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Abstract
Economics of Maize in Egypt
sto4imasrvi
Being the staple food for the majority of the world population and the source of
calone.s requir.ement as well, cereal group I.S regarded as one of the major agricultural
products at the global level. It represents 30 to 90 % of calory generator foods. Wheat,
rice and com have been and still acting as the staple food for man kind since the dawn
of history through present. Cereals are cultivated on large scale to provide human kind
with comparatively cheap starchy food.
This study includes six parts. The first part includes two chapters. The first chapter
contains the introduction, problem & objective of the study, sources of data and the
applied methods of analysis. Based on the analyses, it was found that maize is a strategic
grain crop, if animal and human requirement are considered. The gap between
production and consumption is filled by the state through importation. In spite of the
conducive environment for more maize production, i.e. soil, climate and soforth, yield
per unit of cultivated area is lower than that of other producing countries.
Maize is mixed, at various proportions, with wheat in bread making in rural areas.
Nowadays, bread is made in urban areas by mixing 20 % maize with 80 % wheat.
Maize grains are composed of 81.7 % starch, 9.99 % protein, 0.97 % fats, 1.32 % sand
and 1.74 % crude milk. Mazie contains potassium, phosphore, calcium, manganezesulphur, iron and sodium plus considerable amount of vita mine A, Ripoflavine and
vitamin H.
The objective of this study is to identify the economical aspects of production,
productivity, cost / benefit, competitiveness status, and return per feddan. Also, the
study aims at analyzing major factors affecting maize production with the purpose of
bridging its gap estimated at 28.1 % of total production in 1996.
The second chapter of the first part reviewed the related studies and researehes in
the areas of production, maketing and pricing of maize crop in Egypt. It was revealed
that wheat contributes 47.9 % of consumption leading to the rising of wheat imports.
Therefore, being a substitute for wheat and feed for animals and poultry too, maize lies
under pressure because of the intensive imports of wheat. Area of maize in Egypt has
remained relatively unchanged during 1980 - 1990. The increase rate of maize
production is far less than the national consumption rate, resulting in a widening gap.
The maize gap stepped up from 154 thousand tons in 1980 to about 577 thousand tons
in 1985 at an increase rate of 964.5 %. That is why the government has adopted a policy
aiming at increasing production through applying producer incentive system.
Part two focused on maize production and consumption in Egypt. It shows that
filed crops represents 67.2 % of crop production value and per capita consumption is
86.2 Kg. in 1996. Area of maize reached about 2.086 million feddans in 1996.
General trend of the cultivated area evolution 1986 - 1996 shows that it increases
at 39.18 thousand feddans representing 2 % of average area of summer maize that
reached 1.95 million f. during the period of the study. As for productivity, it increases at
0.585 ardab / f. or 3.4% of average productivity per feddan, that reached 17 ardabs.
This rise in productivity leads to an increase in total production by 245.4
thousand tons or 5.2 % of average production which reached 4.7 tons. With respect to
consumption, it increased to about 136.2 thousand tons or 3% average consumption that
reached 4.5 m. tons. Price per ton increased by L.E. 34.6 or 7.9 % of average price / ton
which reached L.E. 436.6 during the period of the study. Response of production
capacity to the affecting factors shows that major factors are maize area, yield / f. and
farm price / ton And the same relationship is existing between area and maize
production. Major factors affecting the amount of maize allocated for animal feed are
area, amount of maize allocated for animals, yield / f. of maize. Cost of production / f.
increased by L. E. 88.9 or 12.8 4YO of average cost of production per fedan.
Part three covers production, trade and uses of maize. It shows that local
consumption is approximately 7 million tons and domestic production is 5.5 m. tons and
maize gap is bridged by means of importation.
In terms of the comparative importance, summer maize was on top as a portion of
total production of maize. Yellow corn was produced initially in 1992. As much as 60
% of area and production of maize is concentrated in seven governarates. These
governorates are namely: Sharkkx, Minia, Menufia, Behaira, Sohag, Qualiobia, and
Gharbia. Their percentages in total area of maize are 14.7,14 %,12%,8.9 %, 6.5 %, 5.6
% and 5.4% respectively. Behiara is placed on top of yield / f. 24.18 ardab. Estimates
of maize cost of production points out the escalating of machinery rent, value of
fertilizers and labour wages. In terms of trade, Egypt is an importer of maize especially
yellow com. Maize is processed to produce starch, honey glucose and com oil.
Processing of remains is used in feed production.
Part four includes selection of the sample and its socio - economic characteristics.
Number of Farmers in the sample is 186. A questionnair was designed, circulated and
analyzed to get economic and production indicators and functions of production costs in
the light of the respective holding categories.
Based on function of production, major factors affecting production is cultivated
area with maize whose regression coefficient were 25.8, 27.31, 28.73 and 25.16
respectively. Function of production indicates variation in independent factors impact
on production. Meanwhile, determination coefficient reached its peak at 0.94 in the
holding category of over two feddans and its bottom in the sample at 0.35.
Significance of the applied model has been proved. Through the stage regression,
it was found that maize area in all functions were directly proportional with production.
Meanwhile, the rest of independent factor were inversely proportional according to the
holding category assuring the overuse of such factor. Efficiency of land use shows that
the highest yield / f. haS reached 19.03 ardab in the holding category of two feddans and
up. Cost of maize production, as shown in the sample, shows that fixed costs are on top
representing 26.75 % of total cost. The human labour cost comes next at comparative
importance rate of23.24 %. The following cost items are recorded orderly: machinery,
nitrate fertilizer, seed, manure, phosphorous fertilizer, draft animals and pesticides.
Their comparative importance, as portion of total costs, were 14.85 %, 13.61 %,9.39 %,
6.56 %, 2.46 %, 2.26 and 0.88 % respectively.
Cost functions in linear, quadratic and cubic forms were obtained with respect to
total and categorized of the sample to generate some of the economic derivatives out of
them. As for maize consumption and factors affecting it, it was found that the annual
average consumption per household in the three holding categories and in the sample are
estimated at 2.696,3.456,2.826 and 2.944 order respectively. In the meantime, the
annual average consumption of maize for animal feed purposes for the same categories
and sample are 3.206, 6.772, 10.04 and 5.133 ardab respectively. Statistical estimation
of the linear, quadratic and cubic forms were obtained with respect to the relationship
between the amount of consumption and value of annual consumption per household
revealad a direct significant proportional relationship at holding categories and the
sample as well. Likewise, there is a significant direct proportional relationship between
annual maize consumption for animals and value of annual consumption. As for the
statistical estimation of the relationship between the annual consumption for animal
feeding purposes and number of animals, the existance of direct proportional
relationship, which is statishically significant, was proved in the first and third
categories and total sample. But this relationship was insignificant with respect to the
second category.
tud indicated that productivity per hectare in Egypt was lower than that of
The s y
there still a room to raise production per unit of land by
several countries. However,
of rowing new improved varieties, rationalization of resources and inputs, Via
means g
the aforementioned package of recommendations, maize imports will decline
applying
tangiibly and rriice exports WI’II subsequently rise.