Fertilizer Production And Marketing In Egypt ... - Abt Associates

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Figure 2: Distribution of Nitrogen Chemical Fertilizer, March, 2002 Imports Domestic Production 1% Exports 30% 50% 20% Private Distributers Wholesalers PBDAC Coops Private Retailers Farmers-Users 9
In February 2002, the GOE anticipated another fertilizer crisis similar to that of 1995, which led to this quick change in the policy. However, quick field investigations for prices paid by farmers for fertilizer in different locations were made during the third week of May 2002, the peak month for the demand for the nitrogenous fertilizer. The results of these investigations are presented in Table 5. Table 5: Prices Paid by Farmers for N. Fertilizer May 2002 LE/Ton Location Urea 46.5 % A. Nitrate 33.5 % Menoufia -Coop 525 (A.Q) 458 Menoufia - Ag. Coop 480 (Talkha) 510 Menoufia - Private (1) (A.Q.) 580 (A.Q.) 500 (Talkha) 560 (Talkha) 500 Menoufia - Private (2) 550 500 Menoufia - Private (3) (Talkha) 560 (A.Q.) 505 Menoufia – PBDAC(4) 467 Suez 467 Menoufia – PBDAC (4) (A.Q.) 516 Dakahlia – PBDAC (6) (A.Q.) 532 (A.Q.) 465 Dakahlia – PBDAC(6) (Talkha) 503 Dakahlia - Agr. Coop (A.Q.) 532 (A.Q.) 470 Tahrir –Private 550 510 Source: Data collected by the author. (1) Village Begiram, Quesna District (2) Menouf District (3) Quesna District (4) Quesna District (5) City of Shebin El-Kom (6) City of Mansoura The table indicates that the maximum retail price for urea is LE 580/ton in Menoufia governorate. If the ex-factory price of LE 450/ton is taken into consideration, then the three groups of traders that are involved in the distribution of chemical fertilizer (Distributors, wholesalers, and retailers) obtain a maximum of LE130/ton as marketing margin, which represents 28.9 %. Assuming that the margin is divided equally among the three groups of intermediaries, the marketing margin in total (29%) and per group (9.7 %) is modest by international standards and is not that big to warrant great precautions and quick changes in GOE policy. It is clear that the action taken by the GOE was not based on objective data and sound analysis of the fertilizer market. This quick change in the policy of the GOE will have adverse effects on the market for fertilizer in the following ways: • Great disturbance to the relative stability of the market that existed in the last few years. This will limit the response of private traders to market signals, which may vary from the intentions of the policy makers. 10
Page 1 and 2: MONITORING, VERIFICATION AND EVALUA
Page 3 and 4: LIST OF TABLES Table 1: Evolution o
Page 5 and 6: EXECUTIVE SUMMARY In 1998, the MVE
Page 7 and 8: • The design and implementation o
Page 9 and 10: to reduce its share of domestic pro
Page 11 and 12: 600,000 tons/year of urea. Abou Qir
Page 13 and 14: 2.2 Prices Ex-factory prices for th
Page 15: Figure 1: Distribution of Nitrogen
Page 19 and 20: Table 7: Changes in Farmer’s Opin
Page 21 and 22: Therefore, there are no collusive a
Page 23 and 24: duty to 0-10 percent and an anti-du
Page 25 and 26: Table 10: Domestic and World Prices
Page 27 and 28: 5. CONCLUSIONS AND RECOMMENDATIONS
Page 29 and 30: Table A-1 Cotton Growers' Preferenc
Page 31 and 32: Source: Morsy Aly Fawzy et al. The
Page 33: Availability + Lower Price + Higher

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