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Abstract Summary and Conclusions The study includes six parts. The first part handled economic significance of onion, problem & objective of the study, research methodology and sources of data. The second part covered references review of previous related studies conducted on onion production & marketing. The third part includes two chapters. The first chapter tackled evolution of area of the three plantings of onion, production worthiness per feddan and evolution of total production. The second chapter handled factors affecting production of onion namely, price, value of production, net return f., cost of production and eventually problems and proposed solutions. The fourth part includes two chapters. The first chapter covered domestic and foreign marketing of onion. The second chapter tackled domestic consumption of onion and factors affecting it. The fifth part handled a field study on economical aspects of onion production & marketing in Sohag governorate. The sixth part concentrated on economics of production & marketing of dehydrated onions. Eventually, the study was concluded by major results reached. , - In the next part, more light will be thrown on details of each part of this study. The first part of this study was concerned about economic signifcance of onion crop stating that total production in 1995 amounted to 998 thousand tons, valued at L.E. 98.5 millions and onion exports valued at L.E. 78 m. Therefore, onion is ranked the third after cotton and rice in terms of agricultural exports. The second part covered references review for major researches & studies conducted on production & marketing of onions . Outcomes of this study are in cosistence with results of previous studies. The third part elaborated on economies of fresh oruon production & marketing in A.R.E. in two chapters. The first chapter focused on evolution of onion area, production, productivity (1980 - 1996 ). The area has been fluctuant reaching its peak 176 thousand f in 1988 and its bottom 137 thousand f. in 1991. It was found out that annual increase was estimated by 2.198 thousand f. equal 0.68% over the annual average 141 thousand f. without statistical significance. Reviewing general trend of productivity showed annual increase estimated at 4.867 ton/f in 1980 and 7.106 ton/f. in 1994. Increase in yield/f. was 0.123 ton/f equal 2.2 %over annual average 6.144 ton/f. - 183 - Reviewing general trend of total production showed fluctuation trened too. It was at the peak of 1072 thousand tons in 1988 and at the bottom 654 thousand tons in 1981 or an annual increase of 269 thousand tons with 3.20/0increase over the annual average ( 840.1 thousand tons and statistical significance ). The second chapter tackled factors affecting production of onion. The main factor was defined as price which showed to be increasing steadily. In 1980 price was L.E. 42.65 per ton rose to L.E. 291 in 1994 achieving 572% increase over the base year. Net return/f. increased form L.E. 65.80/ton in 1980 to L.E. 558.90/ ton in 1994 achieving 237% over the base year. Net return/f. of onion is higher than that of substituent crops as wheat, broad beans, fenugreek and lentil. Therefore, expansion in onion area is recommended. Value of onion production has been increasing steadily as it was L.E. 36m. for onion, L.E. 13 m. for fenugreek and L.E. 16 m. for lentil. Cost of production also took upward trend as it rose from L.E. 280.69/f. in 1980 to L.E. 1438.50/f. in 1994 with annual increase of 13%. Comparative importance of cost items were: wage, seeds, chemical fertilizers, machinery rent, land rent, miscelaneous, pesticides, manure and draft animal rent. This chapter also included estimation of production function as decision coefficient was 0.877 meaning that 88% of changes in production is due to changes in values of inputs of production. Decision coefficient of winter onion was 0.491 meaning that 49% changes in cultivated area is due to changes in farm - 184 - price of previous year. This chapter also handled problems of fresh onion production. Major problems were white rot disease, poor soil fertility, low farm price and high cost of production. The fourth part covered domestic and foreign marketing of onion through a number of chapters. Chapter one covered channels of marketing including field, road and wholesale marketring. This chapter also covered marketing steps such as sorting, grading, packing and transportation. It also referred to major marketing problems on domestic level and interntional level as well. Domestic marketing problems are low farm price, unfair sorting, high waste of production and bad storage conditions. Solutions of those problems are development of extension & transport services and setting floor price to protect growers. This chapter also tackled evolution of foreign trade indicating that our exports to Europe reached 4.973 thousand tons, valued at L.E. 1.52 and rose to 12.335 thousand tons valued at L.E. 9.12 ID. in 1994. Onion exports to Arab market amounted to 1.455 thousand tons ( L.E. 1.8 m. ) representing 10% of total exports of that year. The second chapter of this part concentrated on domestic consumption, At