing winter crops due to their high acreage share scheme. The sample size was determined according to
and imply high number of tenants. Elzeidab public the level of the precision desired and availability of the
irrigated scheme is the oldest and the biggest one resources in terms of cost, time and other relevant
belonging to the State Ministry of Agriculture. It was facilities. As precision could be a achieved, stratified
established in 1904, the total area of the scheme is random sampling based on convince and flexibilities
22,000 feddans. Elzeidab scheme adopted the crop with probabilities to size was used to determine the
sharing arrangement based on cotton production since plausible size of the targeted groups in Elzeidab scheme
1904 as an initiation policy after establishment. In of the RNS. Integrated analytical techniques comprising
1939, the crop sharing was replaced by water rates Cobb-Douglas production function, descriptive
based on the cost of pumping irrigation water. Later, in statistics and partial budgeting are used to illustrate
about 1952, the rates were increased on the base that wheat production and economics in area of the study.
the costs of factor- inputs in irrigation and
RESULTS AND DISCUSSION
administration had increased. Water rates have been
introduced with the advance in perennial and vegetable Starting with main socioeconomic indicators in the
crops. The delivery of the irrigation water for the study area, the average age of surveyed tenants on
scheme depends on pump irrigation system from the Elzeidab scheme is found as 39.91 years, while the
River Nile (RN). The RN is the main source of average family size of surveyed tenants ranges from 1-
irrigation water for the scheme area, particularly for 15 people. The surveyed tenants of Elzeidab scheme
winter season which is considered as the principle characterized by high cumulative of experience years
season for State tenants, while the summer and autumn estimated as 19.9 years. The average farm size of the
“demira” seasons are ranked after it due to some scheme varies from 1- 28 feddan per farm household.
environmental aspects and that give advantages for The study found that the average distance from tenant’s
winter crops and versa for other seasons crops. residence to farm of the surveyed tenants as 2.7 km and
the majority of the tenants 85.7% of them are married.
Problem statements: The last three decades witnessed The level of education, at certain point, can influence
critical problems regarding wheat production. These the adoption of modern technologies and improve the
constraints contribute to the low level and instability of farm system. The study found that all the surveyed
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tenants of Elzeidab are educated and all of them were but absolutely, the irrigation water cost is considered as
male. The survey revealed that 74.3% were fully the most agricultural constraint and that might refer to
occupied with their tenancies and about 84.3% of their the high cost pumping water from the River Nile and this
family members were shared on farm production with 2 is justified strict allocation among the different crops
persons. The research detects that the majority 50% of
grown. The coming elaboration of the survey results in
surveyed tenants in Elzeidab scheme were rented. The
Fig. 2 discerned the cost items as the sequence of the
farming system of Elzeidab scheme is dominated by
wheat production which counts to 25% of the farm land. seasonal crop production operations.
The study detected that mainly about 13 cost
components as mentioned in the above figure; they
Situation of wheat in dominant crop combination of constitute the cost of production and they accounted
Elzeidab scheme: Information on the cultivated areas SDD 70054.2 equal about US $ 300. Irrigation cost
of agricultural products is as basic tools in preparing component achieved the highest cost item as 19% of
import-export policies, pricing agricultural products, total production cost. The wheat growers in Elzeidab
planning agricultural developments and other relevant scheme pay the cost of this item as a fixed rate for the
issues (Ashourloo et al., 2008). The winter seasonal scheme administration at the end of the season.
crops of Elzeidab scheme occupy about 12000 fed of
Labour supply for wheat production: As known
16000 fed which is equal 67% of the total cultivated labour is regarded as one of the essential inputs, the
area of the scheme in season 2005/06. Wheat is regard survey pursued to assess this component. The research
as one of the important winter crops in the scheme crop found that farm labour force in Elzeidab scheme
rotation covering 25% of the total cultivated land, comprises both family and hired labours according to
followed by 19% for sorghum and 14% for onion, while the production stage, size of cultivated area, financial
the lowest percentage 1% devoted for potato. abilities of tenants and the type of the crop. The wheat
The other crops were ranked as 2, 2, 4, 5, 8, 8 and grower tended to avoid hired labours to reduce the
12% achieved by spices, dry bean, maize, fodder, cost of production, but sometimes and for some
vegetables, chick pea and faba bean respectively, with production stages that require large number of labours
absent of lentil crop area due to some technical force, they found themselves compelled to hire labour
production constraints. Figure 1 depicts that. The (s), such as for pre-sowing land cleaning, canal
majority of these crops consisting wheat are cultivated as cleaning, plots preparation, weeding, pest control and
winter crops with exceptional cases for some crops that harvesting stages.
could produced in both winter and summer seasons
namely: maize, fodder and vegetables. Furthermore,
the sorghum crop usually sown at the end of summer
season (September) to be harvested at the middle of the
winter season (January). The harvested crops either for
domestic consumption or/and as for earning cash.

