Financial and Economic Feasibility Study for a Non-Traditional Feed Manufacturing Project in Fayoum Governorate, Egypt.

Khalil, Yahya M.M; A. A. Farrag, Mahmoud; ElBatran, Dalia Mahmoud Nasr; Mansour, Tamer Gamal Ibrahim

doi:10.21608/agro.2025.357106.1622

Financial and Economic Feasibility Study for a Non-Traditional Feed Manufacturing Project in Fayoum Governorate, Egypt.

Document Type : Original Article

Authors

¹ Department of Agriculture Economic, Agricultural and Biological Research Institution, National Research Centre, Giza, Egypt. (Corresponding author, tamer_baz@yahoo.com).

² Agricultural Economic, National Research Center, Giza, Egypt

³ National Research Centre

10.21608/agro.2025.357106.1622

Abstract

The study aimed to optimize the utilization of agricultural waste in Egypt and propose the most economically and environmentally viable methods for its management. Specifically, it assessed the financial and economic feasibility of recycling wheat straw into non-traditional feed. The research employed both descriptive and quantitative statistical analysis to evaluate the project's viability.
The findings of the financial and economic feasibility study for the non-traditional feed manufacturing project in Fayoum Governorate revealed that the cost-benefit ratio was approximately 1.3, indicating that every Egyptian pound invested generated a profit of 30 piasters. The project's internal rate of return (IRR) was estimated at 37.7%, confirming its economic feasibility. Sensitivity analysis demonstrated that a 10% increase in variable costs would reduce the IRR from 37.7% to approximately 32.7%. Similarly, a 10% decline in revenue would lower the IRR from 37.7% to about 27.8%. If both costs increased and revenues declined by 10%, the IRR would drop to 17.8%, rendering the project economically unfeasible.
The study recommends investing in non-traditional feed production, particularly utilizing wheat straw, as a crucial step to reducing the animal feed gap and mitigating associated risks. Additionally, it highlights the importance of establishing a specialized agricultural extension unit dedicated to supporting and promoting non-traditional feed production. Furthermore, the study emphasizes the need to encourage agricultural cooperatives to prioritize waste recycling initiatives and actively support these projects both financially and technically.

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