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International Journal of Agriculture and Crop Sciences. Available online at www.ijagcs.com IJACS/2013/5-3/249-252 ISSN 2227-670X ©2013 IJACS Journal Energy use and economical analysis of Sugarcane production in Iran a case study: Debel Khazaeei agro-industry Ebrahim zarei Shahamat 1, Mohammad Amin Asoodar1, Afshin Marzban1 and Abbas Abdeshahi2 1. Department of Agricultural Machinery, Khouzestan Ramin Agriculture and Natural Resources University, Khouzestan, Iran 2. Department of Agricultural Economy, Khouzestan Ramin Agriculture and Natural Resources University, Khouzestan, Iran Corresponding author email: [email protected] ABSTRACT: The purpose of this study was to determine the amount of energy consumption i.e. the amount of input and output used in sugarcane production, to make an economical analysis at a sugarcane agro-industry company, named Debel Khazaeei in Khuzestan, Iran. To pursue the purpose of this study, data were collected from this company. The results indicated that total energy input was 78094.03 MJha-1 and total energy output was calculated as 104760 MJha-1 and electricity energy used in sugarcane production systems had a high share with 33.2 percent. Subsequently, water for irrigation, fertilizer, machinery, chemicals, seed cuttings and human labor used 25.1, 15, 5.2, 2.7, 2.6 and 0.6 percent energy respectively. The energy use efficiency, energy, and water productivity, energy-water productivity, agrochemical energy ratio, renewable energy and non-renewable energy of sugarcane production were 1.34, 1.12 KgMJ-1, 2.8 Kg M-3, 0.04 gr. (M-3.Mj-1), 17.96%, 22094.46 MJha1 and 55999.57 MJha-1 respectively. The benefit–cost ratio from sugarcane production was calculated to be 0.71 that showed sugarcane production in Iran is not profitable. Key words: Energy ratio, economic analysis, sugarcane, Iran. INTRODUCTION Sugarcane is the most important product that in addition to sugar, also supplies raw materials.. About 60 percent of the world’s sugar is supplied from sugarcane production and the rest is produced from sugar beet. Basically, food, forage, fiber and other products are produced from sugarcane. Meanwhile, energy has been a key point to agriculture since the age of subsistence agriculture. Furthermore, it is an established fact worldwide that agricultural production is positively correlated with energy input (Taheri et al., 2010). In modern agricultural system, the input energy is much more than it used to be in traditional agricultural system. Energy is directly used in tillage operations, planting, harvesting; and indirectly used in inputs such as pesticides, fertilizers, transportation, construction of drainage, land leveling and other inputs that are associated with sugarcane production. But, efficient energy use has been reduced in response to ineffective use of input energy. However, increasing input energy, in order to obtain maximum yield may not bring maximum profit because of increase in production costs (Erdal et al., 2007). In addition, increased input use may constitute a pressure over the environment and result an excessive use of natural resources. Efficient use of energies help to achieve increased production efficiency and therefore contribute to economy, profitability and competitiveness of agriculture sustainability in rural areas (Ozkan et al., 2004; Singh et al., 2002). Khan et al. (2008) showed that in tractor-operated farm systems total energy input was 5563. 6 kwh (20.02 GJ) for ratoon farms and 13679. 5 kwh (49.24 GJ) for Planted Farms. The total energy output was 85858. 