ECONOMICAL STRUCTURE FOR MANUFACTURE OF ICE CREAM (CASE STUDY: EGYPTIAN NESTLE COMPANY) | ||||
| Sinai Journal of Applied Sciences | ||||
| Article 11, Volume 5, Issue 2, August 2016, Page 283-290 PDF (539.91 K) | ||||
| DOI: 10.21608/sinjas.2016.78653 | ||||
 View on SCiNiTO | ||||
| Authors | ||||
Mohamed A. ElFiky  1; Reyad I.M. Radwan 2; Soad A. Ibrahim2; Mohsen M. El-Batran3; Ragab M. Hefny 2
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| 1Nestle, Cairo branch, Egypt. | ||||
| 2Dept. Econ. and Rural Develop., Fac. Environ. Agric. Sci., Arish Univ., Egypt. | ||||
| 3Dept. Agric. Econ., Fac. Agric., Cairo Univ., Egypt. | ||||
| Abstract | ||||
| The ice cream industry is one of the important industries within the Egyptian food manufacturing sector; Nestle Egypt Company is one of the largest investment companies for the manufacture of ice cream as it produces about 85% of the total ice cream production in Egypt. The main purpose of this research is to identify the economic structure of the industry. To achieve the main objectives, the study relied on the descriptive and quantitative analysis. The research adopted to achieve its objectives based on the primary data from the follow-up and performance of Nestle Egypt Company during the period records (1999-2013). The study obtained the following results: The overall average of ice cream production in Egypt has reached about 37.6 thousand tons. The average of investments volume amounted to about L.E 495.6 millions. The number of workers in Nestle Egypt Company has reached about 535 workers in 2013, workers takes wages and salaries reached about L.E 26.6 millions. The average of industry costs amounted at about L.E 217.7 millions during the period (1999-2013). The maximum productivity capacity indicators reached about 27.6 thousand tons during the study period. While the actual production capacity reached about 21.1 thousand tons, which indicates the presence of lost in production as much as about 6.5 thousand tons during the study period. The production value of the industry within Nestle Egypt Company, which is amounted to about L.E 293.9 millions. With regard to the added value of the ice cream industry sector, the results reported attained about L.E 84.8 millions. The most important raw materials used in the manufacture of ice cream in the investment sector represented in raw milk, fat, sugar, biscuits, chocolates, emulsions and stabilizers, and the ton of ice cream needs from these raw materials, of about 207, 144, 164, 9, 56.3 kg respectively. The maintenance costs occupied the first order between fixed-cost items, by the relative importance reached about 5.5% of the total cost. While the costs of raw materials occupied the first order between the variable-costs items by about L.E 52.5 million. The marginal cost per ton of ice cream has amounted to around L.E 3.22 thousand during the period (2011-2013) based on monthly data. | ||||
| Keywords | ||||
| Nestle company; ice cream; marginal cost | ||||
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