The effect of cost of production chnges on the economics of some cereal crops in egypt

   Shawkey C. Abd El aziz¹          Afaf M. Abd El Moneim²   Mahmoud M. Mohamed³

^{1, 3} Senior Researcher, Agricultural Economic Research Institute, A.R.C., Egypt.

²Lecture, Economic Department, Faculty of Agriculture, Damanhour Branch     Alexandria University, Egypt.  

³Researcher, Agricultural Eonomic Research Institute, A.R.C Egypt.

"Summary"

Prices of agricultural inputs , farm labor cost. Cost, of agricultural machines, and all other items of crop cost of production are increasing year after year in the recent are also increased, but whit lower rate. The profitability of crops, and their comparative advantages changed, so both two measures should be investigated to be well known by policy makers, planners, researchers,and farmers. Especially for cereal crops, the most important ones in theEgyptian cropping pattern.

The study used the available secondary data form the economic affairs , and applied both descriptive and quantitative approaches, besides measuring DRC'S  to achieve its objectives. Wheal , rice , and corn were the crops under investigation.

The results showed that between 1990 and 2006, the cost of production of wheat , rice, and corn were ncreased yearly by L.E 98.9, 100.7, and 88.9 respectivety.

The jarm labor cost of wheal increased from L.E 272 in 1990 , to L.E 738 in 2006 or increased by L.E 466 representing 171% jram its cast in 1990. In the same direction , jarm labo, cost of rice in creased from about L.E 321 in 1990, to L.E975 in 2006,its in crease rejreseulel aboul 204% from 1990 Cost.

The labor cost of corn was also in creased from L.E304 to L.E 782 duning the same jeriod, and its in creuse represented 157% from 1990 labor cost the input cast ( seeds, jertilizers, and pesticides) was also in creased, but most yon seeds and jestilizers.

The farm- gate prices of wbwal, rice and carn were inceasedm at about 54%, 0.5% , and 5% respectivcy the profitabililies of those crops were changed due to the changes on costs and retuins. It was also indicated that, Egypt still have comparortive abvantages those crops, but their domestic resomce cost were changed, fer wheal it increased from 0.34 to 0.63 in the same time peroiod (C.A decreased) for rice and corn it reached 0.74 and 0.59 reipectively.

The main conclusion of the stady is that changes of cost of production will of fect crop profitabilily for garmers, and comparative adautage for so ciely and it is recommended to keep eye on that for all importaut crops.