The Economic Return of Recycling Agricultural Plant Waste (Palm Waste) into Industrial Organic Fertilizer - A Comparative Study between Egypt and Saudi Arabia

Abstract

The research problem was the lack of optimal use of palm waste, whether by disposing of it by burning it on farms or throwing it on the edges of canals and drains, which causes negative effects in the form of environmental damage and significant economic loss. So, the research aimed to maximize the benefit from agricultural waste (by-products) through a financial and environmental evaluation of the use of palm waste to demonstrate the financial feasibility of dealing with this waste. The results of the financial analysis of the project indicated that the net present value amounted to approximately $5.520 million and EGP 14.394 million for both Saudi Arabia and Egypt, respectively. The internal rate of return also showed that it amounted to approximately 61% and 60% for both Saudi Arabia and Egypt, respectively. The benefit-to-cost ratio amounted to approximately 1.22 and 1.16 for both Saudi Arabia and Egypt, respectively. The payback period for the capital invested in the compost production project was approximately 1.64 years and 1.70 years for both Saudi Arabia and Egypt, respectively. The values of all indicators in both countries indicate the feasibility of investing in this project. The results of the sensitivity analysis for the project in both countries also indicated that it was more sensitive to a decline in total revenue than to any other adverse conditions that the project might encounter throughout its lifespan, indicating that the project would not encounter financial obstacles under the negative assumptions mentioned in the financial study.