Improving Agricultural Market Performance:
Developing Agricultural Market Information Systems
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The cotton sector is of historical importance in Egypt. Prices have been fixed centrally since
2015, however production, productivity and land under cotton has fallen consistently in recent
years (UNIDO, undated). The mandate for setting prices has been given to the Alexandria Cotton
Export Association (ALCOTEXA). This approach, which negates the need for market information
systems, is fairly typical for the large strategic commodities in Egypt.Tomatoes are a very important crop in Egypt and there is a significant tomato processing sector
for paste. Egypt produces around 8 million tonnes of tomatoes on 200,000 hectares of land
making it the fifth largest tomato producer in the world. Several different production systems
are used in a range of geographies to ensure year-round supply. Studies point to very high
postharvest losses and suggest that poor market information is one cause (Issahaku, 2012).Reviewing the IFAD support to developing the tomato value chain, IFAD (undated) concluded
that “the availability of a well-designed pre-production market information [system – sic] for
planning purposes and indicative market prices at the selling point is critical in optimizing
income among the target group”. This is a particular reference the challenge of integrating
small-scale producers into value chains based on high standards and contracts. Within the
‘traditional’ tomato value chain much of the literature focuses on the absence of market
information and the power that this conveys to market agents like traders and middlemen
(IFAD, undated; and Kassem, 2015).Egypt is one of the world’s largest orange producers with 2.7 million metric tonnes in 2015.
Growing conditions are particularly favourable as well as advantageous harvest timing for
international markets. About 50% of this production is consumed domestically with the rest
exported fresh or as juice. Market information is by word of mouth and between the many
farmers and rather smaller number of traders and exporters. In common with some other fruit
and vegetable export sectors in Egypt, exporters claim that they have to buy all of the crops from
farmers but then sell a high proportion (say 30%) on domestic markets at a discount. This leads
them to set an average buying price that is below farmers expectations (GAIN, 2015 and
interviews).Herbs and spices are important crops in Egypt that are probably under-reported as many fall
into other vegetable categories. Egypt produces fennel, marjoram, basil, mint, chamomile,
thyme and geranium, largely for the export markets, but at least 20% is consumed domestically
(Sallam and Shelaby, 2011). No information was available from interview on either public or
private market information systems for these crops beyond the traditional relationships
between producers and buyers or agents of buyers. The sector has an association, the Egyptian
Spice and Herb Export Development Association, but this has no web page and does not provide
price information.
Egypt is a member of the Agricultural Marketing Information System (AMIS), which is discussed
in Chapter 3 (Subsection 3.4.1). Whilst Egypt is a full member, she faces the challenge of
consistent data supply which is a prerequisite for use of quite powerful forecasting tools (see
www.amis-outlook.org) available for the related stakeholders according to interviews
conducted with the FAO and the AMIS Secretariat during this study.