An Economic Study on the Current and Future Outlook for the Production of Sugar Beet in Egypt
Abstract: ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
• Egyptian Journal of Agricultural Economics, Egyptian Association of Agricultural Economics, Vol.(22), No.(1), Cairo, Egypt, March 2012.
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The current study aims at investigating the current and future outlook of production and consumption of sugar beet, self-sufficiency ratio (SSR) of sugar, operational and designed capacities of sugar beet plants in Egypt. Besides, the study sheds light on the future demand and supply of sugar produced from sugar beet, as the main alternative to sugar cane. Finally, the study suggests some alternatives to increase the SSR of sugar in Egypt.
The results showed that the annual average production of sugar in Egypt reached about 1.4 million tons during the period (1995-2011) with an increasing general trend of about 3.4% annually. Besides, the average sugar per capita amounted to about 30.1 kg/year with an increasing general trend of about 2.3% annually. However, the average gap of sugar reached 701 thousand tons and the SSR reached 68.2%. The future forecast in 2020 for production and consumption of sugar, and the gap between them increased by about 113.6%, 122% and 140% of the average study period, respectively. Moreover, the SSR indicates a decrease of about 57.4% in 2020. Besides, the average per capita of sugar production, consumption and the expected gap between them in 2020 amounted to about 118%, 129% and 152% of the average study period, respectively. The study found that the total costs of production and net return per feddan of sugar beet represent about 41% and 116.7% of the same variables for sugar cane, respectively. However, the revenue, net revenue, and value-added per one cubic meter (CM) of irrigation water of sugar beet reached about 244%, 469.6% and 322% of the same variables for sugar cane, respectively. Moreover, the area and quantity supplied of sugar beet represent about 38.2% and 24.2% of the total area and quantity supplied of sugar crops (cane sugar and beet sugar) for the average study period. Besides, the operational efficiency and the extraction efficiency of beet sugar factories in Egypt for season 2010/2011 reached about 107% and 13.25%, respectively. Furthermore, the average return per feddan, irrigation water productivity and return of irrigation water of sugar during the period (2005-2010) reached about L.E. 6.6 thousand per ton, 1.2 ton/CM, L.E. 2.98 per CM, respectively.The results also revealed that the cumulative growth rate of real retail price in 2020 amounted to about 0.2%. Besides, price elasticity was estimated at 0.05 whereas the cumulative reduction rate of real individual income in 2020 reached about 19%. Furthermore, income elasticity reached 0.32 while the cumulative reduction rate of the national consumption of sugar amounted to about 1.2% as compared to the cumulative growth rate of the individual consumption of sugar reaching about 0.61%. However, the estimated coefficients of price and income elasticity are less than one correct, indicating that sugar is a necessary commodity, which in tern constitutes a burden on the state due to the increasing quantity consumed of sugar. Nevertheless, the cumulative growth rate of real wholesale price in 2020 reached about 22%. Besides, supply elasticity was estimated at 0.95, indicating coefficient of elasticity less than one correct which goes against economic logic because despite low real farm-gate price gained, but the cultivated area of sugar beet increased due to the steady increase of sugar beet productivity, which compensates farmers for the low real price. Moreover, the rate of growth of sugar beet supply reached about 15.8%.
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URL
Publication year 2012
Availability location مكتبة معهد بحوث الاقتصاد الزراعي-7 ش نادى الصيد - مبنى الهيئات والشركات - الدقي- الجيزة (الدور الرابع)
Availability number
Organization Name
City القاهرة
serial title المجلة المصرية للاقتصاد الزراعي
Author(s) from ARC
Publication Type Journal
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