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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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One Response

  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.

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