Analysis of the Performance of Cereal Farms based on Durum Wheat Production Cost Estimates in the Algerian Highlands

Durum wheat is a staple crop in Algeria, primarily used for local consumption and semolina production. Its strategic importance for national food security is particularly evident in the Sétif region, located in northeastern Algeria, which benefits from favorable Mediterranean climatic conditions and arable soils. This study aims to estimate the production costs of durum wheat and assess the profitability of cereal farms, identifying cost drivers and performance differences to propose strategies for improving efficiency and reducing costs.

The study was conducted at the National Higher School of Agronomy (ENSA), Algiers, during the 2023/2024 agricultural season. Data were collected from a representative sample of durum wheat producers in the Sétif region. A cost-accounting approach was used to estimate production costs, including both fixed and variable expenses. Farms were then classified into performance groups based on cost-efficiency indicators. Statistical tools such as analysis of variance and Pearson correlation were used to identify key determinants of cost variation and farm performance.

The findings revealed significant disparities in production costs among farms. Labor, mechanization and fertilizer use were the most significant cost components. Farms with higher technical efficiency and optimized input use exhibited lower costs and better profitability. Access to extension services and superior soil quality also contributed to higher productivity.