cost-profit analysis, farming Tomato in one acre


We all farm to make money. At Farmworx Kenya, our main goal is to empower farmers for them to make money from their farming activities. Most of our clients have been requesting the cost analysis for various crops.For this article we take a look on tomato farming.Its also good to make it clear that in farming everything is possible i.e a 100% loss or profit

#ITEM/TASKITEM/TASKQUANTITYCOST (Kshs.)TOTAL COST (Kshs.)
1.LeasingLand1 Acre/3 Seasons10,000.00/33,333.33
2.Inputs    
 FertilizerD.A.P200kg70.0014,000.00
  N.P.K200kg70.0014,000.00
  C.A.N200kg70.0014,000.00
 ChemicalsScore1Litre 920.00
  Redomil Gold1kg 900.00
  Thunder1Litre 6,000.00
  Dynamic1Litre     1,200.00
  Calmax5Litres 3,500.00
  Omex2.5Litres 3,000.00
 Farm Yard ManureManure8 Tones600.004,800.00
  Transport 5,000.005,000.00
 StakesStakes11,0000 Pcs2.0022,000.00
  Transport 4,000.004,000.00
3.Capital Investment    
 2” High Pressure Pump1pc15,000.0015,000.00
 2” Pvc Pipes + Connections20pcs1,500.0030,000.00
 Harvesting Crates6pcs600.003,600.00
4.Labor         
 Ploughing6,000.006,000.00
 Planting6,000.006,000.00
 Weeding2 Times5,000.0010,000.00
 Fertilizer Application2,000.002,000.00
 Chemical Application5,000.005,000.00
 Staking And Pruning4,000.004,000.00
 Irrigation10,000.0010,000.00
5.Fuel10,000.0010,000.00
6.Transport10,000.0010,000.00
7.Consultancy45,000.0045,000.00
7.Other Costs15,000.0015,000.00
TOTAL COST
VARIANCE  
= 268,253.33
= ±50,000.00

Points to note

It’s good to note that the cost varies in different regions as indicated by the VARIANCE figure.

Raed also: Farming Tomatoes For Optimum Yields

The figure can be MORE THAN OR EVEN LESS THAN the figure. This is due to;

  • The capital investments are there or not?
  • Is land leased or not?
  • Source of water and are there pandemics like hailstones ,flooding or even landslides
  • Availability of manure
  • Are seedlings raised at the farm or outsourced?

Profit;

To calculate profit we take the worst case scenario on dry and rainy seasons

  • Each plant bears maximum 4kg
  • The maximum farm gate price is Kshs 10.00 per Kg

Now;

                                      Total Harvest =11,000 Plants * 4kg = 44,000 Kgs

Revenue = 44,000kgs *Kshs 10.00 = Kshs 440,000.00

                                       Profit= Total Revenue-Total Cost

                            =Kshs 440,000.00- Kshs 268,253.33= Kshs 181,746.67  ±50,000.00

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