prepared by: professor dr. mamdouh nasr previous vice...
TRANSCRIPT
BASIC ECONOMIC CHARACTERISTICS:
AGRICULTURAL SYSTEMS
Prepared by:
Professor Dr. Mamdouh Nasr
Previous Vice-Dean for Graduate Studies & Research
GDP (General Domestic Producer)
PPP (Purchasing Power Parity)
CPI (Consumer Price Index)
$405.4 billion (2007 est.)GDP (PPP)
7.1% (2007 est.)GDP growth
$5,000 (PPP) (2007 est.)GDP per capita
Agriculture (13.8%), Industry (38.1%),
Services (48%) (2007 est.)
GDP by sector
9.5% (2007 est.)Inflation (CPI)
22.1 million (2007 est.)Labour force
Agriculture (32%), Industry (17%), Services
(51%) (2001 est.)
Labour force by occupation
9.1% (2007 est.)Unemployment
Textiles, Food Processing, Tourism,
Chemicals, Pharmaceuticals, Hydrocarbons,
Construction, Cement, Metals, Light
Manufactures
Main industries
$24.45 billion (2007 est.)Exports
Crude Oil and Petroleum Products,
Cotton, Textiles, Metal Products,
Chemicals
Export goods
United States 10%, Italy 9.7%, Spain
7.8%, Saudi Arabia 5%, United
Kingdom 4.3% (2007)
Main export partners
$44.95 billion (2007 est.)Imports
Machinery and Equipment, Foodstuffs,
Chemicals, Wood Products, Fuels
Import goods
United States 11.7%, China 9.7%, Italy
6.5%, Germany 6.4%, Saudi Arabia
4.8% (2007)
Main import partners
SUBSISTENCE AGRICULTURE:
food production primary for farm family consumption
Example: slash and burn
http://upload.wikimedia.org/wikipedia/commons/6/6b/Bakweri_cocoyam_farmer_from_Cameroon.jpg
http://en.wikipedia.org/wiki/Subsistence_farming
ISSUES FOR SUBSISTENCE
AGRICULTURE: Population growth
Forest fallow bush fallow short fallow annual
multi-cropping
Intensification may not be sustainable. (Site dependent)
New farming methods require cash.
more inputs: fertilizer, manure, new tools, more labor
intensive
new seeds and new crops
Needs to have enough income to fertilize, buy
equipment, buy seed.
International trade pressure:
conversion of food crops to cash crops for more profit…
drug crops (can be involuntary)
INTENSIVE SUBSISTENCE AGRICULTURE:
Examples: wet rice cultivation, dry farming
maximize yield per acre, minimize
unused land, some double cropping
low machinery inputs, high animal and
human inputs
dry farming crop rotation
CHARACTERISTICS OF TRADITIONAL
AGRICULTURE
Intermixing of farm and family decisions
Why?
Implications?
CHARACTERISTICS OF TRADITIONAL
AGRICULTURE
Low productivity but high efficiency
“poor but efficient”. Why? Implications?
CHARACTERISTICS OF TRADITIONAL
AGRICULTURE
Rational but risk adverse (conservative)
Joint & extended families, intercropping
ROLES OF LIVESTOCK IN TRADITIONAL
AGRICULTURE
Buffers and extenders (meat, milk, eggs)
Fertilizer
Fuel
Hides and hair
Power
Transport
Social and cultural
Capital (savings bank)
COMMERCIAL AGRICULTURE:
food production primarily for sale off the farm
Can Start as subsistence farming, excess sold
Can transition to pure commercial agriculture
http://www.internationalspecialreports.com/theamericas/00/bahamas/17-2.gifhttp://www.georgetowncranberry.com/images/skipper.jpg
ISSUES FOR COMMERCIAL
FARMERS: Access to market: Von Thunen model (ring and transport)
Land rent and distance driven… too far no profit, lose $
Overproduction
encourage growth of crops with global demand
price subsidies
buy surplus yield, often donate to foreign governments
Unsustainable agriculture
move to more sustainable practices
sensitive land management
Ridge contour tillage
limited use of chemicals
(organic farming)
AGRIBUSINESS
integration of commercial agriculture into food processing,
usually by corporationsImage: http://www.agribusiness-
mgmt.wsu.edu/Templates/index_images/Landscape-Green_r2_c24_.jpg
Source: http://www.agribusiness-mgmt.wsu.edu/
HOW DO YOU FIGURE OUT WHAT TO GROW WHERE?
Von Thunen Model: Important
Influences:
Market Price
Distance
Transportation Cost
Perishability, (actually covered under transportation cost)
Likely on the quiz, test, and final exam.
WHERE DOES OUR FOOD COME FROM?
Croplands (mostly grain) – provide 77%
of the world’s food
Rangelands (meat) supply 16%
Oceanic fisheries (fish and shellfish) –
7%
MAJOR TYPES OF AGRICULTURE
Industrialized agriculture• Large amounts of fossil fuel, water, fertilizer, and
pesticides to produce monoculture crops or livestock
animals
Plantation• Form of industrialized agriculture – single ownership
Traditional subsistence agriculture
Produce only enough for the family
Traditional intensive agriculture
Increase outputs for profit
ECONOMICS OF AGRICULTURAL DEVELOPMENT:
TRANSITION PROCESS
320RK
22
Subsistence farming
Diversified or
mixed farming
Specialized, modern
commercial farming