The Economics of Production and Marketing of Products, The Egyptian Company for Food (Faragello) (Case Study)

There is no doubt that the private sector has a large economic role in the national economy in general, and the food industries sector is particularly important because it has an effective role in producing and marketing the food products needed by the members of the society, as well as contributing to local self-sufficiency, New markets in the global market. It is therefore important to know the nature of this important production, marketing and export activity and its real role in the national economy. This requires an economic study of this productive activity of one of the private economic establishments, as a case study in terms of production and marketing carried out by the institution under study.
This study aims at evaluating the performance of one of the economic establishments and the role it plays in serving the society and the national economy, and then reaching a number of production, marketing, financial and economic indicators, which can be used to improve the performance of the economic institution under study and other similar establishments, The process that can be followed to increase production and raise the level of quality and increase marketing efficiency, all of which will be reflected in the financial aspects represented in reducing the costs of production and marketing and increase the return of economic activity in this area.
From the study of the productive activity of the company during the study period from 2011 to 2015 showed that the average quantities of  the annual production of the company amounted to about167.2  thousand tons of juices at a rate of change of about 22.3%, and for the dairy consumption of about 3954 thousand cartons at a change rate of about 19.4% , Vegetables about 634 thousand cartons at a rate of change of about 13%, and the stock of about 160.5 thousand cartons at a rate of change of about 23.1%, and cheese about 16.6 thousand tons, at a rate of change about -18.3%. The cost of production showed that average annual production costs of direct materials amounted to LE 581.8 million pounds, at a rate of change about 14.6%, direct wages of about 32.1 million pounds, at a rate of change about 15.1%, indirect expenses of about 9% the average cost of production about 729.6 million pounds, at a rate of change about 14.2%.
The study of the company's sales showed that the average annual sales of the company during the period of study amounted to sales about 594 million pounds, at a rate of change about 15.5%, and dairy sales to about 183.8 million pounds, at a rate of change about 16.9%, and sales of cheese about 39.4 million pound, at a rate of change about 9%. The sales of vegetables reached about 50.8 million pounds, at a rate of change about 19.3%, and the sales of broth and powder reached 27.7 million pounds, at a rate of change about 14.5%.
The profits showed that the average dividend distributed was about 46.1 million pounds, at a rate of change about 18%. With an annual average of about 67.4% of net profit, at a rate of change about 7.8%. And the average share per share in the profits amounted to about 42.9 pounds at a rate of change about 14.4%. These results are financial and economic indicators for companies operating in the same activity, which can guide them in correcting their financial and economic conditions and facing competitors in order to continue their presence in this important national agricultural economic activity.
It should be noted that these conclusions and recommendations are very important for all companies working in this field due to the great economic importance of the company under study in the food processing activity both in the domestic market and the foreign market.
These results are considered financial and economic indicators for these companies, which can guide them in correcting their financial and economic conditions and facing competitors in order to continue their presence in this important national agricultural economic activity.