AN ECONOMIC STUDY OF SOME BROILER FARMS IN FAYOUM GOVERNORATE

Document Type : Research articles.

Authors

Department of Agricultural Economics - Faculty of Agriculture - Fayoum University

Abstract

The research aims to study the current situation of the poultry industry in Egypt and Fayoum Governorate, analyze the elements of production costs, and also determine the optimal production capacities for poultry production projects in Fayoum Governorate. The research depends on methods of descriptive and quantitative analysis has been the use of the multiple regression method in its quadratic form to estimate the cost functions of different capacities. The results of the research showed that the average total costs of the total sample amounted to about 22249 pounds per ton, and it was found that the best production capacities are the large capacity, as the average total costs per ton amounted to about 20,640 pounds, followed by the medium and then small capacities, with average total costs per ton estimated at 22,318 and 23,808 pounds. Respectively. The research estimated that the average total revenue of the total sample amounted to about 27,430 pounds per ton, and it was also found that the total revenue for the large capacity amounted to about 27,523 pounds per ton, which is the best production capacity in terms of the total revenue index per ton, followed by small and medium capacities, with average total costs estimated at 27,460, 27,236 pounds per ton, respectively. The research showed that the average net return for the total sample amounted to about 5181 pounds per ton, and it was also found that the average net return from a ton of white meat for the three production capacities amounted to about 3652, 4917, 6973, respectively, and therefore it is clear that the largest net return
Sayed Abd Eltwab et al., FJARD VOL. 35, NO. 3. PP.620-632(2021)
655 resulted from the large capacity, followed by the medium in In the end comes the small capacity to give the lowest yield per ton. As for the profitability of the invested pound for the total sample, it amounted to about 1.23 pounds, and it was also found that the profitability of the pound invested in the broiler farms with the three productive capacities amounted to about 1.15, 1.22, and 1.34 pounds, respectively, and therefore it is clear that the large capacity is the most economically efficient according to the profitability criterion of the invested pound, This is consistent with the economic logic in terms of benefiting from large production and the resulting savings in production capacity that characterize large-scale production, followed by medium and then small production capacities, respectively. By calculating the optimal size of production, it was found that it amounted to about 64.5, 267.3, 447.4 tons in the three capacities, respectively, and therefore it is necessary to produce about 28.78, 127.39, 248.17 thousand birds in the three capacities, respectively, in order to reach the optimum production, which gives the lowest production costs, and by calculating The economic volume of production in the four capacities was found to be about 139.6, 105.76, and 276.16 tons, respectively, meaning that about 62.6, 50.4, and 153.2 thousand birds must be produced in the three capacities, respectively, in order to obtain the greatest economic return. The research also showed that the actual production volume of the three capacities was smaller than the optimal size, and therefore it is necessary to raise the operational efficiency in the three capacities to reach the lowest costs and reach higher production efficiency. The research reached a number of important recommendations, which are: 1. Work to support producers and provide feed materials at low prices and good quality. 2. Providing approved and reliable vaccines at reasonable prices and providing methods for their transportation and storage to protect them from damage. 3. The work of cooperative gatherings between producers in one region in order to reduce the costs of the production elements used 4. The need for farmers to pay attention to insurance to reduce losses to poultry producers, especially in small farms.