Financial and Economic Evaluation of Fish Production Farms According to Water Quality in Damietta Governorate

Document Type : Original research papers

Authors

Department of Agricultural Economics and Social Sciences, Faculty of Agriculture, Damietta University, Egypt

Abstract

The state seeks to develop fish farming projects and raise their productive and economic efficien-cy, Damietta governorate is characterized by the diversity fish production sources, as it ranked second after Kafr El-Sheikh governorate at level of the Republic, however, the relative importance fish pro-duction decreased from about 14.90% in 2018 to about 7.38% in 2020. and the relative importance of fish farming decreased from 16.95% to about 7.78% during that period. The research aimed to meas-ure efficiency of the investment performance of fish production projects according to the quality of irrigation water for fish farms (fresh, lake, sea), using: Benefit/Cost Ratio ،Payback Period of the Capital ،Internal Rate of Return (IRR) ،Sensitivity Analysis،, and Two way Anova Analysis. The most important results:(1) The investment costs of fish production farms with fresh water and sea water are close compared to lake water.(2) Net return has about 588, 220, 377 thousand pounds/farm/year for each of them, respectively.(3) The internal rate of return for investment for fish production projects was about 45.42%, 31.48%, and 43.83%, respectively.(4) The project has the abil-ity to achieve profits when increasing the investment cash outflows by 20% and reducing the invest-ment cash inflows by about 30% in fresh water, with an expected net flow about 465 thousand pounds, and expected (IRR) 1.75%. and fish production project in lake water, when the incoming and outgoing cash investment flows increase by 20%, an expected net inflow about 132 thousand pounds, and ex-pected (IRR) 2.02%, as well as fish production projects in seawater expected net cash flow 1.72 mil-lion pounds, and an expected (IRR) 11.42%.The research recommends Encouraging investors in the field of fish farming on sea water due to the high internal rate of return and given the limited fresh wa-ter resource.

Keywords