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Cost Benefit Analysis for Tomato Production in Uganda

Introduction:

  • The analysis looks at the costs and benefits of tomato production on 1 acre of land in Uganda
  • It covers costs for land rental, land preparation, seedlings, fertilizers, pest and disease management, harvesting, packaging and transportation, market search and other expenses
  • It also estimates revenue and calculates the net profit margin

Production Costs:

  • Land rent per season per acre: 120,000 Ugx
  • Land clearing: 100,000 Ugx
  • Ploughing and harrowing using a tractor: 120,000 Ugx each
  • Determinate Hybrid Tomato seed: 500,000 Ugx
  • Nursery bed management: 100,000 Ugx
  • Ridging: 120,000 Ugx
  • Transplanting: 150,000 Ugx
  • Basal Fertilizer: 150,000 Ugx
  • Weeding: 240,000 Ugx
  • Fungicides: 400,000 Ugx
  • Top dressing Fertilizer: 400,000 Ugx
  • Insecticides: 130,000 Ugx
  • Mulching: 80,000 Ugx
  • Staking: 640,000 Ugx
  • Harvesting: 200,000 Ugx
  • Transport from Garden to Store: 200,000 Ugx
  • Market search: 250,000 Ugx
  • Packaging Equipment: 600,000 Ugx
  • Transport to the Market: 300,000 Ugx
  • Salary: 600,000 Ugx
  • Expert Farm Visits: 200,000 Ugx

Total Production and Marketing Costs: 5,720,000 Ugx

Yield and Revenue:

  • Total number of tomato plants in an acre is 11,000
  • 20% loss of plants due to abiotic and biotic conditions:

It is important to note that the costs and yields listed in this analysis are estimates and can vary depending on a number of factors such as weather conditions, pest and disease management, and market prices. Additionally, it is important to consider the cost of labor, as well as the cost of any additional inputs or equipment that may be needed.

It is also worth noting that the net profit margin of 68% is a positive indication of the potential profitability of tomato production in Uganda. However, it is important to keep in mind that this is a rough estimate and may not be representative of the actual profit margin for a specific farm or operation.

In conclusion, tomato production in Uganda can be a profitable venture, but it is important to carefully consider all costs and potential risks before investing in a tomato farm. The use of Cost Benefit Analysis can help farmers and agribusinesses make informed decisions about their operations and identify areas where they can improve efficiency and increase profitability.

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18 Responses

  1. 1. Hello, thanks for your elaborate analysis on CBA of tomato per acre. It will be useful to have an estimated production per plant either in Kgs or output in crates per acre.
    2. An estimated price per box of tomato.

    Thanks OADG Long live.

    1. With a Plant population of ~10,000 plants per acre, we expect an average yield of 30 fruits per plant (~3kg). This gives a yield of 30tons per acre. Market prices range from 1,000 to 3,000 per Kg. Taking the lower limit, a farmer can earn 30,000,000 UGX from an acre.

  2. Thanks for this analysis, its surely helpful.
    However I would wish to see your recommendations in terms of the variety selection, fertilizers, fungicides/pesticides, their estimated quantities required and how you have arrived at those monetary figures.
    More so, the revenue details are not complete.
    Thanks for your good work OADG and we hope for more positive impact in our country.

    1. Hello,
      Seed-Hybrid Varieties with bacterial wilt tolerance prefferred. Seed Rate is 50g per acre. Ansal F1, Star 9065 F1, Nouvelle F1, New Fortune Maker F1, Padma F1, Anja F1, Safa F1, Bawito F1, Bingwa (Nirvana) F1. (Other Hybrids with no tolerance to wilt: Nuru F1, Asila F1, Tandi F1, Anna F1). Cost Varies with Variety.

      Fertilizer for planting-DAP 18.46.0/NPK 17.17.17/TSP 0.60.0/Yaramilla Power-50kgs. Fertilizer should be rich in Phosphorus, important for Root Development.

      Vegetative Stage Fertilizer-Encourage Leaf, steam growth. Use Fertilizers rich in Nitrogen. CAN, NPK 17.17.17, Urea. Supplement with foliar options such as Easy Grow Vegetative, Gatit 19.19.19, Crop Champion, Di Grow Green. Follow the 4Rs.

      Flower and fruiting Stage Fertilizer-Enhance flowering and fruiting. Use fertilizers rich in Potassium. MoP, NPK 17.17.17. Supplement with foliar options such as Easy Grow Fruit and Flower, Multi-NPK, Gatit Fruit and Flower and Di Grow Red. Follow the 4Rs

      Preventive Fungicide-Mancozeb, Chlorothalonil, Copper Oxychloride. Avoid dampness in the field. Please observe PHIs.

      Curative Fungicide-Mancozeb and Metalaxyl, Tebuconazole and Trifloxystrobin, Cymoxanil and Mancozeb, Thiophenate Methyl, Carbendazim. Avoid Dampness in the field. Please observe PHIs.

      Insect Management: Use at least two insecticides to avoid build up of resistance. Abamectin, Nimbecidine (Azardirachtin), Dimethoate, Imidacloprid, Emamectin benzoate, Lambda Cyhalothrin and Thiamethoxam etc. Please observe PHIs.

    1. True
      And it is important to note that this depends on the variety you are growing.
      It is a good thing to consider the minimum or average yields when do doing these kinds of analysis.

  3. Thanks for this CBA for growing tomatoes in one acre. It looks to be realistic.
    Could be able to also give the CBA of carrots in acre ?

    1. We can work on it for you. Please look out for our next post or send for us a WhatsApp message on +256773628770.

    1. With a Plant population of ~10,000 plants per acre, we expect an average yield of 30 fruits per plant (~3kg). This gives a yield of 30tons per acre. Market prices range from 1,000 to 3,000 per Kg. Taking the lower limit, a farmer can earn 30,000,000 UGX from an acre.

  4. I want to know how much seeds I can use in a half acre if I select Ansal F1 and how much does it cost in the shop

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