Egypt: Smallholder contract farming for high-value and ... - IFAD

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IFAD should offer to help the Government undertake a feasibility study on upgrading the logistics in handling refrigerated sea containers at the two seaports and, if found to be feasible, formulate a project and seek cofinancing from the Organization of the Petroleum Exporting Countries and other potential cofinanciers, for example, the EU and the World Bank. Smallholders. The initial investment, which can be financed through IFAD and other donor interventions, should be production-oriented. However, once the farmer associations have matured into specialized associations and are legally registered, the financing of investment should also focus on the following: • Row and high tunnels; • Drip-irrigation equipment suitable for smallholders; • Field packaging sheds; and • Pre-cooling and refrigerated transport for larger farmer associations and cooperatives. It is recommended that the Government encourage the development of financial service projects to address the above types of investments. SMEs. The SMEs that are most suited for dealing with smallholder issues are the ones located within the rural area in relatively close proximity to the smallholders, including satellite facilities of existing metropolitan-based exporters and processors. Start-up exporters and processors are also more likely to penetrate new markets, particularly those in the EU. The investments envisaged for the SME sector include the following: • Refrigerated cold-chains; • Processing facilities; • Facilities producing packaging materials; • Professional nurseries; and • Business development services. Organic farming. Organic farming has a huge potential. To develop the subsector, it must benefit from exporters and processing facilities situated close to smallholders so as to ensure that technical issues are addressed and that produce that does not find an export market is sold to supermarkets and the tourist industry. To attract young entrepreneurs to engage in the export of organic horticultural produce, it is recommended that IFAD assist the Government and professional associations to prepare relevant investment prospectuses for potential exporters and processors of organic produce. 53
Annex 1 Economic development indicators Economic development indicators Year 2005 Agricultural land (% of land area) 3.54 Agriculture, value added (% of GDP) 14.92 Births attended by skilled health staff (% of total) 74.2 Exports of goods and services (% of GDP) 30.34 Fertility rate, total (births per woman) 3.1 GDP growth (annual %) 4.5 GNI per capita, Atlas method (current US$) 1 250 Gross capital formation (% of GDP) 17.98 Industry, value added (% of GDP) 36.07 Inflation, GDP deflator (annual %) 6.18 Life expectancy at birth, total (years) 70.53 Literacy rate, adult total (% of population aged 15 and above) 71.41 Population growth (annual %) 1.9 Poverty headcount ratio at national poverty line (% of population) .. Time required to start a business (days) 22 Source: World Bank. 54
Page 1 and 2: NEAR EAST AND NORTH AFRICA DIVISION
Page 3 and 4: Table of contents Currency equivale
Page 5 and 6: Currency equivalents Currency Unit
Page 7 and 8: Economic Impact of Smallholder Invo
Page 9 and 10: Introduction and study objective Th
Page 11 and 12: Background Country Economic Backgro
Page 13 and 14: Agricultural trade agreements Egypt
Page 15 and 16: Union of Producers and Exporters of
Page 17 and 18: The goal of the IFAD-funded West No
Page 19 and 20: strength; have access to better inf
Page 21 and 22: Traditional domestic value chain an
Page 23 and 24: • Controls against plant pests an
Page 25 and 26: Retailers. Retailers supply all the
Page 27 and 28: Input-Output Structure and Profit D
Page 29 and 30: Table 7 Price mark-ups, wholesale p
Page 31 and 32: Value chain analysis on export qual
Page 33 and 34: Table 12 Selected processed fruits
Page 35 and 36: 12 members of these associations -
Page 37 and 38: GlobalGAP. Because of the strict st
Page 39 and 40: for shipment. Less perishable produ
Page 41 and 42: Discussing the findings Comparison
Page 43 and 44: The single most important factor in
Page 45 and 46: Table 21 Comparison of cost mark-up
Page 47 and 48: on food, 25 per cent on basic servi
Page 49 and 50: Crops It is clear that the producti
Page 51: processors and exporters. This is s
Page 55: International Fund for Agricultural

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