Cost Benefit Analysis for Tomato Production in Uganda

Cost Benefit Analysis for Tomato Production

Land size: 1 acre (4,000 Sqm)

Production Costs in UGX
1. Land rent per season per acre: 120,000
2. Land clearing; trees and tall grass: 100,000Ugx
3. Ploughing, using a tractor: can be higher or lower when you hire locals: 120,000 UGX
4. Harrowing: Using a tractor: can be higher or lower when you hire locals: 120,000 UGX
5. Determinate Hybrid Tomato seed: Examples include New Fortune Maker F1, Padma 108 F1, Nouvelle F1, Kilele F1: Seed rate varies with variety and so is the cost: Range is 400,000 to 950,000 UGX. For this analysis, we will use 500,000
6. Nursery Bed management costs: planting media, water, shade, pest and disease management). Costs are for a ground nursery: 100,000 UGX
7. Ridging: Making raised Beds: Helps protect your crops from water logging and makes management a lot more easier: 120,000 Ugx
8. Transplanting: making holes, fertilizer application, planting, watering, mulching: 150,000 Ugx
9. Basal Fertilizer: for planting: can be DAP, NPK or YaraMila Power: 50kg: 150,000
10. Weeding: at least two times depending on the field: 240,000 Ugx
11. Fungicides: these can be preventive, curative or both. Costs are higher during the wet season and lower during drier periods: 400,000 Ugx
12. Top dressing Fertilizer: one for vegetative stage such as NPK or CAN and another for flowering and fruiting stage such as MoP or other foliar options: plus application costs: 400,000 Ugx. 
13. Insecticides: Using Integrated pest management principles reduces on the cost on this. But plan for 2 liters including labour for application: 130,000 Ugx
14. Mulching: Grass and labour for application: 80,000 Ugx
15. Staking: Very expensive activity but helps manage a lot of infections and help ensure quality: Poles, staking rope: 640,000 Ugx
16. Harvesting: 20 man days, 10,000 per man day: 200,000 Ugx
17. Transport from Garden to Store: 200,000 Ugx
18. Market search: Market visits, make some calls, have a list of buyers: 250,000 Ugx
19. Packaging Equipment: most common boxes though crates are better: 10 boxes: 600,000 Ugx
20. Transport to the Market: 300,000 Ugx
21. Salary: Farm attendant: 4months, 150,000 per month: 600,000
22. Expert Farm Visits: 4 times: 200,000 Ugx

Total Production and Marketing costs: 5,720,000 Ugx. 


At a spacing of 60cm by 60cm, total number of tomato plants in an acre is 11,000.

20% loss of plants to abiotic and Biotic conditions: 2,200 plants lost. 

Healthy and productive plants: 8,800

With a minimum yield of about 2.5kg per plant, you will get 22,000 Kg per acre 

Total yield in Boxes ( each box weighs about a maximum of 180kgs) : 122 boxes. 

Revenue: Number of boxes multiplied by the minimum price per box of 150,000 Ugx= 18,000,000 Ugx. 

Net Profit: 12,280,000 Ugx

Net Profit Margin: 68%

Analysis by:
Omia Agribusiness Development Group Ltd
Plot 15A, Rhino Camp Road, Arua Uganda
Tel: +256773628770, +256755484331
Email: oadgltd@gmail.com

Published on 2020-08-22