Production cost of wheat: Cost recovery is an

important reform strategy in agricultural advisory Fig. 1: Situation of wheat crop in dominant crop
services. A number of different countries have combination of Elzeidab scheme
contracted out advisory services to private providers or
have diversified the funding of this activity (Ali et al.,
2008). Production economics play a unique role in
farm management (Doll and Orzem, 1992).
The dominant conception of production cost in the
area of study is known as the cost of material inputs,
labor force, services and the management used in
producing a certain goods or/and crops. Many studies
showed that the cost of production overall the RNS has
leaded to the low profit. The high cost of production Fig. 2: Percentages share of wheat variable cost
attributed to high cost of numerous of production inputs, components in 2005/06
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 Am. J. Agri. & Biol. Sci., 6 (3): 332-338, 2011

scheme surveyed tenants have to depend on their own

resources of about SDD 2379 for a farm, while the
other informal financing sources represented 2.8% from
village merchants (about SDD 170000) and 1.4% for
relatives (SDD 50000).

Wheat productivity in area of the study: The

profitability of adopting new irrigation technologies
Fig. 3: Prevailed sources of finance in the area of the depends on the level of productivity improvement (Lin,
study 1994). Wheat yield achieved by Elzeidab surveyed
tenants was generally low 675.90 kg/feddan when
Table 1: Investigates gross margin analysis of wheat in Elzeidab
scheme compared by research yield reported by the Agricultural
Production cost (SDD/feddan) 70054.2 Research Corporation (ARC) which formed 2000
Average yield (kg/feddan.) 675.90 kg/feddan. Yield gap of 66% apply for wheat crop,
Average price (SDD/kg) 110.00 indicated that much potential gap exists to increase the
Gross return (SDD/feddan.) 74349.00 scheme’s yield of wheat.
Gross marginal revenue (SD/feddan.) 4294.77
Source: Author field survey (2006)
Analysis of wheat returns: The surveyed tenants
Table 2: Investigates gross margin revenues of some field crops in reported that the production cost was less than the gross
Elzeidab scheme, season 2005/2006 (SD/feddan) returns, in other words, the cash outflows was less than
Seasonal crops Gross marginal revenue (SDD/feddan.) the cash inflow and there was a surplus of SDD
Wheat 4294.77
Faba bean 8794.28
4294.77 Table 1 shows that. The gross margin equation
Chickpea 87749.24 was used to achieve this analysis. Gross margin in
Dry bean 97950.00 simple words, it is equal to gross income divided by net
Onions 65538.40 sales. Gross margin is a good indicator of how
Sorghum 36801.60
Maize 6831.31
profitable a firm is at the most fundamental level. The
Potatoes 32200.00 general mathematical form for the gross margin
Source: Author field survey (2006) analysis used to calculate the gross margin as follow:

