The Economic Direction of Egyptian Grape Exports

Abstract

Export sector is one of the main sectors that play an important role in achieving the economic growth in Egypt. It’s one of the most important sources of hard currency which is necessary for the overall economic development of the country. Grape is one of the most important export crops in Egypt, The average value of its exports represents about 4.36% of the average value of Egyptian agricultural exports, which is about 3.29 million dollars during the average period (2012-2016). The problem of research is about that the Egyptian agricultural exports in general and grapes exports in particular face a lot of problems and obstacles that stand in the way of increasing their export capacity. Some of the problems are related to the economic blocks, the plurality of the competing countries, the difference of the prices of export and the different capacity. Some other problems are related to the severe competition in the foreign markets, the non-matching specifications of the Egyptian grape exports to the standard specifications and the required quality in these markets. Other problems are related bad geographical misdistribution which affects its exporting portion. So, the objective of the research is to identify the current geographical distribution of Egyptian grape exports during the period (2012-2016) and the geographical redistribution of Egyptian grape exports to the different in order to achieve the best geographical distribution, in order to achieve the highest possible value of these exports in the foreign markets during the period (12–2016) The research has reached following results: 1- The quantity of grape exports to the European markets is estimated at about 19.68 thousand tons, representing about 17.97% of the average total Egyptian exports to importing countries. Britain is the largest market for Asian importing grapes, which imports about 30.59% of the average total of the Egyptian exports of grapes according to the current distribution of its exports. 2- The quantity of grape exports to the Arab and African is estimated at about 72.98 thousand tons, representing about 66.64% of the average total Egyptian exports to importing countries. Saudi Arabia is the largest market for Asian importing grapes, which imports about 5.05% of the average total of the Egyptian exports of grapes according to the current distribution of its exports. 3- The quantity of grape exports to the Asian is estimated at about 11.32 thousand tons, representing about 10.34% of the average total Egyptian exports to importing countries. Russia is the largest market for Asian importing grapes, which imports about 6.67% of the average total of the Egyptian exports of grapes according to the current distribution of its exports. Five models were used to provide the economic guidance for grape exports in order to achieve the highest possible economic return there are as follows (the free model- the model of the European markets-the model of the Arab and African countries- the model of Asian markets and the model of the markets with the highest export price). It has been show that free model and the model of the markets of the highest price countries are the best among the five proposed models. The first achieves an increase in the export earnings of about 222.77 million dollars, equivalent to about 100.26%. The second achieves an increase in the export earnings of about 231.92 million dollars, equivalent to about 104.37% of the average total value of Egyptian exports of grapes.