An Economic Study of The External Demand Functions for Frozen Egyptian Strawberries in its Most Important Import Markets | ||
| The Egyptian Science Magazine | ||
| Article 5, Volume 9, Issue 1, December 2022, Pages 33-51 PDF (600.36 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/esm.2022.384521 | ||
| Author | ||
| Basma Kamal Abdel-Zaher Genidi* | ||
| مدرس الاقتصاد الزراعي - كلية الزراعة - جامعة عين شمس | ||
| Abstract | ||
| The export price of any commodity is a key factor in determining the price elasticity of demand for the most important importing countries to determine whether the commodity is necessary or a luxury for those markets. Strawberries are also considered one of the promising non-traditional export crops in Egypt, as they are grown as a vegetable crop due to the special care it requires during cultivation, handling and transportation, while they are considered a fruit crop when used fresh or frozen. International reports have confirmed that Egypt ranked second in frozen strawberry exports, with a value of about $152 million, after Poland, whose exports were estimated at about $174 million in 2019 (World Trade Center), which reflects the quality of the Egyptian food product, as it is exported to the largest countries in the world. The research generally aimed to identify the most important importing markets for frozen Egyptian strawberries, and to identify the determinants of Egyptian exports from them, based on data for the period (2004-2021), in addition to identifying the different elasticities of demand, their degree and the extent of their flexibility or lack thereof, in order to include them in policies to promote frozen strawberry exports. Egypt ranked third in global exports of frozen strawberries, with the average quantity and value of Egypt's exports to China amounting to about 74.3 thousand tons, $147 million, representing about 11.70% and 12.84% of the world average for each, respectively. It was also shown that the fifteen countries (Germany, Russian Federation, Netherlands, China, Saudi Arabia, Japan, Poland, Belgium, Italy, America, France, Czech Republic, Spain, United Kingdom, Turkey) represent the quantity and value of Egyptian exports of frozen strawberries of about 65.1 thousand tons, $128.9 million, representing about 87.64% and 87.65% of the world average for each, respectively. Accordingly, the research studied the external demand function of the five most important countries to which Egypt exports frozen strawberries to identify the most important factors affecting external demand. The results of the statistical estimation of the external demand functions for frozen Egyptian strawberries showed that the price elasticity of demand is less than one for the German, Russian, Dutch and Chinese markets, and therefore Egyptian frozen strawberries are a necessary commodity for these countries, while it was greater than one in the Saudi market, i.e. an elastic commodity, and therefore Egyptian frozen strawberries are considered a luxury commodity for Saudi Arabia. As for the cross-price elasticity of demand, it was greater than one in all markets, which means that Egypt's exports of frozen strawberries are affected by the prices of competing countries. Also, the domestic elasticity of demand was greater than one in the German market, which means more elastic demand and that Egypt's exports of frozen strawberries are affected by the national income in the German market, while the domestic elasticity of demand was less than one in the Russian market, which means less elastic demand and that Egypt's exports of frozen strawberries are not affected by the national income in the Russian market. Also, the population elasticity was greater than one in all markets, which means that the taste of the external consumer of frozen Egyptian strawberries is consistent. | ||
| Keywords | ||
| Import markets; Egyptian frozen strawberries; external demand functions; elasticity of demand | ||
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