1. CIHEAM - IAMM EU-MED AGPOL, European research Program
CHARACTERIZATION OF AGRICULTURAL AND AGRO-INDUSTRIAL SECTORS IN EGYPT BY
DR. GAMAL SIAM
UC-CAES

2. CONTENTS Major determinants Evolution of agricultural performance
Evolution of agro-industrial performance
Agricultural and agro-industrial policies
International trade policies; with special reference to fresh and processed fruits, vegetables

3. I. Major Determinants of Agricultural and Agro-industrial Production

4. 1. General Indicators, 2003 82 GDP Billion$ 12 Agriculture (Billion$)
3.3
Agric. land (000 ha)
6.0
Total cropped area
57.0
Total water (BCM)
70.0
Total population (m)
35.0
Rural population (m)
30.
Agricultural population (m)
8.0
Agric. labour force (m worker)
3.5
Number of farmers (m)
(m,ha)

5. 1. General Indicators, 2003(contd.)
1170
GDP per capita ($)
16%
Agriculture to GDP (Percentage)
33%
Ag. labour force to total (Percentage)
0.05
Per capita ag. Land (ha)
812
Per capita water (CM)

6. 2. Infrastructure Transportation facilities
Generally, shortage of adequate transportation and cooling facilities is an obstacle to horticultural exports.
Land Transport
-- Egyptian trucking rates are 50 percent higher in competitor countries.
Air transport
Lack of air cargo space for perishable products.
Air cargo is more expensive.
Cold store facility exists only in Cairo Airport.
Sea transport
Port facilities for refrigerated containers are poor.
Food consignments must be inspected by four agencies.

7. 3.Agricultural Marketing Systems
The AMS comprises:
Collection, transportation, packaging, transformation, storage and wholesale and retail market systems that are reinforced by regulatory institutions.

8. II. Evolution of Agricultural Sector Performance

9. 1. Cropping Pattern in the Egyptian Agriculture in Selected Years
2004
1995
1990
Cropping pattern
6081
5804
5118
Total cropped area
000 ha
Percentages (%)
45.6
47.0
44.6
Cereals total
18.1
18.2
16.0
Wheat
10.4
10.1
8.5
Rice
13.6
12.7
16.2
Maize
20.1
19.2
22.0
Green fodder
10.8
9.4
9.2
Vegetables total
3.1
2.6
3.0
Tomatoes
1.4
2.1
1.6
Potatoes
7.3
6.1
5.7
Fruit, total
2.4
2.2
2.5
Citrus
0.3
0.2
Bananas
0.5
0.4
Dates
1.1
0.8
0.7
Grapes
Olives
4.4
5.1
8.2
Cotton
7.4
8.0
10.3
Oil crops

10. 2. Area, Yield and Production Growth Rates (%) for Selected Crops in Egypt (1990-2004)
3.1
1.7
1.4
Cereals, total
3.8
1.6
2.1
Wheat
4.7
1.9
2.7
Rice
1.5
0.0
Maize
3.5
0.6
2.8
Vegetables tot.
3.4
Tomatoes
-4.8
5.8
Onions
1.3
0.8
0.5
Potatoes
0.4
3.0
Fruit, total
1.0
Citrus
4.6
0.7
3.9
Grapes
5.5
Bananas
15.6
2.4
13.0
Olives

11. 3. Dominant F&V Crops
Fruits and Vegetable Production and Marketing
Main fruit include citrus, grapes, strawberries, dates, mangoes, guavas, apples and olives.
Vegetables
Tomatoes, potatoes, cucumbers, onions lettuce, watermelons, green beans, and peppers.

12. 4. Marketing margins of selected F&V crops, 2003
Share in Retail Price
retailer (%)
wholesaler
(%)
Producer
Retail price LE/ton
Crop
16.7
20.0
63.0
1500
Garlic,Total
43.5
10.1
46.4
1023
Tomatoes
40.8
10.7
48.5
1194
Potatoes
40.1
19.2
40.7
808
Onions
42.3
18.9
38.8
2058
Green beans
27.0
23.0
50.0
1202
Oranges
22.3
28.2
49.5
2045
Grapes

13. 5.The grape value- chain Producers ( 1,100,000 tonnes ) 50% Packing
house
Local
traders
Governorate
markets
Official
wholesale
Cairo, Alex
Processing
Wholesalers
Retailers
Domestic consumer
Pre -
cooling
Over seas markets
6,000
tones .
55%
Un official
shalayesh
Retailers, super markets, hotels …
Cold
storage
5.The grape value- chain

14. 6.The green bean value-chain
Producers (85,000 tonnes)
Local traders
Governorates wholesale markets
Processing
Main official wholesale markets Cairo,Alex (35%)
Unofficial wholesale markets(25%)
exporters
Retailers,supermarkets, tourist villages
Overseas markets 6850 tonnes (6.6%)
Domestic consumers
6.The green bean value-chain

15. 7.The cantaloupe value- chain40 % 60
Growers
230 , 00
tonnes
Local
traders
Governorates
wholesale
markets
Exporters
Retailers
supermarkets
Tourist
villages
Unofficial
Overseas markets 3
500
tones 1 .5
Domestic consumers
Official Main
whole
esale (
Cairo
Alex… )
7.The cantaloupe value- chain

