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Abstract

Cattle and buffalo feats in Egypt are the main sources of milk and dairy Products which are vital sources of animal protein. This sector is the only source of feeder calves and replacement heifers. However, there is a deficit in domestic production. To satisfy the demand for milk in Egypt, as well as a deficit in feeder calves supply which lead to rapid increase in prices of milk and red meat. The objective of the study was to reassess the economic feasibility of the production from 17 dairy cattle film. In new and area ( Nobaria ), using a field Sample survey. The analysis included measuring profitability, investment Efficiency and the indicators of the technical performance. The dairy cattle farms in new land in Egypt have actually transformed from being a milk supply source to be a source of selling weaned caves reared on mill, produced on those farms. Such transformation in the purpose of investment was due to lack of fair efficient milk marketing system in new land. The analysis included the productive performance profile and the assessment of the economic efficient using the costs statement, income statement, investment efficiency statement. The results showed from the estimated production performance indicators that the calving rate of these herds reached 84%, i.e. higher than the average rate of the herds raised in the Nile Valley. The estimated average of milking period per cow was 236 days with a daily yield of 8 kg. Such results implied that the milk Productivity was not high. This probably, was due to lacking of incentives to sell the milk marketable surplus. The proper management of production kept the mortality rate of reared calves to almost nil. This indicator demonstrated the efficiency of management based on the results of earlier field studies which have shown that mortality rate would he controlled through husbandry rather than genetic value. The average relative importance of variable cost reached 61.5%. The main Cost items were the purchased rearing calves. Which was bought to consume the rest of milk yield after rearing the own farm born calves. The cash income averaged about 65% of the total, mainly from selling the weaned male calves. The proportion of non-cash income was 35%. As the sum of the household consumption of the farm produced milk and the net inventory change of livestock assets. The profit margin of the producers of this enterprising system was approximately 33.2%. the value-added of using milk for rearing calves and resell them at 3 month age was about L.E. 3.16 per kilogram of milk produced. The value added as the margin between the L.E. 4.76 return to 1-kg of milk when suckled by the reared calves and selling it at fresh at a farm gate price 160 PT. therefore the producers were rational to feed milk to calves and selling them at weaning to overcome the lack of an efficient dairy marketing system. The estimated return to investment was about 18%, i.e. more than the average discount rate, announced by the Central bank in Egypt in 2010 / 2011, indicating economic feasibility of this type of projects. Even by postulation an increase in the purchase price of newly born calves as inputs to the project by 10% the project was still pays off, at ERR about 17%.

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