Economic Prospects for Silk Production of (Bombxy mori) Through Agricultural Cooperatives

Abstract

Natural silk production in Egypt encounters several challenges that hinder its growth and sustainability, despite its inherent natural and historical advantages that could yield substantial economic returns. This research aims to examine the economic trends for the potential of silk production through agricultural cooperatives. Results indicate that the net present value (NPV) is approximately 3,291.6 thousand EGP per year during the investment period. The benefit-cost ratio (B/C ratio) for the mulberry-based silkworm project is around 1.3 over its lifespan. The profitability per invested pound stands at about 0.3 EGP. The internal rate of return (IRR) is approximately 47.1%, indicating a return of 47.1 piasters per invested pound, higher than the current bank interest rate of 21%. This suggests that investing in natural silk production is more economically and financially viable than traditional savings. The capital turnover period is estimated at 2.12 years. Recommendations include establishing an agricultural information bank, integrating modern informational technology within cooperatives, and training staff. Enhancing coordination between cooperatives and research centers at various levels is crucial to stay updated with advancements in agricultural technology. Accurate data should be made available to assist researchers in universities and research centers. Broadcasting guiding prices through modern communication tools and emphasizing cooperative education and training are vital.