Financial evaluation of grape cultivation in Gharbia Governorate

Document Type : Original Article

Author

Agricultural Policy and Project Evaluation Department , Agricultural Economic Research Institute(AERI).Agricultural Research Center(ARC), El-Dokki, El-Giza, Egypt.

Abstract

Shahira Mohammad Reda Ebrahim
 
The Gharbia Governorate is distinguished by the fact that it comes in the second place after the El-Minya Governorate in terms of the cultivated area and the quantity of production of the grape crop in the old lands. The area of grape production in Gharbia Governorate reached about 11.63 thousand feddans. It represents about 43.6% of the total area of fruit crops in the governorate, which is about 26.7 thousand feddans, and it represents about 21.35% of the total area of grapes planted at the level of the Republic, which is about 54.58 thousand feddans in 2021.,It also turned out that the amount of grape production in Gharbia Governorate amounted to about 98.73 thousand tons, representing about 53.57% of the total amount of grape production in the governorates of Lower Egypt, which is about 184.3 thousand tons, and represents about 22.42% of the total amount of grape production in Egypt, which is about 440.41 thousand tons in 2021.
The research aims to study the financial evaluation of grape production farms on the old lands in Gharbia Governorate, by achieving the following sub-goals: (First) Estimating productive and economic indicators for an acre of fruitful grapes in the research sample in Gharbia Governorate, (Second) Estimating some economic indicators for an acre of fruitful grapes in the study sample. (Third) A feasibility study for cultivating an acre of Banati grapes by cane breeding in Al-Santa Center, Gharbia Governorate.
To achieve its objectives, the research relied on the use of descriptive and quantitative economic analysis, where some analytical methods were used such as percentages, income analysis and costs to identify the most important criteria for analysis and financial evaluation of grape production farms in the research sample, and to evaluate the performance of research sample farms, and a feasibility study was conducted to grow an acre of grapes using the cost ben program.
The research relied on two types of data, one of which is the data published by the Ministry of Agriculture and Land Reclamation, the Economic Affairs Sector, the Central Agency for Public Mobilization and Statistics, some books, theses and research related to the subject of the research, as well as the international information network, The second type of data is primary data collected through a questionnaire for grape growers in Gharbia Governorate during the 2021/2022 production season.
The most important search results were as follows:

It turned out that the Al-Santa center came in the first place for grape cultivation in Gharbia Governorate, with a rate of 72.29% of the total area of grapes in the governorate.
It was found that the average area of the farm was about 3 feddans, the average age of the trees on the farm was about 6 years, and the average number of years of experience in grape cultivation was about 12.5 years.
It is evident that the total fixed acre production costs of grapes in the sample farms amounted to about 14.3 thousand pounds, representing about 60.08% of the total acre costs in the research sample, which amounted to about 23.26 thousand pounds.
The average total yield of an acre of grapes in the research sample was about 54.3 thousand pounds.
The cost-return ratio of an acre of grapes in the research sample was about 2.28.
The average income above the variable costs of an acre of grapes in the research sample was about 3.21 thousand pounds.
The profit of the spent pound amounted to about 1.28.
The internal rate of return for producing an acre of grapes was about 19.7%.

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