Economic Analysis:

Gross Margin Analysis for Greenhouse Tomatoes:

Size – 15M X 7M, Period – 1 season

a). Green House Construction Cost (Temporary Structure)

S NO. ITEMS PROCURED QUANTITY UNITS UNIT COST

KSH

TOTAL COST KSH SUB. TOTAL KSH.
A Framework Construction materials
Side Posts 12 4m 250 3,000
2. Midpost 6 5.5m 350 2,100
3. Trusses 22 6m 150 3,300
4. Purlines 9 6m 150 1,350
5. Wallplate 30 6m 150 4,500
6. Wire supporters 6 6m 150 9,000
7. Side supporters 14 6m 150 2,100
8. Doorshade posts 5 2.8 150 750
9. Polythene fasteners 60 3m 30 1,800
10. Nails 30 Kgs 150 4,500
11. Wire smooth/barbed g 12-14 1 roll 5,000 5,000
12. Hoop iron 10 Kgs 120 1,200
Sub total 38,600
B Polythene papers g 1000 uv treated
a. Wider roof 16×6 m 96m2 100 9,600
2. Narrower roof 16x5M 80m2 100 8,000
3. Gables 9x6m 54m2 100 5,400
4. Sides 48×4 m 192m2 100 19,200
a. Door shade 4x7m 28m2 100 2,800
5. Sub total 450m2 45,000
6. Planting media
7. Manure 1×7 tons lorry 1,000 7,000
a. Sand 1×7 tons lorry 10,000 10,000
b. Charcoal dust 1×7 tons lorry 3,000 3,000
c. Saw dust 1×7 tons lorry 3,000 3,000
8. Sub total 23,000
a. Black polythene sheet 65m 2m 100 6,500
b. Net 75m 1m 150 11,250
c. Drip irrigation kit 20,000
d. Nursery boxes/trays (100x45x10) 2 1 500 1,000
e. Crates 2 600 1,200
9. Sub total 39,950
a. Construction and excavation 10,000
b. Mixing growing media 15 md md 200 3,000
10. Sub total 13,000
a. Total construction cost 159550 159550 159,550
b. Annual cost = Ksh159,550/5years ( i.e total construction cost per year/season) 31,910 31,910

b). Gross Margin Analysis:

1. SEASON 1ST Season
2. INCOME YIELD PRICE INCOME
Item sold Ksh
3. Tomatoes 6,000 30 180,000
4. Total output 180,000
5. VIARABLE COSTS
6. Items procured Inputs units Price Ksh/Unit Expenditure KsH.
7. DAP 10 Kgs 90 900
8. CA N 10 Kgs 70 700
9. CN 10 Kgs 90 900
10. Foliar feed 2 lts 450 900
11. Seed 5 gms(1000 seed) 600 3,000
12. Synthetic string 4 Kgs 500 2,000
13. Curative Fungicide 1Kg 1,800 1,800
14. Preventive Fungicide 1Kg 1,200 1,200
15. Systemic 1Kg 1,800 1,800
16. Contact 1Kg 1,200 1,200
17. Management labour 90 Mds 200 18,000
18.

TOTAL VARIABLE COSTS

32,400

19.

GROSS MARGING = TOTAL OUTPUT – VARIABLE COSTS=120,000-34,000

147,600

20.

NET PROFIT = G M – ANNUAL CONSTRUCTION COSTS = 147,600- 31,910

115,690

21. Net profit /m2 Ksh   115,690/105m2 =1,102 1,102
22. Net profit /acre = 4,047m2 x ksh. 1102/ m2 4,459,794