دراسة إقتصادية لإنتاج واستهلاك زيت الطعام فى ج.م.ع

SUMMARYFood industries are one of the most important industries for the life of the Egyptian people, because they are the main source of energy that cannot be neglected and are needed for the human life at all times. Vegetable oils industries are important for the country because they contribute in the gross domestic product and for their role in the development process, and because they supply the consumers with their needs. Cotton seed oil has been extracted since the nineteenth century, and then it becomes the main locally produced oil in Egypt.The most important oilseeds produced in the whole world are: cottonseeds, linseeds, sesame, peanut, soybeans, and sunflower. These seeds are important source for producing vegetable oils, while their residues are used as components in the different kinds of concentrated livestock and poultry feeds. These residues are used as ruminant materials that are utilized in feed production and are used to supply the local market with its needs. Demand for feed is derived demand from the continuous increasing demand for livestock and poultry production.Vegetable oils industry in Egypt relies mainly on the governmental oil companies, which are affiliated companies managed by the “Food Industries Holding Company (FIHC)”, where its production represents the largest portion of the domestic production. In addition, there are some other small private sector companies.The main objectives of this study is to identify the current situation of vegetable oil in Egypt, analyze the consumption pattern, and study the changes that have happened to the production cost of oils and vegetable ghee in the companies that produce them. The ultimate objective is to identify the barriers and problems that face this industry and to suggest some solutions for such problems.In addition to the summary and the conclusion, the study includes fivechapters: The first one includes a review of literature in areas of production, consumption, and production cost. The study includes some important results and conclusion that have been reached.The second chapter deals with the production of the most important vegetable oilseeds in Egypt and the world, and the local production of the most important vegetable oils produced in Egypt.The third chapter handles oil consumption, vegetable oils gap in Egypt, food subsidy, direct subsidy that is incurred by the government for vegetable oils, the total effect, and the components for reform policy. The study has also estimated the expenditure elasticity for oils and vegetable ghee in Egypt for urban and rural areas.The fourth chapter handles the current situation of vegetable oils and its products in Egypt as an introduction to analyze the current situation of the vegetable oil industry.The fifth chapter includes an economic study of the cost components of the seven public sector vegetable oil in Egypt.The first chapter reviews the previous studies. These studies showed that the most important problems that face the decrease of the production of vegetable oils in Egypt are: decrease of the area cultivated with cotton crop, deterioration of cotton prices as the most important factors determining production of cotton seed oil and cake. Other problems include the expansion of other oilseeds in Egypt, and the increase of consumption due to the increase of population and standard of living of Egyptian people.The second chapter handles the development of the production of vegetable oils, the relative importance of each type of vegetable oils in the world and in Egypt, and the importance of the different varieties of oil in the Egyptian agricultural economy. The results show that soybeans occupies the first rank in world production of vegetable oilseeds where it represents about 52% of the total production, followed by cotton seeds (13.4%), canola seeds (11.9%), peanuts (10.2%), sunflower seeds (9.2%), palm oil seeds (1.6%), linseed (1.03%), and sesame (1%). The leading vegetable seeds oil producing countries are: USA, Brazil, China, Argentina, India, Russia, Canada, Sudan, and Nigeria.The study shows that the value of vegetable oils of production in Egypt has increased from LE 571 millions represented about 7.4% of the agricultural income, 5.2% of agricultural production, and 12.4% of the field crops in 1985 to LE 2,644 millions in 1999 represented about 5.2% of the agricultural income, 3.8% of agricultural production, and 64% of the field crops.Cotton comes as the first vegetable oilseeds crop represented about 70% of the total production as an average for the period 1985-2001, followed by peanuts (11.2%), soybeans (9.4%), linseeds (3.3%), sesame (3.2%), and sunflower (3%).Area of cotton represented 77% of the total