THE VALUE CHAIN ANALYSIS OF OLIVE IN FAYOUM GOVERNORATE

Abstract

Olives is one of the most important fruits in Egypt. Although It wasnoted recently that in spite of the increase in the quantity of production ofolives in Egypt in general, and in Fayoum Governorate in particular, a smallquantity is used in producing oil (about 10 %) all the rest quantity is used inmaking pickles which is made in a primitive and unhealthy way. This studyaims to describe the value chain of olive in Fayoum Governorate, estimatingits economic efficiency and its added value of outputs in all stages of oliveproduction in Fayoum. The present study employed descriptive analyses of thecollected data.The study showed that the value chain of olive consists a set ofsuccessive circles starting with olive production, manufacturing, and deliveryto the ultimate consumer. Through studying the most important economicefficiency indicators of processing a ton of pickled green olive has showedthat the gross margin and average rate of return and added value per ton areabout 4661.7, 3378.4, 5187.4 pounds, respectively. Also, it has showed thatthe average rate of return on the invested pound is about 0.4 pounds, and thatthe ratio of the total relative costs to the total revenue is about 61.2%. A studyof the most important economic efficiency indicators for processing a ton ofpickled black olive has showed that the gross margin, average rate of return,and added value per ton are 8870.1, 7378.9, 8917.2 pounds, respectively. Also,it has showed that the average rate of return on the invested pound is about0.69 pounds, and that the ratio of the total relative costs to the total revenue isabout 50.7%. After studying the most important economic efficiency indicators for processing a ton of olive oil has shown that the gross margin,average rate of return and added value are about 2542.2, 2179.2, 2728.7pounds, respectively. It has also shown that the average rate of return on theinvested pound is about 0.47 pounds, and that the ratio of the total relativecosts to the total revenue is about 62.6%.By studying the most important indicators of economic efficiency ofdistributing a ton of pickled green olive, it has been found that the grossmargin, average rate of return, and added value are 2083,1968, 2485 pounds,respectively. The study has also shown that the average rate of return on theinvested pound is about 0.15 pounds, and that the ratio of the total relativecosts to the total revenue is about 86%. By studying the most importanteconomic efficiency indicators for the distribution of a ton of pickled blackolive, it has been noted that the gross margin, average rate of return and addedvalue are 2775, 2686.8, 3196.8 pounds, respectively, and that the average rateof return on the invested pound is about 0.1 pounds. Moreover, it has beenfound that the ratio of the total relative costs to the total revenue is about87.2%. As for the most important economic efficiency indicators for thedistribution of a ton of olive to be used to produce olive oil, it has beenconcluded that the gross, average rate of return and added value are about2993.8, 2922.3, 3307.5 pounds, respectively, and that the average rate ofreturn on the invested pound is about 0.75 pounds. One more thing is that theratio of the total relative costs to the total revenue is approximately 56.2%.Recommendations of the Study:1. Encouraging investment in the field of manufacturing special containers ofolives and its products, and to encourage investment in the necessaryinfrastructure such as stations of sorting and grading, as well as toencourage investment in the field of complementary industries, especiallyin the field of utilization of olive residue.2. Opening new marketing outlets for olive products and export promotion inthis area.3. The Social Fund should encourage young graduates by providing necessaryloans to enter the field of olive processing, where the lost income estimatesfor olives manufacturing series pointed to the availability of opportunitiesfor expansion in the olive manufacturing and the establishment of newinvestment projects.