Atta, S., Elasraag, Y., El Ashmawy, K., El Batran, D. (2022). The effect of some local variables on marketing efficiency indicators for the potato crop in Egypt. Egyptian Journal of Agricultural Research, 100(1), 107-122. doi: 10.21608/ejar.2022.117716.1200
Sahra K. Atta; Yahia H. Elasraag; Khairy H. El Ashmawy; Dalia M.N. El Batran. "The effect of some local variables on marketing efficiency indicators for the potato crop in Egypt". Egyptian Journal of Agricultural Research, 100, 1, 2022, 107-122. doi: 10.21608/ejar.2022.117716.1200
Atta, S., Elasraag, Y., El Ashmawy, K., El Batran, D. (2022). 'The effect of some local variables on marketing efficiency indicators for the potato crop in Egypt', Egyptian Journal of Agricultural Research, 100(1), pp. 107-122. doi: 10.21608/ejar.2022.117716.1200
Atta, S., Elasraag, Y., El Ashmawy, K., El Batran, D. The effect of some local variables on marketing efficiency indicators for the potato crop in Egypt. Egyptian Journal of Agricultural Research, 2022; 100(1): 107-122. doi: 10.21608/ejar.2022.117716.1200
The effect of some local variables on marketing efficiency indicators for the potato crop in Egypt
1Department of Agricultural Economics, Faculty of Agriculture, Cairo University, Giza, Egypt
2Agricultural Economics, National Research Center, Giza, Egypt
Abstract
The study aimed to measure the impact of local variables, which are represented by the events of January 25 and the liberalisation of the exchange rate and the consequent increase in energy prices, on the production and economic and marketing indicators of the potato crop. The study period was divided into two periods, the first (2001–2010) representing before January 25 and the liberalisation of the exchange rate, and the second period (2011–2019) representing after January 25 and the liberalisation of the exchange rate. Potatoes show an increase in the cultivated area, acre productivity, total production available for consumption, and total losses of the potato crop in the period after January 25 and the liberalisation of the exchange rate, with an increase rate of about 51.5%, 5.31%, 39.19%, 82.54%, and 168.83% than it was in a certain period. before January 25 and liberalise the exchange rate for each, respectively. By using the dummy variables method to measure the impact of the events of January 25 and the liberalisation of the exchange rate on the variables, it was found that there was a statistically significant increasing effect of the events on the cultivated area and the total production of the potato crop, while the statistical significance of the coefficients of the feddan productivity, the available for total consumption, and the total loss of the potato crop was not proven. The study of the impact of local variables on the economic indicators of the potato crop revealed an increase in production costs, farm price, and net yield of the potato crop after January 25th and the liberalisation of the exchange rate, with increases of 129.85%, 134.49%, and 191.78%, respectively, compared to the period prior to January 25th and the liberalisation of the exchange rate.It was also clear that there was a statistically significant increasing effect of the events of the second period, as it was found that in the period after January 25 and the liberalisation of the exchange rate, there was a greater boom in the net yield per feddan, the cost of the unit produced, and the agricultural price than in its counterpart in the period before January 25 and the liberalisation of the exchange rate. As for the marketing indicators of the potato crop, it was found that there had been an increase in both the wholesale and retail prices, and the rate of increase was about 235.52%, or 240.56 percent of what it was in the period before January 25 and the liberalisation of the exchange rate. By examining the impact of local variables on the marketing efficiency of the potato crop, it was found that there was a decrease in the marketing efficiency in the period after January 25 and the liberalisation of the exchange rate at a rate of about 12.7% compared to the period before January 25 and the liberalisation of the exchange rate. By studying the simple matrix between the different price levels of the potato crop, it was found that there is a positive significant correlation between the farm price and both the wholesale price and the retail price. It was also found that there is a very strong correlation between the wholesale price and the retail price. By estimating the marketing efficiency functions, it was found that when the farm price increased by 1%, it increased the marketing efficiency by 0.06%. It also appears that when the cost of production per tonne increases by one pound, it leads to an increase in marketing efficiency of 0.21%. While it was found that when the retail price decreased by 1%, it led to an increase in marketing efficiency of 0.28%, while remaining low. It was found from the study of the retail function that when the farm price increased by 1%, it led to an increase in the retail price by 0.78%. It was also clear that when the wholesale price increased by one pound, it increased the retail price by 0.27%. It was also found from the study of the cost function that about 73% of the changes in production costs are due to the change in feddan productivity, while the rest of the changes are due to unmeasured factors in the function.
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