Abstract: _________________________________________________________________________________________________
•Egyptian Journal Of Agricultural Economics, vol (23), NO(4), December 2014.
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Flax occupied an important place in Egyptian economy specially in aspects like production, industry, and foreign trade. As a result of some domestic and international changes . The problem of the study was decreasing the cultivated area of flax and the competitiveness status of Egyptian Flax. Therefore, it aimed at making recommendations for strengthening and raising this competitive power in both local and foreign markets through analyzing production and exports status ;throwing some light on export structure in major competitor markets. Also analyzing the market share in the importing markets and studying factors affecting foreign demand for Egyptian flax .
In this regard , The statistical estimates of trend relationships for the economic variables affecting production and export capacity of Egyptian flax during (1995- 2011) showed that, the cultivated area and total production have decreased with about 3.7%, 0.92% of its averages, which amounted to 19 thousand Fadden and 74 thousand tons, respectively, whereas each of productivity, total costs, total revenue, and net benefit have significant increased with about 3%, 6.8%, 10.3%, 16%, of its averages, which reached about 4 ton/ Fadden, 1806 pounds/ Fadden, 2897 pounds/ Fadden, and 1092 pounds/ Fadden, respectively. This part found that the quantity exports of Flax have increased by about 1.6% from their average. In the meantime, value and prices of Egyptian flax exports have significant increased by about 5.7%,4.8% annually from their average period respectively. Trend relationship of export/production ratio showed an insignificant increased during the same period.
By studying the most important imported market during (1995-2011) were Belgium, France, the Netherlands, Lithuania, Italy, and Canada the quantity exports for these markets to total quantity exports of world of Flax about 27.8% , 47.5% ,3.5% ,1.9% ,0.4% ,7.1% , respectively.
The study showed an Economic instability to the quantity , price and value of exports of flax during the study period. While the market share of Egyptian flax in major important markets , the result showed that this share estimated by 42.5% at maximum in Romania and did not exceed about 0.9% of the Belgian market during (2007- 2011).
The study exposed on the economic models for demand , the first model studying major factors affecting total imports of flax to major markets proved negative relationship between quantity of total imports and average price of imports to each of China, Belgium, France and Germany. Also it showed a significant statistical relationship between quantity of total imports and average price of imports to each Turkey and Germany. Estimates also assured negative and significant statistical relationship between quantity of total imports and domestic production in Italy and Span .Price elasticity showed that 1% increase of the average imported price of flax with respect to decrease the quantity of total import 6by 45% ,1%, 150%, 26%, for China, Belgium, Germany and France respectively.
Based on analysis of demand function of Egyptian flax in importing markets , finding of the second model indicated that Belgium, Germany, France , Romania and Spain markets substituted imports from competitive markets for their imports from Egyptian market due to the negative relationship between quantity imports ratio and the price ratio of imports . Estimates of price elasticity showed that elastic demand for Egyptian flax in Belgium, Germany, France , Romania and Spain markets . The study also indicated the positive effect of price ratio in imports of Egyptian flax compared with the other competitor markets.
Finally the study recommended some topical recommendations for rising the competitive advantages of the Egyptian exported flax in the world markets ,such that finding device export and export enterprises with high efficiency and studying imported markets and its need of export commodities in terms of quantity, quality and time of export
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