Analytical Study of Potato Value Chain in Menoufia Governorate

By analyzing the production outputs of potato per feddans in Menoufia Governorate, it is found that the loss between 5%: 10%. The value of family consumption and gifts is estimated at 2%. Accordingly, the quantity sold per feddan during the two agricultural seasons is estimated about 14.7 and 11.3 tons / feddan. By analyzing the marketing chain of the crop, it is evident that there are 3 effective parties to deal with, and it has also been found that there are no systems in place to connect farmers to markets. Reviewing the value chain, it becomes clear that the chain is divided into a group of production and service processes, as it begins with pre-production processes, which are represented in providing production requirements for the crop. The groups responsible for this stage are seed suppliers, distributors of fertilizers and pesticides, and agricultural associations. Pre-production operations follow the production process and the main actor in it is the farmer. The sample farmers explained that the final production is distributed between the sorting and storage stations and is dealt with in the case of storage to take advantage of the price difference at the end of the summer season, or storage as seed for the winter season represents 10% of the production. As for suppliers (intermediaries), their role is limited to contracting with the farmer on the price, whether before planting or before harvest, and selling to factories or central markets.
While some farmers deal with factories directly as a result of contracting some varieties such as Hormuz, Santana, Cruz. The managers of the studied factories explained that about 10% of processed potatoes come from Menoufia Governorate, and the percentage of processed potatoes in the local market is about 50%: 60%, while exports of the product represent about 40%: 50% and exports are concentrated in African markets and some Arabic countries. The farmers explained that they are dealing with wholesalers for providing seeds and fertilizers on credit. The wholesalers also indicated that in the case of purchasing from the central market, it is preferable to buy in practice, for a commission of 7% for the auction system. On the other hand, the absence of a link between the retailer and the farmer directly, as about 90% of the sample farmers explained the difficulty of selling potatoes to retailers directly, due to the large volume of production.
By studying the added value of potatoes, it was found that it provides job opportunities throughout the production and marketing chain of the summer and winter potato crop, estimated about 4.95, 5.85 workers / ton, which is attributed to pay attention to this crop due to its high employment rates. By studying the added monetary value of the produced, it becomes clear that the profits of the intermediaries exceed the profits of the producers, and accordingly, activating the role of contract farming contributes to raising the level of farmers' income and ensuring fair profitability for the farmer, according to binding contracts for all parties.
 By conducting a SOWT analysis of the value chain of potatoes in Menoufia Governorate, it becomes clear that the strengths are the rapid turnover of capital, the availability of expertise in agriculture and the creation of job opportunities, and that the potato crop is a strategic and national crop. Whereas, the weaknesses are the high prices of production inputs, the high rates of production and marketing risks, the problem of housing fragmentation, the absence of links to producers, and the high rates of waste and spoilage.
Threats come as one of the external factors affecting the product and are represented by the weak extension and cooperative role, the increase in the number of middlemen, the weak infrastructure efficiency, the circulation of adulterated seeds, pesticides and fertilizers, the absence of binding contracts between farmers and intermediaries, the monopoly of importers of potato seeds. The available opportunities are considered the most important supporter of the crop, so the activation of the role of national institutions represented in cooperative societies and contractual crops is considered the most important variables affecting the yield, followed by the effect of each of the possibility of establishing collection centers for agricultural crops, expansion in agricultural industrialization, the state's adoption of the introduction of local varieties, the state's direction to develop systems Irrigation and drainage. This is what the state aims through the plans and projects included in the 2030 Strategy.
Based on the analysis of the value chain of the potato crop according to the opinions of the sample respondents, the most important strategies used to promote the potato production and circulation chain in Menoufia Governorate were identified. The most important of which is the implementation of a growth and expansion strategy, followed by the development and improvement strategy. As for the stability and stability strategy, which aims to optimize the utilization of resources and reduce waste by confronting threats, according to some of the advantages available. The deflationary strategy comes in the event of a deteriorating situation by increasing levels of vulnerability and threats. This strategy depends on treating the problem of production requirements, which is primarily the problem of seeds.
Recommendations:
1. Correct handling of production gaps between agricultural seasons to control local prices and reduce the waste of agricultural resources.
2. Activating both the growth and expansion strategy, and the development and improvement strategy to promote the product.
3. Planning the volume of production to control domestic prices and reduce seed imports, as the local demand is estimated at about 2.6 million tons annually. This means adjusting the level of production in the range of 3.5: 4.5 million tons annually.
4. Directing the production of new lands to the external market and approving the production of old lands for the internal market to maintain price stability.