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Services for Science and Education – United Kingdom
Advances in Social Sciences Research Journal – Vol. 10, No. 2
Publication Date: February 25, 2023
DOI:10.14738/assrj.102.13971. Hamza, Y. T. A., Elsayed, E. A. A., & Meky, F. M. H. (2023). An Economic Study of the Competitiveness of Egyptian Grape
Exports in its Most Important World Markets. Advances in Social Sciences Research Journal, 10(2). 128-155.
An Economic Study of the Competitiveness of Egyptian
Grape Exports in its Most Important World Markets
Yasser T. A. Hamza
Agricultural Economics Research Institute - Agricultural Research Center, Egypt
Elham A. A. Elsayed
Agricultural Economics Research Institute - Agricultural Research Center, Egypt
Fouaad M. H. Meky
Agricultural Economics Research Institute - Agricultural Research Center, Egypt
ABSTRACT
The research aims to study the Egyptian grape exports in terms of their temporal
stability and geographical distribution, as well as reviewing the most important
competing countries for Egypt. It also aims to measure competitive indicators of
Egyptian grape exports in its most important global markets, and to compare these
indicators, in order to reach some proposals to increase competitiveness and the
possibility of developing its exports in the future in those markets on the one hand,
and to open new markets on the other hand. The study relied on the two methods
of descriptive and quantitative analysis, as well as some methods of statistical
analysis to measure economic relations during the period (2000-2020). The
competitiveness of Egyptian grape exports in its most important global markets was
measured using four indicators: apparent competitive advantage, price
competitiveness, market share, and market penetration rate. This is in addition to
the comparison between the third and fourth indicators during the period (2016-
2020).
The most important findings of the study can be summarized as follows:
1.The existence of a large fluctuation and the promise of stability in each of the
quantity, value and export price of Egyptian grapes, as the stability coefficient for
them was estimated at 11.29%, 43.18%, and 27.15%, respectively, as an average for
the period (2016-2020).
2.The annual increase in domestic production amounted to the amount of Egyptian
grape exports at about 14.32, 7.17 thousand tons, i.e. an annual growth rate
estimated at 1.73% and 8.86%. The annual increase in the value and export price of
Egyptian grapes amounted to about $15.06 million, or $102.58/ton. That is, an
annual growth rate estimated at 10.67% and 7.02%, respectively. This increase has
been statistically significant during the same period.
3.There are many global markets for Egyptian grape exports, but the most
important ones are represented in three main markets: the European Union, the
Arab countries, and the African countries. This is in addition to some other
countries’ markets, where Egypt’s total grape exports amounted to about 118.16
thousand tons, representing about 91.98% of the total amount of Egyptian grape
exports amounting to about 128.46 thousand tons, with a value of $1080.76 million,
representing about 94.11% of the total value. Egypt's grape exports amounted to
about $1,148.40 million during the same period.
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Hamza, Y. T. A., Elsayed, E. A. A., & Meky, F. M. H. (2023). An Economic Study of the Competitiveness of Egyptian Grape Exports in its Most Important
World Markets. Advances in Social Sciences Research Journal, 10(2). 128-155.
URL: http://dx.doi.org/10.14738/assrj.102.13971
4.The most important countries competing for Egyptian grape exports are: Chile,
Italy, Peru, America, South Africa, the Netherlands, Turkey, Hong Kong, India, Spain,
Afghanistan and Uzbekistan, as their total exports amount to about 3900.6
thousand tons, representing About 86.11% of the world's total exports amounting
to about 4768.0 thousand tons during the same period.
5.Chile ranked first in world grape exports, with a quantity of about 768.6 thousand
tons, representing about 16.1%, while Egypt ranked twelfth with a quantity of
exports amounting to about 128.5 thousand tons, representing about 2.7%,
representing about 16.1% of the total amount of world grape exports. amounting to
about 4,768 thousand tons during the same period.
6.Egypt enjoys price competitiveness when compared to the following countries:
America, China, Peru, the Netherlands, Spain, Hong Kong, Australia, where the
average export price for these countries was about 2300.1, 2674.5, 2355.2, 2536.3,
2273.9, 1811.6, 2724.4 dollars/ tons, representing about 77.7%, 66.8%, 75.9%,
70.4%, 78.6%, 98.6%, and 65.1% for those countries, respectively, of the average
export price of Egyptian grapes, which amounted to about $1786.8 / ton during the
same period.
