Economics of Vegetables and Fruits Production Oriented for Exports in Khartoum State

Abstract

The main purpose of the study is to analyze and study ways and means by which the amount of vegetable exports could be increased and the role of ABS in this respect. To achieve this purpose, the study used two types of data, the first one is based on interviewing vegetable producers who are engaged in vegetable exports financed by ABS in El Saliet Agricultural scheme – Eastern Nile locality – Khartoum State, season 2002/2003, and the second type of data is secondary data collected from various publications, including AOAD, ABS and others. However, budget analysis, descriptive statistics, regression analysis, Cobb-Douglas productions function in logarithmic form were used for analysis. The analysis showed the constraints facing the production of vegetable for exports, which are summarized in production costs , which revealed that, the cost of material inputs represent the highest share relative to the total cost of production for both crops (melon and green bean). Packing materials and air transport represent the highest costs of marketing. The loans given by ABS to vegetable production were very small compared to actual farmer need (cost of production and marketing),and also poor market information abroad. The budget analysis showed that the export of vegetables was more profitable to producers. Regression analysis using Cobb-Douglas production function that considers the factors affecting the quantity of vegetable exports ( during 20 years (1982-2001) , indicates that, total production, the quantity of local consumption, and the export price (FOB price) were significant factors in explaining the variation of quantities of vegetable exports . And also the result, revealed that credit or ABS services to vegetable producers was the insignificant factor in explaining the variation of quantity exported. Finally, the study recommended that:- - The ABS should give more efforts to provide enough amounts of credit to vegetable producers for covering agricultural inputs, cultural practices, and other services needed in reasonable quantities at proper time for production of exported vegetables. - The government should reduce taxes on the horticultural products and minimize customs regulation. - To find suitable ways for reducing cost of air transport and study of possibility of employing sea transport. - To develop means of information about markets abroad and making it available for producers and exporters.