5 kwh (309.09 GJ) for ratoon farms and 72649.5 kwh for planted farms (261.53 GJ). Energy efficiency on planted farms and ratoon farms were 5.31 and 15.43 respectively. Also energy consumption was 0.11 kW hkg-1 (0.396 MJ Kg-1) for ratoon farms and 0.31 kwh kg-1 (1.11 MJ Kg-1) for planted farms. On the whole, the main objective of this study was to calculate the energy cycle and the economic analysis of sugarcane agro industry in Khouzestan province,Iran that could be effective for sustainable management. MATERIALS AND METHODS Intl J Agri Crop Sci. Vol., 5 (3), 249-252, 2013 This study was conducted at Debel Khazai sugarcane agro-industry which is located at latitude 31° to 31°10' north and longitude 45° to 48° 36' east of Khouzestan province, Iran, 2010. The inputs included fertilizers, chemicals, cutting stalk, hours of labor, water consumption, hours of machine work, diesel fuel, and electricity. Data were collected in forms of tables, annual statistics and interviews with people who were in any way connected to the administrative executives; including the head managers, middle managers, workers and drivers of the operating parts. In order to analyze the energy the indicators such as: energy efficiency, energy productivity, energy intensiveness and specific energy, renewable and nonrenewable energy were calculated (Hatirli et al., 2008; Mohammadi et al., 2010) Energy use efficiency = energy input (MJ ha-1) /energy output (MJ ha-1) (1) -1 -1 Energy productivity = sugarcane output (kg ha ) / energy input (MJ ha ) (2) Water productivity = sugarcane output (kg ha-1) / water consumption (M3ha-1) (3) Water-energy productivity = sugarcane output (kg ha-1) / [energy input (MJ ha-1) * water consumption (M3 ha-1)] (4) Agrochemical energy ratio= input energy of agrochemicals (MJ ha-1) / total input energy (MJha-1) (5) The input energies were divided into renewable and nonrenewable energies (Kizilaslan, 2009; Samavatean, 2010). Renewable energies consisted of human labor, water for irrigation, and seed cutting; and nonrenewable energies included diesel, pesticide, fertilizers, electricity, and machinery. To obtain the amount of energy output and energy input it was necessary to calculate it by using the energy equation which is shown in Table 1. Table1. Energy equivalent of inputs and output in sugarcane production Input A. Inputs Diesel Machinery Fertilizer Nitrogen Phosphorus Chemicals Human labor Electricity water Seed cuttings and stalks B. Out put Seed cuttings and stalks Unit Energy equivalent (MJ/unit) References L h kg 51.33 62.7 (Samavatean et al., 2010) (Samavatean et al., 2010) 66.14 12.44 120 3.6 .63 1.2 (Erdal et al., 2007) (Erdal et al., 2007) (Demircan, et al., 2006) (Bojaca and Schrevens, 2010) (Gundogmus, 2006) (Gundogmus, 2006) (Ricaud, 1980) 1.2 (Ricaud, 1980) kg h kWh 3 M kg Kg In the last part of this research, economic analysis of sugarcane production was investigated and net profit and benefit–cost ratio were computed (Yilmaz et al., 2005). Benefit/cost ratio = Gross value of production ($ ha1 ) / Total cost of production ($ ha-1) (6). Gross value of production ($ ha-1) = Sale price ($ kg-1) * Yield (kg ha) (7). RESULTS AND DISCUSSION Analysis of input-output energy use in sugarcane production The inputs used, outputs in sugarcane production systems, their energy equivalents, and percentages in the total energy input are presented in Table 2. The results have revealed that total energy input in sugar cane production systems were 78094.03 MJ ha-1. Electricity energy used in sugarcane production systems had a high share of 33.2 % (Fig1). Water for irrigation used in sugarcane production systems ranked second place with 25.1% of the total energy input. Next the energy related to fertilizer (nitrogen+ phosphorus), machinery, Chemicals, Seed cuttings and Human labor were 15, 5.2, 2.7, 2.6 and .6 percent respectively. In this study water used for irrigation was 31157 M3 ha-1. The energy equivalent used for this water was 19628.91 MJ ha-1. In this study sugar cane yield was 87300 Kg ha-1 and the total energy equivalents used for this amount was 104760 MJ ha -1. Table 2 . Amount of inputs, output and energy inputs and output in sugarcane production A) Input (Unit) Diesel fuel (L) Machinery (h) Fertilizer (kg) Nitrogen Phosphorus Chemicals (kg) Quantities per unit area (ha) 237.5 65 Total energy equivalent (MJ/ha) 12192.41 4075.5 percentage 15.6 5.2 173.47 