Journal of Food, Agriculture and Environment

A comparative economic analysis of sheep production systems: A case study of Jordan

Author(s):

Tala Qtaishat ¹*, Ali Al-Sharafat ², Mohammed I. Majdalawi ¹

Recieved Date: 2011-12-06, Accepted Date: 2012-05-02

Abstract:

This study was conducted to introduce a comparative economic analysis of sheep production systems in Jordan. A total of 156, 28 and 16 stockowners adopting transhumant, mixed farming and nomadic sheep production systems, respectively, were interviewed. A structured questionnaire was designed to obtain information from respondents about socio-economic profiles, total variable costs, annual revenues, net income, and animal productivity. Three important and traditional discounted financial indicators were used in the study, the Net Present Value (NPV), the Internal Rate of Return (IRR) and the Benefits-Costs ratio (B/C). The results showed that all the indicators used in the study were acceptable in the three investigated sheep production systems. The NPV for the nomadic production system was highest according to the net cash flows estimated in the study. It was positive and acceptable. The IRR for this system was 166 % and the B/C approximately 2. These values indicated that the nomadic sheep production system in Jordan is the most profitable one compared to the other two systems. The transhumant production system is in the second place and the mixed farming system is the last one. Profitability of the nomadic system is affected by the presence of the proper strategies to decrease costs of production and to increase income. Feed expenses for the flock in this system are minimal. Full dependence on natural resources, a minimum amount of supplemental feeding, and the limited demand for inputs are major reasons for this system to be more profitable than the other two sheep production systems. 

Keywords:

Sheep, mixed farming, transhumant, nomadic, net present value, internal rate of return, benefits-costs ratio

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Journal: Journal of Food, Agriculture and Environment
Year: 2012
Volume: 10
Issue: 2
Category: Agriculture
Pages: 690-694

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