Profit and Added Value of Dairy Products in Sharkia Governorate

Document Type : Original Article

Authors

1 Agric. Econ. Dept., Fac. Agric., Zagazig Univ., Egypt

2 Faculty of agriculture zagazig University

Abstract

Results indicate a high relative importance of variable costs, as the average variable costs of manufacturing a ton of ore milk ranged between a minimum of 93.15% of the total manufacturing costs of turkey cheese, and the maximum about 98.94% of the total manufacturing costs of liquid milk.in addition, average fixed costs ranges between a minimum of 1.06% of the total manufacturing costs for liquid milk and the maximum about 6.85% of the total manufacturing costs for turkey cheese. The decrease of relative importance of fixed costs is due to an increase in the size of the maximum operating energy, also the productive unit (laboratory) produces more than one type of milk products, which leads to distribute total fixed costs to these products. The results also indicate that yogurt achieve the highest profit where a ton of raw milk achieves a profit about 6872.71 L.E, Followed by the ice cream, where it achieves a profit about 5721.00 L.E, While turkey cheese achieves the lowest profit at about 821.26 L.E. By studying the added value of different dairy products, it was found that the yogurt ranked the first at 7784.31 L.E, while the added value of turkey cheese reached the lowest value about 2563.51 L.E. Total profit resulting from manufacturing of raw milk to different dairy products reached about 4595.25 L.E. Also, yogurt gets about 1580.72 L.E, with a relative importance is about 34.40% of the total profit, It is followed by an ice cream with about 858.15 L.E, with a relative importance is about 18.67% of the total profit, Then white cheese by about 798.37 L.E, with a relative importance of about 17.37% of the total profit, while the rest of the milk products (liquid milk, cottage cheese, ripe milk and turkey cheese) get about 1358.01 L.E, with a relative importance about 29.55% of the total profit. Total added value resulting from the manufacture of a ton of raw milk into different dairy products were about 5552.07 L.E The yogurt gets about 1790.39 L.E with relative importance about 32.25% of the total added value, followed by the white cheese was about 1063.19 L.E with a relative importance about 19.15 % of the total added value, followed by ice cream was about 952.23 L.E, with a relative importance about 17.15% of the total added value, and the rest of the milk products (liquid milk, cottage cheese, ripe milk and turkey cheese) get about 1746.26 L.E, with a relative importance about 31.45% of the total value added. Therefore, the research recommends that, according to the profitability and the added value of dairy products, Dairy Management must restructure the manufacturing rates of these products by increasing the percentage of the quantities that used from raw milk to manufacture the most profitable products (yogurt, then ice cream, then cottage cheese, then white cheese, then the ripe milk, then the liquid milk and finally the turkey cheese) to maximize its economic returns.

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