We respond to the requests of our numerous readers in Ghana and across the continent. Their request specifically is on how much it costs to cultivate 1 hectare of ginger. Also, the yield in bags and the price of a bag. The questions also is that is 160% Return on Investment (ROI) even possible?
We respond very simply by presenting a breakdown cost of all activities and input that one needs to cultivate 1 hectare of ginger.
***1 hectare (ha) = 2.5 acres (ac).
Moreover, we compare the costs for 2 methods of ginger cultivation.
- The conventional method of ginger production where you slash, burn and plough.
- The conservation method (no-till) where do not burn after land clearing nor plough. Read more about Conservation agriculture.
Let us go straight to the figures. Amounts are in Ghana Cedis and US Dollars.
Read more on how to produce ginger.
Rate (01 March 2021) – Source: OANDA
1USD = GHS 5.73771
Cost for 1-hectare Ginger Cultivation using the Conventional Method
| ITEM | QUANTITY | UNIT COST | TOTAL COST (GHS) |
TOTAL COST (USD) |
|
|---|---|---|---|---|---|
| 1 | MATERIALS | ||||
| 1.1 | Land | 2.5 | 150.00 | 375.00 | 65.36 |
| 1.2 | Ginger planting materials | 37.5 | 300.00 | 11,250.00 | 1,960.71 |
| 1.3 | Manure | 250.0 | 7.00 | 1,750.00 | 305.00 |
| 1.4 | Weedicide | 6.0 | 18.00 | 108.00 | 18.82 |
| Sub total -Materials | 13,483.00 | 2,349.89 | |||
| 2 | LABOUR | ||||
| 2.1 | Land preparation | 2.5 | 350.00 | 875.00 | 152.50 |
| 2.2 | Weedicide application | 6.0 | 20.00 | 120.00 | 20.91 |
| 2.3 | Ploughing | 2.5 | 1,000.00 | 2,500.00 | 435.71 |
| 2.4 | Planting | 250.0 | 30.00 | 7,500.00 | 1,307.14 |
| 2.5 | Weed control (Manual) | 30.0 | 35.00 | 1,050.00 | 183.00 |
| 2.6 | Harvesting | 42.0 | 35.00 | 1,470.00 | 56.54 |
| 2.7 | Bagging | 100.0 | 8.00 | 800.00 | 139.43 |
| Sub total-Labour | 14,315.00 | 2,494.90 | |||
| TOTAL | 27,798.00 | 4,844.79 |
Cost of 1-hectare Ginger Cultivation using the No-till (Conservation) method.
| ITEM | QUANTITY | UNIT COST | TOTAL COST (GHS) |
TOTAL COST (USD) |
|
|---|---|---|---|---|---|
| 1 | MATERIALS | ||||
| 1.1 | Land | 2.5 | 150.00 | 375.00 | 65.36 |
| 1.2 | Ginger planting materials | 37.5 | 300.00 | 11,250.00 | 1,960.71 |
| 1.3 | Manure | 200.0 | 7.00 | 1,400.00 | 244.00 |
| 1.4 | Weedicide | 2.0 | 18.00 | 36.00 | 6.27 |
| Sub total -Materials | 13,061.00 | 2,276.34 | |||
| 2 | LABOUR | ||||
| 2.1 | Land preparation | 2.5 | 150.00 | 375.00 | 65.36 |
| 2.2 | Weedicide application | 2.0 | 20.00 | 40.00 | 6.97 |
| 2.3 | Ploughing | 2.5 | 0.00 | – | – |
| 2.4 | Planting | 250.0 | 35.00 | 8,750.00 | 1,525.00 |
| 2.5 | Weed control (Manual) | 10.0 | 35.00 | 350.00 | 61.00 |
| 2.6 | Harvesting | 42.0 | 35.00 | 1,470.00 | 56.54 |
| 2.7 | Bagging | 100.0 | 8.00 | 800.00 | 139.43 |
| Sub total-Labour | 11,785.00 | 2,053.96 | |||
| TOTAL | 24,846.00 | 4,330.30 |
Comparing Costs Between No-till and Conventional Methods of Ginger Cultivation.
Revenue from production
Average yield of ginger per hectare (ha) = 12.5 tons =12500 kg
No. of bags (50kg) = 12500/50 kg =250 bags
Farm gate price for 50 kg bag = GHC250.00 (average for 2021)
Revenue = 250 bags x Ghc250 = GHC62,500.00 ($10,892.85)
| Conventional | No-till | |
|---|---|---|
| Net Income (GHS) | 34,702.00 | 37,654.00 |
| Net Income (USD) | 6,048.06 | 6562.55 |
Note: This budget does not include fixed cost and overheads.
