Authors : Bassam Al-Deseit, Ali Al-Sharafat and Sultan Al-Kouri
Abstract: This study was conducted to determine the financial feasibility of organic fertilizers production in Jordan. The aim of a feasibility study is to determine if a business opportunity is possible, practical and viable. A financial feasibility analysis provides decision-makers information as to whether or not they can afford to do the project, as well as successfully operate it once constructed. This study gains its importance from the noticed increase of organic fertilizers production took place in Jordan in the latest few years the soaring cost and the adverse effect of chemical-based fertilizer logically cause this increase in organic fertilizer production. Besides, health conscious consumers have preferred organically-grown products that have pushed demand for organic food. Three important and traditional discounted financial indicators were used in the study, they are the Net Present Value (NPV), the Internal Rate of Return (IRR) and the Benefits to Costs ratio (B/C). Six scenarios concerning the increase of costs and the decrease of returns were used. The results of the study showed that all the indicators for financial feasibility analysis used in the study were positive and accepted. The results also showed that the lower the discount rate the higher both the NPV and B/C ratio. The changes in the discount rate level had no effect on the IRR indicator. This means that the organic fertilizers production in Jordan is financially feasible activity to be adopted. The study results encourage the internal and external investors to invest in this activity in Jordan. Further studies are needed in this area of investigation in Jordan.
Bassam Al-Deseit, Ali Al-Sharafat and Sultan Al-Kouri, 2009. Financial Feasibility of Organic Fertilizer Production in Jordan. Research Journal of Biological Sciences, 4: 728-733.