The Economic Returns of Reclaiming New Lands and Estimating the Resources Needed to Produce the Most Important Grains in Egypt

Document Type : Original Article

Authors

1 Senior researcher at the Agricultural Economics Research Institute - Agricultural Research Center

2 Agricultural Economics Research Institute - Agricultural Research Center

3 Researcher at the Agricultural Economics Research Institute - Agricultural Research Center

Abstract

The Egyptian economist needs horizontal expansion in the desert backlands in governorates that have arable desert backlands to increase the production of wheat and maize on the one hand, and to expand rice cultivation in the old lands on the other hand. This expansion will be in three stages, the first stage: It needs to reclaim 590.2 thousand acres in the aforementioned governorates, and it requires digging 11,804 artesian wells to provide a source of irrigation water. The cost of these wells may amount to about 2.95 billion Egyptian pounds, or approximately 59.02 million dollars at an exchange rate of 50 pounds. To the dollar, the cost of producing 1.68 million tons of wheat is about 6.67 billion Egyptian pounds, with an average cost of 3.969 thousand pounds, and the cost of producing 1.91 million tons of maize is about 6.27 billion pounds, with an average cost of 3.28 thousand pounds per ton. The second phase: It requires the reclamation of 616 million acres in the aforementioned governorates, and it requires digging 12,320 artesian wells to provide a source of irrigation water. The cost of these wells may amount to about 3.08 billion Egyptian pounds, or approximately 61.6 million dollars. The cost of producing 1.62 million tons of wheat is about 6.44 billion Egyptian pounds, with an average cost of 3.986 thousand pounds, and the cost of producing 2.09 million tons of maize is about 6.09 billion pounds, with an average cost of 2.95 thousand pounds per ton. The third stage: It requires the reclamation of 741 million acres in the aforementioned governorates, and it requires digging 14,820 artesian wells to provide a source of irrigation water. The cost of these wells may amount to about 3.71 billion Egyptian pounds, or approximately 74.1 million dollars. The cost of producing 1.81 million tons of wheat is about 7.52 billion Egyptian pounds, with an average cost of 4.16 thousand pounds, and the cost of producing 2.06 million tons of maize is about 6.83 billion pounds, with an average cost of 3.31 thousand pounds per ton. The economic return from the horizontal expansion in wheat and maize production at the state level requires the reclamation of 1.95 thousand acres in the governorates that have a desert backland, except for Gharbia and Luxor, which do not have a desert backside. Therefore, it is necessary to dig 39,844 artesian wells to provide a source of irrigation water. The cost of these wells may amount to about 9.74 billion Egyptian pounds, and the cost of producing 5.1 million tons of wheat is about 20.6 billion Egyptian pounds, with an average cost of 4.04 thousand pounds, and the cost of producing 6.07 million tons of maize is about 19.19. One billion pounds, with an average cost of 3.16 thousand pounds per ton. The research recommended horizontal expansion in the desert hinterland for wheat and maize crops in accordance with the previous implementation stages.
The authorities entrusted with implementation are the Ministry of Agriculture and Land Reclamation in partnership with agricultural directorates and associations. It is possible to create job opportunities by handing over these lands to graduates and investors in order to ensure continuity in production, as is the case in the lands of the Nubaria region and the success it has achieved.
 

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