An Economic Study To Market Some Crops Of New Lands:

The study’S main objectives were assessment of the new land producers marketiug efficiency , and attempting in response to SUggest means of efficiency improvement. Marketing problems and middlemen exploitation of small producers were recognized as maindiscouraging factors for develOpmentand expansion of agribusiness in new lands. That is bearing in mind that expansion and promotion of agricultural activities in new lands are the most promising means of agricultural production development in Egypt, Accordingly, the first chapters of the dissertation were devoted to investigation of the agricultural production in Bostan area of west Nubari a , as the most important representative region of newly reclaimed regions in Egypt. A stratified random sample of 120 unitswas selected for the study such as to represent the three major, tYPOs, i.e. beneficieries , graduates and investors. Another samPle of middlemen in Alexandria markets of a size of fifty was selected for matter of verification . The study confirmed results obtained by previous studies r li . , evea mg the low production efficienev nfI1’tI’rtV charactenzmg small d ’J r·vr···/ pro ucers of new land . and graduates. Limit d s, especially beneficiaries e resources beside the main causes of 1 . graduates inexperience were ow efficiency 0 h . productivity based on cron vi . n t e other hand, level of 80% of op yields was sho o old land standards. wn to fall in range of 60 • The study investigated next marketing conditions. Marketing channels and operations were investigated for each of many selectedcrops. The wholesellers of the closest markets, especially EI-Hadara atAlexandria, and their representatives featured the main marketing dealers in west Nubaria . For most crops, selling on farm site to wholesellers or their representatives was the most common adopted method. and even prefered under the prevailing conditions . About42% of the studied sample of producers undertook some marketing operations on their products, mounting up to almost 60% of the investors sample in specefic. However, most of them admitted low marketing performance, mostly explained by the middlemenoligopolistirc act, beside poor marketing experience, nonexistence ofbasic marketing infrastructure, and limited capital resources. Thosefactors were most responsible for producers marketing sufferings, andwere major hindering factors of efficient performance of any marketingoperation undertaken by producers. In verification, the study tended to assess the ecconomic validity of producers participation in marketing activities. The main purpose was to investigate possibilities of returns improvement for producers through performing certain marketing functions. As a preliminary discouraging finding, the prices of products sold after being sabject to marketing operations by producers exceeded prices of crops on harvest (no marketing operations) by no more than 160/0 with exception of few cases of investors with strong financialresources and full time devoted to farming and marketing. Once again, oligopsony was the most important cause of kept-low prices. Despite the previous indications of producers’ marketing incomptence, the study proceeded with assessment of producersmarketing efficiency using criteria of economic efficiency evaluation such as benefit- cost ratios. First, the producer’s marketing activites were hypothetieally seperated from his production activity. Secondly, the actual mixed production-marketing activity was assessed. The first dimension revealed all marketing activities of producers with regative outcomes , i.e, costs greater than revenues. The exceptional case was sorting and grading of pears. Losses ranged between 5-26% of total costs. The greatest losses occured whenproducers performed sorting, grading and packing to either apples orcucumbers produces. The situation was somewhat less frustrative when assessing the actual mixed activity compared to mere production. This where the benefit cost ratio for apricots production, grading and storage reached2.0 vs. about 1.6 for production only . Likewise, the benefit - cost ratiofor production of citrus increased from about 1.2 to almost 1.7 whenadding activities of grading, packing and transportation. Part of theimprovement was due to dividing revenues by marketing costs addedto production costs, and not to farmgate prices- which are logicullyhigher - as was applied in the hypothetical case. However, producers gains due to attempting marketing operations seem less than encouraging under the prevailing conditions. This result does not apply, as previously indicated, to few investors who wereable to fulfill nearly 80% rise in prices when undertaking some marketing activities, especially grading - sorting , packing and transportation . This case of successful marketing attempts is mostly due to those investors’ capital resources, and full-time devotion spanng them from middlemen manipulation , beside enjoyingadvantages of mass production. The study ended by suggestions for permitting stronger chances for new land producers marketing success mostly relying on cosolidation of efforts and resources in a certain pattern of producers cooperation which might extend to some product processing activities. Such ideas were inspired by the conditions and characteristics of the referad to investors successful in marketing performance. Locallycooperative product autlets repersent an effective solution. Transport facilities and equipped warehouses commonly owned and operated by producers should help in marketing costs reduction and efficiency improvement . Small food precessing units would mostlikely overcome high production losses and price DROP. Since the government is still interested in encouraging new land producers it should provide, at least temporarely, a system of comprehensive marketing information flow to producers, as well as training programs for marketing operations including food processing.Providing small producers with loans at low interest rates would beeffective if considered by the government or the Social Fund forDevelopment. Finally, it should be reconfirmed that ensuring high degrees of success in new lands agricultural exploitation require efforts beyondproducers capacities. Since most of the producers are either unexperienced , of limited resources or both, governmental support mustreach them. In time resources may flourish and develop, andexpenence is gained . And only then, the government can safelywithdraw.