7.The existence of high export capabilities to increase the Egyptian grape exports to
the markets of Arab countries, especially: UAE, Saudi Arabia and Kuwait. As well as
the markets of the European Union countries, especially: Germany, Italy, the
Netherlands, the United Kingdom. And also the markets of African countries,
especially: South Africa, Kenya.
Based on the findings of the study, it recommends the following:
1.The need to reduce production, marketing and manufacturing costs. This leads to
a decrease in the export prices of Egyptian grapes compared to those of competing
countries, especially: Chile, Italy, South Africa, Turkey, India, Uzbekistan and
Greece.
2.Increasing Egyptian grape exports through increasing the market share, market
penetration rate, especially in Arab countries such as: UAE, Saudi Arabia, Kuwait,
Oman, as well as European Union markets such as: Germany, Holland, Italy, and the
United Kingdom., as well as the markets of African countries such as: South Africa,
Kenya, Nigeria, which are promising new markets. This is due to the presence of
high export potential, as its markets can accommodate more Egyptian grapes.
3.Preserving the traditional markets for Egyptian grape exports, in terms of
preserving its import capacity and increasing its market share, especially the
markets of Arab countries such as: UAE, Saudi Arabia, as well as European Union
countries such as: The United Kingdom, the Netherlands, and also African countries
in particular: South Africa, Nigeria, Kenya. This is due to the presence of some
export potentials of Egyptian grapes in those markets.
Keywords: Grape crop –Egyptian exports - Competitiveness - World
markets
INTRODUCTION
Egyptian agricultural exports face intense competition in light of the political changes and the
current international and regional blocs. Where the development of Egyptian exports is at the
forefront of the priorities that capture the largest share of the state's attention so that the severe
deficit in the Egyptian trade balance can be reduced, in addition to advancing development,
especially in light of the rapid global changes that always lead to increased competition
between countries to obtain the largest share. In world markets, which does not depend on
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Advances in Social Sciences Research Journal (ASSRJ) Vol. 10, Issue 2, February-2023
Services for Science and Education – United Kingdom
local production only, but there must be a competitive advantage for the commodity, which
results from the interaction of a group of factors together such as economic growth and
stability, the development of the private sector, education and training, productivity, efficiency
and the degree of integration into the world economy (El-Keblawy, 2004). Therefore, it is
important to study the competitive situation of the most important Egyptian agricultural
exports in the world markets.
The grape crop is considered one of the most important export fruit crops in Egypt, as the value
of its exports amounted to about $ 236.2 million, representing about 4.5% of the value of
Egyptian agricultural exports, which amounted to about $ 5305 million, and about 0.9% of the
value of total exports, which amounted to about $ 26815.1 million in 2020 (16). Which shows
its importance as an export crop that contributes to increasing Egypt's foreign exchange
earnings, and thus reducing the deficit in the Egyptian trade balance. Therefore, the study of
world markets for Egyptian grape exports is great importance, because it shows the extent of
their absorption compared to the exports of competing countries within these global markets.
RESEARCH PROBLEM
Despite the export importance of Egyptian grapes in the world markets, and what it contributes
to in providing foreign exchange necessary to finance economic and social development plans
in Egypt, and that working to develop its exports and increase their yields contributes to
achieving the goals of that sustainable agricultural development, but the instability the quantity
and value of its exports and its fluctuation from year to year, as its exports amounted to about
103.9 thousand tons, representing only about 6.5% of the amount of its domestic production,
which amounted to about 1594.8 thousand tons in 2020 (WWW. Faostat. org .). This means that
the Egyptian grape exports are small in some of the importing markets, in addition to the
intense competition for it in its world markets from the exporting countries. Which raises many
questions related to its competitive conditions and export opportunities in those markets, and
the factors affecting it.
RESEARCH OBJECTIVES
The research aims to study the competitive situation of Egyptian grape exports in the most
important world markets, by studying each of the following:
1. Development of Egyptian grape production and exports in terms of their temporal stability
and current geographical distribution, as well as a review of the most important competing
countries for Egypt.
2. The competitive position of Egyptian grape exports in its most important world markets.
3. Measuring the indicators of competitiveness of Egyptian grape exports in its most important
world markets, and comparing those indicators, in order to reach some proposals to
increase competitiveness, and the possibility of developing its exports in the future in those
markets on the one hand, and opening new markets on the other hand.
4. Surveying the opinions of some exporters regarding the most important problems and
obstacles, as well as solutions and proposals for the possibility of developing and increasing
Egypt's market share of the grape crop to its most important world market.