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ISSN: 2384-6151 |
International
Journal of Economic and Business Management |
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Vol. 8(5), pp. 41-46, September, 2020. ISSN: 2384-6151 DOI: 10.14662/IJEBM2020.080
Full Length Research
Accounting Costs: The Case of Mid-Altitude Smallholder Maize (Zea mays L.) Production as a source of income in Arsi Negele District
Guta Bukero
Ethiopian Institute of Agricultural Research, Wondo Genet Agricultural Research Center, P.O.Box, 198, Shashamene, Ethiopia. Correspondent Author’s email: ggutabukero@gmail.com
Accepted 7 September 2020
In Ethiopia, efforts for achieving broad-based, accelerated and sustained economic growth particularly in agriculture are geared to sustainably increase the productivity of the sector by improving the role of farmers and attain better food security and incomes, while meeting overall goals of the Ethiopian Growth Transformation Plan. For this study, 50 smallholder producers were contacted through a structured questionnaire to collect detail information on the cost of input used and its grain yield value and an estimated value of maize crop residue. Descriptive statistics and cost-benefit analysis technique was used to identify farmers' net return and cost benefit ratio. The results showed that the smallholder cultivation of maize was profitable in the study district. The smallholder maize production has generated a net benefit of 9231.9 ETB per hectare with the variable production costs of 13610.2 ETB per hectare with the BCR of 1.7. Although smallholders’ maize production is profitable, the yield is by far lower than the national average and implying that there is a room to increase yield. So efforts should be made to facilitate the availability of improved seed and fertilizers at a good price for the smallholder farmers, and capacity building for the implementation of existing technologies in the fields.
Key words: Maize, Gross return, Net return, Cost benefit ratio (BCR)
Cite This Article As:
Guta B (2020). Accounting Costs: The Case of Mid-Altitude Smallholder
Maize (Zea mays L.) Production as a source of income in Arsi Negele
District. Inter. J. Econ. Bus. Manage. 8(5): 41-46 |
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