ECONOMIC STUDY OF SPROUTED BARLEY CULTIVATION

Document Type : Researches

Authors

1 Dept. Admin., Legal and Environ. Econ. Sci., Inst. Environ. Stud., Arish Univ., Egypt.

2 Dept. care Fish and Fisheries. Fac. Aquacul. and Marine Fish., Arish Uni., Egypt.

3 Dept. Human and Econ. Develop., Fac. Fisheries, Suez Univ., Egypt.

4 Dept. Plant Prod., Fac. Environ. Agric. Sci., Arish Univ., Egypt.

Abstract

This research aims to conduct financial and economic analysis of the barley sprouting project in the Arab Republic of Egypt. The year –round production of green sprouted barley as a source of fresh green fodder has contributed to solving many issues related to food and water scarcity. The study relied on both discounted and non–discounted criteria used in the financial and economic evaluation of the barley sprouting project. The research led to several key findings, the most important of which is: 1. The selling price per unit produced exceeds the average total costs by EGP 196.74 per ton, which represents a 64.87% margin. 2. The payback period of the capital amounted to 2.95 years, and the return on investment rate was 33.84%. 3. The benefit-cost ratio is 1.42, and the present cash flow is 862.92 thousand LE at a discount rate of 10% therefore, the project is accepted. 4. Conducting sensitivity analysis on the project showed that the project is sensitive to an increase in costs on the one hand and a decrease in revenues on the other hand, and even more sensitive to an increase in both costs and a decrease in revenues together. 5. The added value of the project amounted to 239.09 thousand LE, and the general labor productivity coefficient is 0.52 LE for each unit (LE) of the invested capital in the project, The capital intensity coefficient was calculated, and it amounted to 1.92, with an employment coefficient of 0.26. 5. This study recommends focusing on the cultivation of barley varieties resistant to changing climates to eliminate the problem of drought and product and produce better quality, especially in the dry years. Additionally, barley should be fed to animals.

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