62
13/14
Price per seedling
1,800
TotalRevenue
360,000,000
Gross income
91,000,000
LessTax (6%)
21,600,000
NetRevenue
69,400,000
Source: Survey data2014
It was estimated that an initial cost of about UGX930,000,000 (US$358,000) was investedduring the first year of establishing
the facility and most of the capital investments have a lifespan ranging from 5 to 30 years. Putting into consideration the
depreciation rate (straight linemethod), it was estimated that the unit cost of a coffee tissue culture plantingmaterial wasUGX
1,345 approximately US$ 0.52 and at a selling price of UGX 1,800 (US$ 0.69) per seedling, would be a profitable venture.
The tissue culture technology requires committed staff, close supervision, adequate cash flow tomeet routine expenses and
minimum size of screen housewith shade net for hardening of about 250,000plantingmaterials.
Present TissueCulture LaboratoryCapacity
In termsof producingplantlets, therearesevenTissueCulture laboratories inUgandawithan installedcapacityof five (5)million
but only producing 3% of the installed capacity as presented in Table 4.
Table 4:TissueCultureCurrentCapacity
TissueCultureLaboratory
InstalledCapacity
(plantlets)
Current production level
(plantlets)
Royal Plants andNurseries
2,000,000
0
AGT
2,000,000
50,000
Biocrop
150,000
0
MakerereUniversity (Kabanyolo)
100,000
50,000
Kawanda (NaRLI)
50,000
20,000
Senai Bioscience
200,000
0
NsigoTech
200,000
10,000
Total
4,700,000
130,000
Source: Surveydata, 2014
Table 5: Cost benefit Analysis for Elitematerials (Central, EasternandWestern regions)
Activity
Small
Medium
Large
CostUGX
CostUGX
CostUGX
LandRent (per season)
50,000
150,000
300,000
AmonetizedCost ofNurseryShadeConstruction
250,000
650,000
1,000,000
Cost of ShadeMaintenance
100,000
200,000
320,000
Depreciation ofTools andEquipment
150,000
450,000
700,000
Cost of EliteSeeds (1,500 seedlings/kg)
200,000
480,000
1,200,000
Poly pots (kg)
798,000
2,394,000
4,788,000
Forest Soil (5 tonLorry loads)
400,000
1,200,000
2,400,000
Water
300,000
700,000
1,200,000
Pesticides
100,000
300,000
550,000
Manures andFoliar Fertilizers
300,000
900,000
1,500,000
Labour andSecurity
850,000
1,000,000
3,780,000
Management
600,000
600,000
1,000,000
Personal Protective equipment
80,000
240,000
300,000
Transport of seedlings to collection centres
625,000
1,500,000
3,750,000
TotalCost
4,803,000
10,764,000
22,788,000
Cost of production per seedling
192
179
152
