An economic study for manufacturing possibilities of oat milk and Its products in Egypt

Abstract

: The study analyzed manufacturing possibilities of oat milk and its products in Egypt. The objectives of the study are: )i( identify the current situation of dairy alternatives in the world, and )ii( analyze the possible opportunities for manufacturing oat milk products in Egypt. It was found an increase in global demand for dairy alternatives and its products. Dairy alternatives include soy, almond, rice, coconut, and oat milk. Oat milk tops the lists of the best-selling dairy products in most countries of the world, so it is considered one of the dairy alternatives that is a strong candidate for expansion in its production in recent times. The study assumed a unit production capacity for manufacturing oat milk products )drink milk, ice cream, and yogurt( amounting to 3.5 tons of oats annually, the project lifespan is 12 years, and the discount price is 22%. The study concluded that the factory will achieve net cash flows during the life of the project whose current value is 0.29 million pounds, and IRR is 36%, which greatly exceeds the lending rate in banks, and the ratio of current benefits to current costs is 1.1, meaning that the project is financially feasible. The payback period is 2.8 years.