An Economic Study of the Dairy Sector in Fayoum: Investment Efficiency Assessment and Improvement Strategies

Document Type : Research articles.

Authors

Agricultural Economics Department, Faculty of Agriculture, Fayoum University, Fayoum 63514, Egypt

Abstract

This research aims to evaluate the investment efficiency in dairy production in Fayoum Governorate. The dairy sector faces a shortfall in local production to meet the rising demand, resulting in a gap of 552000 tons in 2022. The study employs economic and statistical analyses to identify the factors influencing dairy production and to assess the efficiency of both commercial and traditional dairy farms. Findings indicate that the return on investment in commercial farms is significantly higher than in traditional farms, with a cost-to-revenue ratio of 2.46 in commercial farms compared to 1.03 in traditional farms. The analysis highlights several key factors, including feed, number of lactating heads, and lactation period, which directly impact dairy production efficiency. The study recommends establishing milk collection centers to reduce middlemen’s control over prices and improve product quality.

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