vegetable oilseeds area, followed by peanuts (6.8%), soybeans (5.9%), sunflower (2.5%), sesame (4.6%), and linseed (2.7%) as an average for the 1985-2001 period.The most important vegetable seeds oils produced in Egypt are: cottonseed oil (60.5%), soybeans (23.6%), sunflower oil (8.2%), and linseed oil (7.8%) of the total oil produced. The relative importance of the area cultivated with vegetable oil seeds has decreased from 11.7% of the total area in 1985 to about 7.35 in 2001.The third chapter includes a study of the per capita share of vegetable oils, vegetable ghee, the vegetable oil gap, the development of imports of the different types of oils, the subsidy system and its types, the direct actual subsidy that is incurred by the government, the relative importance of oil subsidy in respect to the total subsidy, the use of food ration cards and subsidized oils, the total effect and its components for the reform policy, and an estimate of the expenditure elasticity for the vegetable oil and vegetable ghee extracted from the different family budget surveys conducted by the “Central Agency for Public Mobilization and Statistics- CAPMAS”.The study showed that the average per capita consumption of oils has increased from 5.9 kilograms in 1992 to reach 12.2 kilograms in 1999. The oil gap has increased from 345,000 tons in 1995/96 represented 73% of the total consumption to 749,000 tons in 2001/02 represented about 88% of the total consumption. The study showed that there is also a gap between production and consumption of vegetable ghee in Egypt.The total imports of vegetable oils increased from 225,000 tons in 1991 to 784,000 tons in 1996. The total subsidy incurred by the government for vegetable oils and ghee has increased from LE 4 millions in 1988 to LE 586 millions in 1992. The quantity distributed under the ration card system and the subsidized oils reached 325,000 tons in 1991, and 189,000 tons in 2001, and the number of people registered under these cards increased from 44 millions in 1985 to 47.5 millions in 1996, then it deceased to 43 millions in 2001.The per capita consumption of oil has increased from 3 kilograms in 1990/91 to 8.8 kilograms in 1999/2000. Total expenditure on oil has also increased due to the increase of quantity consumed.Estimate of the expenditure elasticity of oils and vegetable ghee showed that vegetable oils is a necessary good in both rural and urban areas. It was estimated at 0.146 in urban areas and 0.316 in rural areas based on 1995/96-budget survey. Data and analysis extracted from 1999/2000 survey showed that expenditure elasticity was estimated at 0.108 in the rural areas and 0.394 in the urban areas. Oil was considered an inferior good in the urban areas in 1990/91, where its expenditure elasticity was estimated at –0.198, and necessary good in the rural areas where the expenditure elasticity was estimated at 0.678 at the same year.The fourth chapter deals with oil industry in Egypt. It shows the development of crushing and extraction of vegetable oils in the world and in Egypt. It shows that there are two methods of oil extraction; these are the mechanical method, and the other is the organic solutions method. The study showed that vegetable oilseeds produce many products including: vegetable oils, vegetable ghee, margarine, soap, detergents, glycerin, paint oils, and animal feed.The fifth chapter deals with the cost of vegetable oils in Egypt. The chapter includes three main divisions: the first one deals with the development of cost per unit produced of vegetable oils in the “Food Industries Holding Company” and its seven affiliated companies, where the study revealed that there is an increase of the cost of production of each of these companies.The second component is the components of the cost of production, where the study showed that there was an increase in the components of the cost of production for these companies. The cost items include the direct production cost and the cost of the raw materials. While their relative importance have increased, the relative importance of the indirect cost, wages, and assets depreciation have decreased. The relative importance of raw materials, wages, assets depreciation, and indirect and indirect cost for the production of vegetable ghee have increased for some companies but decreased for others. The relative importance of wages for workers in vegetable ghee industry has increased.The third division of the last chapter includes a study of the cost of production. It shows that the cost has increased for vegetable oils and vegetable ghee for all the seven companies. The study showed that the production cost per ton has increased significantly between 1985 and 2001, due to the increase of cost of raw materials and dir