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Egypt Agribusiness Report Q4 2009Published by: Business Monitor International Published: Aug. 11, 2009 - 47 Pages Table of Contents
AbstractThe latest Egypt Agribusiness Report is published as the global recession continues to strangle economicfundamentals. However, analysts are growing increasingly optimistic that the contractions witnessed inmany markets are bottoming out, leading to the prospect of improved dynamics through the remainder of2009 and into 2010. In Egypt, agricultural initiatives aimed at improving self-sufficiency have begun toreap rewards, yet there remains room for much improvement.The Egyptian agribusiness sector faces mounting challenges. In addition to the population expandingfaster than any in the Arab world, the lack of domestically available water continues to undermine manyattempts to increase productivity. Water usage per capita is 800 cubic metres, some way below therecognised water poverty line of 1,000 cubic metres. This means that agricultural producers face an uphilltask in husbandry, as household water consumption increasingly competes with the needs of crops andlivestock. So as to encourage a greater level of agricultural production, the government has made significant effortsto improve productivity. The selling of state-owned enterprises, have helped prick private sentiment. Foreign direct investment flows have been liquid, although it should be noted that a large proportion ofsuch capital is leveraged through firms with interests in sectors, such as tourism, which have sufferedmarkedly during the financial crisis. Meanwhile, graduates have been encouraged to get into husbandry with low interest loans and freeanimals to start them off; this has fuelled a marked upswing in those wanting to work rurally, particularlyso considering the congestion of the major cities and diminishing employment potential. Thedisbursement of modern technology has helped the cultivation of a variety of fruits and vegetables to sucha degree that exports to neighbouring countries are possible. Among the main crops produced domestically, sugar is expected to post the strongest growth through to2013, as planted area increases and as attempts to reduce the substantial import bill are implemented. Beetin particular will fuel the growth as a less moisture dependent crop than cane, thus less of a drain on waterand irrigation. Egyptians are among the highest per capita sugar consumers in the world and whileimproving supply-side fundamentals are of course paramount, curbing such excessively highconsumption could accelerate a move towards greater self-sufficiency. Notwithstanding the large deficit, the 15.83% growth in sugar output remains the highlight of the currentoutlook, as the gains made in production through other goods are generally quite modest. Double-digitgrowth is not expected for any other crop throughout the five-year forecasting period. Consumptiongrowth is forecast slightly more favourable dynamics, with beef, rice and milk consumption expanding by18.26%, 27.96% and 17.32% respectively, as population growth and higher incomes stimulate demand. Get Full Details About This Report >> |
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