19.16 17.5 11473.31 238.35 2100 14.7 0.3 2.7 250 Intl J Agri Crop Sci. Vol., 5 (3), 249-252, 2013 Human labor (h) Electricity (kwh) 3 Water (m ) Seed cuttings (kg) Total energy Input (MJ) B)Output (kg) Seed cutting (kg) Stalk (kg) Total energy out put (MJ) 237.53 7200 31157 1666.66 465.56 25920 19628.91 1999.99 78094.03 74300 13000 89160 15600 104760 w ater for irrigation; 25.1 Human labour; 0.6 0.6 33.2 25.1 2.6 100 Machinery; 5.2 Diesel fuel; 15.6 nitrogen; 14.7 seed; 2.6 phosphate; 0.3 electricity; 33.2 pesticides; 2.7 share of important energy inputs in total energy Figure 1. share of important energy inputs in sugarcane production Energy efficiency, energy productivity, water productivity, energy-water productivity, agrochemical energy ratio, renewable energy and nonrenewable energy are shown in table 3. Energy efficiency for this study was 1.34. Energy efficiency was reported 4.83 for alfalfa production systems in Iran (Yousefi and Mohammadi, 2011); 2.8 for wheat production systems in Turkey (Streimikiene et al., 2007); 3.51 for rain fed barley production systems in Iran (Yousefi and Ghazvineh , 2011); and 25.75 for sugar beet production systems in Turkey (Erdal et al., 2007). Energy productivity, water productivity, energy-water productivity, agrochemical energy ratio, renewable energy and non-renewable energy of sugarcane production were 1.12 Kg MJ-1, 2.8 Kg M-3, 0.04 gr. (M-3.Mj-1), 17.96%, 22094.46 MJ ha-1 and 55999.57 MJ ha-1 respectively. Table 3. Energy Indicators of sugarcane production Item Energy use efficiency Energy productivity Water productivity Energy- water productivity Agrochemical energy ratio a Renewable energy b Non- renewable energy b a Unit -1 KgMJ -3 Kg M -1 gr. (M-3.Mj ) % -1 MJha -1 MJha sugarcane 1.34 1.12 2.8 0.04 17.96 22094.46 55999.57 includes human labor, seed cutting and water for irrigation includes fuel diesel, chemical, fertilizers, machinery and electricity Economic analysis of sugarcane production The total cost of sugarcane production and the gross value of production were calculated and reported in Table 4. Total expenditure for the production was 3771.69 $ ha-1 while the gross production value was found to be 2711.95 $ ha-1. Based on these results, the benefit–cost ratio from sugarcane production in the surveyed farms was calculated to be 0.71, so sugarcane production in Iran is not profitable. The research results were consistent with findings reported by other authors, such as, 2.53 for sweet cherry (Demircan et al., 2006); 2.37 for orange; 1.89 for lemon and 1.88 for mandarin (Ozkan et al., 2004); 1.03 for stake-tomato (Esengun et al., 2007); 0.86 for cotton (Yilmaz et al., 2005); and 1.17 for sugar beet (Erdal et al., 2007). The net returns from sugarcane sales were insufficient to cover economic costs. The sensitivity analysis showed that in order for the income to equal the expenses sugarcane should be produced at an average of 103.33 ton per ha. Table 4. Economic analysis of sugarcane Cost and return components Value 251 Intl J Agri Crop Sci. Vol., 5 (3), 249-252, 2013 -1 Yield (kg ha ) -1 Sale price ($ kg ) -1 Gross value of production ($ ha ) -1 Total cost of production ($ ha ) Benefit/cost ratio 74300 0.0365 2711.95 3771.69 0.71 CONCLUSION In this study the energy indicators and the cost analysis of sugarcane production in Khuzestan province of Iran have been investigated. Total energy consumption of Sugarcane was 78094.03 MJ/ha and energy output was calculated as 104760 MJha-1. Electricity energy used in sugarcane production systems had a high share of 33.2 percent; subsequently, Water for irrigation, fertilizer, machinery; chemicals, seed cuttings and human labor were 25.1, 15, 5.2, 2.7, 2.6 and 0.6 percent respectively. The energy use efficiency, energy productivity, water productivity, energy-water productivity, agrochemical energy ratio, renewable energy and non- renewable energy of sugarcane production were 1.34, 1.12 KgMJ-1, 2.8 Kg M-3, 0.04 gr. 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