Financial and Economic Evaluation of a Rice Straw Recycling Project for Producing Non-Conventional Feed in Fayoum Governorate

This study aims to assess the economic feasibility of recycling rice straw and converting it into non-conventional animal feed in Fayoum Governorate, given the widening feed gap and Egypt’s growing reliance on imported feed ingredients to meet livestock demand. The research draws on both official statistical data and field-based information, and employs a financial evaluation using key economic indicators, including Net Present Value (NPV), Internal Rate of Return (IRR), and the Benefit-Cost Ratio (B/C Ratio). In addition, a sensitivity analysis was conducted to examine the effects of changes in costs, revenues, and project timing on overall profitability. The findings demonstrate that the project is economically viable, with an Internal Rate of Return of 36.8% and a Benefit-Cost Ratio of 1.39, indicating strong potential for generating favorable economic returns. Moreover, the project offers significant environmental benefits by reducing open-field burning and contributing to improved air quality. The study recommends scaling up agricultural residue recycling initiatives and strengthening both technical and financial support in line with sustainable development goals and the national strategy for enhancing animal feed security. The study evaluated the project under three scenarios: a baseline case in which costs and revenues are almost balanced, an optimistic case showing clear profitability with increased production capacity, and a pessimistic case where rising costs or limited straw availability could lead to losses. Overall, the findings highlight that improving operational efficiency and expanding the actual utilization of agricultural residues are key determinants of the project’s economic viability.