Assessment of Profitability in Sugarcane Production Using Cost Benefit Analysis and Net Present Value Techniques in Kenya

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Wawire, N.W.O
Ouma, V.O
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Data on input levels, costs and output have been limited hence no accurate information on profitability of sugarcane farming in Kenya. This study sought to determine input levels, costs and profitability of sugarcane farming in Kenya using a model farm-Kibos and farmers practice in Nyando zone. The study was carried out at the Kenya Sugar Research Foundation (KESREF) farm Kibos from 2004-2009. Two varieties (N14 and Ken 82-216) were planted on a one hectare plot and managed through research recommendations. Input and output data (input levels, costs, output and prices on three harvests (plant crop and two ratoons) were recorded on pre-designed datasheet. Comparative data on the Nyando zone (farmers practice) was sourced from the KESREF sugarcane database. Economic techniques were used in and the performance of economic analysis: the Cost benefit analysis (CBA) or the benefit cost ratios (B/C) and net present value (NPV) in the determination of profitability of sugarcane farming.
East African Agricultural And Forestry Journal, 79 (4), pp. 243-250