Financial Feasibility Study of Bananas Tissue Culture Commercial Production in Egypt

IntroductionBanana is an important fruit crop in Africa and in Egypt, due its great economic importance as well as nutritional value and high availability throughout the year. Recently the use of tissue culture in propagating banana increased remarkably, as it is considered the only known method to eliminate viral diseases and one of the modern breeding methodologies for many vegetables and fruit crops. Nowadays in Egypt, Banana is one of the most important crops that are bred in a manner tissue culture, which is characterized by a great deal in increasing the quantity produced of the crop (Aboul-Nasr, 2013). In addition, it adds to product quality and excellence through a great deal compared to the traditional method, which is highly exposed to nematode infections, and viral diseases. The fedden (4200 m2) production ranges 14-25 tons of a tissue culture manner compared to the traditional way, which has a yield per fedden 8-14 tons. The most important banana varieties deployed in Egypt, which are bred in the laboratory, are Jrndnan, Williams and Willaims Zeaf class (Khald, 2010). Problem of the study:Banana production by traditional agriculture faces many of weaknesses, mainly reducing the amount of production of the crop, as well as the spread of pests and diseases. In addition to the low quality of the crop output, productivity fluctuations from year to year per fedden, and hence the deficit in the supply of the crop as well as the high price. This has led to the tendency to look at other agricultural methods to increase production of the crop, including the method of tissue culture.Objective of the studySince tissue culture is a viable alternative for the production of agricultural commodities, high yield and quality therefore, the efficiency of targeted research study is to apply the method of tissue culture bananas and methods of raising the efficiency of production, with recognition of feasibility study.Data source:This study was based on field data to the technique of tissue culture bananas, from the Green Valley laboratory of banana tissue culture production, Hadiek Elqopa, Cairo, Egypt on February 2013 (Aboul-Nasr, 2013). Methodology:Two kinds of measurements were used in this study which was undiscounted and discounted measurements (Suzan et al., 2008). Further, sensitivity analysis of the project was done under uncertain expectations. Five suggested unexpected conditions could face this project and its impact of profitability (Ali, 2005; Thanaa, 1997) and (Allah, 2000). These conditions are as follow:- Increasing the total costs by 10% with constant of other parameters. - Decreasing the profit by 10% with constant of other parameters. - Increasing the total costs by 10% with decreasing the profit by 10% at the same time. - Increasing the total costs by 20% with constant of other parameters. - Increasing the total costs by 20% with decreasing the profit by 10% at the same time.This study suggests some points that are shown in Table 1, these points are as follow:- The life span of project is 10 years. - The discount factor which use in the central bank at 2012/2013 is 7%. - The depreciation at the last year of project calculated based on 5% from value of the inputs which used. - The price and volume of inputs and outputs are remain during life span of project. - 100 jars of banana plant are use at one cycle.Tissue culture and the intended objectivesTissue culture means the cultivation of plant tissue growth of cells, tissues or parts of various plant in glassware and sometimes plastic containing medium which is made of nutrients and other supplements needed by plants and is done under aseptic conditions under complete sterilization. The jars are kept in a growth room under controlled temperatures and light in accordance with the requirements of the appropriate plant. Figure 1 Illustrates the time table for banana explants in the tissue culture laboratory and this helps in understanding the time, the costs and the number of plants per period. …