INDICATORS OF COMPETITIVENESS AND DETERMINANTS OF EXTERNAL DEMAND FOR THE EGYPTIAN ORANGE | ||
| Journal of Productivity and Development | ||
| Article 6, Volume 25, Issue 1, January 2020, Pages 101-130 PDF (1.02 M) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/jpd.2020.82179 | ||
| Authors | ||
| Ahmed Alesawy; Ibrahim Ismail* ; Fekry Saad El Dsouky | ||
| Department of Economics and Agricultural Extension, Faculty of Technology and Development, Zagazig University, Egypt. | ||
| Abstract | ||
| The research problem was the decrease and fluctuation of the quantity exported of oranges to the most important import markets for Egyptian oranges in recent years. The research aimed to identify the reasons leading to the occurrence of this problem by studying the most important indicators of competitiveness and factors affecting the external demand of Egyptian oranges in the most important external markets. That the causes of this problem can be identified and appropriate solutions resolved. As for the prices of exporting Egyptian oranges, it has taken a growing general trend during the period (2001-2017), and its growth rate hasreached25.98 dollars per year.The farm price and the costs of producing tons of oranges, increased general trend during the period (2001-2017), and the rate of its increase reached about 43.11 pounds per ton, 1202 pounds per acre. As for the market share of the most important import market for oranges, some indicators were extracted during the period (2013 – 2017), which is the takeover of the Egyptian orange ranked first in the market of Russia, Britain, Saudi Arabia in relation to competitors. The share was really fluctuated during the period of the study. The market sharein the most importantmarkets has declined in the recent period, due to the decrease in the amount of Egyptian exports of oranges in these markets, due to the high export prices of oranges respect to the competitors, the increase in export prices due to the increase in both production and marketing costs of Egyptian orange and the increase in farm prices significantly. The share has decreasedsignificantly during 2017. It is noticed that there is a competitive price advantage for Egypt in the Saudi and UAE markets during most of the study years, and in the general average, due to the proximity of Arab markets to Egypt, which leads to reduced transportation costs, and also the presence of agreements and treaties between Egypt and the Gulf Cooperation Council countries, which works to remove obstacles to Egyptian exports Whether customs barriers or taxes and fees, it must be pointed out that Egypt lost its competitive price advantage during 2017 for most competitors in these markets due to the high prices of Egyptian orange exports. It is noted for the Russian market that Egyptian oranges face fierce competition in relation to export prices of competing countries to Egypt, given the high costs of transportation for Egyptian oranges relative to competitors. In light of the high production and marketing costs of the Egyptian orange, this leads to raising its export prices against competitors. The logistical statistical estimate of the logarithmic model of determinants of external demand for Egyptian oranges in the Russian market during the period (2006-2017) showed that the biggest factors influencing external demand are world export prices, then domestic production of oranges with a positive signal, and flexibility reached 3.67 and 1.85, respectively. As the increase of about 10% of these factors leads to an increase in the amount of exports by about 36.7% and 18.5%, respectively.In the Saudi market, the biggest factor affecting external demand is the Saudi population,with a positive signal, and elasticity of 3. 72. As the increase of about 10% of this factor leads to an increase in the amount of exports by about 37. 2%. In the UAE market, the most influencing factors on external demand are the population, then the country’s total imports of oranges with a positive signal, and flexibility reached about 3. 98, 0. 5, respectively. As an increase of about 10% of these factors leads to an increase in the amount of exports by about 39. 8% ,0. 5%, respectively. Conclusively, it could be concluded as follows: 1- The necessity of the state adopting a price and export policy that helps to achieve a high competitive advantage in foreign markets, in light of the increase in the prices of Egyptian oranges in the recent period for competitors. 2- Providing agricultural production requirements at reasonable prices to help producers produce and reduce farm prices. 3- Increasing support for Egyptian orange exports to help exporters reduce their prices to increase their ability to compete abroad. 4- Encouraging the production policy for export, in order to take into account the availability of international standards and specifications in the exported commodity. 5- Providing market information about foreign markets. | ||
| Keywords | ||
| Indicators of competitiveness; determinants; external demand; Egyptian orange | ||
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