Economics for Vegetable Oil Industry and its Effects on Food Security in Egypt

Abstract: ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
• The 54th Annual Conference of Statistics, Computer Science and Operations Research, Agricultural Economics Research Institute (AERI), Giza, Egypt, 11-9 December 2012.
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Economics for Vegetable Oil Industry and its Effects on Food Security in Egypt
It was found that soybean and sunflower yields are stable as their farmers do not get high revenues such as other crops competing for the area such as maize, whether white or yellow, and vegetable crops such as tomatoes, peppers, zucchini, etc., and this is probably why some farmers are reluctant to grow it besides poor productivity Their yields are about 1.4 and 1.04, respectively, for soybean and abed el-Shams crops, as they did not achieve high profits compared to other crops competing for the unit area. Some indicators of the productive and economic efficiency of oil producing plants were estimated. Egypt, due to the lack of sufficient data and difficulty in obtaining it, has been estimated the rate of return on cost and net worth of revenues, where the results showed that the average number of oil-producing enterprises about 27 units of oil production, and the average number of workers by about 139943 workers, while the ratio of return to costs about 114.5% means that each pound will invest in this area to achieve a return of about 114.5 pounds, the net present value is estimated at 404974.7 pounds for the average period 2010-2017.
It was found that the average available production capacity is estimated at 2600358.67 million pounds, and the actual production is estimated at 1938334 million pounds, representing about 80.5 of the available capacity, where the idle capacity reached about 662024.7 million pounds, representing about 26.03% of the available energy for the average period 2015-2017. There are some factories are still operating at half of their production capacity and did not achieve the actual production required of them, where some companies resorted to esters of crude oil, manufacturing and refining because of the cheap price in addition to providing labor and saving their salaries.
The results of the estimated model now predict that the expected values of the variables of the model are (quantity produced oils, average per capita oil consumption per capita ?2, volume of imports ?3, during the period (2020-2025), as it is expected that the volume of total production Of oil from about 2755.4 thousand tons in 2020 to about 2908.0 thousand tons in 2025 with a growth rate of about 15.3%, while the average per capita consumption of oil is expected to increase from about 14.7 kg In 2020, the national consumption increased from 1458.5 million tons in 2020 to about 1665.2 million tons in 2025.
Recommendations
1 - appropriate pricing policies should be developed to contribute to increases in oil production rates.
4. Providing support from the government to producers of oil crops to encourage them to grow these crops of economic importance.
5 - Development of new varieties with high oil recovery rates.
6- Encouraging investors to establish production units for oil extraction.
8. Develop a policy and legislation to impose contract farming on farmers and motivate them to cultivate these crops, and put the mechanism for implementation and circulation to all regions of the Republic.

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2019

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163 - 181

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مكتبة معهد بحوث الاقتصاد الزراعي-7 ش نادى الصيد - مبنى الهيئات والشركات - الدقي- الجيزة (الدور الرابع)

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Agricultural Economics Research Institute (AERI)

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