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Advances in Social Sciences Research Journal – Vol. 10, No. 3
Publication Date: March 25, 2023
DOI:10.14738/assrj.103.14275.
Shehata, G. A. B., Elsharkasy, S. E., Khedra, M. M., Meky, F. M. H., & Zahran, H. A. M. (2023). Some Economic Aspects of Egyptian
Foreign Agricultural Trade of Grape Crop. Advances in Social Sciences Research Journal, 10(3). 323-343.
Services for Science and Education – United Kingdom
Some Economic Aspects of Egyptian Foreign Agricultural Trade of
Grape Crop
Gaber A. B. Shehata
Faculty Of Agriculture (Saba Basha),
Alexandria University, Egypt
Shaker E. Elsharkasy
Agricultural Economics Research Institute -
Agricultural Research Center, Egypt
Mosbah M. Khedra
Agricultural Economics Research Institute –
Agricultural Research Center, Egypt
Fouaad M. H. Meky
Agricultural Economics Research Institute –
Agricultural Research Center, Egypt
Hanan A. M. Zahran
Faculty Of Agriculture (Saba Basha),
Alexandria University, Egypt
ABSTRACT
The grape crop is considered one of the main fruit crops in Egypt, which is grown
for local production and export. Its fruitful area amounted to about 133.81
thousand feddan (Feddan = 0.42 hectare), representing about 9.28% of the total
fruitful area of about 1.44 million feddan, and the production reached about 1.30
million tons, which represents about 11.22% of the total fruit production
amounting to about 11.59 million tons, and Egypt produces the equivalent of 6.49%
of the total world production of grapes, and the value of Egypt’s grape exports
amounted to about $ 131.07 million, which represents about 2.91% of the value of
global production of grapes, which is about $ 10894.6 million in 2020. The research
aims to identify the current production situation of the Egyptian grape crop, as
...well as to identify the current situation of exports of the Egyptian grape crop, in
addition to measuring the export performance indicators of it, and to identify the
importance of this crop as one of the productive and export crops, in addition to the
possibility of developing or increasing exports. The research relied on the two
methods of descriptive and quantitative analysis, using some indicators (market
share, apparent comparative advantage, instability coefficient, market penetration
coefficient), we find that the competitive advantage index has exceeded the one
during the period (2000-2020), Which indicates the importance of this export crop.
It was found from the results: that the annual growth rate in each of the total
production and consumption, the quantity and price of export, and the value of
exports of the Egyptian grape crop reached about 1.90%, 1.50%, 15.70%, 10.06%,
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Advances in Social Sciences Research Journal (ASSRJ) Vol. 10, Issue 3, March-2023
Services for Science and Education – United Kingdom
and 20.30%, respectively during the period (2000-2020), and by studying the
export performance indicators of the Egyptian grape crop using the competitive
advantage index, we find that it has exceeded the one during the previous period,
which indicates the importance of this crop as an important export crop. These
countries are (Italy, South Africa, Turkey, Spain, Greece, Syria, Lebanon, Morocco,
Israel, Tunisia) with rates of about (36.35%, 21.41%, 20.41%, 9.96%, 5.63%,
2.81%, 1.68%, 0.97%, 0.63% and 0.09%), respectively, during the same previous
period. And by studying the most important world markets of the Egyptian grape
exports were Netherlands, Germany, Belgium, Saudi Arabia, and other countries
which amounting to about 15.02%, 11.77%, 3.64%, 1.90%, 41.16% respectively,
during the same previous period. and by studying the market penetration
coefficient for Egyptian grape exports during the average period (2000-2020), it
was found that the most important of these countries are Netherlands, Belgium,
Saudi Arabia, United Kingdom, Germany with rates of about 0.47%, 0.43%, 0.42%,
0.40%, 0.37%, meaning that each country obtains the previous percentage of its
needs from the Egyptian grape crop, respectively, during the average of the
previous period, and it is clear that the market penetration rate of the Dutch market
has increased as an average for the previous period. And by studying the instability
coefficient for the quantity of production, the quantity of exports, and the price and
value of exports of the Egyptian grape crop, we find that the quantity of production
and the quantity of exports were more stable than the price, while the value was the
most volatile during the same previous period. By studying the market share of
Egyptian grape exports to the most important importing countries (United
Kingdom, Germany, Netherlands, Belgium, Saudi Arabia), it is clear that these
percentages decreased during the study period between Egypt and those countries,
as they reached about (5.94%, 1.69%, 3.23%, 3%, 2.07% and 2.75%, respectively,
during the study period. In light of reviewing the various results of the study, a set
of recommendations can be put forward that may benefit the makers of agricultural
policy and internal or external marketing of Egyptian grapes to increase its
production and exports to various global markets.
