University of Khartoum

Technical and Financial Analysis of a Dairy Farm at Shambat, Khartoum State-Sudan

Technical and Financial Analysis of a Dairy Farm at Shambat, Khartoum State-Sudan

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Title: Technical and Financial Analysis of a Dairy Farm at Shambat, Khartoum State-Sudan
Author: Ahmed, Afaf Gasim Mohammed Nour
Abstract: Despite, the large animal wealth in Khartoum state, yet the state is still suffering from milk production and consumption gap. The purpose of this study is to assess the financial and technical feasibility of establishing a typical dairy production farm in Khartoum state, as a model to be followed in order to enhance the milk production and reduce consumption gap in the State. A field survey was conducted in two areas (Kuku and Shambat), whereas shambat is selected to represent the location of the project. Data were collected from 9 dairy farms belonging to two areas using structured questionnaire. The secondary data was obtained from official documents and reports of the Ministry of Agriculture and Ministry of Animals Resource and fisheries and from relevant sources. The study used the financial benefit-cost analysis for evaluating the financial feasibility of the project. It indicated that the project was financially feasible with a payback period (PBb) of 2 years, and with positive net present value (NPV), benefit-cost ratio (B/C) 1.6% and financial internal rate of return (IRR) of 47% with tax and 49% without tax. The project also was proved to be feasible after subjecting it to the sensitivity analysis. When increasing the operating cost by 10% and reducing the total benefit by 10%, The (IRR) would be 41% and 39% respectively. The study recommended that investment in milk production farm will be feasible by integrating fodder agriculture and rotation system, adoption of artificial insemination technique and reducing the taxes.
URI: http://khartoumspace.uofk.edu/handle/123456789/11761
Date: 2015-06-14


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