IDEAS home Printed from https://ideas.repec.org/p/ias/fpaper/10-wp509.html
   My bibliography  Save this paper

Impacts of the Economic Reform Program on the Performance of the Egyptian Agricultural Sector

Author

Listed:
  • Ibrahim Soliman
  • Jacinto F. Fabiosa
  • Mohamed Gaber Amer
  • Siham Kandil

Abstract

From 1986 to 2007 Egypt's agricultural policy transitioned from a tightly controlled to a more liberalized regime. This study examines the impact of this change on the performance of the wheat (imported grain) and rice (exported grain) sectors. In terms of profitability, we found that the cost of production increased substantially in both grains, driven primarily by the rise in land rent and labor wage. But the wheat and rice sectors' profitability did not suffer significantly, as advances in new seed technologies and adoption of better farm practices including farm mechanization increased yield and compensated for the higher cost. Considering market efficiency, we found that over the study period the farmer's share of the consumer's expenditure dropped from 51% to 37% in the case of wheat, while it increased from 24% to 26% in the case of rice. The reverse happened for wholesale and retail margin share, where it increased for wheat and decreased for rice. It is likely that the discipline from foreign suppliers of imported wheat and foreign market opportunities for exported rice may explain the difference in the changes of the distribution of consumer expenditure. Finally, we found that area response elasticity decreased over time from 0.58 to 0.12 for rice and 0.60 to 0.38 for wheat. The lack of response in rice area despite rising prices is attributed to the land limit strictly imposed by the Government of Egypt because of water supply constraint considerations. On the other hand, the lack of response in wheat area despite rising wheat prices may be attributed to the rising competitiveness of Egyptian clover, which is a main feed ingredient for the growing livestock sector.

Suggested Citation

  • Ibrahim Soliman & Jacinto F. Fabiosa & Mohamed Gaber Amer & Siham Kandil, 2010. "Impacts of the Economic Reform Program on the Performance of the Egyptian Agricultural Sector," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 10-wp509, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:fpaper:10-wp509
    as

    Download full text from publisher

    File URL: https://www.card.iastate.edu/products/publications/pdf/10wp509.pdf
    File Function: Full Text
    Download Restriction: no

