It is always a joy when the farmer is making money from a whole season’s sweat. Just as we always do. Sharing with all you need to be a successful farmer. This time, all the cost components for chilli production. The one-hectare chilli pepper production costs and benefits got us 130% in ROI (Return On Investment).
Why the need to know?
Most of the time, we overlook certain critical expenditures. So, we get stuck along the way, with financing. With something that could have been taken care of if it were captured in the budget.
Then the benefits part. Don’t you think this is also a motivation for those who are scared of the outcome?
Read also: How Much It Costs to Cultivate 1 Hectare of Ginger, The Cost and Benefits
What do you have to do first?
- Find your buyers. This you have to do yourself.
- Follow and adapt all production steps and technologies. You can learn from the detailed Guide to Commercial Chilli Production.
- Then read on to know how much it costs. And be motivated by the returns. The One-Hectare Chilli Pepper Production Costs and Benefits gives all the information.
Chilli pepper production costs and benefits.
This is the Operational Budget/Ha/Yr (Updated 2021). It does not include overheads.
Activity/Input Cost
| ITEM | QUANTITY | UNIT COST | TOTAL (GHC) |
| Land rent | 2.5 | 150.00 | 375.00 |
| Land preparation | 2.5 | 250.00 | 625.00 |
| Seeds | 1 | 820.00 | 820.00 |
| Fertiliser and manure | 1 | 2,580.00 | 2,580.00 |
| Pesticides | 1 | 250.00 | 250.00 |
| Labour | 2.5 | 2,000.00 | 5,000.00 |
| Total estimate | 9,650.00 |
Read also: Importance of Farm Records Keeping
Revenue from 1 ha of chilli production
Average yield/ha = 10 tons =10,000 kg
Percentage loss of 5% Available yield = 95/100×10,000kg = 9,500kg
Packaging in 6 kg box = 9500/6 =1584 boxes
Farm gate price/6 kg box = Ghc14.00
Income = 1584×14 = Ghc 22,167.00
Net income = Ghc22,167.00-Ghc9,650.00 = Ghc 12,526.00
Note: This budget does not include fixed costs or overheads.
Featured image source: The Spruce
