Cost Benefit analysis of Emulsion meat products

The present study was carried out to estimate the economics of emulsion meat products on different categories of processing plants. The primary data on input use and output yield of products were taken from studies of NRCM and was analysed using cost benefit analysis, feasibility measures. The results revealed that average cost of production of emulsion products was Rs. 389.42 with variable costs of Rs. 319.06 and fixed costs of Rs.70.35 per kg. The results showed that the emulsion processing unit is feasible and viable with NPV of 67.1 lakhs, IRR of 56%, BC ratio of 1.97pay back period was estimated as 2.52 years with annual returns of Rs. 23.7 lakhs. Debt service coverage ratio of 4.17 indicated that the risk is less in emulsion meat processing. Economies of scale is evident for all the products from all perspectives like production costs, profits, discounting measures. Break even analysis showed that emulsion products break even at 63.02% and 37.81% of full and utilized capacity respectively with 36.98% of margin of safety.