Profit Margins on Maize Production
Maize is the most important cereal crop in Uganda providing over 40% of the calories consumed in both rural and urban areas. The crop has increasingly become a staple food in many parts of the country due to changes in people’s eating habits. Small scale farmers, who constitute the bulk (80%) of the rural poor, also account for the largest share of maize production. It is grown in every part of the country and a direct source of livelihood to over two million households, over 1000 traders/ merchants, and 600 millers.
Increasingly, maize has become a major non-traditional export cash crop particularly benefiting smallholder farmers.
Ecological requirements
- Soils.
Maize requires well-drained soils with a good supply of nutrients and moisture. It cannot withstand even a slight degree of waterlogging and therefore can be killed if it stands in water for a day.
Preferred soil for maize production should also be deep, well-aerated with moderate pH 5.5-6.5, and rich in organic matter.
- Altitude
Maize grows well at all altitude but particular varieties are more suitable for the different altitudes ranging from 0 to 2,900m above sea level. Optimum temperature for maize growth is 30c
Traditional | Low | High | |
LABOR COSTS | |||
Land cle50,337aring | 50,436 | 45,068 | 44,900 |
First ploughing | 51,040 | 51,040 | 50,337 |
Second ploughing | 27,759 | 29,282 | 44,876 |
Herbicide use | 0 | 4,990 | 11,505 |
Digging holes, add fertilizer and planting | 24,738 | 36,076 | 36,567 |
First weeding/spot weeding | 47,008 | 9,456 | 45,106 |
Application of fertilizer | 0 | – | 27,620 |
Second weeding | 0 | 8,333 | 42,541 |
Pesticide application | 0 | 10,955 | 20,278 |
Harvesting | 9,616 | 17,758 | 25,385 |
Transporting to home/store | 8,876 | 15,071 | 23,970 |
Drying | 9,380 | 15,194 | 25,029 |
Shelling | 10,480 | 16,600 | 29,672 |
Clearing, sorting, grading, bagging | 8,112 | 14,752 | 24,953 |
Transporting to market | 0 | – | – |
Total Labor Cost | 247,550 | 314,576 | 452,740 |
COSTS OF INPUTS | |||
Hired land | 0 | 101,711 | 92,861 |
Seed | 0 | 45,006 | 53,569 |
Fertilizers | 0 | – | 175,731 |
Herbicides | 0 | 15,996 | 29,047 |
Inorganic insecticides | 0 | 13,493 | 21,625 |
Bags | 5,726 | 16,509 | 26,852 |
Total Input Cost | 5,726 | 192,715 | 399,686 |
Total Variable Cost (TVC) | 253,276 | 507,291 | 852,425 |
Total Yield (TY) | 400.17 | 1,323 | 2,490 |
Average price (Ug shs/kg) | 718 | 540 | 580 |
Total Revenue (TR) | 209,268 | 760,519 | 1,526,230 |
Gross margin (TR-TVC) | -44,008 | 253,228 | 673,805 |
Benefit-cost ratio (TR/TVC) | 0.82 | 1 | 2 |
Unit cost of production | 827 | 370 | 320 |
Marginal returns on investment | -109.24 | 170 | 260 |
Traditional
- Use of home saved seed
- No pesticides and herbicides usage
- No fertilizer usage
Low input
- Use of certified seed
- Use of pesticides and herbicides
- No fertilizer usage
High input
- Use of certified seed
- Use of pesticides and herbicides
- Use of organic and inorganic fertilizers