The Economic Feasibility of Establishing a laying Hens Breeding Station for the Production of Table Eggs

Document Type : Original Article


1 Department of Economics and Agricultural Business Management, Faculty of Agriculture, Alexandria University

2 Department of Regional Studies and Research, Agricultural Economics Research Institute, Agricultural Research Center


Table eggs occupy a special importance in human nutrition, as it provides them with albumin and protein necessary for their health and growth, especially children, and are also included in many food industries, and with the high prices of eggs, especially in 2023, as in other foods, resulting from the high prices of feed, especially imported ones, it was necessary to encourage farmers and other investors to produce to increase the supply of it to work to reduce its high prices and meet the increasing demand for it, and the research aimed to prepare an economic feasibility study to establish a table egg production station in Beheira Governorate with a capacity of (30) thousand birds in three wards, in order to produce about 10 million eggs in one production cycle, i.e. every two years and about 28 thousand chickens at the end of one production cycle, and the research relied on the initial data that were collected using a questionnaire form in the personal interview for 60 poultry breeders in Beheira Governorate, and the research relied on achieving its objectives on the criteria of the economic feasibility study of projects.
The research reached a number of results, the most important of which are:

The investment, construction and operational costs required to be provided in the first year amounted to about 32.344 million pounds, which includes all the costs that the first project pays once land, buildings, machinery, equipment and tools, which are the expenses of establishment.
The fixed costs of the project amounted to 727 thousand pounds calculated on salaries and 10% for maintenance and renewal, which are the costs incurred by the project, whether produced or not produced, such as employee salaries, fixed labor, salaries with contracts, and rents of all kinds.
The costs required to operate the project during its useful life period amounted to about 15.65 million pounds in the first year of the production cycle and estimated at about 10.65 million pounds in the second year of each production cycle.
The egg production from the project as an average, according to the data of the research sample, amounted to 10.5 egg plates per hen, so the project produces about 291.4 thousand egg dishes, or approximately 8.75 million eggs, with a value equivalent to 36.42 million pounds per session, or about 18.21 million pounds annually.
The project achieves a net profit estimated at EGP 708.1 million during 20 years, which is the estimated production period for research, and achieves an estimated internal rate of return of about 106%, and the capital recovery period for the project is about 2.8 years.
By studying the sensitivity and risk analysis of the project, it was found that the project is not sensitive to price fluctuations, whether in costs or revenues.



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