The Economic Efficiency of the Red Meat Production Farms in New Lands (Case Study in Nuberia Region)

Document Type : Original Article

Author

Assistant Research Professor - Department of Economic Studies - Desert Research Center

Abstract

The main objectives of the study were to estimate the production function of red meat production farms in Nubaria region,to determine the main factors affect the dimension and degree oh using the agricultural economic resources efficiently at the red meat  production farms in the area under the study.
The study is depend on primary data collected from a sample of 75 red meat production farms in Nuberia district. The sample was divided into tow categories, the first category includes 40 farms that contains 1-5 animal units each, while the second category include35 farms of more than 5 animal units .the statistical analysis used include steo-wise multi-regression as well as some other models such as linear,logarithm,semi-long and quadratic for both categories under study.
The results of the study has shown that the most important variables thet affect the red meat production farms category are; number of animal units(x1), quantity of concentrated forage per ton(x4), and, quantity of green feed per ton(x5), the production elasticity estimated to these variables were 0.49, 0.32 and 0.063 respectively. the estimated ratio of MPV to opportunity cost of these resources in order to identify economic efficiency of the utilization of the above use both concentrated and the green feed,and to receive equivalent values of MPV and opportunity cost,it is recommended that must reduce the quantity used of the both feed.
The result of the study has shown that the most important  variables that affect the red meat production farms of the second category are; ;number of animal units(x1),quantity of concentrated forage per ton(x4), and ,quantity of green feed per ton(x5), the production elasticity estimated to these variables were 0.34, 0.23 0.20 respectively. the estimated ratio of MPV to opportunity cost of these resources in order to determine  economic efficiency of the utilization of the above mentioned resources were about 2.03, 0.67 and 0.27 respectively,which means the MPV was better than the  opportunity cost of these three variables. The producers can increase their profit from the meat production through increasing the animal units and quantity used from both  concentrated and green forage ,in order to get equivalent values of MPV and opportunity cost.
In general, it has been shown that the secomd farm category was better than the frist category with respect to both the average productivity and efficiency of the utilization of the agricultural economic and the increase  available which means the increment in the average productivity and the increase in the agricultural economic resources efficiency of the animal farm used will increase as the farm animal capacity increase.