Productivity and Profitability Analysis in Coastal Kenya
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
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