The Economic Efficiency of Dairy Milk Factories in Egypt by using DEA Analysis

Document Type : Original Article

Authors

Dept. of Agric. Economics, Fac. of Agriculture, Kafrelsheikh University

Abstract

The issue of food security and food security is of concern throughout the world in general and in the third world in particular. The importance of milk and its products is increased because of its high nutritional value, as it contains many essential elements such as vitamins, mineral salts, protein, Suitable for body needs.The amount of milk production in Egypt in 2014 amounted to about 6,126 million tons, estimated at 27.1 million pounds representing about 9.57% of the value of agricultural production of about 283.1 billion pounds, and about 24.2% of the value of animal production of about 112 billion Cattle contribute about 50.3% of the total milk production capacity, while buffalo contributes about 47%, while goats contribute only 2.7% of total production.It is very important to increase the capacity of milk production and its products to increase the local supply of these important products and reduce or prove their prices. It is necessary to attract capital to establish new facilities for this industry and increase investment in this field to achieve stable prices in the dairy market.The problem of this study is concentrated in the existence of a food gap between production and consumption, which causes an increase in the prices of milk and its products. It also forces the state to import from abroad to fill the deficit, which negatively affects the Egyptian economy.The general objective of the study is to estimate the economic efficiency of the sample plants and to identify their economic indicators.In light of results, the research recommended that advantages of production and large capacity savings that lead to lower costs and access to the best possible efficiency. Increasing the volume of raw milk product to eliminate the Lebanese gap and access to self-sufficiency, as well as increase the average consumption to reach the global levels. Start the establishment of factories to manufacture milk powder and this helps to reduce the loss of milk and liquid storage as long as possible.Raising the efficiency of workers to increase their productivity in quantity and quality, which leads to increase the value of production and profits and helps in raising the efficiency of this industry.Greater attention should be given to the exploitation of idle capacities in dairy factories, which can increase the returns and profits of these factories without adding new investments.Working to facilitate access to licenses for the establishment of dairy products factories, which contributes to the increase in supply and hence the low prices, and this will increase our exports to the Arab and European market, which contributes to the progress of the Egyptian economy.To start applying the quality and safety standards in the Egyptian factories and monitoring the government with good supervision.

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