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دوال الاستهلاك والطلب الفعال الكمي والنوعي على الألبان ومنتجاتها في الحضر والريف المصري
[Consumption Functions And The Qualitative Demand For Milk Products In Egyptian Urban And Rural]

Author

Listed:
  • Soliman, Ibrahim
  • A. Fawzy, Heba
  • G. amer, M.
  • M. Fouad, S.

Abstract

The objectives of this study are to assess and analyze the qualitative demand for milk with income change, as an incentive for the Egyptian market capacity to achieve health, environmental and commercial qualities. As well as, the effective demand growth rate in urban and rural of Egypt, versus domestic production growth to estimate expected dairy market gap. Field sample survey data of the household budget in 2014 in Egypt, which is conducted by the Central Agency for Public Mobilization and Statistics every three years, were used. The study estimated the quantity and monetary consumption functions of urban and rural regions using the form of the double algorithmic model to estimate the elasticity of demand for the milk quality with relative change in income, which showed that the qualitative dairy demand elasticity in the Egyptian market in urban market was positive amounted to about 0.15, i.e. 10% increase in per capita annual income will raise the demand for quality by 1.5%. which it was low it was higher than such elasticity in rural region that showed a negative value. The study attributed that to the high contribution of the dairy products consumption from rural household produced by the rural family of low direct production costs so as to avoid inflated market prices for those products. The other main reason was the per capita low income and poor distribution in the rural even much more than in urban, which is hampering spending on dairy products in order to get quality specifications. The availability of health, environmental and commercial specifications require additional marketing costs and thus necessarily raises the price of dairy products which doesn't agree with low standard of among the majority of the population, especially in the rural. The study recommends the need to consider providing incentives to producers and marketing firms who are committed to improving quality in form place and time, without significant price rise, with tighter controls on commodity specifications to prevent deception and perishable cheating and fraud, stimulate the vertical and horizontal integration between the stages of the market and also stimulate the marketing of large firms to achieve the economies of scale and consequently low cost products. The estimates of the effective demand growth rate for dairy products in urban and rural were much higher than the domestic production growth rate, showing expected expansion in the market gap in the future, especially with the expected high economic growth that expected to occur with improving in the performance of the Egyptian economy, which increases the financial burden on imports and causing higher prices for dairy products. The study recommends exploiting Egypt's comparative advantage in increasing production and raising the efficiency of marketing system to increase the supply of local production.

Suggested Citation

  • Soliman, Ibrahim & A. Fawzy, Heba & G. amer, M. & M. Fouad, S., 2017. "دوال الاستهلاك والطلب الفعال الكمي والنوعي على الألبان ومنتجاتها في الحضر والريف المصري [Consumption Functions And The Qualitative Demand For Milk Products In Egyptian Urban And Rural]," MPRA Paper 114579, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:114579
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    References listed on IDEAS

    as
    1. Soliman, Ibrahim, 2006. "Dairy Buffalo on Small Farm "The Approach Towards Rural Development"," Conference Papers 210186, Zagazig University, Department of Agricultural Economics.
    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 & Eid, Nafissa, 1995. "Impacts Of Egyptian Socio-Economic Environment On Dietary Pattern And Adequacy," Journal Articles 107278, Zagazig University, Department of Agricultural Economics.
    4. Ibrahim, Soliman, 2013. "buffalo share in small farmer welfare under intensive agricultural system: the case study of Egypt," Conference Papers 210024, Zagazig University, Department of Agricultural Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Key words: Consumption; qualitative demand; milk; Egyptian urban and rural;
    All these keywords.

    JEL classification:

    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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