Harb El. Hasseen El-Bardisy*⁽¹⁾ and Mohamed Najy Bakr⁽¹⁾

(1). Agricultural Economics Dep, Faculty of Agriculture, Al-Azher University at Assiut, Assiut, Egypt.

(*Corresponding author: Dr. Harb El. Hasseen El-Bardisy. E-Mail: harb.ahmed@azhar.edu.eg).

Received: 17/10/2019                                Accepted: 06/11/2019

Abstract

The study aimed to analyze the value chain of fancy molasses production units by analyzing the business activities in the value chain, measuring job opportunities and identifying the main problems that affec the different actions in value chains of the production units in Egypt (the juicers). The study showed that there were idle capacities in the units of production estimated about 13 thousand tons annually during the period (2009/2010-2017/2018), which represented about 26% of the available production capacity, and there was an increase in the exports of fancy molasses or black honey during the study period at an annual rate did not prove statistically significant which estimated 0.25 tons. It was found that the most important stages of increasing chain value which need to focus on is the process of collecting reeds due to its high costs, which is estimated about 563 pounds/ton cane on average, and the estimated cost of producing per quintal (45 kg) of fancy molasses was about 210.50 pounds/quintal, which was considered the weighted selling price at which costs were equal to revenue.  The study showed that final markets for sugar cane honey were represented in three main markets i.e. wholesale markets which accounted 74.51% of the total domestic market, retail markets which accounted 15.92% and street vendors which accounted 6.9%. The average of profit of wholesalers is about 828 pounds/quintal, which is more than 3 times of the value of buying a quintal in a wholesale price (270 g/quintal), and retailers earned about 729 pounds/quintal, which is more than twice of the value of buying a quintal in retail price (360 g/quintal) and street vendors earned about 759 pounds/quintal, which represented 1.9 times the purchase price. It was found that one fancy molasses quintal produced from honey cane provides about 0.25 job opportunities, and the average of net profit of quintal is 81.40 pounds/quintal for the sugar cane production units. The average cost per quintal of the study sample is 210.5 pounds/quintal. The price of sugar cane honey is increasing with the product movements throughout the supply chain, starting from the unit sale to the surroundings for 261 pounds/ quintal, 270 pounds/quintal for wholesalers, 360 pounds/quintal for retailers and 382.5 pounds/quintal for street vendors. The product price represented a very low percentage of the consumer price, which estimated 24% for wholesalers, 32% for retailers and 34% for street vendors. The recommendations were to develop production processes, especially inputs for small units and to focus on activities that generate chain value-added, and finance through wholesale markets, also the State adoption of the problems of producers and work on them, particularly during the period of production and marketing of the product which are considered as income-generating activities for medium level families, besides providing food for low-income people.

Key words: Value chain, Fancy molasses, production units, Production and manufacturing activities, Economic and marketing performance.

Full Paper in Arabic: PDF