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Struggling with rising costs, production
Published in Bikya Masr on 08 - 10 - 2009

CAIRO: Egyptians continue to struggle with the rising costs of food and the situation is not getting any better, a recent study by the Social Contract Center of the Council of Ministers revealed this week. In the study, it said that there is a widening gap between food production and consumption of major crops in the country.
It is not going over well with Egyptians, who told Bikya Masr that these rising costs cannot be sustained. Ramy, a 24-year-old cafe worker in Cairo, says that his mother complains daily of the cost of food to feed his family of five, including him, his father and two sisters.
“She gets angry when she comes home from the store, telling us that only a few years ago things were much cheaper. I have started to buy a lot of the meat because they cannot afford it, but is important for us to eat,” he says.
He is right. According to the center's report, despite rising food consumption, production is not increasing, which means costs are getting more and more expensive. Consumption of lentils is up to 96 percent, vegetable oil 78 percent, beans by 45 percent, wheat 33 percent, corn by 35 percent, sugar some 20 percent, dairy products 19 percent and red meat by 17 percent.
The study revealed the low amount of seed produced from the ministry of agriculture. “It is not enough for the cultivation of all crop areas, in wheat, we find that seed production is not high enough and only enough for 65 percent of the country, corn 74 percent and beans 52 percent, rice 77 percent and soybeans 38 percent, indicating that the rise in seed prices in the domestic market makes part of the farmers use seeds with low productivity.”
The center called on agricultural policies that “must be focused in the coming period on the expansion in the production of high productive seed and resisting to disease.”
The study pointed out that global trade liberalization has led to linking the Egyptian market with world prices and with the poor efficiency of the domestic market and the existence of monopolies in the marketing of food commodities, the prices of domestic goods rose at a higher rate of than international prices, including higher potato prices by 55 percent, oranges at 80 percent, 70 percent for grapes and local dairy has risen 40 percent, eggs 50 percent and poultry meat saw a 75 percent rise in prices, red meat 32 percent and fish some 38 percent.
“It is tough for everyone and I have seen less people buying meat and fish in recent months. They tell me they can't afford it,” said a local butcher.
On the other hand, a number of experts expressed fears of a crisis because of the government's decision to liberalize fertilizer in 2010. Hamdy al-Sawalhi, a professor of agricultural economics and Secretary General of the Association of Agricultural Economics, denounced the government for abandoning its role in supporting the fertilizers, as the Egyptian farmer “is one of the most affected by fluctuations in the global market and Egypt should be on the top of priorities for countries to receive support.”
**reporting by Mohamed Abdel Salam
BM


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