Economic Impacts of Quality Systems Implemented in Egypt on the Development of the Agricultural Export Sector

Document Type : Original Article

Authors

1 Department of Agricultural Economics, Faculty of Agriculture, Assiut, Al-Azhar University, Egypt.

2 Department of Agricultural Economics, Faculty of Agriculture, Beni-Suef University, 62521, Egypt.

Abstract

This research aims to study the economic impacts of quality systems implemented in Egypt on the development of agricultural exports. It investigates the effect of applying quality systems on production activities through a field study sample. The study also estimates the relative importance of sources for obtaining Egyptian fruits and vegetables in the sample to identify the most significant quality standards and the institutions responsible for implementing them in Egypt. Additionally, it examines the impact of quality system application on production costs and profits, as well as identifying the main challenges faced by exporters and the required quality specifications. One of the key findings of the research is that about 90% of the sample agreed that applying quality standards to both production and export processes leads to an increase in costs. However, they affirmed that this increase occurs only in the initial stages and is later offset by increased profits due to reduced losses and higher production. The results also indicated that the most important export markets in the 2023 sample are the European Union and the United States of America. These are the preferred markets for companies that have obtained quality certifications, with around 16 companies exporting to these markets, representing about 59% of the sample. Furthermore, the results showed that the main crops exported to EU markets—especially the United Kingdom, Germany, the Netherlands, Finland, Italy, France, Spain, and Greece—are potatoes, strawberries, and green beans. Arab countries ranked second in terms of export preference, with around eight companies preferring to export to these markets, representing approximately 30% of the sample.

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