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Title: Economic Impact of Exchange Rate on the Importation Requirements of Dairy Industry in Egypt
Authors: Hanan Mohamed Mahrous, Mohamed Sayed Ahmed
Journal: International Journal of Dairy Science
Publisher: Asian Network for Scientific Information
Country: Pakistan
Year: 2017
Volume: 12
Issue: 6
Language: English
DOI: 10.3923/ijds.2017.348.358
ABSTRACT
Background and Objective The exchange rate for the currency of any country is the most important factors affecting economic activity. The food manufacturing sector for dairy products depends on some of the imported production inputs, mainly milk powder, protein concentrates, emulsifiers, salts and gelatin. Focus on the devaluation the value, of the Egyptian pound against other currencies, especially the US dollar and its impact on the import of production requirements for the dairy industry. The study aims to measure the indicators of Egyptian imports and geographical distribution of the major exporting countries and the most important factors affecting these imports. Materials and Methods To achieve the descriptive and quantitative economic analysis of multi-linear regression and logarithmic by SPSS. Results The value of the Egyptian pound against the dollar has taken a decreasing trend and a statistical significance difference p0.01 of an annual decline of about 133.4 thousand tons,2.5 of the total average. New Zealand was ranked first among the leading exporters of milk powder to the Egyptian market, while the Netherlands ranked first for the major exporters of protein and emulsifiers for the market. As for the exporters of gelatin to the Egyptian market, Brazil is ranked first. The model used has a proved significant statistical difference at p0.01. The exchange rate of the pound and the producer price index are the most important factors influencing the quantity of Egyptian imports of powdered milk and protein concentrate. Conclusion Replacing local products instead of imports leads to increased production. This encourages factories to work, as well as, focus on localization for manufactories specially the protein concentrates used in the food industry.
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