Estimating Consumer Demand for Edible Oils in the Arab Republic of Egypt

Document Type : Original Article

Author

department Of Economic Studies , Division Of Economic and Social Studies , Desert Research Center .

Abstract

Vegetable oils are a major source of energy from food commodities as well as their versatility and incomes in local industries. However, their production is not enough to satisfy food needs and meet their growing demand year after year. This leads to the import of about 98% of our food oil needs from outside, which has increased the burden on the state budget. The main objective of the research is to estimate the demand for the most important food oils (cotton seed oil, sunflower oil and corn oil) using Almost Ideal Demand System during the period (2002-2021). A number of results were concluded, the most important of which were: The high flexibility of spending on sunflower oil, which amounted to 78.9% of total spending on food oils, Flexible price demand for vegetable oils indicates that demand for cotton seed oil, sunflower oil and corn oil is flexible, The results of the cross-demand flexibility assessment also show that the relationship between cotton seed oil, sunflower oil group and corn oil is complementary and that the relationship between corn oil and cotton seed oil group and sunflower oil is substitutive.

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