An Analytical Study of the Competitive Position of Frozen Egyptian Strawberry in the important Import Markets Using the Gravity Model

Document Type : Original Article

Authors

1 Assistant Lecturer, Department of Agricultural Economics, Faculty of Agriculture, Ain Shams University

2 Professor of Agricultural Economics, Department of Agricultural Economics, Faculty of Agriculture, Ain Shams University.

Abstract

The development of exports, particularly agricultural exports, is one of the primary strategies for increasing foreign currency, addressing the balance of payments deficit, and improving the Egyptian agricultural trade balance. Egyptian frozen strawberries are among the agricultural products that can contribute to increasing Egyptian exports, as they have recently experienced growing demand and significant global growth due to their quality and availability for extended periods throughout the year. This highlights the product's ability to compete in international markets. The research problem lies in the fact that, despite the noticeable growth in Egyptian frozen strawberry exports in recent years, they face multiple challenges in importing markets. These challenges include an increasing number of competitors, the development of competing countries' capabilities, and improvements in the quality of their products as well as marketing and distribution efficiency. This research aimed to analyze the competitive position of Egyptian frozen strawberries in the most significant importing markets. The findings, derived from the Revealed Comparative Advantage (RCA) index, indicate that frozen strawberry crops are significant products that compete fiercely in global markets. Additionally, the results of the market share index in key importing markets showed an increase during the period from 2018 to 2022, with market shares representing substantial percentages, particularly in the Saudi and Russian markets. The price competitiveness index for Egyptian frozen strawberries reveals that the export prices of these strawberries have a competitive price advantage compared to competing countries in the most important importing markets. The market penetration index indicates an increase in the penetration rates of Egyptian frozen strawberry exports in key importing markets, illustrating an increased capacity of these markets to absorb Egyptian frozen strawberries. Furthermore, the results of the gravity model analysis for the main importing countries of Egyptian frozen strawberries during the period from 2017 to 2022 indicate a direct relationship between the gross domestic product (GDP) of the importing countries, Egypt's GDP, the average per capita GDP of Egyptians, and the import prices of frozen strawberries from Egypt, as well as the quantity of Egyptian frozen strawberry exports. Conversely, there is an inverse relationship between distance and export volume, meaning that as distance increases, the quantity of exports decreases, and vice versa. This aligns with economic logic. It was also shown that price has the most significant impact on frozen strawberry exports across various models, followed by Egypt's GDP, then distance, and finally the GDP of the importing countries.

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