تقدير الأسعار المحلية لأهم المحاصيل في التجارة الخارجية الزراعية المصرية Estimating Domestic Prices of the Most Important Strategic Crops in the Egyptian Agricultural Foreign Trade

Shakra, Yousra El-SOudy; Zein, Ragab Maghawrey

doi:10.21608/assjm.2021.38084.1000

تقدير الأسعار المحلية لأهم المحاصيل في التجارة الخارجية الزراعية المصرية Estimating Domestic Prices of the Most Important Strategic Crops in the Egyptian Agricultural Foreign Trade

Document Type : Original Article

Authors

¹ Department of agricultural economics and agribusiness, faculty of agriculture, menoufia university, shibeen alkom, Menoufia.

² Dept. of Agricultural Economics and Agri-business, Faculty of Agriculture- Menoufia University

10.21608/assjm.2021.38084.1000

Abstract

Prices play a vital role in the economy, and agricultural prices are particularly important in the agricultural sector. There are many different pricing methods for agricultural crops. Suggesting a fair price per unit of product is the main problem facing price policy makers. The research aims to study and estimate the different methods for pricing wheat and maize as important import crops and rice and cotton as important export crops. Different pricing methods for studied crops were detailed during the period (2000-2016) in real terms for 2010, The estimated prices were compared to the observed domestic and world prices during the last period (2012-2016).
The results depict that the average of real domestic price of wheat represents about 94% of the average import price. The estimated prices for wheat based on production cost per feddan, throughout 2012-2016, reveal that the farmers are paid lower prices. Wheat estimated prices based on equity prices, production cost index, in addition to the ratio between farm and world price, the estimated prices are closer to the observed domestic price by about 99%, 98% and 94% respectively during the same period. However, estimated prices relying on the opportunity cost, guaranteeing profit margin per pound showed similar results to the best alternative represent about double and triple local and observed import price per ton of wheat respectively. It is worth mentioning clover is not considered as an alternative crop for wheat, That’s why alternative crop method has not been considered in this study.

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