MARKETING AND FEASIBILITY OF CUT FLOWER PROJECT IN EGYPT
The trend has been to choose an ideal geographical location (weather wise) coupled with low cost production costs and to produce there. The crop is then swiftly air freighted to the lucrative European market.
Egypt can be considered a good location for cut flower production for it enjoys : long day length, warm weather, low cost of labor, low cost of energy; good water and soil quality, large population available of high Tourism activity and big busy cheap air freight system.
The covered area under 8 unites Multi span polyethylene houses is 20264 m sq. which is the minimum accepted feasible area. The intended crops and their corresponding planting areas are :-Roses 10132m, Carnation 2533m, Gerbera 2533m, Gypsophilas 2533m, Lilium 2533m and Gladiolus 21000m as outdoor (open area).
The projects have its own infrastructure of services and necessary back-ups as well as post harvest treatments and cool storage facility.
The total investment is 1.5 million USD. Where prices range from 340 to 1700 USD/1000 flower.
Therefore, we find the IRR for projects rang from 25 to 32.