Analysis of the impact of economic policies on the production and export of grapes in Egypt

Document Type : Original Article

Authors

1 Economic Department, Faculty of Agriculture, Al-Azhar University, Cairo

2 Climate Change Information Center, Renewable Energy and Expert. Systems ARC.

Abstract

The grape is considered one of the most important fruit crops with a high nutritional value, as the total fruitful area reached 180.17 thousand feddan, produced about 1.67 million tons, representing 8.5% of the average production quantity for the period (2015-2019). The research problem is that grape production faces many production and export problems, including high production costs, marketing margins. The research aims to analyze the impact of productive and economic policies on the grape, with an estimate of the matrix for the analysis of production and economic policies in Egypt during the period (2015-2019). The most important findings are the following: The nominal protection factor for products per feddan was about 1.01, which means that there are implicit taxes borne by grape producers in Egypt. The nominal protection factor for the inputs during the study period was about 1.16, which confirms the lack of support for the inputs of production elements. The effective protection factor was about 0.98, which confirms that there are implicit taxes that amounted to 0.02%. The value of the local resource cost factor for the grape crop was about 0.29, which means that the crop enjoyed a comparative advantage in its production, and thus increased its exports to foreign markets. The value of the economic surplus of the grape crop amounted to about 3.30 thousand pounds per acre, which means an increase in the economic profitability of the state over the financial profitability of the farms by about 11.69%. The research recommends planting varieties with high productivity per acre, encouraging the cultivation of early-ripening export varieties.

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