Activating the Role of Local Agricultural Associations in Providing Chemical Fertilizers to Farmers

Document Type : Original Article

Authors

Agricultural Economics Research Institute – Agricultural Research Center

10.21608/asejaiqjsae.2025.462415

Abstract

This study investigates the critical role of multipurpose local agricultural associations in Egypt in supplying chemical fertilizers to farmers. The research is motivated by a fundamental problem: the insufficient provision of fertilizers by these cooperatives, which compels farmers to turn to the private sector and incur higher costs, thereby significantly increasing their overall production expenses. The primary objectives are to analyze the current operational status of these local associations and to assess the sufficiency of their fertilizer supply in meeting consumption demands. The methodology encompassed a comprehensive analysis of the agricultural cooperative sector and the domestic fertilizer market, particularly focusing on the production and availability of nitrogenous and phosphate fertilizers during the period (2010-2023). 
A significant finding reveals that investments in fertilizer projects constitute the overwhelming majority, approximately 94%, of the total investments in production input projects within these associations. Furthermore, the research incorporated field data collected from a sample of farmers in the Beheira and Minya governorates. This qualitative component was designed to gather farmers' perspectives on consumption patterns, distribution channels, the specific challenges they encounter, and their proposed solutions. To quantitatively identify the key economic factors driving demand for nitrogenous and phosphate fertilizers, the study employed an econometric analysis, estimating a demand function using the Stepwise Multiple Regression method in a double-logarithmic form. The collective findings provide a holistic view of the systemic challenges and investment priorities, offering a foundation for strategies aimed at enhancing the efficacy of agricultural associations in the fertilizer supply chain.

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