The gross margin analysis for Brachiaria grass production in Kenya is presented below (Table 3). The production cost is high in the first years largely due to the costs for seeds, land preparation, planting, weeding and application of phosphatic fertilizer. The profits in the first year is USD 1384/ha and it increased to USD 1899 /ha in the subsequent years.
Table 3: Gross margin analysis for Brachiaria grass production per hectare (in United State Dollars)
|
Parameter |
Year 1 |
Year 2 |
Year 3 |
|
|
Inputs cost Fertilizer TSP (200kg) |
120 |
|||
|
Fertilizer CAN |
80 |
160 |
160 |
|
|
Labor cost Ploughing |
75 |
- |
- |
|
|
Harrowing |
50 |
- |
- |
|
|
Opening furrows |
50 |
- |
- |
|
|
Planting |
100 |
- |
- |
|
|
Weeding (twice) |
200 |
- |
- |
|
|
CAN application |
16 |
16 |
16 |
|
|
Harvesting |
125 |
125 |
125 |
|
|
Baling cost |
300 |
300 |
300 |
|
|
Total production cost |
1116 |
601 |
601 |
|
|
Products Yield (kg/ha) |
15000 |
15000 |
15000 |
|
|
No. of bales (15 kg/bale) |
1000 |
1000 |
1000 |
|
|
Total sale (2.5/bale) |
2500 |
2500 |
2500 |
|
|
Profit |
1,384 |
1,899 |
1,899 |
Note: The cost of seed was discounted in this calculation as seed price varies greatly. Labor cost is US $ 4/day, and KSh. 100 = US $ 1.00