1 / 33

CIHEAM - IAMM EU-MED AGPOL, European research Program

CIHEAM - IAMM EU-MED AGPOL, European research Program. CHARACTERIZATION OF AGRICULTURAL AND AGRO-INDUSTRIAL SECTORS IN EGYPT BY DR. GAMAL SIAM UC-CAES. CONTENTS. Major determinants Evolution of agricultural performance Evolution of agro-industrial performance

evea
Download Presentation

CIHEAM - IAMM EU-MED AGPOL, European research Program

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CIHEAM - IAMMEU-MED AGPOL,European research Program CHARACTERIZATION OF AGRICULTURAL AND AGRO-INDUSTRIAL SECTORS IN EGYPT BY DR. GAMAL SIAM UC-CAES

  2. CONTENTS • Major determinants • Evolution of agricultural performance • Evolution of agro-industrial performance • Agricultural and agro-industrial policies • International trade policies; with special reference to fresh and processed fruits, vegetables

  3. I. Major Determinants of Agricultural and Agro-industrial Production

  4. 1. General Indicators, 2003 (m,ha)

  5. 1. General Indicators, 2003(contd.)

  6. 2. Infrastructure Transportation facilities • Generally, shortage of adequate transportation and cooling facilities is an obstacle to horticultural exports. • Land Transport -- Egyptian trucking rates are 50 percent higher in competitor countries. • Air transport • Lack of air cargo space for perishable products. • Air cargo is more expensive. • Cold store facility exists only in Cairo Airport. • Sea transport • Port facilities for refrigerated containers are poor. • Food consignments must be inspected by four agencies.

  7. 3.Agricultural Marketing Systems The AMS comprises: • Collection, transportation, packaging, transformation, storage and wholesale and retail market systems that are reinforced by regulatory institutions.

  8. II. Evolution of Agricultural Sector Performance

  9. 1. Cropping Pattern in the Egyptian Agriculture in Selected Years

  10. 2. Area, Yield and Production Growth Rates (%) for Selected Crops in Egypt (1990-2004)

  11. 3. Dominant F&V Crops Fruits and Vegetable Production and Marketing • Main fruit include citrus, grapes, strawberries, dates, mangoes, guavas, apples and olives. • Vegetables Tomatoes, potatoes, cucumbers, onions lettuce, watermelons, green beans, and peppers.

  12. 4. Marketing margins of selected F&V crops, 2003 Share in Retail Price

  13. Producers ( 1,100,000 tonnes ) 50% 50% Local Packing Pre - cooling traders house Governorate markets Official Cold Processing storage ( ) wholesale markets Cairo, Alex Un official markets Wholesalers ( shalayesh ) Retailers, super markets, hotels Retailers … Over seas markets 6,000 tones 0 . 55% Domestic consumer 5.The grape value- chain

  14. Producers (85,000 tonnes) Governorates wholesale markets Local traders Main official wholesale markets Cairo,Alex (35%) Processing Unofficial wholesale markets(25%) exporters Retailers,supermarkets, tourist villages Domestic consumers Overseas markets 6850 tonnes (6.6%) 6.The green bean value-chain

  15. Growers 230 , 00 0 tonnes % 60 % 40 Governorates Local wholesale traders markets Unofficial wholesale Official Main markets whole esale markets ( Cairo , Alex… ) Retailers , supermarkets , Exporters Tourist villages Overseas markets Domestic consumers 3 , 500 tones 1 .5 % 7.The cantaloupe value- chain

  16. 8-Agricultural Exports (Fresh)Commodity Composition, 2003

  17. 9. Agricultural ExportsGrowth rates, 1990-2003

  18. 10. Export Destination of Selected F&V Crops (2001)

  19. III. Evolution of Agro-industrial sector Performance

  20. 1.Value Added for Food Processing Industry The total value added of the food processing industry is US$ 6.1 billion in 2000, representing 27 percent of the aggregate value added of agriculture and food processing industry.

  21. 2.Traditional Markets Versus Modern Supermarkets • Many of Egypt’s food exports with higher value- added have been more targeted toward meeting regional tastes, rather than those of EU markets. • The supermarkets in Egypt have targeted not the middle and working classes but upper income consumers. • The quality of Egyptian produce is markedly inferior compared to the requirements in North America and Western Europe.

  22. 3.Processed Food Exports, 2003

  23. IV. Agricultural And Agro-industrial Policies

  24. 1. Brief History of Major Developments • In 1986, Egypt started the implementation of the Economic Perform and Structural Adjustment Program (ERSAP) The following reform measures have been taken: • Eliminating the subsidies on farm inputs; fertilizers, animal feed, pesticides and seeds. • Liberalization of input prices. • Eliminating the government monopoly of main farm inputs and strategic crops. • Eliminating subsidy on interest rate for farm credit. • Unifying the exchange rate regime and recently (in 2003) floating the Egyptian pound

  25. 2. Marketing and Price Policies • During the reform period, guaranteed floor prices were offered for wheat and rice as well as cotton. But recently, guaranteed prices for rice and cotton have been cancelled. • The GOE still maintains administrative price for voluntary procurement (for a quantity of 2 million ton annually). • Marketing of sugar cane and sugar beet is still controlled by the government.

  26. 3. Natural Resources Policies • Egyptian agriculture relies on the Nile water which is fixed at 55.5 BCM annually. • Water policy aims to increase the water resources by about 10.7 BCM through increasing water reuse, expanding the use of underground water, and treatment and reuse of wastewater. • Land resources base is planned to increase from 3,3 million hectares to 4,7 million hectares by 2017. National mega projects including Toshka, Sinai Development and Alowaynat East Projects are part of this land reclamation program.

  27. V. International Trade Policies with special attention to fresh and processed Fruits and Vegetables

  28. 1. Multilateral and Bilateral Engagements Egypt is a party to several important trade agreements: • WTO, 1995 • Egypt-EU Agreement, 2004 • Greater Arab Free Trade Agreement (GAFTA), 1998 -Zero tariff for agricultural products as of Jan 2005 • COMESA, 1997

  29. ۩Egypt´s Commitments in to the WTO • Egypt is among Net Food Importing Developing Countries (NFIDC) • Applied tariffs on Egypt’s imports of fresh vegetables are fixed at 20 percent. • Applied tariffs on Egypt’s imports of processed vegetables are 30 percent, 10 percent lower than the bound tariffs in Egypt schedules. • Applied tariffs on Egypt’s imports of fruit products range 30-40 percent. • High applied tariff rates on fresh and processed fruits and vegetables induce producers to market their producer in local markets thus discourage them to export.

  30. √ EU-Egypt Partnership Agreement (EUEPA) • Expanded windows for some products. • Enlarged zero duty quotas for other products. • EUEPA implies significant improvement in market access for Egypt’s exports of horticultural products, but it works as a restriction on Egypt’s promising products in the future.

  31. √ SPS/TBT in the WTO with Respect to Fruit and Vegetables of Egyptian products face strict import regime of SPS/TBT in the EU markets. Examples include: • Potatoes exports with brown rot standards. • Citrus exports with white fly infection.

  32. 2. New Potentials for Egypt´s F&V Exports • Expanding production of early mature varieties to extend market window to the EU. • The mega projects in Upper Egypt i.e. Toshka and Owynat East could contribute significantly in that direction. • EUEPA extended the export window of specific horticultural crops. For example, it extended the window for grapes 15 days (the new window is 1/2 – 15/7 while the old is 1/2 – 30/6 ). • Opportunities for Egypt to expand its exports of processed fruits and vegetables are reasonably attractive in the Near East countries and the EU as well.

  33. THANK YOU

More Related