Economic analysis of dairy production under the prevailing technological conditions in Fayoum Governorate

 Dairy and its products are considered  basic  food sources, which play an important  role  in  food  security  because they contain high levels of the main nutrients that the body needs in building it from proteins, fats, sugars, minerals and vitamins. It  is also an important source  of  animal  protein  on  which many food industries are based. The amount  of  dairy  production in Egypt is about 5675 tons, and  its value is estimated at about 297.94 billion pounds, representing about 23.8% of the value of animal production, as an average for the period (2008-2021), and the total amount of dairy production in Fayoum governorate was about 12869.7 Tons, with an estimated value of about 33.787 thousand pounds, as an average for the period (2010-2021). Despite the importance of milk, it was noted that there was a lack of use of modern technology in the field of production and a large reliance on traditional production methods. The study aimed to shed light on the current  situation  of  milk  production  and  consumption, and  to estimate the economic efficiency of milk under the prevailing technological  conditions  in  Fayoum  Governorate, the  standard estimate  of  the production and cost functions of dairy farms to determine  the  productive  and  economic efficiency in milk production in  Fayoum  Governorate. The  research  method  of  the study relied on the use of descriptive and quantitative statistical analysis methods in order to reach the objectives of the study.
   We  study  concluded  that  dairy production  in Egypt depends in Egypt in general and Fayoum Governorate in particular on cows and buffaloes. And  through  the  indicators  of  efficiency for milk production, the advantage of the first category of technological farms emerged, as  it  achieved  the  highest  return on the invested pound and the  highest  relative  profitability, compared  to  the  three  categories (lean cow category in the sample of traditional farms, the category of buffalo milk in the sample of traditional farms, the first category of technological farms).
   By examining the most important indicators of the economic efficiency of producing aton of milK for the first category of technological farms, it turns out that the total margin per ton of milk amounted  to  about 6456.5 pounds, while the average net return per ton of  milk is estimated at 5724 pounds, and with regard to the average return on  the  invested  pound, it is clear from the table It amounts to about  1.085 pounds, while the ratio of total variable costs to total revenue amounted to 41.3%, while the added value of a ton of milk annually amounts to about 6035.4 pounds. As for the most important indicators of the economic efficiency of the resources used in the production  of  a ton of  milk  for the second category of technology farms, it was found that the total margin per ton of milk amounted to about 5202.5 pounds, while the average net return per ton of milk was estimated  at 4497.9 pounds, and  with  regard to the average return on the invested pound It appears from the table that it amounts to about 0.817 pounds. While the ratio of the total variable costs to the total revenue amounted to 47.9%, while the added value of a ton of milk annually amounted to about 5095.4 pounds.