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284248

Economic Feasibility of Chicken Broiler Industry in Qena Governorate

Article

Last updated: 28 Dec 2024

Subjects

-

Tags

Agricultural Economics and social sciences.

Abstract

The Chicken Broiler Industry faces several crises in Egypt, that causes increasing in price of production inputs, and therefore reluctance to invest in the broiler sector in Qena. Qena is very important in Upper Egypt because of its area, and the state's orientation to develop the Chicken Broiler production sector in Qena. The study is interested in discovering the current status of chicken broiler farms in Qena and the economic feasibility in three production capacities. It uses free cash flows FCFF, and some indicators such as: Simple and Discount Pay Back Period, Profitability Index PI, Internal Rate of Return IRR, Modified Internal Rate of Return MIRR, sensitivity analysis, Break Even Analysis BEP and using Weighted Average Cost of Capital WACC which is the Discount Rate. Results discovered significant increase, during (2000-2019), in number of Broiler Farms, total dormitories, working dormitories, full, actual and deactivated production capacity. Net Present Value showed feasibility of 3 capacities, but comparing profit margin with WACC, proved only the third capacity is feasible, because of purchase on credit of production inputs in Qena. Break Even Point BEP was 30%, 23%, 15% for first, second and third that explains the third capacity is the most flexible, and the most sensitivity is first capacities. The study shows Sensitivity Analysis in two conditions, costs increasing by 10%, and revenues Decreasing (selling price of chickens) by 10%, for feasibility indicators and BEP.

DOI

10.21608/jsasj.2022.284248

Keywords

Feasibility study, financial analysis, Free Cash Flow FCFF, Broiler Chicken, Qena Governorate

Authors

First Name

Mikhail

Last Name

Melad

MiddleName

Bahig

Affiliation

South Valley University Teaching Assistant

Email

mikhail.bahig@agr.svu.edu.eg

City

Qena

Orcid

-

First Name

Mohammed

Last Name

Elsaman

MiddleName

A. M.

Affiliation

Agricultural Economics' Department Faculty of Agriculture Sohag University Sohag 82524 Egypt

Email

-

City

-

Orcid

-

First Name

Montaser

Last Name

Hamdoon

MiddleName

M. M.

Affiliation

-

Email

-

City

-

Orcid

-

Volume

7

Article Issue

2

Related Issue

37978

Issue Date

2022-12-01

Receive Date

2023-02-06

Publish Date

2022-12-01

Page Start

32

Page End

46

Print ISSN

2357-0725

Online ISSN

2735-5578

Link

https://jsasj.journals.ekb.eg/article_284248.html

Detail API

https://jsasj.journals.ekb.eg/service?article_code=284248

Order

284,248

Type

Research and Review Papers

Type Code

1,734

Publication Type

Journal

Publication Title

Journal of Sohag Agriscience (JSAS)

Publication Link

https://jsasj.journals.ekb.eg/

MainTitle

Economic Feasibility of Chicken Broiler Industry in Qena Governorate

Details

Type

Article

Created At

28 Dec 2024