Monthly Archives: June 2009

Lamu District Farmers to make Money from ABE Chillies Production.

Lamu district has a high potential for chili production. Owing to the expected high returns, the chilies will be among the leading cash crops in the district.

The market is guaranteed since buyers, such as Equator products Limited, are already entering into contract farming with willing farmers.

Currently, Equator products are offering a guaranteed price of Ksh 60 per kilo of fresh chilies to contracted farmers.

From half an acre, a farmer is set to make a profit of about Ksh 140,000 from an investment cost of Ksh 85,000.

GROSS MARGIN ANALYSIS FOR ABE CHILES (FARMER GIVEN COSTS): 0.5 ACRE

Assumptions

  • Water source: Rain fed

  • Area under production: 0.5acre

  • Spacing: 1X1 M

  • Plant population: 2000 plants

  • Yields per plant: 2-5Kg fresh chili per year.

  • Yield losses: 2-5%

  • Price per Kg: Ksh 60 (Fresh chilies)

ITEM

COST( KSH)

Mpeketoni

Witu

Hindi

Mean

Production costs

Nursery stage
seeds

100

100

100

100

Bed preparation

200

200

250

217

Manure/ and DAP

100

120

120

113

Pesticides

100

100

100

100

watering (labour inclusive)

750

1380

1680

1270

Field stage
Land preparation

1000

1800

1450

1417

Digging holes

600

400

250

417

DAP 20kg

1600

1600

1600

1600

Manure

5000

2000

4000

3667

Transplanting labour

600

400

750

583

watering

1000

1450

1850

1433

Top dressing CAN

2000

2000

2500

2167

Labour t/dressing

350

500

1250

700

Pesticides

2500

3000

3000

2833

Pesticides labour

1800

2400

2400

2200

3 Weddings

1200

3200

2000

2133

Harvesting 15/ Kg

60000

60000

68000

62667

Transport costs

4000

5200

1350

3517

Total costs

82600

85550

92300

86817

Total revenue (3800Kg @ 60Ksh)

228000

228000

228000

228000

Profit

145400

142450

135700

141183

Profit Margin (%)

64

62

60

62

{(Profit/income)*100}
Net profit per Kg sold (KSh)

38

37

36

37

  • The higher costs were taken while the lower production/yields (2kg per plant) were considered.

  • In practice, most of the labour is provided by family; hence the profit margin is even higher.