Keywords: Egyptian grape exports - Price exports - Competitiveness - World markets
INTRODUCTION
The grape crop is one of the important fruit crops that are grown for local production and
export to increase the state’s foreign currency earnings and to compensate for the deficit in the
Egyptian trade balance. Therefore, exports are receiving great and growing attention from the
state, so that they have become a priority for decision-makers in recent times. The development
of Egyptian agricultural exports is closely linked to global events and changes. Therefore, there
is a great and growing interest in creating a better export climate that is appropriate to the
current global changes and events, especially after the Russian-Ukrainian war. This contributes
to increasing the ability of these exports to access foreign markets, by increasing their
competitiveness. In order to reduce the deficit in the overall trade balance, which amounted to
about 26.83 billion dollars. The deficit in the agricultural balance amounted to about $ 6.89
billion in 2020, and the fruitful area of the grape crop amounted to about 133.81 thousand
feddan, representing about 9.28% of the total fruitful area of fruit, which is about 1.44 million
feddan, and the production reached about 1.30 million tons, representing about 11.22%. of the
total fruit production, Egypt produces the equivalent of 6.49% of the total global production of
grapes, and the value of Egypt’s grape exports amounted to about $131.07 million, which
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325
Shehata, G. A. B., Elsharkasy, S. E., Khedra, M. M., Meky, F. M. H., & Zahran, H. A. M. (2023). Some Economic Aspects of Egyptian Foreign Agricultural
Trade of Grape Crop. Advances in Social Sciences Research Journal, 10(3). 323-343.
URL: http://dx.doi.org/10.14738/assrj.103.14275
represents about 2.91% of the value of global exports of grapes, amounting to about $10894.6
million during 2020. The grape crop is one of the main fruit crops in Egypt, with a high
nutritional value because its fruits contain a high percentage of water and easily absorbable
glucose sugar, in addition to vitamins, mineral salts and organic acids. Grapes also have an
economic importance in exploiting lands that are not suitable for growing other fruit trees, such
as sandy lands and lands are of little fertility.
RESEAECH PROBLEM
Due to the increasing interest in exporting because it is one of the most important sources of
obtaining foreign currency, and one of the sources of national income, so the agricultural sector
is interested in raising the value of its exports of grapes, as one of the most important
agricultural exports with the suffering of export in the recent period and with the high growth
rate of agricultural imports, by the growth rate of agricultural exports, which led to a deficit in
the trade balance amounting to about $ 26.83 billion in 2020, in addition to the presence of
competing countries in the export of grapes, which negatively affects both the Egyptian
producer and exporter, thus affecting the quantity and value of Egyptian exports from this. crop
in the world market.
RESEARCH OBJECTIVES
The research aims to develop Egyptian exports of grapes by increasing their competitiveness
in international markets, and assisting export policy makers in the possibility of increasing the
number of exports of grapes. To achieve the main objective, the following sub-objectives are
required:
1. Studying the current situation of foreign trade for the Egyptian grape crop.
2. Studying the geographical distribution of Egyptian grape exports and identification of
the most important importing countries.
3. Standing on the most important indicators of the external marketing efficiency of the
Egyptian grape crop during the period (2000-2020) and measuring its competitive
position in the world markets, and measuring the competitiveness of Egyptian grape
exports in foreign markets, in an attempt to identify the most important obstacles that
stand in front of increasing the number of Egyptian exports from the grape crop.
4. Reaching a set of recommendations that could benefit the makers of Egyptian economic
policy in general and agricultural policy in particular in order to promote this important
export crop.
METHODOLOGY
Some indicators of external marketing efficiency of the Egyptian grape crop were used,
represented in the price competitive position index, and the coefficient of instability, with the
measurement of fulfillment of export operations. The research relied on secondary data issued
by various agencies, including the Central Agency for Public Mobilization and Statistics, Center
Information for the Ministry of Commerce and Industry, in addition to the United Nations and
the World Bank websites on the Internet.
Revealed Comparative Advantage (R.C.A)
This measure gives an approximate picture of the future exports of the country under study,
through the share of Egypt's exports of this commodity from the agricultural exports of that
commodity to the share of world exports of this commodity out of the total world agricultural