The surveyed tenants reported that two family members GM = GR – TVC

contributed in wheat production stages as family
labours and the hired labour for the crop varies from
stage to another. The study was estimated wheat’ labour Where:
requirements as 15 man-days and it achieved low GM = Gross margin of each crop per feddan in SDD
labour productivity of 45.06 kg/man-day. GR = Gross revenue of each crop per feddan in SDD
TVC = Total variable cost per feddan in SDD
Finance of wheat: The formal financial system
The research revealed that the gross margin for
provides only small parts of credit used by farmers.
Elzeidab scheme for season 2005/06 was expressed in
Therefore, most of farmers seek other informal sources
Sudanese Dinar (SDD) as discerned in Table 1.
of finance. Loans extended by friends and relatives,
Table 1 also investigates that, although the gross
mostly without interest, constitute the non-commercial
segment. In the commercial segment a range of people margin of wheat was found to be positive, but it was
like traders, agricultural and professional money low as feedback for its average cultivated area if we
lenders operate (Ijami, 1994). The formal finance in the consider the opportunity chance of the wheat area and
River Nile State usually comes from Agricultural Bank its remaining period within the rotation at both level
of Sudan and State Ministry of Agriculture. The form of farm and scheme. The RNS experienced increasing
finance is often in kind and some extend in cash, but input prices in the last decade and that might explain
considered insufficient to meet the actual cost the high cost of wheat production. According to this
requirements for farm operations. The study revealed fact, wheat could be assessed as infeasible crop unless
that both of the formal sources of finance mentioned improvements are made.
above provided means for only a small percentage of Table 2 shows gross marginal revenues for numerous
the total respondents; 1.4% of the total surveyed seasonal crops in Elzeidab were exceeded the gross
tenants. Figure 3 illustrates that 93% of Elzeidab margin of wheat indicating their highly profitability.
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Table 3: Wheat regression equation results Age of tenants: The age of tenants has got coefficient
Standard t- Level of of -0.26 which is significant at 90% level of
Variables Coefficients errors values Significant (*)
Intercept -13.482 6.220 -3.169 * significance. Since this coefficient in represent the
Age -0.264 0.629 -2.700 * elasticity which indicates the change in the wheat
Family labours (man-day/fed) 0.400 0.694 4.013 **
Hired labours (man-day/fed) 0.942 0.509 5.303 ***
productivity in season 2005/06, a one percent increase
Home to field (km) 1.120 0.929 8.096 *** on tenants’ age will decrease the yield by 0.26%. The
Farm to source of irrigation (km) -0.819 0.000 -7.903 *** study revealed that the ages of more than 68% of
No. of irrigation (per season) 0.421 0.419 2.533 *
Term of irrigation (hour/fed) -1.446 0.765 -5.875 *** Elzeidab tenant were above 30 years. As known
Source: Computed from the field survey data, 2006; R-square = 0.93 younger tenants adopted new ideas and technologies
Adjusted R-square = 0.88; F-value = 17.87; *: = Significant at 90% more rapidly than older ones.
level of probability; ** = Significant at 95% level of probability; ***:
Significant at 99% level of probability
Hired and Family labours: The numbers of hired and
Wheat regression results: Analysis of efficiency of family labours have got coefficients of 0.94 and 0.40
resource allocation can be accomplished by estimating which significant at 99 and 95%, respectively. The
input response or production functions for various crops coefficients of these independent variables in the model
and examining resource use through production represent the elasticity which explains the change in
economics analysis. The data were statistically fit to wheat yield to the change in the hired and family
several algebraic forms of production functions, a labours. The elasticity form represents: a relative
few of which were the linear model, the Cobb- increase of 1% in hired and family labour will cause a
Douglas, the Quadratic and the Cubic forms were relative increase of 0.94 and 0.40% in yield of wheat,
used for this purpose (Worku, 1971). Instead a respectively. The family labour considered as one the
frequently used method for estimation is the Cobb- main labour force farm operation and their share will
Douglas approach due to its ease of estimation and contribute positively for farm production and income,
interpretation (Lin, 1994). while the hired labour considered as second option for
The model for the implemented study is based on Elzeidab farmers. The decreasing of labour supply
Cobb- Douglas production function using the primary data coupled with high wages led most of the farmers to
of the field survey 2006 and hence, it was analyzed by avoid item of hiring labour, this explain why farmers
using the software program SPSS. The model used to ignore some of manual agricultural practices, moreover,
satisfy some of the specific aims of the research as far as due to their poor financial resources, some of the family
the factors affecting WUE of the seasonal crops of members left agricultural occupation to other jobs and
Elzeidab scheme are concerned. The model undertook the also the absence of financial sources.
wheat crop as a case for the seasonal crops due to it is
biggest area share and it was considered the productivity Home to field distance: Home to field variable has got
of wheat crop (kg/fed) for season 2005/2006 as dependent coefficient of 1.120 for wheat yield in 2005/2006
variable, while the average of tenants’ age, family labours season which is significant at 99% level of significance
(man-day/fed), distance from home to field (km), hired and that statistically means the change in the wheat
labours (man-day/fed), distance of farm to source of productivity in season 2005/06, a one percent increase
irrigation (km), number of irrigation (per season), term of on the distance of home to field will increase the yield
irrigation (hour/fed). by 1.120%. This interpretation investigates the strong
All the variables have the expected correct signs relationship between distance and farm management,
with their coefficients passing the t-test at different however, as a fact that the management should improve
significant levels. The F-statistics of 15.11 is according to the term devoted for the farm
significant. The model is specified in a linear-linear management. The study revealed that average distance
form, hence, the coefficients of the variables represent
from the tenants residences’ to their farms ranged
the corresponding elastic ties and that indicate the
between 2-20 km to be crossed on food or by animals
relative change in water applied to the wheat crops
(m3/fed) relative to relative change in independent as primitive means, hence, the tenants might spend a
variables. The variables included in the model were the long time in their fields to a void movement and that
average of tenants’ age, family labours (man-day/fed), will save their time and efforts.
distance from home to field (km), hired labours (man-
day/fed), distance of farm to source of irrigation (km), Distance from a farm to irrigation sources: The
number of irrigation (per season), term of irrigation coefficient for the distance from source of irrigation to
(hour/fed), were found to be significantly at different a farm was found as 0.819 of wheat yield, which is
levels as illustrated in Table 3. significant at 99% level of significance. The coefficient
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 Am. J. Agri. & Biol. Sci., 6 (3): 332-338, 2011

