Cost Analysis of Three Phased Olive Mills in Turkey With Life Cycle Costing Approach : The Case of Milas Region

Olive which has attracted people throughout its history has made great contributions to the economic development of countries in Mediterranean basin because of its multi-purpose usage possibilities in daily life and its economic value. Turkey, supplying the 8% of world olive production and 5% of world olive oil production and export, is among to top five countries in the world together with Spain, Italy, Greece and Tunisia. In Turkey, olive sector as one of the most important branches of agriculture and agro-based industries has a significant place both socially and economically. In Turkey, where there are 800 thousand hectares of land and about 150 million olive fruit-bearing olive trees, an average of 1.1 million ton olive and 200 thousand ton olive oil is being produced. Oil cultivation is the direct income source of 400 thousand families and about 2 million people and contributes to their revenue. Milas where this study was carried out has an important place in Turkey olive and olive oil production. Moreover, for Milas olive and olive oil is not only a source of income but also a source of culture. Olive oil production facilities which are among the important stakeholders of olive sector constitute the subject of this study. There are about 100 olive mills operating within Milas district. In this respect, in this study in which olive mills operating in Milas district were examined, first, the structural features of these olive mills were introduced. Then, the terms “cost” and “cost in olive production” were addressed and factors effecting the calculation of olive oil costs were summarized. Finally in order to quantify the costs a formula was offered by using Life Cycle Costing Method