AN ECONOMIC STUDY OF THE CONSUMPTION OF CHEMICAL FERTILIZERS IN EGYPT | ||
| Egyptian Journal of Agricultural Research | ||
| Article 28, Volume 90, Issue 1, March 2012, Pages 419-440 PDF (447.19 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/ejar.2012.159790 | ||
| Author | ||
| ASMAA S. ABD EL MENEM | ||
| Agricultural Economics Research Institute , Agricultural Research Center, Dokki, Giza, Egypt. | ||
| Abstract | ||
| The current study mainly aims at investigating the optimal allocation of chemical fertilizers (nitrogen, phosphate, and potassium fertilizers), contributing to the increase of production through maximizing the return per each unit of chemical fertilizer. The study depends on conducting descriptive and econometric analysis of estimate the demand function on chemical fertilizers by using a multiple regression model, and a linear programming model aims at maximizing the return per each unit of chemical fertilizer. The results indicated that the demand function on nitrogen fertilizers in Egypt is inelastic since the price elasticity reaches about -0.18, indicating the importance of nitrogen fertilizers for the Egyptian agriculture because farmers use nitrogen fertilizers even though their prices are high. Moreover, the demand function on phosphate fertilizers in Egypt is also inelastic since the price elasticity reaches about -0.20, indicating the importance of nitrogen fertilizers for the Egyptian agriculture. Besides, the cross elasticity between the quantity of potassium fertilizers and the price of nitrogen and phosphate fertilizers reaches about 0.67 and 0.52, respectively, indicating them as substitute commodities. On the other hand, the results of the linear programming model aiming at maximizing the return per each unit of chemical fertilizer showed the following: As for winter crops, the suggested model indicates a decrease of about 15.5% in the quantity of nitrogen fertilizers from about 343 million units in the current situation to about 290 million units. Besides, the suggested model indicates an increase of about 18.6% in the return per each unit of nitrogen fertilizers from about L.E. 49.4 in the current situation to about L.E. 58.6. However, the suggested model indicates a decrease of about 3.7% in the quantity of phosphate fertilizers from about 137 million units in the current situation to about 132 million units. Besides, the suggested model indicates an increase of about 36.0% in the return per each unit of phosphate fertilizers from about L.E. 40.4 in the current situation to about L.E. 55.0. Moreover, the suggested model indicates a decrease of about 12.20% in the quantity of potassium fertilizers from about 205 million units in the current situation to about 180 million units. Besides, the suggested model indicates an increase of about 21.5% in the return per each unit of potassium fertilizers from about L.E. 45.5 in the current situation to about L.E. 55.3. As for summer crops, the suggested model indicates a decrease of about 11.8% in the quantity of nitrogen fertilizers from about 595 million units in the current situation to about 525 million units. Besides, the suggested model indicates an increase of about 18.2% in the return per each unit of nitrogen fertilizers from about L.E. 27.4 in the current situation to about L.E. 32.4. However, the suggested model indicates a decrease of about 9.52% in the quantity of phosphate fertilizers from about 189 million units in the current situation to about 171 million units. Besides, the suggested model indicates an increase of about 15.49% in the return per each unit of phosphate fertilizers from about L.E. 86.3 in the current situation to about L.E. 99.78. Moreover, the suggested model indicates a decrease of about 17.6% in the quantity of potassium fertilizers from about 216 million units in the current situation to about 178 million units. Besides, the suggested model indicates an increase of about 25.5% in the return per each unit of potassium fertilizers from about L.E. 75.5 in the current situation to about L.E. 94.8. | ||
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