represents the elasticity of the distance from source of Conclusion of the regression analysis: The regression
irrigation to a farm variables show the change in the analysis revealed the most factors affecting wheat
wheat productivity in season 2005/06; one percent productivity in River Nile State in season 2005/2006
increase on this variable will decrease the yield by were: the average of tenants’ age, family labour (man-
0.819%. Numerous researches revealed that the design of day/fed), distance from home to field (km), hired labour
surface irrigation net in most of the developing countries (man-day/fed), distance of farm to source of irrigation
characterized by inadequate of irrigation water distribution (km), number of irrigation (per season), term of
particularly at that tail-canal. As a technical fact, irrigation (hour/fed), were found to be significantly at
increasing of distance from source of irrigation to a farm different levels as illustrated in Table 3.
will ensuing increasing of irrigation water loses due to the CONCLUSION
water percolation and evaporation. The age of the existent
irrigation system in Elzeidab scheme exceed 100 years and This study explore some of the findings of the field
the partial rehabilitation constructions were done from survey for Elzeidab area in RNS and it described the
time to time which are not sufficient to bridge the scheme wheat production activities situation and conclusion
to the efficient condition. drawn obtained from numerous analytical tools as
follow: (1) The farming system of Elzeidab scheme is
Number of irrigations: The number of irrigation dominated by wheat production which counts to 25% of
variable of wheat in 2005/06 season has got coefficient the farm land. (2)The yields of wheat crop in Elzeidab
of 0.42 which is significant at 90% level of scheme were found to be lower when compared with
significance. This is elasticity form: a relative increase the average yield reported by ARTC. (3)Water charges
of 1% in number of irrigation will cause a relative for Elzeidab public irrigated scheme regarded as a
increase of 0.42% in yield of wheat. Numerous burden for wheat grower. (5)The research found that
previous studies revealed that the most agricultural the irrigation cost item was found to be as 19% of the
constraint in Northern Sudan is shortage of irrigation. total cost of production as the highest percentage overall
(Saeed, 1988; Salih, 1996). All of them found that the variable cost items. (6)The costs of irrigation, land
irrigation water significantly affect the crop production preparation and harvesting are the highest cost items in
in Northern Sudan. The majority of the studies the process of wheat production. (7)The unfavorable
mentioned that the irrigation shortage may be attributed
climatic conditions, poor cultural practices and shortage
to inadequate supply of irrigation inputs such as fuel,
of irrigation are the most important factors lowering the
spare parts, labor and their unavailability in proper time
yield of the crop. (8) The unavailability of formal finance
and at right prices for public and private sector. The
impression of readers for this analysis might feel that and limited informal finance as well as high cost of
there is conflict between actual quantities of applied wheat production are usually decreasing farmers’ returns.
water and the water shortage ensuing from the number Accordingly the study proposed the following
of irrigation, but substantially, this confirm there is recommendations:
inefficiency of irrigation water use due to the misuse of
• Because irrigation water is the main constraint
the water by scheme management and the tenants at the facing wheat production in the studyarea due to the
field level. high input cost, intervention is needed to ease
having this inputs either by subsidizing it or
Term of irrigation: The term of watering per hour/fed providing means of credit to enable farmers to keep
has got coefficients of -1.446 which is significant at their pumps working
99%. Since this coefficient in represent the elasticity • The study unveils the low value of the wheat crop
which indicates the change in wheat productivity in particularly which is as strategic crop, so that it
season 2005/06, a one percent increase on the term of should be encouraged to secure food. The
watering per hour/fed will decrease the wheat encouragement policies can imply reducing the
productivity by 1.446%. The research detected that cost of production or by incentive the wheat
Elzeidab surveyed tenants over-irrigated their seasonal growers of the scheme by buying their products at
crops entirely and economically, this misuse of satisfying prices
irrigation water led to waste water resources and • Limited required inputs with a reasonable or
technically will effects soil efficiency (i.e., salinity, subsidized prices as well as intensive role of
decreasing air portion of soil) and plants (i.e., lodging) extension are urgently needed to help wheat
and that to low productivity. farmers to trace the recommended package
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 Am. J. Agri. & Biol. Sci., 6 (3): 332-338, 2011

• Improving finance institutions will enable the Doll, J.P., and F. Orazem, 1992. Production Economics:
tenants to improve their resources use and Theory with Applications. 2nd Edn., Krieger
significantly increase their farm returns Publishing Company, ISBN-10: 0894647695, pp:
470.
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