The Role of the Agricultural Bank of Egypt on Development Livestock in Gharbia Governorate

Document Type : Original research paper

Authors

1 قسم الاقتصاد الزراعي كلية الزراعة جامعة طنطا

2 Department of Agricultural Economic, Faculty of Agriculture, Tanta University, Tanta, Egypt.

3 PH.D candidate

Abstract

Abstract
The  research  aimed to study  the role of the Agricultural Bank in financing livestock  in  Elgharbia governorate  and the impact of its affiliation with  the Central Bank on the value of loans and the efficiency  of funded cattle  fattening projects by the  Agricultural Bank in Elgharbia governorate. The research relied on descriptive and quantitative statistical analysis methods, utilizing simple regression and dummy variables techniques, In addition, estimating financial analysis indicators and the economic efficiency for the sampled farms. Regarding data sources, the research has been elided on two main sources. The first was primary data collected from a stratified random sample of cattle fattening farms financed by Agriculture Bank in Elgharbia governorate during the agricultural season 2022/2023, the second was both published and nnonpublished obtained from various sources. The results indicated a positive impact of the agricultural bank’s affiliation with the central bank on the total loans in Elgharbia governorate during the two study periods .the loans increased annually by approximately 454.44 million EGP, with growth rate of 33.6% from their average of 2313.7 million EGP during the second period ,compared to an annual increase of 42.95 million EGP and a growth rate of 4% from their average of 941 million EGP during the first period .it also had a positive impact on the development of livestock in Elgharbia governorate, with an annual increase of approximately 98.8 million EGP during the second period, reflecting a growth rate of 13.5% of its average of 514 million EGP for the second period for short-term livestock loans, and medium-term livestock loans increase annually by 150 million EGP. The mixed cattle fattening farms with one production cycle per year achieved the highest profit margin for the product approximately 40%, the highest loan cost coverage ratio, reaching27.5 times. The loan contribution to variable costs ranged from the lowest percentage of 41.7% for buffalo fattening farms with one cycle per year to the highest percentage of 51.8% for imported cattle.  

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