Determinants of External Demand for Egyptian Green Peas in Its Most Important Markets | ||
| Alexandria Science Exchange Journal | ||
| Article 16, Volume 45, Issue 2, June 2024, Pages 387-406 PDF (779.21 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/asejaiqjsae.2024.355494 | ||
| Author | ||
| Mona Abd El Halim Talaat Hussein* | ||
| Sampling Department, Agricultural Economic Research Institute, Agricultural Research Center | ||
| Abstract | ||
| Egyptian green peas are distinguished by their high quality and delicious taste, which makes them desirable in international markets. Despite this, Egypt's share of global exports is small, not exceeding 2.7 thousand tons, which represents about 0.83%. Therefore, there was a need to know the export situation and the determinants of external demand for the Egyptian green peas crop in the most important markets. The results of the research showed that there was no stability in Egyptian exports of green peas, whether in terms of quantity, price, or value during the study period. Our Egyptian exports are concentrated in a limited number of countries, the most important of which are the United Kingdom, the Netherlands, Belgium, France, and Germany. Export competitiveness indicators showed that Egypt enjoyed a Revealed comparative advantage in green peas exports, amounting to about 5 during the average period (2005-2022), in addition to a specialized comparative advantage of about 4.1. The results also showed a decrease in the market share of Egypt’s peas exports in the markets of the United Kingdom, which amounted to about 5.2%, followed by France with about 2.8%, then Germany with about 2.3%, then the Netherlands and Belgium with about 1.3% and 0.24%, respectively. Studying the market penetration index revealed the weak ability of Egyptian green peas exports to penetrate the markets of the study countries. The external demand model for the United Kingdom market showed that the quantity of imports of green peas is affected by both the price of imports and the quantity of domestic production, and the price elasticity of demand was about 1.3. As for the Dutch and French markets, it was found that the quantity of crop imports is affected by both the import price and the population size, and the price elasticity of demand reached about 1.2. In the Belgian market, it became clear that the quantity of imports is affected by the price of imports, the quantity of domestic production, and the population. The price elasticity of demand was about 0.003. As was shown by conducting the substitution model, to increase Egyptian exports to the markets of the United Kingdom, the Netherlands, Germany, Belgium, and France, we must work to reduce the export price of green peas compared to the prices of competing countries, especially in markets characterized by price flexibility. The research recommended the need to increase the area cultivated with peas, especially in new lands, and that this area be allocated for export. With the importance of improving the quality of exports and raising the efficiency of export operations. And increasing the amount of exports to Arab countries, especially Saudi Arabia, Yemen, and Kuwait. | ||
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