Shaltout, S., Ramadan, A. (2024). Economic study on the production of sugar beet in Egypt. Egyptian Journal of Agricultural Research, 102(3), 542-559. doi: 10.21608/ejar.2024.318259.1582
Sabry Y.S.A. Shaltout; Amal K.E. Ramadan. "Economic study on the production of sugar beet in Egypt". Egyptian Journal of Agricultural Research, 102, 3, 2024, 542-559. doi: 10.21608/ejar.2024.318259.1582
Shaltout, S., Ramadan, A. (2024). 'Economic study on the production of sugar beet in Egypt', Egyptian Journal of Agricultural Research, 102(3), pp. 542-559. doi: 10.21608/ejar.2024.318259.1582
Shaltout, S., Ramadan, A. Economic study on the production of sugar beet in Egypt. Egyptian Journal of Agricultural Research, 2024; 102(3): 542-559. doi: 10.21608/ejar.2024.318259.1582
Economic study on the production of sugar beet in Egypt
Agricultural Economics Research Institute, Agricultural Research Center, Dokki, Giza, Egypt
Abstract
The problem with the research is that the local production of sugar is not sufficient for local consumption, which leads to the import of sugar from abroad to meet the domestic demand, which doubles the burden on the trade balance of food commodities and is reflected in the overall borne balance sheet. The research aims to identify the most important explanatory variables that affect the area cultivated with the sugar beet crop and the extent of farmers’ response to expansion or contraction in agriculture, in addition to estimating the supply response of the sugar beet crop, calculate the flexibility in the short and long term, as well as the response coefficient, and the time period necessary to achieve Complete response from the farmer. The average value of sugar beet production reached 6.974 billion pounds during the average period (2018-2022), representing 39% of the total value of sugar crop production. The percentage reached 34.7% in 2020, and the highest reached was 42.7% in 2022. The average area cultivated with sugar beets during the average period (2018-2022) amounted to 579.3 thousand Fed., distributed between 8 the governorates at a percentage of up to 85.4 % of the total sugar production for the average period (2018-2022). In terms of importance, they are Kafr El-Sheikh, Dakahlia, Sharqia, Nubaria, Beheira, Minya, Fayoum. and Port Said. All basic variables of the crop, including area, production, productivity, costs, revenue, and net per-acre profit, took a general increasing trend during the period studied (2002-2022). However, indicators of economic efficiency, such as the share of the invested pound, have taken a general decreasing trend during the period studied, and this can be attributed to exchange rate movements and their various effects on prices, and hence costs and revenues. The domestic production of sugar from its various sources (cane and beets) decreased between the years (2021) and (2022) at a rate of change of 6.2 %, and the sugar produced from beets decreased at a rate of change of about 7.0%, and the percentage of beet sugar in the total output from About 67.7% in 2021 to 67.2% in 2022. The proportion of beet sugar output from domestic consumption decreased from 55.3% in 2021 to 50.7% in 2022. The sugar gap increased between 2021 and 2022 with a change rate of about 22.5%, and the percentage of self-sufficiency in sugar decreased from about 81.7% for the year 2021 to about 75.5% for the year 2022 with a change rate of 7.6%. Taking together, the indicators confirm the necessity of expanding the sugar beet crop in order to adjust these estimates and reach sufficiency in production.
The results of the analysis of the supply response of the sugar beet crop using the “Mark Nerlof” methodology showed the following: The increase in the coefficient of determination adjusted for the estimated models and a lower full response period makes the farmer more responsive to the farm price of the crop, the per-acre production of the crop, the net per-acre yield of the crop, the area planted with sustainable clover, the relative price (beets/onions), the relative costs (beets/wheat), and the net Yield per acre (beets/wheat), and all of these variables are according to "Mark Nerloff’s" methodology, with general lag periods. These variables are the variables that most explain the supply response of the sugar beet crop.
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