Estimating the Effect of Biennial Olive Bearing to Forecast Syrian Olive- Oil Production by Using Box-Jenkins (ARIMA) Methodology

International Journal of Agriculture & Environmental Science
© 2020 by SSRG - IJAES Journal
Volume 7 Issue 5
Year of Publication : 2020
Authors : Wael Habib, Mohammad Ghoush
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How to Cite?

Wael Habib, Mohammad Ghoush, "Estimating the Effect of Biennial Olive Bearing to Forecast Syrian Olive- Oil Production by Using Box-Jenkins (ARIMA) Methodology," SSRG International Journal of Agriculture & Environmental Science, vol. 7,  no. 5, pp. 21-30, 2020. Crossref, https://doi.org/10.14445/23942568/IJAES-V7I5P104

Abstract:

This study aimed to analyze the time series of olive-oil production in Syria and thus estimate the effects of biennial/alternate fruit-bearing phenomena
and determine the appropriate forecasting model based on The Box-Jenkins method. It used annual data of olive-oil production over 58 years from 1961 to 2018. The results showed that the time series of olive-oil in Syria is non-stationary, and it is characterized by three trends: the first is a general
trend that tends to rise; the second is a cyclical trend, i.e., biennial bearing (BB)that leads to the exchange of production every other year; and the third is a random trend resulting from abnormal climate changes or security disorders and their economic effects. The biennial bearing phenomenon is characterized by instability and irregularity, which made forecasting more difficult.
It has been found that BB was responsible for 21.7% of the rise in production over the years of positive/bearing/production (increase above the general production of the series). In contrast, this factor was responsible for 18.9% of the decline in production over the years of negative/non-bearing production.
The best model for forecasting live-oil production was ARIMA (3.1.1), but the lag parameter Yt-2 was non-significant. The self-regression parameters (AR) reveal that the behavior of this time series has often been determined by its values in the first and third recent years, while the moving average parameters (MA) indicate that the behavior of the time series (Yt)is often determined in terms of current random noise and previous random noise.

Keywords:

Olive production in Syria, Box-Jenkins models, time series, biennial/alternate bearing, cyclical trends, ARIMA

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