[Economic efficiency of egg producing farms in Amman-Balqa metropolitan]
1988
Shan, M.A.
Amman-Balqa metropolitan area constitutes about 62% of Jordan's population. The egg quantities produced in this area, also constitute 62% of the egg quantities produced by the Kingdom. Study of the said area was initiated, since the number of egg producing farms in the area reached 82, of which only three used modern techniques and the rest old-fashion methods. To determine the ideal size of egg farm in the area, three economical methods were used: economical efficiency, financial analysis and cost indication. For the purpose of performing the necessary analysis, five different egg boxes were considered; random sample of the population, which represented 39% of it was selected; a questionnaire was disigned to collect the fixed and variable costs in additon to income of egg production. The study concluded that the farm which produces 9,250,000 eggs is the ideal farm, and this falls in the fifth category, which falls in the size capacity of 30,000-45,000 chickens. A fifth category farm, which average cost was the lowest and with capacity 30,000, was selected. Economic efficiency and financial analysis were used. The Internal Rate of Return was more than 50%. As the sensitivity analysis was made, IRR was reduced to 31.15%, which was considered feasible. As a result investors were encouraged to increase produce or establish new farms within this capacity. Distribution and marketing activities were studied to indicate the different stages production passes through. Establishment of the Jordan Egg Cooperative for Production and Marketing and the role it played are described. The study also concludes that the ultimate distributor gains a high percentage of profit, which is not justified by his services
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