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The Economic Analysis of the Production and Marketing Efficiencies for Small Milk Farms in El Nubaria
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Abstract: ________________________________________________________________________________________________
Egyptian Journal of Agricultural Economics. Egyptian Association of Agricultural Economics. Vol.(25), No.(4), Cairo, Egypt, December 2015.
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Dairy production is one of the key pillars for livestock production in Egypt since it supports many of the important food industry activities. The main problem of the current study is to find out an answer for a question of how efficient are cattle milk farms in Egypt? Therefore, the current study aimed at measuring the production, economic and marketing efficiencies for small cattle milk farms for the study sample in El Nubaria.
The results the study revealed the following:
- The average duration of lactation period reached about 243 and 241 days for buffaloes and cows, respectively. However, the average daily milk production per head reached about 7.6 and 6.8 kg/day for buffaloes and cows, respectively.
- The total revenue per head is estimated at about L.E. 12 and 8.7 thousand for buffaloes and cows, respectively. Moreover, the marginal gross margins per one kilogram of milk reached about L.E. 3.99 and 2.48 for buffaloes and cows, respectively. Besides, the calculated ratio of total revenue to total costs showed that one pound spent in producing a kilogram of buffalo and cow milk gained a total revenue of about L.E. 2.47 and 1.77 for both types of milk, respectively. However, the first production capacity of milk production farms (less than 25 head) was the most efficient in terms of the calculated ratio of total revenue to variable costs. The average costs for producing one kilogram of milk reached about L.E. 2.62 and 0.3 for buffaloes and cows, respectively. Furthermore, the first production capacity of milk production farms was the most efficient in terms of the net revenue per one kilogram of milk. However, the profits gained from one pound spent in producing a kilogram of buffalo and cow milk gained about L.E. additional revenue of about L.E. 1.47 and 0.77, respectively.
- The average farm-gate price of cow and buffalo milk reached about 3.3 and 4.6 L.E./Kg. however, the wholesale and retail price of cow milk is estimated at 3.8 and 4.8 L.E./Kg, respectively whereas, the wholesale and retail price of buffalo milk is estimated at 5.2 and 6.7 L.E./Kg, respectively. Moreover, the average farmer’s share of the consumer’s pound for cow and buffalo milk reached about 67.7% and 69.1%, respectively. Besides, the middlemen share of the consumer’s pound for cow and buffalo milk reached about 32.3% and 30.9%, respectively. Furthermore, the marketing efficiency of cow and buffalo milk reached about 65.8% and 59.4%, respectively, indicating more efficiency for cow milk marketing as compared to buffalo milk marketing in terms of the performance of marketing operations.
The key production problems facing the producers in cattle dairy farms for the study sample were the high feed prices, high prices of veterinary drugs, and unavailability of veterinary drugs. Therefore, the producers suggested the governmental support for feed prices and establishing nearby new feed mills and the establishment of an effective livestock insurance system. However, absence of milk collection centers and the increase of the price of buffalo milk was higher that of cow milk were the key marketing problems facing the producers in cattle dairy farms for the study sample. Therefore, the producers suggested the establishment milk collection centers and price determination based on fat content in the milk produced in these farms.
Based on these results, the study recommended that the Ministry of Agriculture pay more attention to support small cattle dairy farms since such farms are efficient in terms of economic and production efficiencies as well as the establishment of milk collection centers in El Nubaria to reduce the middlemen share of the consumer’s pound for cow and buffalo milk.
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| URL |
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| Publication year |
2015
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| Pages |
ص ص 1587 : 1602
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| Organization Name |
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| City |
القاهرة
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| serial title |
المجلة المصرية للاقتصاد الزراعي
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| Author(s) from ARC |
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| Agris Categories |
Production economicsTrade, marketing and distribution
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AGROVOC
TERMS |
Animal performance.
Dairy cattle.
Efficiency.
Marketing.
Marketing channels.
Milk performance.
Milk yield.
Small farms.
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| Proposed Agrovoc |
Economic Efficiency (الكفاءة الاقتصادية);Productive Efficiency (الكفاءة الإنتاجية);Marketing Margins (الهوامش التسويقية);Marketing Inefficiency (الكفاءة التسويقية);
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| Publication Type |
Journal
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