(Estimation some Indicators of Economic Efficiency and Added Value in the Broiler Sector in Fayoum Governorate)

Document Type : Research and Review Papers

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Agricultural Economics Department Faculty of Agriculture Fayoum University Fayoum Egypt

Abstract

The research aimed to estimate some indicators of economic efficiency and added value in the broiler chicken sector in Fayoum Governorate. It also relied on some indicators of estimation economic efficiency such as (net profit, producer margin, producer incentive, total margin, added value, profitability of the invested pound). It was found that Fayoum Center occupies the first place in terms of the number of broiler farms, with about 178 farms, representing 26.33% of the total number of broiler farms in Fayoum Governorate. A comprehensive census was conducted in the villages of Fayoum Center. The farms were divided into three categories (small, medium, large). It was also found that the best production capacities were the large capacities, where the average total costs per ton amounted to about 64,822.4 pounds, followed by the medium and small capacities, with average total costs per ton amounting to about 68.8pounds and 72.16 pounds, respectively. The profitability of the pound spent is an indicator of achieving economic efficiency. This criterion reflects the net return achieved by the pound spent on all total cost items. It was found that the profitability of the pound invested in Badari fattening farms with the three production capacities amounted to approximately 8.7%, 14.5%, and 21.8%, respectively. Therefore, it becomes clear that large capacity is the most economically efficient according to the profitability criterion of the invested pound. This is consistent with 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-scale production capacities, respectively, Therefore, the study recommends working to increase the production capacities of farms, as large production capacities are more feasible than farms with small capacities, and encouraging the spread of hatcheries in the governorate to provide chicks at reasonable prices for producers.

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