COST OF PRODUCTION MODEL BANANA PRODUCTION REQUIREMENTS 1 HA

Requirements Units Rate/ha Cost/unit

Tractor Costs
Ploughing l 20 1.1
Discing l 15 1.3
Tractor hiring (ploughing) $ 75 1
Tractor hiring (discing) $ 75 1
Total Tractor Costs

Seed
Grafted trees (dwarf carvendish) seedlings 2,000.00 1
Insecticides
Nemacur kg 5 10
malathion/parathion L 2 25
lebaycid L 5 20
Dithane M45 L 4 10
Lambda L 5 7
Copper oxychloride Kg 4 5
Ridomil Gold kg 2 50
Total Insectides Costs
Fertiliser
Compound S/B kg 10 by 50 kg 30
MOP (5 splits) KG 10by 50 kg 35
SSP (before establishment) kg 6 by 50 bags 35
SSP yearly in Aug/Sept kg 4 by 50 kg 35
Ammonium Nitrate (AN) 34.5% N kg 8 by 50 kg bags 25
Total Fertiliser Costs
Labour
Labour for all operations ld 400 3
Transport Costs
Fertilisers & Crop Chemicals mt
plastic crates 300 3
plastic pockets 800 0.35
Marketing trips 6 50
Total Transport Costs
238.57
Contigency @ 4% of subtotal
Total Variable Costs (TVC) 5963.5

Projected Yield Per Hectare kgs 40000 kg

Projected Selling Price $/kg 0.5
Anticipated Gross Income (GI) $ 20,000.00
Gross Margin/Gross Profit (GI minus TVC) 20000- 6201.57.57 = 13798.43

return per dollar variable = 3.22 showing that fa

or gross profit % =68%
IREMENTS 1 HA

Cost/ha

22
16.5
75
75
188.5

1,500.00

50
50
100
40
35
20
100
395.00

300.00
350.00
210.00
140.00
200.00
1,200.00

1,200.00

900
280
300
660
le = 3.22 showing that farmer will be getting US$3.22 from each dollar invested.