The Impact of Exchange Rate liberalization on the Supply Response Functions of Potatoes and Tomatoes in Egypt

Document Type : Original Article

Authors

Department of Agricultural Economics, Faculty of Agriculture , Alexandria University, Alexandria, St., El-Shatby, Egypt.

Abstract

The research aimed to study the productivity, economic and foreign trade indicators of the potatoes and tomatoes crops during the period from 2004 to 2020, as well as measuring the impact of the liberalization of the exchange rate on the supply response functions for each of them during the same period. The research reached the following results:
-    As for the potato crop, the cultivated area of it during the average period of the study amounted to about 364.5 thousand feddans, the average total production was about 4.1 million tons, the average productivity per acre was about 11.2 tons / feddan, the average amount available for consumption was about 3.6 million tons, with average costs per acre ranged About 10.97 thousand pounds / feddan, the average net yield per acre is about 4.3 thousand pounds, the average farm price and average consumer price is about 1.36 thousand pounds / ton and 4.11 pounds / kg, respectively, the average amount of exports and the average value of exports is about 434.9 thousand tons and 148.8 million dollars, respectively, and the average export price is about 363.1 dollars / ton during the average study period.
-    As for the tomato crop, the cultivated area of ​​it during the average period of the study amounted to about 484.4 thousand feddans, the average total production was about 8.01 million tons, the average productivity per acre was about 16.5 tons / feddan, the average amount available for consumption was about 7.97 million tons, the average costs per acre ranged about 6.05 thousand pounds / feddan, the average net yield per acre was about 14.07 thousand pounds, the average farm price and average consumer price were about 1.12 thousand pounds/ton, 3.34 pounds/kg, respectively, and the average amount of exports , the average value of exports were about 57.9 thousand tons, 32.2 million dollars On the order, and the average export price was about 551.15 dollars / ton.
-    Measuring the impact of the exchange rate liberalization on the supply response function showed that the exchange rate and the export price in the previous year explain 66.1% of the changes in the area cultivated with the potato crop and that the liberalization of the exchange rate had a positive impact on the area cultivated with potatoes، While the exchange rate and the production quantity of tomatoes in the previous year explain about 92.8% of the changes in the cultivated area of ​​the crop. The liberalization of the exchange rate had a reverse impact on the cultivated area of ​​the crop.
 

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