INVESTMENT EFFICIENCY EVALUATION FOR SPECIALIZED ANIMAL PRODUCTION FARMS (CASE STUDY: A MULTI-ACTIVITY FARM IN SHARKIA GOVERNORATE)

Document Type : Researches

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Dept. Agric. Econ., Fac. Agric., Zagazig Univ., Egypt.

Abstract

Livestock sector is considered one of the most important sectors with distinction and great and important development potential in building the national economy in general and the agricultural economy in particular. Although animal production is an important source of national income. livestock in Egypt faces several problems represented in the government removing its hand Supporting animal production and the resulting increase in the costs of providing feed and veterinary medicines and the control of the livestock market in Egypt is supply and demand. and this has resulted in a rise in meat and dairy prices, which constitutes an economic burden on the citizen. This study aimed to estimate the efficiency of investment in a multi-activity farm Sharqia Governorate In order to identify the efficiency of investment in economic resources in both milk production and fattening calves. by reviewing the costs and revenues of production capacities for each activity on the farm under study. estimating some investment efficiency criteria represented in (internal rate of return - ratio of benefits to costs - net present wealth for cash flows - capital recovery period) for each activity. in addition to analyzing the sensitivity of each activity and determining its critical levels. and the results indicated the economic feasibility of investment and high profitability in the milk production activity. and the activity of producing fatten calves. And by conducting a sensitivity analysis through several scenarios for the two activities it became clear that both activities were negatively affected.

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