Cost-Benefit Analysis of Small-Scale Onion and Tomato Farming in Melkassa Area:

Central Rift Valley of Ethiopia

抄録

Vegetable production is one of small-scale farmer transforming strategies from subsistence farming to a business enterprise in Ethiopia. Nonetheless, the focus of research and extension placed on boosting production without due consideration on the costs and returns. This paper takes a step forward in examining the cost and benefit of small-scale onion and tomato farming using data obtained from randomly sampled households. Net returns were employed to determine the cost-benefit of vegetable farming. Likewise, sensitivity analysis was introduced to account for any major fluctuations and risks envisaged. Small-scale vegetable farming was found a profitable enterprise and the local average yield is well above the national average yield. Returns from onion was more sensitive to yield variation and an average marginal yield increase by 5-10% would compensate for price fluctuations of up to 50% drop from a normal season price. Onion fetched more net income and the profit margins of both crops were high. Onion production is more labor intensive and this shows high potential for consistently supporting farm household and rural labor while tomato production tends to be chemical intensive. Research and extension services need to provide information on the cost-benefits hand in hand with the promotion of yield increase. The findings have a far-reaching implication that onion and tomato farming can be sustainably pursued with the available open pollinated varieties and improved management practices without hastily resorting to high yielding and imported inputs such as hybrid seeds.