Profit Margins on Maize Production

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

Maize Production
  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
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