Economic Characteristics Of Egyptian Agriculture (B109) PDF

ECONOMIC CHARACTERISTICS OF THE EGYPTIAN AGRICULTURE (B109) Dr. Momtaz Nagy Elsebaei Professor of Agricultural Economics and Marketing - Department of Agricultural Economics - Faculty of Agriculture - Ain Shams University  Course Aim: The aim of the course is to: learn about the...

ECONOMIC CHARACTERISTICS OF THE EGYPTIAN AGRICULTURE (B109) Dr. Momtaz Nagy Elsebaei Professor of Agricultural Economics and Marketing - Department of Agricultural Economics - Faculty of Agriculture - Ain Shams University  Course Aim: The aim of the course is to: learn about the characteristics of the agricultural sector in order to take the appropriate decision. develop or improve the production process in order to achieve the highest profit. Therefore, the objective of the course is to realize the volume of production that may reduce the cost or increase the profit. identify the most important economic characteristics of Egyptian agriculture, the basic concepts of supply and demand for agricultural products, elasticity and the reasons for weak elasticity of demand and supply of agricultural products, and the study of the determining factors of product prices. In order to help the graduates to make the appropriate decision for production or marketing in light of the characteristics and capabilities of Egyptian agriculture  Chapter One: Agriculture is an industry covering The organization of resources -such as land and minerals, capital in a What are the main sectors What is agriculture? wide variety of forms, and of agriculture? management and labor – for the production and marketing of food and fiber. The publicly supported The farming sector The agribusiness sector sector  Main sections of agricultural activities: Agricultural production activities: include cereal crops, sugar crops, vegetables and fruits, medicinal and aromatic plants.........etc Animal production activities: include livestock, sheep, camels, poultry, bees and fish farms............ etc Other activities: industries based on agricultural products, such as the manufacture of dairy products, meat, juices, marketing, processing of vegetables and fruits................ etc  Agricultural contribution to economic growth: A) Agriculture must The main aspects of supply food and raw agriculture's materials required in contribution to the developing economic progress are: economies b) Agricultural expansion as a means c) Agriculture as a of earning and saving source of capital foreign exchange e) Agriculture as a base d) Agriculture as a for industrializations source of Labour  The economic importance of the agricultural sector: Agriculture provides the food The agricultural sector supplies Agricultural products and clothes needed by the the industry with raw contribute to Egypt's exports by population. materials. about 20%. Agricultural economics is an applied field of economics The contribution of agriculture Agriculture absorbs many concerned with the application to the gross national product is Egyptian workers. of economic theory in about 16%. optimizing the production and distribution of food.  Major topics in agricultural economics: First: Agricultural environment and natural resources In the field of environmental economics, agricultural economists have contributed in three main areas: designing incentives to control environmental externalities (such as water pollution due to agricultural production), estimating the value of non-market benefits from natural resources and environmental amenities (such as an appealing rural landscape), and the complex interrelationship between economic activities and environmental consequences. With regard to natural resources, agricultural economists have developed quantitative tools for improving land management, preventing erosion, managing pests, protecting biodiversity, and preventing livestock diseases. Second : Food and consumer economics: While at one time, the field of agricultural economics was focused primarily on farm-level issues, in recent years agricultural economists have studied diverse topics related to the economics of food consumption. In addition to economists' long-standing emphasis on the effects of prices and incomes, researchers in this field have studied how information and quality attributes influence consumer behavior. Agricultural economists have contributed to understanding how households make choices between purchasing food or preparing it at home, how food prices are determined, definitions of poverty thresholds, how consumers respond to price and income changes in a consistent way, and survey and experimental tools for understanding consumer preferences.  Third: Production economics and farm management: Agricultural economics research has addressed diminishing returns in agricultural production, as well as farmers' costs and supply responses. Much research has applied economic theory to farm-level decisions. Studies of risk and decision-making under uncertainty have real-world applications to crop insurance policies and to understanding how farmers in developing countries make choices about technology adoption. These topics are important for understanding prospects for producing sufficient food for a growing world population, subject to new resource and environmental challenges such as water scarcity and global climate change.  Fourth: Development economics: Development economics is broadly concerned with the improvement of living conditions in low-income countries, and the improvement of economic performance in low-income settings. Because agriculture is a large part of most developing economies, both in terms of employment and share of GDP, agricultural economists have been at the forefront of empirical research on development economics, contributing to our understanding of agriculture's role in economic development, economic growth and structural transformation. Many agricultural economists are interested in the food systems of developing economies, the linkages between agriculture and nutrition, and the ways in which agriculture interact with other domains, such as the natural environment  Economics: Economics is the study of how society allocates limited resources to the production of goods and services to satisfy unlimited human wants. ❖There are two main branches of economics: microeconomics and macroeconomics.  Microeconomics: Deals with the analysis of individual parts of the economy. It concerns factors determining the behavior of a consumer, the behavior of a firm, the demand for a good, the supply of a good, the price of a good, the quantity of a good, the performance of a market, etc. ❖.  Macroeconomics: Deals with the analysis of the whole economy. It concerns factors determining aggregate variables such as aggregate demand, aggregate supply, national output, unemployment, inflation, the balance of payments, etc. macroeconomics looks at the big picture of the economy. Difference between microeconomics and macroeconomics Economists often distinguish between positive economics and normative economics. Resources and human wants Factors of production or resources: Land: Land refers to the gifts of nature that are used to produce goods and services. It includes plots of land, natural resources, fishes in the sea and trees in the forests. Resources and human wants Labour: Labor refers to the physical and mental effort that people devote to the production of goods and services.  Resources and human wants. Capital: Capital refers to the goods that are produced for use in the production of other goods. It includes factories and machinery. Resources and human wants Enterprise(management): Enterprise refers to the ability and the willingness on decision making. It indicates the organization's ability to make the appropriate decision in light of the expected risks. Income of factors.  Scarcity, choice and opportunity cost: Scarcity: There are not enough resources or goods to satisfy all the desires that people may have. Scarcity is the situation where limited resources are insufficient to produce goods and services to satisfy unlimited human wants.  choice and opportunity cost: The opportunity cost is the benefit forgone by not choosing its next best alternative. When a choice is made, an opportunity cost is incurred. In other words, when society chooses what goods and services to produce, it is choosing what goods and services not to produce.  choice and opportunity cost:. The opportunity cost is: The value of the alternative products that could have been produced if productive resources were directed towards producing those alternative products.  choice and opportunity cost:. For a manufacturer (producer, firm, company, farmer, …), he has limited resources, if his choice is to use these resources to produce a certain product, then the opportunity cost of this decision (choice) is what else could have been produced by these resources as the next best alternative. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. The economic problem:  Economics: Economics is the science which studies human behavior as a relationship between ends and scare resources which have alternative uses. This definition points out four fundamental conditions which give rise to the "scarcity" with which all people of the world must contend. These conditions are as follows: 1. Human wants are unlimited or insatiable. 2. Wants are of varying importance. 3. Resources to meet wants are limited. 4. Resources do have various alternative uses.  The Production Possibility Curve (P.P.C.), or the production-possibility frontier (P.P.F.): The production possibility curve (PPC): shows all the possible combinations of two goods that can be produced in the economy when resources are fully and efficiently employed, given the state of technology, assuming the economy can only produce the two goods. The Production Possibility Curve (P.P.C.), or the production-possibility frontier (P.P.F.): The Production Possibility Curve (P.P.C.): The production-possibility frontier (P.P.F.): Attainable and Unattainable: Thank you