An Analytical Economic Study of Sugar Cane in Egypt

The study aimed mainly to measure the economic efficiency of resources used in the production of sugar cane in Egypt, estimate the optimal size of the production and its bulks profits, and estimate the efficiency of sugar cane production factories. The research based on secondary data during the period 1995-2016 , we used a descriptive and quantitative analysis of the data and estimated some economic and productivity efficiency indicators as well.
The most important results can be summarized as follows:
For the standard estimation of the sugar cane production functions, we confirmed of the effect of both the labor component, the rental value of the land element and the time component which reflects technological development.
For the standard estimation of the sugar cane cost functions, the optimal size of production was estimated at 50.9 tons, the optimum capacity was achieved at 1.04 acres and the size of bulks production profits 67.61 tons, was achieved at an area of 1.38 acres. The estimation of supply elasticity was shown to be less than 1 which indicates that the optimal policy for increasing production is cost reduction.
The efficiency of the sugar cane production factories was approximately 51.86% Abu Qurqas factory, 54.22% Gerga factory, 85.70% Nag Hammadi factory, 77.79% Deshna factory, 93.51% qus factory, 98.63% Armant factory, for Advo and Kom Ombo factories work with an operating capacity exceeding their design capacity of approximately 114.26% and 103.99% respectively. This indicates that the majority of these factories are not working at full operational capacity.
By studying the areas targeted for the sugar cane crop uses, it was found that 76.3% of the sugar cane was directed to factories, 3.93% for honey extractors, 3.81% for seeds, and 16.75% as fresh consumption.
recommendations:
To achieve economic efficiency we must rationalize the use of human labor, mechanical and animal forces.
The size of the farm must not be less than the optimal size of the production which is a 1.04 acres.
The size of the farm must not be more than 1.38 acres in order to bulks profits of farmers.
The necessity of operating the sugar cane factories at full capacity, either by reducing the quantities of leaks or by increasing the sugar cane through increasing its area or productivity, and work on updating , developing and benefiting of technological development.
Work on the development of new varieties of sugar cane with low water requirements.
Attempt to develop a strict law that obliges farmers to supply their entire crop of cane to sugar factories without any other uses, especially in the main production governorates.