Financial and Economic Analysis of Grape Crop Production in South Sinai Governorate

Document Type : Original Article

Author

Department of Economic Studies, Division of Economic and Social Studies, Desert Research Center.

Abstract

The main objective of the research was to study the financial and economic analysis of the production of grapes in South Sinai governorate, by achieving several sub-objectives, the importance of which is (1) to assess the financial and economic analysis criteria according to the current production conditions, and according to the sensitivity analysis to withstand the risks it can face. (2) Identify the most important problems facing grape producers in South Sinai governorate and proposals to solve them.
The most important results: (1) Investment costs accounted for about 43.76% of the total costs in the sample 2021/2022. (2) Variable costs accounted for about 56.24% of total costs. (3) The average revenue in the sample was about 40 thousand LE. (4) The feasibility of investing in the production of grapes in the sample at an 18% discount price, where the net value of the current cash flow was about 18.12 thousand LE, and the internal return rate was about 35% according to the current situation. (5) The vineyard project in the in the sample can continue its economic usefulness with increased operating costs and a 10% decrease in the return separately, both occurring by 10%. (6) The positive contribution of the production of grapes in the sample to the national income. The present value of the value added was about 87.25 thousand LE. The NPV of the net value added was about 65.71 thousand LE, and the social surplus was about

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