    File URL: https://www.card.iastate.edu/products/publications/synopsis/?p=1141
    File Function: Online Synopsis
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Soliman, Ibrahim, 1992. "Agricultural Mechanization And Economic Efficiency Of Agricultural Production In Egypt," Conference Papers 112669, Zagazig University, Department of Agricultural Economics.
    2. Soliman, Ibrahim, 1991. "Feasibility of Buffalo Production in Egyptian Economy through A Planning Model," Conference Papers 210363, Zagazig University, Department of Agricultural Economics.
    3. Soliman, Ibrahim & Eid, Nafissa, 1995. "Impacts Of Egyptian Socio-Economic Environment On Dietary Pattern And Adequacy," Journal Articles 107278, Zagazig University, Department of Agricultural Economics.
    4. Soliman, Ibrahim & Ewaida, Osama, 1996. "Impact of technological changes and economic liberalization on agricultural labor employment and Productivity," MPRA Paper 31165, University Library of Munich, Germany, revised 29 Dec 1996.
    5. Soliman, Ibrahim, 1994. "Impacts of Gatt Implementation and Animal Protein Food System in Egypt," Journal Articles 210380, Zagazig University, Department of Agricultural Economics.
    6. Rao, J. Mohan, 1989. "Agricultural supply response: A survey," Agricultural Economics, Blackwell, vol. 3(1), pages 1-22, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sabine Frerichs, 2016. "Egypt’s Neoliberal Reforms and the Moral Economy of Bread," Review of Radical Political Economics, Union for Radical Political Economics, vol. 48(4), pages 610-632, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soliman, Ibrahim & Bassiony, Hala, 2011. "Role of buffalo in international trade," MPRA Paper 36740, University Library of Munich, Germany, revised 10 Jun 2011.
    2. Ibrahim Soliman, 2015. "Diagnosis and Challenges of Sustainable Agricultural Development in Egypt," Cooperative Management, in: Michel Petit & Etienne Montaigne & Fatima El Hadad-Gauthier & José María García Álvarez-Coque & Kons (ed.), Sustainable Agricultural Development, edition 127, chapter 0, pages 19-64, Springer.
    3. Soliman, Ibrahim & Mashhour, Ahmed, 2011. "Dairy Marketing System Performance in Egypt," MPRA Paper 66799, University Library of Munich, Germany.
    4. Soliman, Ibrahim & Mashhour, Ahmed & Gaber, Mohamed, 2011. "A review of The National and International Agro‐Food Policies and Institutions in Egypt," MPRA Paper 66779, University Library of Munich, Germany, revised 15 May 2011.
    5. Soliman, Ibrahim, 2008. "Role of dairy buffalo in Egypt food security," MPRA Paper 31093, University Library of Munich, Germany, revised 30 Jun 2008.
    6. Nehring, Richard F., 1991. "Output and Input Subsidy Policy Options in Bangladesh," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 43(2), pages 1-13.
    7. Vavra, Pavel & Colman, David, 2003. "The analysis of UK crop allocation at the farm level: implications for supply response analysis," Agricultural Systems, Elsevier, vol. 76(2), pages 697-713, May.
    8. Christophe Gouel, 2013. "Rules versus Discretion in Food Storage Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 1029-1044.
    9. Liang, Yan & Miller, J. Corey & Harri, Ardian & Coble, Keith H., 2011. "Crop Supply Response under Risk: Impacts of Emerging Issues on Southeastern U.S. Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(2), pages 1-14, May.
    10. Magrini, Emiliano & Morales-Opazo, Cristian & Balie, Jean, 2014. "Supply response along the value chain in selected SSA countries: the case of grains," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197193, International Agricultural Trade Research Consortium.
    11. Umanath Malaiarasan & R. Paramasivam & K. Thomas Felix & S. J. Balaji, 2020. "Simultaneous equation model for Indian sugar sector," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(1), pages 113-141, June.
    12. Soliman, Ibrahim & Ewaida, Osama, 1996. "Impact of technological changes and economic liberalization on agricultural labor employment and Productivity," MPRA Paper 31165, University Library of Munich, Germany, revised 29 Dec 1996.
    13. Eric B. Schneider, 2014. "Prices and production: agricultural supply response in fourteenth-century England," Economic History Review, Economic History Society, vol. 67(1), pages 66-91, February.
    14. Gouel, Christophe & Laborde, David, 2021. "The crucial role of domestic and international market-mediated adaptation to climate change," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    15. Chr. R. Weiss, 1992. "The Effect Of Price Reduction And Direct Income Support Policies On Agricultural Input Markets In Austria," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(1), pages 1-13, January.
    16. Ibrahim Soliman & Jacinto F. Fabiosa & Halah Bassiony, 2010. "Review of Agricultural Policy Evolution, Agricultural Data Sources, and Food Supply and Demand Studies in Egypt, A," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 10-wp506, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    17. Md Shafiul Azam & Katsushi Imai & Raghav Gaiha, 2012. "Agricultural Supply Response and Smallholders Market Participation: the Case of Cambodia," Economics Discussion Paper Series 1208, Economics, The University of Manchester.
    18. Hareau, Guy G. & Mills, Bradford F. & Norton, George W., 2006. "The potential benefits of herbicide-resistant transgenic rice in Uruguay: Lessons for small developing countries," Food Policy, Elsevier, vol. 31(2), pages 162-179, April.
    19. Soliman, Ibrahim & G. Amer, M. & S. Ahmed, Maha, 2016. "تحليل أدوات السياسات المرتبطة بعرض محصولي القمح والبرسيم في مصر [Analysis of policy instruments affecting the supply of wheat and clover in Egypt]," MPRA Paper 114758, University Library of Munich, Germany.
    20. Mamingi, Nlandu, 1997. "The impact of prices and macroeconomic policies on agricultural supply: a synthesis of available results," Agricultural Economics, Blackwell, vol. 16(1), pages 17-34, March.

    More about this item

    Keywords

    agricultural liberalization; area response elasticity; market efficiency; profitability.;
    All these keywords.

    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ias:fpaper:10-wp509. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/faiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.