Full Length Research
Cost Revenue Analysis of Tomato Production in Talensi
Nabdam District of Upper East Region, Ghana.
Farida Abubakari and Fariya Abubakari
Department of Agricultural economics, Agribusiness and Extension, Kwame Nkrumah
University of Science and Technology, Kumasi, Ghana
Corresponding Author email address: uniquefarida@live.com
Accepted 7 April 2015
The study focused on the profitability of tomato production in the Talensi Nabdam District of Upper
East Region of Ghana. A total of 100 respondents were interviewed using questionnaire. Data was
analyzed using descriptive statistics and the income statement. The arithmetic mean was used to find
the average cost of production, output per acre and return per acre. Tomato production was found to be
profitable with a profit of GH¢ 284.83 per hectare, output of 1,716kg per hectare, gross income of
GH¢1,304.16 per hectare and return per Cedi invested was found to be 0.279 Pesewa. Labor constituted
62% of the total variable cost and this shows the high intensity of labor in tomato production.
Keywords: Cost; Revenue; Tomato; Production; Profitability.
INTRODUCTION
Despite all efforts by Trade and Investment Program for
Competitive Export Economy, research stations such as
Savanna Agricultural Research Institute and Government
among others to come out with technologies to help
boost tomato industry, production is still below local
consumption. This could be attributed to problems
including lack of reliable market for their produce, high
cost of inputs, price fluctuations, and unavailable storage
and processing facilities, high credit and irrigation costs
(Farida & Fariya, 2014).
Farida and Fariya, 2014 also reported that, credit
allows farmers to be able to allocate resources efficiently
to increase their production. Institutions like Agricultural
Development Bank (A.D.B), Ghana Commercial Bank
(G.C.B) and Barclays Bank made heavy investment into
the tomato industry which helped increase farm size and
also encouraged farmers to adopt new technologies such
as tractor use, improved seeds and the use of chemical
fertilizer to help increase production (MOFA, 2008). Most
tomato farmers especially in the northern region where a
greater percentage of tomato is produced are small scale
farmers who because of the problem of collateral find it
difficult to obtain loans from the credit institutions. Small
scale farmers therefore depend on their own meager
resource which in most cases is not adequate to
purchase enough inputs for a higher output (Farida &
Fariya, 2014).
Sailaja et al. (1998) indicates that vegetable production
is profitable despite major constraints such as the non-
availability of quality seed, inadequate credit and
marketing facilities; shortage of water; and inefficiency in
postharvest handling.
Academic Research Journal of
Agricultural Science and
Research
Vol. 3(7), pp. 184-187, July 2015
DOI: 10.14662/ARJASR2015.014
Copy©right 2015
Author(s) retain the copyright of this article
ISSN: 2360-7874
http://www.academicresearchjournals.org/ARJASR/Index.htm