Agribusiness is farming at a low cost with an aim of making a profit. You have to work within a set budget to avoid unnecessary costs. Budgeting also helps in determining the minimum a farmer can sell to make a profit. However, it is good to note that cabbages usually have good prices in dry seasons when other indigenous vegetables are scarce.
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We have laid the costs in a simple manner for easy understanding by every farmer.
An acre of land can hold up to 14,000 seedlings with a spacing of 60cm by 45cm. Given that the cost of ploughing land is KES 4500, the cost of seedlings is KES 28,000, the cost of fertilizers and manure at KES 33, 000, and the cost of chemicals at KES 25,000, labour at KES 50,000 while water, fuel and electricity account for KES 30,000. Other costs that may arise in the course of production were allocated KES 30,000.
This brings the total cost of production to KES 200,500. Eliminating 10% loss which is 1400 seedlings, thus the farmer will harvest 13600 heads at KES 14.74 farm gate price per head.
For a farmer therefore to make a profit he must sell his cabbages above KES 14.74 and reduce the 10% loss. He must also produce big and heavy cabbages of good quality and appealing to farmers. The cost may increase if the farmer intends to deliver his produce to market directly, a high production loss and cost increased cost labour and fuel.
