Economic Study for the Production of Jojoba in Egypt
Abstract: The jojoba crop is considered the most compatible plant with terrestrial and water resources and environmental conditions in Egypt and one of the strategic solutions for cultivating the Egyptian desert. However, the expansion of its cultivation is still limited in a way that is not commensurate with its economic importance. Jojoba farm in Alhizam Alakhdar in Giza and the other in Ismailia, the research has reached the following results:
- The cultivated area of jojoba in Egypt is increasing at a statistically significant rate of about 34.5 acres annually, and the cultivation of jojoba is concentrated in five governorates: Assiut, Red Sea, Beni Suef, Ismailia, and Sharkia by about 56.4%, 26.02%, 8.9%, 7.5%, and 1.14%, respectively, of the total cultivated area of Jojoba, which amounted to about 369 acres, in Egypt during the period (2013-2017).
- With regard to the jojoba farm in Alhizam Alakhdar region, it turned out that there is an economic feasibility of investing in the cultivation of the jojoba crop, as indicated by the financial analysis criteria, where the net present value reached about 136.7 pounds, meaning that the net inflows are greater than the net outflows and the ratio of benefits to costs reached 2.7 It is greater than the correct one. The internal rate of return was about 31%, which indicates that this project is profitable and achieves profits in excess of the opportunity cost of 14%. By conducting a sensitivity analysis, it was found that investing in jojoba cultivation has the ability to bear the increase in costs and decrease revenues.
- It was found that the jojoba farm in Ismailia achieved high economic efficiency based on the results of the financial analysis, as it was found that the net present value amounted to about 207 pounds, which indicates that the revenues are greater than the costs and the ratio of benefits to costs reached 3.7 which is greater than the correct one and the internal rate of return reached about 42 It exceeds the opportunity cost of 14%, which indicates the profitability of the project and shows the ability of the jojoba project to cope with the increase in costs and lower revenues according to the results of the sensitivity analysis.
Recommendations
- The possibility of relying on treated wastewater for irrigating the jojoba crop, as production is not affected much, especially as the resulting seeds are exported for use in the production of motor oil and providing fresh water to grow other food crops.
- The need for communication between the Horticultural Research Institute and the Extension Research Institute to educate farmers and investors about the importance of the jojoba crop, to introduce the technical aspects of its cultivation, and to communicate between economics and extension research institutes to clarify the economic viability and the financial return from its cultivation.
- The state must provide the appropriate environment to invest in the jojoba crop and provide reliable seedlings from a green mind to strong mothers to ensure greater production.
URL
Publication year 2020
Pages 39- 52
Organization Name
City الاسكندرية
serial title مجلة الاسكندرية للعلوم الزراعية
Author(s) from ARC
Publication Type Journal
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