domestic level, annual rate of increase in consumption is 21 thousand ton or 2.2% annually with statistical significance of 0.01. Major factor affecting pattern of consumption are population which is correlated significantly with onion consumption indicating that 96% of changes in expenditure on onion consumption is attributed to growth rate of population. Per capita income is significantly correlated with onion consumption indicating that 88% of changes in expenditure on onion is due to increase of per - 185 - capita income. Relation between price of onion and consumption I showed that decision coefficient is abut 0.021 meaning that there is no significant correlation between price & consumption of onion. The fifth part of this study covered the field study conducted in Sohag. The study indicated that total area of onion in Sohag represents 27% of total holdings of the examined sample. Variance analysis of relationship between total holdings and onion area in vallage of Sohag was no relation that meaning farm size does not affect acreage of onion. The price of onion per ton was between L.E. 290 minimum and L.E. 295 maximum. Return per f. of onion was estimated at L.E. 2357 and return of each L.E. was estimated on average at L.E. 2.05 reaching its peak L.E. 2.50 in Elshekh Massoud and its bottom L.E. 1.08 in AI Tolayhat. Education level of fanner and family labour were found of no relationship on production of onion. Relationship between size of holding and productivity was not significance and no correlation was proved to be existing. Likewise, relationship between average cost of production per feddan and different size of farms was not significant, meaning that farm size has no effect on cost of production. Comparative importance of items of cost of production were ranked orderly as follows: Wage 20%, seed 190.4, chemical fertilizer 17%, machinery rent 11%, land rent 9O.t’o, miscellaneous 4%, pesticides 2%, -------- _..._--- - 186 - manure 1% and draft animals 0.01% of total cost in the governorate. In this part of the study onion production functions in Sohag governorate were estimated and decision coefficient was not significant and reached 0.27 meaning that 27% of total changes in production were attributed to changes in inputs of production. Production elasticity was lack indicating absence of elasticity, meaning that farmer takes production decision prior knowing quantity and price of production. Cost of production functions of onion in Sohag revealed that decision coefficient reached 0.84 meaning that 84% of changes in total production is attributed to changes in costs. Elasticity of cost in the examined sample was 0.57 meaning that the commodity lacks elasticity as farmer grows onion under the influence of pattern of production regardless cost of production. problems of onion production in Sohag have been identified as follows: Low farm price, poor soil fertility, changes in irrigation system, infestation of diseases & pests, high cost of production in general, scarcity of labour, poor credit system, lack of fertilizers and poor extension service. Major marketing problems have been identified as follows: unstability of price and cost of transportation, lack of specialized stores, lack of institutions which protect the interests of growers and lack of marketing information. - 187 - Solutions of those problems are suitable land for culttivation and selected seeds, cearing about fertilizing, pesticides according to the world rations, reducing of production cost. The six part covered economics of production and marketing of dehydated onion in A.R.E. Problems & Constraints facing onion dehyration processing were that shortage of onion supply all the year round and capacity of operation was confined to 4 months a year. Also, quality of dehydrated onion was not attained because processing plants rely on low quality onions. Consumption pattern in Egypt is not encouraging dehydrated onion. That is why most of dehydrated onion produced is directed to foreign markets. The second chapter of part six dealt with foreign trade of onion indicating that our exports are increasing steadily. In 1980 exports of onion reached 5.974 thousand tons valued at L.E. 6.094 m. increased to 7.151 thousand tons valued at L.E. 40.792 or annual increase of 1.2%. Major constraints of dehydrated onion exports were: a) early announcement of export floor price which enabled competing countries to take more advantages for getting more access to world market. b) Domestic market was unable to accomodate surples of dehydrated onions forcing Egyptian exporter to accept the lowest boder price. c) Lack ofmarlcting ------ ----------- ------ ---------------------- data information needed for formulation of efficient agricultural policies. The study recommend to: a ) pay more attention to packing, labelling process. b ) Eliminate middlemen to minimize cost of marketing to raise efficiency of Egyption dehydrated onion in the face of world competition. c ) Specify one organization whose mandate is to handle control and procedural aspects of onion exports. d ) Establish new dehydration factories relying on fresh onion imported for being dehydrated and re - exported again. - ----------- ----~ |