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Productivity and Profitability Analysis

Huge yield gaps are persistent for all the crops grown by small scale farmers in the coastal region. Although horticultural production can only be done under irrigation supplementation given the agro ecological condition of the Kenyan coastal region, use of good agricultural practices and increased use of yield enhancing inputs would earn farmers huge profits especially for tomatoes, sweet pepper, ABE chilli, cassava, kales and water melon.

Crop

Productivity (Kg/Acre)

Current

Potential

Yield gap

Maize

360

2,250

1,890

Cow Peas

53

720

667

Cassava

400

25,000

21,000

Green Grams

45

540

495

Chilli

639

5,000

4,361

Sorghum

117

900

783

Cashew Nuts

60

2,000

1,940

Millet

140

450

310

Tomato (under semi-irrigation)

1,400

16,000

14,600

Coconuts

200

3,000

2,800

Kales (under semi-irrigation)

2,500

6,000

3,500

Water Mellon (under semi-irrigation )

1,500

4,250

2,750

Banana (requires a lot of water)

700

16,000

15,300

Sweet Potato

200

10,000

9,800

Pineapple (irrigation supplementation)

1,600

15,000

13,400

Pawpaw (planted on borders)

5,000

15,000

10,000

Sweet pepper (under semi-irrigation)

1,700

5,000

3,300

 

Crop production is driven by various cost factors and whereas high priced crops are always attractive to farmers, the cost of production and return on investment coupled with other external factors such as weather conditions play a big role in enterprise prioritization. The net revenue, input cost and labour cost are key in determining viable enterprises for smallholder farmers rather than the absolute prices offered for the commodity.

Table: A summary of gross margin analysis per acre for various value chains grown in Kilifi County

Crop/item

Maize

Cassava

Green grams

Cowpeas

Sweet potato

Tomatoes

Pineapples

Sorghum

Input cost(Ksh)

5,730

28,000

6,095

6,050

17,100

15,850

12,250

6,090

Labour cost (Ksh)

17,000

19,450

13,825

13,780

22,050

14,900

57,500

8,600

Total production cost (Ksh)

22,730

47,450

19,920

19,830

39,150

30,750

69,750

14,690

Output (Kg)

1,710

10,000

600

600

9,000

6,000

7,000

1,080

Price(Ksh/Kg)

28

13

55

60

10

30

20

55

Gross revenue(Ksh)

47,500

130,000

33,000

36,000

90,000

180,000

140,000

55,000

Net revenue(Ksh)

24,770

82,550

13,080

16,170

50,850

149,250

70,250

40,310

Input cost share

25%

59%

31%

31%

44%

52%

66%

41%

Labour cost share

75%

41%

70%

69%

56%

48%

34%

59%

Source: Pwani Value Chain Analysis, Farm Concern International, FCI, 2016

 

Table: A summary of gross margin analysis per acre for different value chains grown in Kilifi.

Crop/item

Sweet pepper

Kales

Water melon

Cashew nut

Mango

Coconut

Chilli

Input cost(Ksh)

10,818

29,670

22,040

12,300

3,000

4,700

27,500

Labor cost (Ksh)

35,900

47,500

38,500

10,000

12,000

12,000

70,600

Total production cost (Ksh)

46,718

77,170

60,540

22,300

15,000

16,700

98,100

Output (Kg)

4,000

6,000

20,000

1,300

7,000

9,800

3,500

Price(Ksh/Kg)

35

35

15

35

15

10

60

Gross revenue(Ksh)

140,000

210,000

300,000

45,500

105,000

98,000

210,000

Net revenue(Ksh)

93,283

132,830

239,460

23,200

90,000

81,300

111,900

Input cost share

23%

38%

36%

55%

20%

28%

28%

Labour cost share

77%

62%

64%

45%

80%

72%

72%

Source: Pwani Value Chain Analysis, Farm Concern International, FCI, 2016

Category: Market Research
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FCI VISION : To have commercialized smallholder communities with increased incomes for improved, stabilized & sustainable livelihoods in Africa and beyond

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