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Making 65% Returns on Tomato Production Even at The Worst Market Prices, Budget and Tips

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Tomato production is most lucrative during the dry seasons. Those are the seasons when most farmers do not produce. With effective irrigation and disease control, your produce is likely to meet the best prices on the market. However, farmers can still make about 65% returns on tomato production during the main seasons when there is likely to be abundance.

Today, we look at how a farmer can still make it in the rainy seasons. First, let us consider the budget and income from production.

Exchange rate source: Oanda

Amount in Ghana Cedis and US Dollars.


Read Also: Ultimate Guide to Profitable Tomato Production


Operational Budget/Ha/Yr (2021)

ActivityCost(Ghc)Cost ($)
Land rent300.0050.24
Land preparation600.00100.48
Seeds(100g x 4)240.0040.19
Fertilizer & manure3,630.00607.88
Agrochemical100.0016.75
Labour3,500.00586.11
Estimated total cost8,370.001,401.63


Yield

Yield varies greatly with cultivar and adherence to good agricultural practices. Yields of up to 35-40 tons/ha are achievable.

Market requirement

The fruit should be firm and free from blemishes or any damage.


Read also: 7 Tips on Profitable Farming with Good Records Keeping


Returns on Tomato Production

Average yield/ha = 40 tons =40,000 kg

Percentage loss of 10%

Available yield = 90/100×40,000 = 36,000kg

Packaging in 36,000kg/52kg = 692.3 boxes

Farm gate price/52 kg box = Ghc20

Income = 692 boxes x Ghc20 = Ghc13,840

Net income = Ghc13,840-Ghc8,370

                     = Ghc5,470.00 / $916.00

Note: This budget does not include fixed costs and overheads. Farmgate prices are kept at a minimum.

Tips on making high profits in the main seasons of tomato production

  1. Find a good land at a good location. Land with no history of tomato diseases. That can reduce the cost of production. A good land and fertile land can also reduce cost on fertilizer.
  2. Adopt no-till agriculture. In the main season one major tip is to reduce cost of production as much as possible. No-till will help reduce cost of land preparation and weed control.
  3. Know and keep contact with your buyers. You can harvest at the right time when you have someone to buy them.
  4. Harvest early. This goes hand in hand with point 3.
  5. Use IPM to control pest. It is very economical and sustainable.

Reference:

http://mofa.gov.gh

K. Afrane Okese
K. Afrane Okese
Experience Agriculturist, working with farmers, building and managing farms for over a decade. I love to share and learn from farmers, experts and the experienced in the field of agriculture.
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