16. 8-Agricultural Exports (Fresh) Commodity Composition, 2003
Crops
US$ %
Total Ag. Export
938152
100
Cotton
365865 39
Rice
149926
15.98
Oranges
39185
4.18
Potatoes
43972
4.69
Grapes
2930
0.31
Onion
3301
3.52
Garlic
335
0.36
Artichokes
179
0.19
Strawberries
1469
0.16
Others
296737
31.63

17. 9. Agricultural Exports Growth rates, 1990-2003
Crops %
Total Ag. Exports
6.24
Cotton
5.34
Rice
17.62
Oranges
1.72-
Potatoes
5.32
Grapes
33.88
Onions
7.53
Garlic
3.04
Artichokes
2.97
Strawberries
21.81
Others
6.45

18. Products Volume exports (Tones)
10. Export Destination of Selected F&V Crops (2001)
Destinations
Products Volume exports (Tones)
Italy (27%), Germany (26%), Lebanon (20%), UK (16%)
185150
Potatoes
KSA (61%), Lebanon (14%)
166360
Onions
KSA (79%)
4510
Tomatoes
KSA (69%)
257860
Oranges, fresh

19. III. Evolution of Agro-industrial sector Performance

20. 1.Value Added for Food Processing Industry
The total value added of the food processing industry is US$ 6.1 billion in 2000, representing 27 percent of the aggregate value added of agriculture and food processing industry.

21. 2.Traditional Markets Versus Modern Supermarkets
Many of Egypt’s food exports with higher value- added have been more targeted toward meeting regional tastes, rather than those of EU markets.
The supermarkets in Egypt have targeted not the middle and working classes but upper income consumers.
The quality of Egyptian produce is markedly inferior compared to the requirements in North America and Western Europe.

22. Frozen vegetables & fruits 40.8 Dehydrated vegetables 11.1
3.Processed Food Exports, 2003
Million US$
Product
15.7
Frozen vegetables & fruits
40.8
Dehydrated vegetables
11.1
F & V juices & concentrates
10.3
Canned vegetables
77.9
Total

23. IV. Agricultural And Agro-industrial Policies

24. 1. Brief History of Major Developments
In 1986, Egypt started the implementation of the Economic Perform and Structural Adjustment Program (ERSAP)
The following reform measures have been taken:
Eliminating the subsidies on farm inputs; fertilizers, animal feed, pesticides and seeds.
Liberalization of input prices.
Eliminating the government monopoly of main farm inputs and strategic crops.
Eliminating subsidy on interest rate for farm credit.
Unifying the exchange rate regime and recently (in 2003) floating the Egyptian pound

25. 2. Marketing and Price Policies
During the reform period, guaranteed floor prices were offered for wheat and rice as well as cotton. But recently, guaranteed prices for rice and cotton have been cancelled.
The GOE still maintains administrative price for voluntary procurement (for a quantity of 2 million ton annually).
Marketing of sugar cane and sugar beet is still controlled by the government.

26. 3. Natural Resources Policies
Egyptian agriculture relies on the Nile water which is fixed at 55.5 BCM annually.
Water policy aims to increase the water resources by about 10.7 BCM through increasing water reuse, expanding the use of underground water, and treatment and reuse of wastewater.
Land resources base is planned to increase from 3,3 million hectares to 4,7 million hectares by National mega projects including Toshka, Sinai Development and Alowaynat East Projects are part of this land reclamation program.

27. V. International Trade Policies with special attention to fresh and processed Fruits and Vegetables

28. 1. Multilateral and Bilateral Engagements
Egypt is a party to several important trade agreements:
WTO, 1995
Egypt-EU Agreement, 2004
Greater Arab Free Trade Agreement (GAFTA), 1998
-Zero tariff for agricultural products as of Jan 2005
COMESA, 1997

29. ۩Egypt´s Commitments in to the WTO
Egypt is among Net Food Importing Developing Countries (NFIDC)
Applied tariffs on Egypt’s imports of fresh vegetables are fixed at 20 percent.
Applied tariffs on Egypt’s imports of processed vegetables are 30 percent, 10 percent lower than the bound tariffs in Egypt schedules.
Applied tariffs on Egypt’s imports of fruit products range percent.
High applied tariff rates on fresh and processed fruits and vegetables induce producers to market their producer in local markets thus discourage them to export.

30. √ EU-Egypt Partnership Agreement (EUEPA)
Expanded windows for some products.
Enlarged zero duty quotas for other products.
EUEPA implies significant improvement in market access for Egypt’s exports of horticultural products, but it works as a restriction on Egypt’s promising products in the future.

31. √ SPS/TBT in the WTO with Respect to Fruit and Vegetables of Egyptian products face strict import regime of SPS/TBT in the EU markets.
Examples include:
Potatoes exports with brown rot standards.
Citrus exports with white fly infection.

32. 2. New Potentials for Egypt´s F&V Exports
Expanding production of early mature varieties to extend market window to the EU.
The mega projects in Upper Egypt i.e. Toshka and Owynat East could contribute significantly in that direction.
EUEPA extended the export window of specific horticultural crops. For example, it extended the window for grapes 15 days (the new window is 1/2 – 15/7 while the old is 1/2 – 30/6 ).
Opportunities for Egypt to expand its exports of processed fruits and vegetables are reasonably attractive in the Near East countries and the EU as well.

33. THANK YOU