Walnut (Juglans regia L.) is one of the important and multipurpose trees in horticulture and commercial dried fruits in Iran. In this study, effective factors on producing walnut and the investigation of walnut marketing issues have been studied using functional analysis and marketing margin model estimation methods. The data required for the present study has been collected through filling 70 questionnaires by walnut growers and also 30 questionnaires by walnut retailers and 20 questionnaires by its wholesalers in Kohgiluyeh-va-Boyerahmad Province, in 2012. Using transcendental production function estimation, the results revealed that the explanatory variables including the number of fruitful walnut tree and labor have statistically been significant and have a positive relationship with walnut production. The elasticity of inputs' production of the number of fertile walnut tree and labor are 1.782 and 0.282, respectively indicating that these inputs have a significant effect on walnut production. Also, the rate to return is equal to 2.064 which show that with increasing production factors, the rate of production will be increasing. Using the mark-up model, the marketing margin calculation indicated that marketing margin has a direct and significant relationship with retailer price in the way that a unit increasing in the retail price causes 0.97% unit increasing in marketing margin. Wholesalers and retailers margin are 18 and 20.3 thousand Rails, respectively that indicates the existence of total marketing margin in the rate of 38.3 thousand Rails. The share of producers, wholesalers and retailers from the final consumer price is about 62, 20.1 and 17.9 percent, respectively.
