An Economic Study of the Factors Affecting Tomato Exports in Egypt "دراسة اقتصادية للعوامل المؤثرة على صادرات الطماطم في مصر" | ||
| Alexandria Journal of Agricultural Sciences | ||
| Articles in Press, Corrected Proof, Available Online from 21 August 2025 PDF (6.45 M) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/alexja.2025.413831.1162 | ||
| Author | ||
| Elham Mohamed Abd Elazem Ali* | ||
| Agric. Econ. Res. Inst., Agric. Res. Cent., Egypt | ||
| Abstract | ||
| Tomatoes are a significant agricultural and economic crop in Egypt, ranking as one of the most important vegetable crops in terms of cultivated area and production. Tomatoes contribute substantially to Egypt's food security and boost national income through exports. They hold the third position after onions and potatoes in terms of export value, with exports reaching approximately 18.29 thousand tons, valued at $9.14 million in 2023. The research problem stems from the instability and fluctuation in the cultivated area and total production of tomatoes. This instability leads to wide-ranging fluctuations in the supply, which in turn affects Egyptian tomato exports. Furthermore, the problem is compounded by the rising costs of production inputs and the constant exposure of producers to price volatility, especially after the currency liberalization in 2016. This research aims to evaluate the performance of Egypt's tomato export market in light of structural changes in economic policies. This is achieved by analyzing the changes in production, export, and profitability indicators and the factors affecting them, using a partial equilibrium model for the tomato crop in Egypt. The study compares two periods: the period before the currency liberalization (2010-2016) and the period after (2017-2023). The most important findings of the model related to national-level returns, specifically government revenue and foreign currency indicators, were as follows: -Government Revenue: The average change in government revenues during the second study period (after liberalization) showed a higher rate of increase than in the first period (before liberalization). This significant growth in government revenues is attributed to imposing a tax on local product exports. This tax redirected a portion of the producer surplus to the state as tax revenue, thereby increasing public revenues and achieving financial gains at the national level. However, this simultaneously reduces the profit margins of producers, which necessitates a delicate balance between maximizing government returns and preserving producer profit margins. - Balance of Payments: The balance of payments indicator recorded a decrease in the period following the currency liberalization. This decline is attributed to a drop in foreign currency earnings resulting from a decrease in the value of exports. This, in turn, is due to a reduction in the available supply of the local product, caused by higher production costs. Simultaneously, domestic demand for the product increased due to its lower price in the local market. This led to a shift in production towards the domestic market at the expense of exports, reflecting an imbalance between external and internal supply and demand. Therefore, the research recommends focusing on export regulations and rules to empower producers to improve product quality and direct it towards higher-return markets. This would contribute to increasing foreign currency earnings and improving the balance of payments. | ||
| Keywords | ||
| Exchange rate; Partial equilibrium; Tomato export | ||
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