Articles
FINANCIAL STABILITY AND MARKETING FOR DATE PALM PRODUCTION IN YEMEN
Article number
736_56
Pages
563 – 574
Language
English
Abstract
Long-term investment in date palm is a challenge.
Date palm trees have always been important in Yemen because they provide a rich, cheap and locally produced food.
Dates have proved to be the best resource to ensure food security during food shortages and crises.
The demand for palm tree dates is increasing both locally and abroad because it is a healthy and pure food.
Based on the feasibility study of different palm tree farmers in Wadi Hajer, Hadramout and Wadi Surdud, Governorate of Hodeidah, the following factors were calculated: Benefit-Cost Ratio (BCR), Net Income and Internal Rate of Return (IRR). Market marginal, Efficiency Predicted Marketing (EPM) were calculated.
Also the study briefly describes the nature and scope of financial and economic analysis.
In Wadi Hajer, Hadramout the BCR was 1.67, Net Income, 101,238 thousand YR and IRR, 18%. While in Wadi Surdud, Governorate of Hodeidah the BCR was 2.63, Net Income, 335,850 thousand YR and IRR, 20.7%. Marketing analysis indicated that the EPM was 56.31 in Hodeidah Market and 15.79 in Mukalla Market, which means improving market efficiencies will sustain the date palm for long-term investment.
Yemen has an economic advantage in marketing its dates, because they are cheaper than the other countries at only about 0.25 US$/kg, while UAE is 3 US$/kg.
Date palm trees have always been important in Yemen because they provide a rich, cheap and locally produced food.
Dates have proved to be the best resource to ensure food security during food shortages and crises.
The demand for palm tree dates is increasing both locally and abroad because it is a healthy and pure food.
Based on the feasibility study of different palm tree farmers in Wadi Hajer, Hadramout and Wadi Surdud, Governorate of Hodeidah, the following factors were calculated: Benefit-Cost Ratio (BCR), Net Income and Internal Rate of Return (IRR). Market marginal, Efficiency Predicted Marketing (EPM) were calculated.
Also the study briefly describes the nature and scope of financial and economic analysis.
In Wadi Hajer, Hadramout the BCR was 1.67, Net Income, 101,238 thousand YR and IRR, 18%. While in Wadi Surdud, Governorate of Hodeidah the BCR was 2.63, Net Income, 335,850 thousand YR and IRR, 20.7%. Marketing analysis indicated that the EPM was 56.31 in Hodeidah Market and 15.79 in Mukalla Market, which means improving market efficiencies will sustain the date palm for long-term investment.
Yemen has an economic advantage in marketing its dates, because they are cheaper than the other countries at only about 0.25 US$/kg, while UAE is 3 US$/kg.
Publication
Authors
M.A. Al-Hebshi
Keywords
production cost, marketing efficiency, long-term investment, net income
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