THE VALUE CHAIN ANALYSIS OF OLIVE IN FAYOUM GOVERNORATE

Document Type : Research articles.

Authors

Department of Agricultural Economics, Faculty of Agriculture Fayoum University, Fayoum

Abstract

Olives is one of the most important fruits in Egypt. Although It was
noted recently that in spite of the increase in the quantity of production of
olives in Egypt in general, and in Fayoum Governorate in particular, a small
quantity is used in producing oil (about 10 %) all the rest quantity is used in
making pickles which is made in a primitive and unhealthy way. This study
aims to describe the value chain of olive in Fayoum Governorate, estimating
its economic efficiency and its added value of outputs in all stages of olive
production in Fayoum. The present study employed descriptive analyses of the
collected data.
The study showed that the value chain of olive consists a set of
successive circles starting with olive production, manufacturing, and delivery
to the ultimate consumer. Through studying the most important economic
efficiency indicators of processing a ton of pickled green olive has showed
that the gross margin and average rate of return and added value per ton are
about 4661.7, 3378.4, 5187.4 pounds, respectively. Also, it has showed that
the average rate of return on the invested pound is about 0.4 pounds, and that
the ratio of the total relative costs to the total revenue is about 61.2%. A study
of the most important economic efficiency indicators for processing a ton of
pickled 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 about
0.69 pounds, and that the ratio of the total relative costs to the total revenue is
about 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, 2728.7
pounds, respectively. It has also shown that the average rate of return on the
invested pound is about 0.47 pounds, and that the ratio of the total relative
costs to the total revenue is about 62.6%.
By studying the most important indicators of economic efficiency of
distributing a ton of pickled green olive, it has been found that the gross
margin, 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 the
invested pound is about 0.15 pounds, and that the ratio of the total relative
costs to the total revenue is about 86%. By studying the most important
economic efficiency indicators for the distribution of a ton of pickled black
olive, it has been noted that the gross margin, average rate of return and added
value are 2775, 2686.8, 3196.8 pounds, respectively, and that the average rate
of return on the invested pound is about 0.1 pounds. Moreover, it has been
found that the ratio of the total relative costs to the total revenue is about
87.2%. As for the most important economic efficiency indicators for the
distribution of a ton of olive to be used to produce olive oil, it has been
concluded that the gross, average rate of return and added value are about
2993.8, 2922.3, 3307.5 pounds, respectively, and that the average rate of
return on the invested pound is about 0.75 pounds. One more thing is that the
ratio 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 of
olives and its products, and to encourage investment in the necessary
infrastructure such as stations of sorting and grading, as well as to
encourage investment in the field of complementary industries, especially
in the field of utilization of olive residue.
2. Opening new marketing outlets for olive products and export promotion in
this area.
3. The Social Fund should encourage young graduates by providing necessary
loans to enter the field of olive processing
, where the lost income estimates
for olives manufacturing series pointed to the availability of opportunities
for expansion in the olive manufacturing and the establishment of new
investment projects.




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