MAIN ECONOMIC INDECATORS FOR PRODUCTION AND MARKETING OF LIQUID MILK IN FAYOUM GOVERNORATE

Document Type : Research articles.

Authors

Agricultural Economic, Faculty of Agriculture, Fayoum University.

Abstract

The agricultural sector is an important economic sector that is considered
a source of income for nearly half of the population in Egypt as it contributed
about 13.4% of the total gross domestic product as an average of the period
2000-2006. The animal production is a fundamental part of the agricultural
production beside the plant production. The value of the animal production was

about L.E. 34.1 billion, representing approximately 34.65% of the total value of
the agricultural production as an average of the period 2000-2006. The value of
the dairy production belongs to the fact that it represents a big portion of the
animal production, where the real gross domestic product of the dairy products
was about L.E. 8.06 billion which represents approximately 23.5% of the value
of the animal production as an average of the period 2000-2006. The problem
of the study is the gap between the local production of dairy production and the
total consumption due to the increasing demand. The gap was estimated as 1.3
million tons. The gap resulted a decrease in the average per capita.
The study aims, mainly, at identify the economics of production and
marketing of dairy products in Fayoum Governorate. investigate the production
efficiency of dairy production in Fayoum governorate, and identify the main
problems and constraints facing the dairy farmers in Fayoum Governorate.
The study illustrates the following results:
1- The calculations indicate that the average production of milk per head from
the three categories is 1836, 1868, and 1900 kg, respectively. As for the
total cost of the head of milking buffalos within the three categories; the
costs were estimated at about 3780, 3550, and 3350 L.E, respectively. As
for the total income; it has been estimated at about 5200, 5200, and 5500
L.E, respectively. The net revenues/costs ratio for the three categories were
estimated as 0,379, 0,465, and 0,641, respectively. As for the cost per
production unit; it has been estimated for the three categories as 2.06, 1.9,
and 1.76 L.E, respectively.
It, also, been found that the milk production of milking cows from the three
categories were about 1400, 1490, and 1550 kg, respectively. As for the
total cost of the head of milking cows within the three categories; the costs
were estimated at about 3460.3130, 3000 L.E, respectively. As for the total
income; it has been estimated at about 4560, 4430, and 4700 L.E, The net
revenues/costs ratio for the three categories were estimated as 0,318, 0,415,
and 0,567, respectively. As for the cost per production unit; it has been
estimated for the three categories as 2.47, 2.1, and 1.94 L.E, respectively
2- The marketing channels of raw milk of both buffalos and cows and the
structure of the distribution system within the three categories. The results
showed that nearly about 5% of the production is used for feeding calves,
about 75% is sold as liquid milk for both wholesalers and retailers and
factories. The remaining amount of the production is self-processed at
homes. The self-processed products might be sold to consumers or selfconsumed. The marketing efficiency of raw buffalos’ milk were estimated
as 89.1%, 88.3%, and 88.2% for the three categories, respectively. As for
cows’ raw milk marketing efficiency, it was estimated as 90.8%, 89.3%,
and 88.6% for the three categories, respectively.
3- The most important problems facing dairy producers. It has been shown that
the most important problems were; the high prices of dry and green fodders,
the lack of fodders around the year, the livestock disease infections, and the
slaughtering of small females. As for the marketing problems; the study
showed that the most important problems of marketing are; the lack of

collection centers, monopoly of raw milk purchasing, and the lack of
adequate markets.